India imports record amounts of US soybean oil after drought in South America

According to Reuters ‘ contacts, Indian traders contracted a record of 100,000 tonnes of soy oil from the United States due to limited supplies coming from drought-stricken South America amidst high palm oil prices.

The increased purchases are likely to maintain US soy oil prices, which have risen at nearly 20% this year, the most significant increase seen in a decade, fueling concerns over food inflation.

India, the world’s largest edible oil importer, traditionally buys soy oil from Argentina and Brazil, but lower production in these two major exporters forced New Delhi to look elsewhere.

“Indian traders bought several loads of US soybean oil as prices were attractive and supplies were not enough in South America. Plus, it is likely the additional purchase of the cargo of two more ships in the short term,” said an anonymous source.

Argentina supplies two-thirds of India’s soybean oil need, with the rest coming from Brazil. However, reduced soybean production has depleted Argentina’s soy oil reserves, forcing Indian buyers to turn to alternative sources such as Black Sea region sunflower oil.

“Sunflower oil is less expensive than palm and soybean oil, but some buyers are wary of deliveries due to geopolitical issues (in Russia),” according to Sandeep Bajoria, CEO of Sunvin Group, a brokerage and vegetable oil consulting firm. “They’ve decided to use soybean oil.”

Source: Money Times

To read the full original article, please see:

https://www.moneytimes.com.br/india-faz-compras-recordes-de-oleo-de-soja-nos-eua-apos-seca-na-america-do-sul/

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