Soybean oil prices in Argentina and Brazil nearly converge
Soybean oil prices in Argentina and Brazil moved closer together after diverging last week. Argentine soybean oil strengthened, while Brazilian prices declined, sharply narrowing Brazil’s premium over Argentina.
As of September 15, Argentine soybean oil FOB Up River for October delivery rose by $5.74/t, or 0.47%, over the week to $1,223.13/t. At the same time, Brazilian soybean oil FOB Paranaguá fell by $7.50/t, or 0.61%, to $1,227.53/t.
As a result, Brazil’s premium over Argentine soybean oil narrowed to $4.40/t from $17.64/t a week earlier. Meanwhile, Chicago soybean oil futures declined by 0.48% over the same period.
Fresh NOPA data on US soybean processing also influenced the market. In August, association members crushed 205.46 mln bushels of soybeans, below market expectations of 211.55 mln bushels. Soybean oil stocks were also lower than expected at 1.201 bln lb versus forecasts of 1.257 bln lb.
In Brazil, Conab estimates the soybean crop at 180.4 mln tons, slightly below its previous forecast. USDA, meanwhile, projects a significantly larger crop of 186 mln tons, which remains an important factor for further soybean and soybean oil price dynamics.
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