PALMOILMAGAZINE, NEW DELHI – India, the world’s largest soybean oil importer, has reportedly canceled multiple shipment contracts from South America following a sharp rise in international prices that encouraged traders to lock in profits.
Citing a report from Bloomberg on Friday (February 27, 2026), between 65,000 and 75,000 tons of soybean oil scheduled for delivery between April and July were scrapped in recent days.
According to Aashish Acharya, Vice President of Patanjali Foods Ltd., the cancellations were executed by reselling the cargoes back to suppliers at higher prices, allowing importers to secure margins of roughly US$40 to US$60 per ton.
Also Read: Five Key Issues Shaping Indonesia–India Palm Oil Trade
He noted that the total volume potentially subject to cancellation—or “washed out”—could expand to 100,000–120,000 tons in the coming days. The move reflects market expectations of rising supplies from South America, where soybean production is projected to hit record levels starting April.
The cancellations come amid a strong rally in soybean oil futures in Chicago, which recently climbed to their highest level in more than two years. The surge has been fueled by firmer global energy prices, a U.S.–India trade agreement, and expectations of stronger demand from the biofuel sector.
“Buyers who previously secured contracts at around US$1,080–1,100 per ton are now exiting positions after prices rose to US$1,140–1,147.50 per ton,” Acharya explained.
Also Read: India Remains a Strategic Market for Indonesian Palm Oil
Market observers view the move as a risk management strategy by Indian importers to shield themselves from potential domestic price pressure in the second half of the year, when fresh South American supplies are expected to flood global markets.
Earlier this year, India also canceled 35,000–40,000 tons of soybean oil imports from Brazil and Argentina as a weakening rupee inflated import costs.
On the supply side, expectations of higher U.S. soybean oil exports to India, coupled with expanding biofuel consumption in the United States, have turned soybean oil into one of the best-performing commodities of 2026, with prices rising more than 20% year-to-date. (P2)
