Traders from India signed contracts to import a record 100,000 tons of soy oil from the U.S. Reuters says India made the buy because of limited supplies from drought-hit South America during a time when the price of rival palm oil is at record-high levels.
The increased purchases from the U.S. are expected to support U.S. soy oil prices which are 20 percent higher this year and close to their highest point in ten years.
India is the world’s biggest edible oil importer and usually buys from Argentina and Brazil. Lower soybean output in those two countries forced India to turn to the U.S.
“Buyers in India have bought U.S. soy oil vessels,” says the head of a global trading firm in India who wished to remain anonymous because of company policy. “Prices were attractive, and there weren’t enough supplies in South America. Buying another two vessels is possible in the short term.”