Argentina soybean crush strengthens in June amid ample global supply outlook

Argentina's soybean processing accelerated in June, increasing soybean oil availability as the US Department of Agriculture's Aug. 12 World Agricultural Supply and Demand Estimates report kept a broadly comfortable global soybean supply outlook.

Argentina crushed 4.14 million metric tons of soybeans in June, up from 4.06 million mt in June 2025, an increase of about 1.9%, according to official data from Argentina's Secretariat of Agriculture. Soybean oil production totaled 828,912 mt, up 5.7% from 784,272 mt a year earlier.

Processing also remained elevated compared with earlier in 2026. Argentina crushed 3.49 million mt in April and 4.19 million mt in May, bringing soybean processing during April-June to about 11.82 million mt, according to the government data. Soybean oil production during the three-month period totaled approximately 2.35 million mt.

An Argentina-based broker said elevated processing rates have maintained ample soybean oil availability for the export market, while international demand has continued absorbing supplies.

WASDE maintains comfortable supply outlook

The USDA's Aug. 12 WASDE reinforced the broader supply backdrop, with global soybean ending stocks for 2026-27 projected at 124.2 million mt, down 900,000 mt from July but still historically substantial. USDA projected combined beginning soybean stocks in Argentina and Brazil at 61.5 million mt.

US soybean production was raised by 44 million bushels to 4.5 billion bushels, as increased harvested acreage more than offset a lower yield forecast. USDA also raised US soybean crush by 30 million bushels to 2.78 billion bushels, citing strong crush margins and increased demand for soybean meal and soybean oil.

The combination of substantial soybean supplies and elevated processing levels suggests that soybean oil demand will remain a key determinant of South American values as crushers seek outlets for increased production.

A São Paulo-based broker said that strong processing and ample soybean availability could sustain competition among South American exporters, while international demand for soybean oil and biofuel consumption could help absorb additional supplies.

South American FOB values remain closely aligned

Platts, part of S&P Global Energy, assessments showed Brazilian and Argentine soybean oil values remained closely aligned during August through Aug. 12, with Brazil trading at a modest premium to Argentina.

Using July 30 as a pre-August benchmark, Platts, part of S&P Global Energy, assessed Argentine soybean oil FOB Up River for September loading at $1,189.62/mt Aug. 12, up $9.71/mt, or 0.82%, from $1,179.91/mt July 30. The September Up River basis weakened 50 points during the period to minus 1,520 points against CBOT September soybean oil futures.

Brazilian soybean oil FOB Paranaguá for September loading increased $11.91/mt, or 1.01%, to $1,196.23/mt, while the basis weakened 40 points to minus 1,490 points.

The price difference between the two origins remained relatively narrow. Brazil's premium to Argentina rose from $4.41/mt immediately before August to $6.61/mt Aug. 12, equivalent to about 0.6% of the outright FOB value. The narrow spread indicated that Brazilian and Argentine export values remained closely linked despite differences in domestic supply, crush economics and demand.

An Argentina-based broker said that increased processing has maintained ample soybean oil availability, while international demand has continued to absorb supplies. The additional availability could help keep Argentine soybean oil competitively priced, although market participants said export demand, CBOT futures and commercial positioning also remained key drivers of regional basis levels.