Orders Cancelled
Indian importers nix 80,000 tonne soyoil cargo from South America as rates rise
This story was originally published at 16:45 IST on 27 February 2026
Register to read our real-time news.Informist, Friday, Feb. 27, 2026
Taniva Singha Roy
MUMBAI – Indian importers have until Friday cancelled three standard cargoes adding up to about 80,000 tonnes of soyoil from South America amid a significant rally in prices. The quantity cancelled, or "washed out" soyoil, may rise to 120,000-130,000 tonnes in the coming days, Aashish Acharya, vice-president, Patanjali Foods Ltd., told Informist.
The importers' decision to wash out South American soyoil cargo is a tactical margin play rather than a signal of weak demand, traders said. The trigger for cancelling the contracts was the sharp rise in soyoil futures on the Chicago Board of Trade, where prices climbed to multi-year highs on expectations of stronger US biofuel mandates, Indrajit Paul, head of research at Agrocorp International Pte. Ltd., said. The Donald Trump administration plans to require large oil refineries to take on at least half of the biofuel blending requirements that were previously waived for small refineries under the small refinery exemption programme. Soyoil prices on CBOT were up 0.2% at 61.42 cents per pound.
The US Environmental Protection Agency has proposed stronger-than-expected renewable volume obligations for 2026 and 2027. For 2026, it has suggested a mandate of 5.61 billion gallons of biomass-based diesel, up from 3.35 billion gallons in 2025. Soyoil prices rose because the increased diversion would mean higher demand for feedstock, including soyoil, to produce biomass-based diesel, Paul said.
As global physical soyoil pricing references Chicago Mercantile Exchange futures, the cost and freight values for India rose to $1,140–$1,147 per tonne. Indian importers had originally contracted these shipments for delivery in Apr–Jul at around $1,080–$1,100 per tonne. "The rally created an opportunity to exit the contracts profitably," Paul said.
"Indian importers reportedly locked in gains of about $40–$60 per tonne by not taking the deliveries," he said. The traders were also able to avoid freight, financing, and currency risk. Taking delivery of higher-priced cargoes in a local market where prices are weakening and supply is ample would have resulted in challenges for the importers, market participants said.
"The move was reinforced by domestic market dynamics," Paul said. "Indian spot prices were softer amid comfortable inventories and expectations of heavy South American arrivals from April onwards, particularly from Brazil and Argentina, could lead to prices in the domestic market falling." Earlier in the season also, India had also 35,000–40,000 tonnes of soyoil imports, with additional volumes from Argentina delayed in December. End
US$1 = INR 90.97
Edited by Rajeev Pai
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