China Soybean Oil Exports Surge

China’s exports of soybean oil to India have risen sharply as weak domestic demand coincides with robust imports of soybeans from South America and more recently the U.S, reports Bloomberg. China shipped a record 70,877 tons of the cooking oil in October, according to customs data, most of which went to India. Exports in the first 10 months of the year reached 329,000 tons, almost triple what they were for all of 2024. China has long viewed its dependence on foreign soybeans as a vulnerability in a world where geopolitics and viruses can quickly disrupt commodity flows. However, robust imports from South America are hitting a tepid local economy, forcing Chinese soyoil processors to seek new markets. “It’s another example of flagging consumption in China resulting in a surplus, with the excess flooding into global markets. In this case it’s a development that’s welcome in India, the world’s biggest importer of soybean oil. This newly forged trade route is likely to become busier, as China returns to buying U.S. soybeans after last month’s trade truce, and relations between Beijing and New Delhi improve. The trade makes logistical sense for India, said Aashish Acharya, a vice president at Patanjali Foods Ltd., one of the country’s top vegetable-oil buyers,” said Bloomberg. Chinese soybean oil is trading at a discount of $10 to $15 a ton to that from South America and can reach India’s east coast in about 10 to 12 days, compared with the 50- to 60-day journey from Brazil and Argentina, Acharya said. China is the world’s biggest producer of soybean oil, producing around 20 million tons a year.
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