Mumbai, April 25 (Commoditiescontrol):Brazilian soybean oil export prices have surged to a near two-year high, driven by a combination of factors including increased demand from China and concerns over potential crop damage due to flooding in the key soybean-producing state of Rio Grande do Sul.
The Paranagua basis, a key indicator of soybean oil export prices, reached its highest level since July 2022. This surge is attributed to renewed demand from China, which recently purchased several shipments of South American soybean oil, and worries about potential disruptions to soybean production and logistics in Rio Grande do Sul due to heavy rains and flooding.
The flooding in Rio Grande do Sul could potentially damage up to 3 million tons of soybeans, according to analysts. This has further fueled concerns about tight supplies and contributed to the price increase.
Meanwhile, the decline in soybean oil futures on the Chicago Mercantile Exchange has also supported FOB levels in Paranagua, as lower international price benchmarks typically prompt traders to adjust export values upwards.
Despite the price increase, Brazil is still expected to export 1.70 million tons of soybean oil in the current marketing year, although this is down from the previous year due to increased domestic demand for biodiesel, which has led to a reorientation of edible oil production towards the domestic market.
(By Commoditiescontrol Bureau; +91-9820130172)
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