KUALA LUMPUR, Sept 18: Importers from China, the world’s largest vegetable oil buyer, have defaulted on palm oil shipments, heightening fears of a massive stock congestion in Asian producing countries.

Refineries and tanks are already overflowing with crude and refined palm oil products in Malaysia and Indonesia, the world’s top producers of the vegetable oil. News of the China defaults comes on the heels of Indian palm oil buyers trying to defer some shipments on Wednesday after a heavy sell-off in vegetable oil markets, while traders said Pakistan had yet to cover its needs for the fourth quarter. “Palm prices could plummet further as defaults and deferments will lead to a slowdown in exports while refiners and traders will be left with cargoes with no immediate place to go to,” said a leading Malaysian trader. —Reuters