Argentina and Brazil exported a combined record 950,000 tonnes of soybean oil in July, supported by stronger demand from India. Brazil’s shipments increased to 318,000 tonnes from 138,000 tonnes a year earlier, while Argentina’s exports declined to 630,000 tonnes from 738,000 tonnes.
India’s soybean oil imports rose 31% month on month in July to 498,900 tonnes, a seven-month high, bringing total imports to 1.48 million tonnes. Market participants expect imports to reach 620,000 tonnes in August, with nearly 1.4 million tonnes reportedly booked for delivery between September and December.
Argentine soybean oil for September shipment was assessed at $1,183.66/t FOB Up River on 18 August, and Brazilian oil at $1,185/t FOB Paranaguá. These values were below the equivalent cost of refined palm olein, while October crude palm oil futures in Malaysia rose 5% over seven days to 4,961 ringgit/t.
The developments strengthen South American competition in India and reduce the competitiveness of US soybean oil. For Black Sea traders, the reported halt in Russian and Ukrainian sunflower oil exports could support alternative-origin vegetable oils, although lower regional sunflower prices may enable containerised Black Sea supplies to India.