EU soymeal market cautious as EC proposes extended EUDR implementation

European soybean buyers and sellers told Platts, part of S&P Global Energy, on Oct. 22 that they were cautious about near-term price trends following the EU Commission's Oct. 21 proposal on the extended implementation of the EU Deforestation Regulation.

The commission has proposed that the EUDR still enter into force on Dec. 30, 2025, for large- and medium-sized in-scope companies, but that it only apply to micro and small operators from Dec. 30, 2026, instead of June 30, 2026.

The proposal also calls for a six-month grace period in enforcement for large- and medium-sized in-scope companies, so supervisory authorities conduct enforcement checks and measures after June 30, 2026. Enforcement will take place after Dec. 30, 2026 for micro and small operators.

The European Parliament and Council will next discuss the proposal and will have to formally adopt the targeted amendment of the EUDR before it comes into effect. The commission has called for the proposal to be adopted by the end of 2025.

"This is not a final decision," a Netherlands-based seller said. "It is a proposal from the EU Commission and now has to go through the Environment Committee Chair for approval."

A Denmark-based buyer noted that many purchasers had already secured volumes ahead of the EUDR taking effect. At the same time, a second Netherlands seller highlighted broader market pressures.

"Prices have firmed considerably over the past week due to stronger CBOT futures and firmer origin premiums. Now, the additional challenge of EUDR could push prices higher in the coming days," the seller said.

"These challenges are complicating feed cost planning for EU buyers in the month ahead," a feed consultant based in Romania said.

Market participants remain cautious, with many taking a wait-and-see approach.

"A clearer picture of the market trend will only emerge after the EUDR is officially approved," said a third Netherlands seller.

In Spain, multiple market participants said they are closely monitoring how soybean meal prices will react to the news, as offers in the market are drying up.

"There are no offers in the market; it's completely dried up," a Barcelona-based seller said.

"There isn't much information about this issue, and there aren't many prices available for next year," a Lleida-based buyer said.

"I'm awaiting the reaction of importers and crushers in Spain regarding soybean meal prices," a Madrid-based broker said.

Reflecting the firming market tone, Platts, part of S&P Global Energy, assessed soybean meal FOB Netherlands at Eur301/mt on Oct. 22, up by Eur10/mt from Oct. 20. Platts assessed soybean meal EXW Spain at Eur306/mt on Oct. 22, up 3% week over week.