India would buy more soybean oil from Brazil after conflict in Ukraine


Brazil’s soybean oil exports could soar this year thanks to stronger demand from India, the world’s largest importer. It is that in the context of the armed conflict between Russia and Ukraine new problems arose to supply vegetable oils, after the difficulties to buy palm oil in Indonesia.

“India is very active in the market,” André Nassar, head of the local oilseed processing lobby Abiove, told Reuters. The businessman added that “he went to Argentina, to the United States, he arrived in Brazil, they are talking to everyone.”

The scenario was complicated by the drought in South America and the projected lower production in Argentina in the current soybean campaign (40.5 million tons compared to 45 million in 2020/21).

But the key point is that after Indonesia’s recent decision to curb its palm oil exports, international prices rose to a record, which led to demand for substitute oils (sunflower and soybean), generating upward pressure in those markets as well. .

Thus, Nassar told Reuters that India feels “insecure” about its traditional trading partners, and is trying to increase the use of soybean oil amid the conflict in Ukraine and Indonesia’s palm oil supply problems. .

In the case of Brazil, Brazilian soybean oil exports could exceed 1.7 million tons in 2022. This would be a record, according to Abiove’s projections, which take into account demand from India.

According to official data, Brazilian exports of soybean oil in January climbed to 170,300 tons, compared to 8,500 tons in the same period of the previous year, and in this context, India bought almost 140,000 tons, the largest volume in at least 20 years.

In January alone, exports to the Indian subcontinent accounted for more than 20% of all of last year’s volumes to that destination. India also bought 100,000 tons of soybean oil from the United States, ensuring supply of the product.

In this context, and with a smaller area planted in Argentina, as a result of the decision of producers to convert more land to corn than to oilseed, it is likely that our country will not be able to take advantage of this excess demand.

While soybeans pay 30% withholdings and derivatives (soybean meal) 33%, corn and wheat pay 12% as export duties.

Brazil’s soybean oil exports could exceed 1.7 million tons in 2022. This would be a record, according to Abiove’s projections, which take into account demand from India.



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