Europe soybean meal, corn prices rise as Black Sea risk shifts supply flows

European feed grain and protein markets continued to strengthen amid rising futures, Black Sea supply disruptions and concerns over South American availability.

Platts assessed FOB Netherlands soybean meal at €361/metric tons on Aug. 18, up €6/mt week over week, while ex-works Tarragona soybean meal rose €2/mt to €364/mt. Spanish corn prices also increased, with EXW Corn Spain assessed at €235/mt, up €5/mt on the week.

Grains traders and brokers in Spain, the Netherlands and Italy pointed to higher grain futures and disruptions to Ukrainian exports as key drivers.

CBOT September corn futures rose to $4.59/bushel as Black Sea tensions supported global grain markets, according to S&P Global Energy CERA's Corn & Minor Grains Short-Term Outlook published Aug. 14. Strong US export demand, weather concerns in key growing regions and mounting logistical challenges in Ukraine have tightened market sentiment.

An Italian trader said disrupted supply chains and global uncertainty were lifting corn prices. Traders in Spain and the Netherlands said Europe was sourcing more corn from outside Ukraine as Black Sea and Danube routes remain constrained.

"Corn is coming from Poland and Constanta, with only limited volumes arriving from Ukraine by rail," a Dutch broker said.

A Spanish trader said Ukrainian corn importers had become harder to secure, increasing Brazilian and US-origin availability in Spain. The Dutch broker added that lower wheat and barley production prospects in Europe after recent heat waves were also supporting feed grain prices.

European Commission data updated Aug. 11 showed EU corn imports from Ukraine fell 19.2% year over year to 8.87 million mt, while volumes from the US climbed 50.7% to 6 million mt and imports from Brazil rose 86.8% to 3.04 million mt.

Soybean meal prices drew support from rising Brazilian premiums and stronger futures, traders and brokers in Italy, the Netherlands and Spain said. A Dutch trader said weaker Brazilian crushing margins had lifted premiums and raised concerns over near-term supply.

A Spain-based trader described demand as "zero," but said bids and tradable values remained stable despite higher offers, suggesting supply concerns, not immediate consumption, were driving market support.

European Commission data showed Brazil remained the EU's largest soybean meal supplier at 10.71 million mt, or 53.1% of total imports, followed by Argentina with 6.32 million mt, or 31.3%.