European cereal prices rally as Argentine soy harvest drops

European cereal futures surged on Euronext in mid‑June, pushing barley and wheat prices above last year's levels and creating tension in Spain's domestic market. A sharp rise on 24 June was followed by a corrective pull‑back, especially in wheat futures, while corn prices fell less sharply amid a heatwave that could affect spring crops.

In Argentina, the 2025/26 soybean campaign in Entre Ríos fell 22 % to about 2.7 million tonnes. Production declined due to a 5 % reduction in planted area—partly displaced by expanding corn acreage—and lower yields caused by summer drought conditions. Corn prices in Rosario were quoted at 264 000 ARS per tonne, reflecting strong export demand and logistical bottlenecks. At the same time, global demand for soybean oil as a feedstock for biodiesel and sustainable aviation fuel has lifted oil prices about 13 % since early 2026, offering new export opportunities for Argentina, though policy and export‑tax constraints remain.