A new trend has emerged in the vegetable oils market – India has purchased a record volume of soybean oil from China.

Trade wars initiated by President Trump continue to reshape supply chains and unbalance markets. In the soybean oil market, an unusual situation has emerged where prices in the U.S. have reached record levels, while China, a net importer of soybean oil, has started selling its surplus to India (the world's second-largest importer) at prices lower than those offered by South American soybean producers. Indian importers have purchased a record 150,000 tons of soybean oil from China, as the surplus supply forced Chinese processors to sell oil at a discount to reduce inventories, which significantly increased after soybean imports to the country reached a record high in May and led to increased processing and inventories amid declining demand. As a result, Indian importers bought soybean oil for delivery from September to December at a price that is $15-20/ton lower than offers from South America. Surplus soybean meal and oil are forcing Chinese soybean processors to sell their ...