EU demand lifts Argentine soybean meal premium to highest since May

The premium of Argentine soybean meal over Brazilian product rose in late September to its highest level since mid-May, supported by stronger buying interest from European importers ahead of EUDR implementation.

On September 29, the FOB Up River basis for Argentine meal was assessed at a $24/short ton premium to CBOT futures, while the FOB Paranaguá basis in Brazil stood at $18.50/short ton. This put the Argentine premium over Brazilian meal at $5.50/short ton.

In flat-price terms, Platts assessed Argentine soybean meal FOB Up River at $422.18/t, compared with $416.12/t for Brazilian FOB Paranaguá meal. The market structure is unusual, as Argentine meal typically trades at a discount due to logistical constraints and draft restrictions along the Up River export corridor.

The stronger demand is linked to European buyers preparing for EUDR compliance. Italy remains one of the main EU destinations for Argentine soybean meal, while buyers in the Netherlands continue to favor Brazilian product due to concerns over the HB4 trait in Argentine supplies.

Argentina is expected to export around 30 mln tons of soybean meal in the 2025/26 MY, while Brazil is forecast at around 26 mln tons. Together, the two countries account for more than 60% of global exports, meaning shifts in EU demand can significantly affect the premium relationship between the two origins.

Tags: Brazil, EU, soybean meal, Argentina