Brazilian soyabean oil exports jump 47% amid record crop and weak domestic demand

Brazilian soyabean oil exports rose by 47% year-on-year through April 2026, reaching one of the highest levels in nearly two decades. The sharp increase was driven by a record soyabean harvest, elevated crushing activity, and weaker-than-expected domestic demand, which left a significant surplus of vegetable oil available for export.

As the world’s largest soyabean producer, Brazil is processing unprecedented volumes of the oilseed this season. However, delays in expanding domestic biodiesel blending mandates have limited local absorption of soyabean oil, contributing to oversupply conditions in the domestic market and pushing exporters to redirect larger volumes to international buyers.

Despite Chicago soyabean oil futures rising by nearly 56% since the start of the year, domestic export prices in Brazil have lagged significantly. The discount at the country’s key export hub, Paranaguá port, reached its widest level since 2023, making Brazilian soyabean oil highly competitive on global markets and boosting outbound shipments.

Low domestic prices combined with strong crushing margins have encouraged processors to maximise exports, with key destinations including India, Bangladesh, and countries in North Africa. At the same time, Brazil’s crushing industry continues to operate at high capacity, supported by abundant soyabean supplies from the record harvest.

According to Brazil’s crop agency Conab, soyabean production in the 2025/26 season is forecast to reach 180.1 million tonnes, an all-time high, while total grain output is projected at around 358 million tonnes. Analysts note that the combination of record supply and delayed policy adjustments in the biodiesel sector is likely to continue shaping export flows of soyabean oil in the coming months.

Tags: soybean oil, Brazil, export