India Cancels 25,000 Ton Soymeal Export Deals, Increases Soybean Imports from Africa

Indian traders have cancelled export contracts for nearly 25,000 metric tons of soymeal after a sharp rise in domestic soybean prices disrupted shipments scheduled for May and June 2026, as per a Reuters report. The cancellations are the first reported in the soymeal trade since 2021. 

Reports also suggest that the exporters and buyers agreed to withdraw the deals after local prices rose sharply over the past month. The cancelled contracts, also referred to as washouts in commodity markets, were settled without penalties. 

Soymeal Prices Hit 4-Year High 

Domestic soymeal prices have climbed around 41% in 1 month to nearly ₹66,000 per metric ton. Market participants attributed the increase to lower soybean production and tighter domestic supplies. 

India’s soymeal export offers for June shipments rose to about $695 per ton free on board, compared with nearly $475 per ton a month earlier. Traders said exporters were unable to absorb the increase in raw material costs after contracts had already been signed. 

Soymeal is produced after soybeans are crushed for oil extraction and is mainly used as a livestock feed ingredient. 

African Soybean Imports Rise 

As local supplies tightened, traders increased soybean purchases from African countries. Market participants said at least 80,000 tons of soybeans have been booked this month for June and July arrivals. 

India allows imports only of non-genetically modified soybeans, limiting sourcing options to a few African countries including Benin, Niger, Togo and Nigeria.  

Traders said imported cargoes were bought at prices between $700 and $760 per ton on a cost, insurance and freight basis. 

Export Orders Slow 

Traders, as per the report said higher domestic prices have reduced fresh export enquiries for Indian soymeal in overseas markets. Suppliers in North and South America are to benefit as Asian buyers look for alternative sources. 

Industry estimates suggest India’s soybean imports could rise to around 800,000 tons in the year ending September 2026. According to Soybean Processors Association of India data, imports stood at nearly 2,000 tons in the previous year. 

Supplies Expected to Stay Tight 

Processors and traders expect domestic soybean supplies to remain limited until the arrival of the new crop during September and October. Imports are likely to continue as local prices remain elevated. 

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Conclusion  

The rise in domestic soybean prices has pushed Indian soymeal export offers higher, slowing overseas demand and prompting traders to secure additional soybean supplies from Africa ahead of the new harvest season. 

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