India Buys Record Argentine Soy Oil Volume After Export Duty Scrapped

India has purchased 300,000 metric tons (MT) of soy oil from Argentina, the largest-ever two-day purchase, dealers said, taking advantage of Buenos Aires’ move to scrap export taxes on soybeans and other food products, Rajendra Jadhav reported for Reuters.

The soyoil was bought at $1,100 to $1,120 a ton, including cost, insurance and freight.

The aggressive buying will help Argentina cut its soy oil stocks but could also mean fewer palm oil shipments from Indonesia and Malaysia to India.

The soy oil, for October–March shipment, was bought by private trading houses, the dealers said. “The volume bought in such a short period is unprecedented,” said a New Delhi-based dealer, noting that traders largely ignored palm oil.

Argentina on Monday temporarily scrapped export taxes on various farm goods, including soybeans, in a bid to accelerate overseas sales and bring in much-needed US dollars to support its weakening peso.

India, the world’s biggest buyer of vegetable oils, typically imports just under 300,000 MT of soy oil a month, and this week’s purchases underscore the impact of Argentina’s decision.

The soy oil was bought at $1,100 to $1,120 a ton, including cost, insurance and freight (CIF).

“As prices corrected by around $50 following the duty exemption, Indian buyers rushed to make purchases, finding it cheaper than palm oil,” one dealer added.