India has purchased a heavy soyoil volume from Argentina during the three days in which Argentina’s export taxes on various agricultural products were suspended, with soyoil prices plunging by more than $50 per tonne on a CFR West Coast India basis since the suspension was announced.
Argentina re-imposes the Export taxes in September
On Monday, September 22, the government discarded the export taxes of oilseeds, grains, and products till October 31 or until export license applications reached an amount equivalent to $7 billion. Argentina announced on Wednesday, September 24, that it was going to re-impose the export taxes after reaching the $7 billion mark. Indian market sources have estimated that 200,000-400,000 tonnes of soyoil were traded between Tuesday, September 23, and Wednesday on a CFR West Coast India basis for October, November, and December loading; November and December loading; and January, February, and March loading.
Latest Purchases of Soyoil volume reflect an opportunity
According to several market sources, these latest purchases massively reflected an opportunity that was created by the change in the export taxes in Argentina, as discussed during the largest vegoils conference in the world, Globoil, in India. In addition, a broker based in India stated that the country is well-covered after recently receiving Soyoil volumes from Argentina, but if soyoil prices remain competitive in comparison of palm oil, it could lead to room for more soyoil imports as the beginning of the harvest of local crops is delayed after extended rains.
Data given by the Argentine government showed that nearly 1.521 million tonnes that is a heavy soyoil volume, were registered for export during the period without export taxes. Notably, Argentina is the world’s largest exporter of soyoil, while India is the largest importer.