Argentine soybean meal sees price premium amid European demand

Argentine soybean meal is commanding a premium of US$6 per ton over Brazilian products due to robust demand from Europe. This surge is driven by anticipatory purchases ahead of the implementation of the European Union Deforestation Regulation (EUDR), which will require proof that food products originate from areas free of deforestation.

Dante Romano, a researcher at the University Austral, noted that the unusually high demand is maintaining attractive milling margins in Argentina. This trend may lead to an increased need for soybean origination by local factories, particularly if the export program for subproducts remains strong. Additionally, premiums of between US$3 and US$8 per ton are being offered for documentation related to VISEC, Sustentable, and EPA standards.

While the Argentine soy complex shows strength, the broader international grain market is facing downward pressure due to Chinese tariff retention on U.S. beans and rising corn stocks in the United States.