News Capsule: India–US Trade Deal Lifts Soybean Oil on CBOT
10-Feb-2026 01:17 PM
News Capsule: India–US Trade Deal Lifts Soybean Oil on CBOT
★ Soybean oil prices on the Chicago Board of Trade (CBOT) climbed to a six-month high after India agreed to reduce or eliminate import duties on US soybean oil under an interim trade agreement with the United States.
★ India imports around 16 million tonnes of edible oils annually, including palm oil, soybean oil, and sunflower oil.
★ In 2024–25, India imported a record 5.47 million tonnes of soybean oil.
★ Argentina remained the largest supplier at 2.89 million tonnes, followed by Brazil at 1.14 million tonnes, while the US accounted for only about 4% of total imports, roughly 0.18 million tonnes.
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Potential Market Impact
★ If large volumes of US soybean oil are allowed at zero duty (subject only to a 5% agriculture cess), it could put pressure on crude soybean oil prices from Argentina and Brazil.
★ Palm oil prices may also be affected, although palm oil is currently about $100 per tonne cheaper than soybean oil.
★ For 2025–26, India’s domestic edible oil production is estimated at 9.6 million tonnes.
★ To meet domestic demand, the country is expected to import around 16.7 million tonnes of edible oils.
★ Approximately 60% of India’s total edible oil demand is met through imports.