India, the world’s biggest soybean oil buyer, canceled several more cargoes from South America as a rally in international prices gave traders an opportunity to book profits.
About 65,000 to 75,000 tonnes that Indian traders booked for April to July have been scrapped in recent days, said Aashish Acharya, vice president at Patanjali Foods Ltd., one of India’s top vegetable oil buyers. The move involves buyers cancelling the cargoes and effectively selling them back to the supplier at a higher price, providing a profit of roughly $40 to $60 a tonne, Acharya said.
The amount of so-called washed out soybean oil could reach around 100,000 to 120,000 tonnes in the coming days, he said. Several other vegetable oil traders confirmed the moves to Bloomberg.
