European soymeal prices surge on EUDR premiums and firm CBOT futures

Soymeal prices across Europe have surged in recent weeks, with traders attributing the increase to the introduction of an EUDR-related premium and firmer CBOT futures.

Broker indications show that offers in the Netherlands increased from Eur303/mt to Eur330-345/mt FOB Amsterdam/Rotterdam for November/December loading, marking a 9%-14% week-over-week gain.

"The offer prices have gone up sharply in recent days, keeping the market quiet for now," a Netherlands-based seller said. "With ongoing US-China trade discussions, CBOT has strengthened notably, pushing premiums higher." As a result, overall price indications have risen by about 15%.

In Italy, soymeal prices for November-December delivery climbed to Eur345/mt from Eur315/mt the previous week, reflecting a premium of around $90/mt over CBOT, compared with $60/mt earlier, according to an Italian seller.

"However, no buyers are committing forward, activity remains mostly spot and selective," the seller said.

Amid rising prices and market uncertainty, the European Feed Manufacturers' Federation, or FEFAC, issued a statement to the Danish EU Farm Council Presidency on Oct. 28, warning of potential soy supply chain disruption linked to the EU Commission's recent "targeted simplification" proposal on the EU Deforestation Regulation. FEFAC experts estimated a 5%-10% increase in soybean meal costs due to EUDR-related risk premiums for limited first-quarter volumes, which could also affect other protein feeds such as rapeseed and sunflower meal.

Platts, part of S&P Global Energy, assessed Soybean meal FOB Netherlands at Eur307/mt on Oct. 28, up Eur6/mt.