Argentina and Brazil set soybean oil export record as Indian demand surges

South American shipments reach 950,000 tonnes

Combined soybean oil exports from Argentina and Brazil rose to a record 950,000 tonnes in July, according to Oil World estimates reported by ZOL.ru. Strong demand from India was the principal driver, while additional volumes moved to several African markets, Mexico, Peru and Colombia.

Argentina remained the largest supplier, shipping 630,000 tonnes. That was below the 738,000 tonnes exported in July 2025. Brazil provided the growth: its shipments climbed to 318,000 tonnes from 138,000 tonnes a year earlier. The figures indicate that Brazil's increase more than offset the decline in Argentine exports.

The combined result reinforces South America's central position in the internationally traded soybean oil market. It also shows how quickly Brazilian supply can affect global availability when demand accelerates and Argentina, traditionally the dominant exporter, ships less than in the previous year.

India drives the record month

India's soybean oil imports increased to 498,900 tonnes in July, up 31% from the previous month and the highest level in seven months. The country's total vegetable oil imports reached 1.48 million tonnes, their highest level since September 2025, according to the same report.

The Indian increase absorbed more South American supply than any other destination. More moderate export growth was recorded for several African countries as well as Mexico, Peru and Colombia. This broader demand base gave Argentine and Brazilian crushers access to markets beyond the single largest buyer, although India remained decisive for the July record.

For importers, the concentration of exportable soybean oil in South America raises exposure to crushing schedules and regional supply conditions. Argentina and Brazil can cover large purchasing programs during their high-output period, but buyers face fewer alternatives when their processing volumes decline.

Seasonal slowdown could shift demand to palm oil

Oil World expects Argentine and Brazilian exports to decline from August and in subsequent months as soybean crushing enters a seasonal downturn. Sustaining July's pace is therefore uncertain. India and other importing countries could become more dependent on palm oil, particularly while sunflower oil supplies from Russia and Ukraine remain limited.

The United States currently offers little relief. US soybean oil has been uncompetitive on the export market since March, ZOL.ru reported. Shipments fell to only 9,000 tonnes in each of May and June and about 8,000 tonnes in July, compared with 29,000 tonnes in July 2025. With US participation sharply reduced, importers are more reliant on South American soybean oil and palm oil. The next phase of the market will depend on how rapidly South American exports retreat after their July peak and whether palm oil can absorb demand displaced by lower soybean and sunflower oil availability.