India makes rare long-term soyoil purchases to secure affordable supplies

The move was driven by soy’s rare discount of $20–30 per ton to palm oil, which typically trades at a lower price. The wave of buying reflects expectations of rising palm oil prices due to Indonesia’s plan to expand its biodiesel mandate. The world’s largest palm oil exporter intends to increase its blending requirement from 40% to 50% (B50) starting in the second half of 2026, a shift that could significantly reduce exportable supplies and tighten global markets. Mayur Toshniwal, president of Emami Agrotech Ltd., described the current level of forward coverage as “exceptionally large,” driven by fears of a potential supply deficit next year. Traders are also hedging against the risk of tighter sunflower oil supplies. Poor harvests in the Black Sea region and Europe may curb production this season, noted Anilkumar Bagani of Sunvin Group. Already, Black Sea sunflower oil is priced $230–250 per ton above South American soyoil for shipments through July 2026. Acharya added that spot ...