InfoSAWIT, NEW DELHI – India, the world’s largest soybean oil importer, has reportedly canceled several shipment contracts from South America following a sharp rally in international prices, as traders moved to lock in profits.

According to Bloomberg, as quote by InfoSAWIT on Friday (February 27, 2026), approximately 65,000 to 75,000 tons of soybean oil previously booked for April to July shipments were canceled in recent days.

Aashish Acharya, Vice President of Patanjali Foods Ltd., said importers unwound contracts by reselling cargoes back to suppliers at higher prices, generating profits of around US$40 to US$60 per ton.

He added that total cancellations, or washed-out volumes, could reach between 100,000 and 120,000 tons in the coming days, as market participants anticipate record soybean harvests in South America beginning in April.

The move comes amid a rally in Chicago soybean oil futures, which have climbed to their highest levels in more than two years. The surge has been driven by stronger global energy prices, a new trade agreement between the United States and India, and expectations of rising demand from the biofuel sector.

“Buyers who secured contracts at US$1,080 to US$1,100 per ton are now exiting positions as prices climbed to around US$1,140 to US$1,147.50 per ton,” Acharya explained.

The cancellations are also viewed as a risk mitigation strategy, allowing Indian importers to avoid potential domestic price pressure in the second half of the year when fresh South American supplies are expected to flood the global market.

Earlier this year, India also canceled 35,000 to 40,000 tons of soybean oil imports from Brazil and Argentina due to the weakening rupee, which raised import costs.

Meanwhile, expectations of stronger US soybean oil exports to India and expanding biofuel use in the US have made soybean oil one of the best-performing commodities of 2026, rising more than 20% since the beginning of the year. (T2)