India Cancels Up to 75,000 Tonnes of Soybean Oil Imports
26-Feb-2026 01:40 PM
India Cancels Up to 75,000 Tonnes of Soybean Oil Imports
Amid rising international prices, India has cancelled import contracts for 65,000–75,000 tonnes of soybean oil scheduled for April–July delivery. Industry sources indicate that the total cancelled volume could rise to 100,000–120,000 tonnes in the coming days.
Indian buyers had earlier contracted supplies at $1,080–$1,100 per tonne. Following the recent rally, prices increased to $1,140–$1,147.50 per tonne. Taking advantage of this price difference, buyers opted for a “washout,” booking profits of $40–$60 per tonne.
Under this strategy, buyers do not take physical delivery of the cargo. Instead, they exit the contract at higher prices, effectively selling it back and locking in gains.
Soybean oil futures on the Chicago Board of Trade have climbed to a two-year high. Positive signals around US biofuel blending mandates have boosted demand expectations.
Meanwhile, Brazil and Argentina are expected to produce a record soybean crop this year. Heavy supplies are likely to enter the market between April and July, which could pressure prices going forward.
Indian buyers currently hold adequate stocks and are unwilling to take delivery at elevated prices. If global prices decline in the coming months, cheaper supplies may become available.
Earlier, India had already cancelled 35,000–40,000 tonnes of soybean oil shipments from Brazil and Argentina. In December, more than 100,000 tonnes of Argentine deals were either cancelled or deferred. A weaker rupee had also made imports more expensive and less economical.