EU soybean meal prices rise as Argentina’s drought impacts production

European soybean meal prices have increased by 5% due to a drought in Argentina, a major supplier of soybean meal to the region. The drought has damaged crops, potentially impacting animal feed manufacturing in the EU and affecting the port and poultry markets. Despite increased domestic cultivation of soybeans in the EU, the region remains heavily reliant on imported soybean meal from Argentina and Brazil.

European soybean meal prices have risen by 5% to a range of $366/mt-$377/mt CIF Netherlands since drought was first declared four weeks ago in Argentina, a main supplier to Europe, a leading supplier of soybean meal to the region said Jan. 16. Argentina-origin product was at the high end of the range while Brazilian product was at the lower end, sources said. Argentina’s Rosario Grains exchange said Jan. 11 that the last 20 days has seen a notable deterioration of crops such as soybeans in the north of Buenos Aires and the extreme south of Santa Fe, due to the lack of rain. “In the region, 19% of the fields are in average to poor condition, 49% are in good condition and 32% are in very good condition. Last year, at this same time, 95% of the fields were in excellent to very good condition, favored by the influence of the “Niño” phenomenon,” the exchange said. The exchanged also warned that, without rain in the next few days, the most advanced fields could begin to lose yield. ...