Soybean oil exports reached record levels in October, surpassing any figures from the past 17 years. According to a recent report by the Rosario Board of Trade (BCR), this performance makes October the standout month of the current season and only the second time in history such a milestone has been achieved.
The report highlights that cumulative soybean oil exports between April and November totaled 4.4 million tons, making this cycle one of the top three in history. India, the primary market for Argentine soybean oil, absorbed nearly 2 million tons, marking an all-time high in trade relations between the two countries. Meanwhile, China quadrupled its six-year average purchases, acquiring 464,000 tons to date.
October Boom and Positive Projections for November
In October, Argentine soybean oil shipments reached unprecedented levels not seen since 2006, marking a turning point for the soybean derivative trade. This highlights the industry’s strength amid a global shortage of vegetable oils, boosting demand for Argentine oil as a competitive alternative.
Preliminary estimates suggest that November will also be a standout month, with more than 630,000 tons exported — the highest for this month in 14 years. If confirmed, November would become the second-best month of the current season, reinforcing the upward trend in exports.
India leads global purchases with a dominant share, but the surge in Chinese demand has been pivotal in driving export growth. Meanwhile, international market dynamics show that FOB premiums for Argentine oil are trading 14% above Chicago benchmark prices, underscoring the sector’s strong competitiveness.
Global Demand and Prices Sustain Growth
The export boom comes in a context of high competitiveness for Argentine oil in global markets. FOB premiums have reached levels not seen since December 2021, with a 13% price increase between October and November, hitting $1,180 per ton — the highest since February this year.
Despite favorable foreign trade conditions, local prices have seen a slight real-term contraction. Soybeans were priced at an average of 294,000 pesos per ton last week, a 2% decline from the previous week, marking the lowest level since September. However, exports remain attractive due to favorable exchange rates, with the gap between the official and parallel exchange rates exceeding 10%.
Impact on Industry and Record Processing
The export record correlates with industrial activity, which saw 4 million tons of soybeans crushed in October — the highest for this month in history. This volume contributes to an annual total of 26.7 million tons processed, 58% more than in the same period of 2022. This growth reflects the local industry’s efforts to meet strong international demand for soybean derivatives.
This performance is complemented by increased soybean imports, mainly from Paraguay, which contributed 6 million tons so far this season. These imports have been crucial in maintaining the quality and volume of derivatives, as Paraguayan soybeans allow for higher protein content in final products, ensuring global market competitiveness.
Outlook and Consolidation of Argentine Oil
The BCR report emphasizes that despite challenges in the local market and costs associated with imports, Argentina’s soybean complex has solidified its position as a key player in the global market. Strong international demand and competitive prices enhance the appeal of Argentine soybean oil, which closes the year with historically high export volumes.
As the season draws to a close, projections for the coming months remain optimistic. The performance of Argentine oil reaffirms the sector’s ability to adapt to international dynamics and meet the demands of global trade with resilience.