China Posts Record Soybean Oil Exports in October

An industry survey showed China exported a record 70,877 tonnes of soybean oil in October 2025, with most of the volume heading to India. China's soybean surplus was driven by huge imports from South America and the United States, at a time when domestic demand for the oil weakened amid an economic slowdown. As a result, processors found themselves with a surplus the domestic market could not absorb, leading to record shipments to India, the world's largest consumer of soybean oil.

In the first ten months of 2025, China's soybean oil exports totalled 329,000 tonnes, nearly triple the level recorded for the whole of last year. The resumption of soybean purchases from the United States following a temporary trade truce, together with improving trade relations with India, is reinforcing this trend. Trade between China and India is expected to keep growing along this path.

For India, these imports are proving beneficial both economically and logistically. As Ashish Acharya, vice-president of Patanjali Foods Ltd, noted, Chinese soybean oil is comparable in quality to South American oil but costs $10 to $15 a tonne less. In addition, shipping to India's east coast takes just 10 to 12 days, far quicker than the 50-60 days required for shipments from Brazil or Argentina. In November, around 70,000 tonnes of Chinese oil had already arrived in India, with volumes potentially rising by a further 12,000 tonnes.

China produces about 20 million tonnes of soybean oil a year, and in the past almost all of that output was consumed domestically. However, with restaurant activity slowing and the broader economy weakening, consumption has fallen, and commercial stocks have exceeded one million tonnes — the highest level in seven years for mid-November, according to data from Mysteel.

With refineries continuing to operate at high capacity and domestic demand unlikely to recover quickly, India is expected to keep receiving growing volumes of Chinese soybean oil in the coming months, cementing China's role as a key supplier to the Indian market.

Source: Reuters