Soybean oil exports from Argentina and Brazil hit a record high

Combined soybean oil exports from Argentina and Brazil reached a record 0.95 mln tons in July, according to Oil World. Strong demand from India was the main driver. Argentina exported 630 thsd tons, compared with 738 thsd tons in July last year, while Brazil more than doubled its shipments to 318 thsd tons from 138 thsd tons.

India accounted for the largest increase in purchases of South American soybean oil. Its imports rose 31% month-on-month to 498.9 thsd tons in July, the highest level in seven months. The country’s total vegetable oil imports reached 1.48 mln tons, the highest since September 2025. Shipments also increased to several African countries, as well as Mexico, Peru and Colombia.

Strong Indian demand is currently supporting South American exports, but Oil World expects shipments to begin declining in August and the following months as soybean crushing enters its seasonal downturn. This could encourage India and other major importers to shift more of their demand toward palm oil.

Limited sunflower oil supplies from Ukraine and Russia are adding further pressure to the global vegetable oil market. If South American soybean oil exports decline, importers could become even more dependent on palm oil, intensifying competition between the major vegetable oils.

Meanwhile, the US has largely dropped out of the soybean oil export market as its product has become uncompetitive. US exports amounted to only around 9 thsd tons in both May and June and about 8 thsd tons in July, compared with 29 thsd tons a year earlier. Weak US shipments are further increasing global importers’ dependence on South American soybean oil and palm oil.