MUMBAI: Indian traders have cancelled 25,000 metric tons of soymeal export contracts for the first time since 2021 and booked 80,000 tons of imports from African countries after soaring domestic prices reversed trade flows, trade sources said.
The cancellations are likely to help soymeal suppliers in North and South America boost shipments to Asian buyers that traditionally source from India. India’s soybean purchases are also allowing African exporters to sell the oilseed at a hefty premium to global benchmark prices .
Soymeal, a widely used livestock feed ingredient, is produced when soybeans are crushed for oil extraction.
The sudden jump in domestic soybean prices pushed up soymeal costs, making it difficult for traders to fulfil export commitments, said two dealers with global trade houses, who declined to be named publicly because they were not authorised to speak to the media.
“It wasn’t possible for sellers to absorb the $200 per ton increase, so they mutually agreed with buyers to cancel the contracts for May and June shipments,” one of the sources said.
The cancellations, or washouts, which have not been reported previously, are rare in the soymeal trade, as sharp price swings are relatively uncommon. The washouts did not involve penalties.
Local soymeal prices jumped 41% in a month to 66,000 rupees per metric ton, their highest level in four years, amid tight supplies due to a drop in soybean production.
Soybeans firm on higher oil prices; wheat, corn gain
The rally pushed Indian soymeal export offers for June loading shipments to about $695 per metric ton free on board, up from around $475 a month ago, the sources said.
India is not receiving new soymeal export orders because of elevated prices, prompting traders to step up imports from African countries, said Vinod Jain, founder of agricultural goods exporter Suraj Impex.
India’s soybean imports could rise to a record 800,000 tons in the year to September 2026, Jain said. India imported about 2,000 tons in the previous year, according to data compiled by the Soybean Processors Association of India.
India permits imports only of non-genetically-modified soybeans, restricting supplies to a handful of African nations – including Benin, Niger, Togo and Nigeria – where non-GM beans command a steep premium over genetically modified varieties.
Traders this month bought African soybeans at $700 to $760 per ton on a cost, insurance and freight basis for June and July shipments to India, said Manoj Agrawal, managing director of Maharashtra Oil Extractions, a soymeal producer and exporter.
Traders have bought at least 80,000 tons of soybeans this month, with purchases continuing as local soybean prices remain firm, one of the sources said.
Soybean supplies are expected to remain tight until the new season’s crop arrives in September and October, prompting traders to import from African countries, said Ashok Bhutada, a soybean processor based in Latur, Maharashtra state.
