Brazil's soybean meal exports hit record high amid price drop

Brazilian soybean meal shipments closed 2024 at a record volume, as export prices for the commodity fell more than 20% on the year.

According to estimates from the National Supply Company, or Conab, Brazil sold 22.90 million mt of soybean meal abroad in the 2023-24 marketing year, which coincides with the full-year of 2024 (January-December), the highest figure in history.

For MY 2024-25, with the soybean harvest just beginning, Conab expects another robust volume of exports at 22 million mt.

Brazil is usually the second-largest exporter of soybean meal in the world, behind only Argentina.

In 2024, soybean meal production in the country benefited from increased processing of soybeans, given the biodiesel industry's need for more soybean oil, as the mandatory blend of the biofuel with diesel increased from 12% to 14% in March.

Conab projected soybean crushing in 2024 at 52.74 million mt. The estimates were released Jan. 14 in the company's monthly report.

Falling prices

Brazil's soybean meal export prices showed a downward trend throughout 2024, becoming an attractive option for both international and domestic buyers, especially poultry and pork producers who use the commodity as an important ingredient in animal feed.

On Jan. 13, Platts assessed the price of soybean meal FOB Paranaguá at $329.37/mt, a decrease of 23.6% from the same period last year. This value considers spot shipments.

Currently, the prices of soybean meal FOB Paranaguá, the national reference for the commodity, are at their lowest levels in over four years, according to Platts, part of S&P Global Commodity Insights.