European corn, soybean meal prices near historic highs amid supply concerns

European corn and soybean meal prices reached near-record levels, supported by stronger futures markets and firmer origin premiums due to supply concerns.

Platts, part of S&P Global Energy, assessed Spain ex-works corn at €245/metric ton on Aug. 26, up €6/mt month over month.

Platts assessed Netherlands FOB soybean meal at €379/mt on Aug. 26, up €13/mt month over month. Spain EXW soybean meal was assessed at €381/mt, up €15/mt month over month.

Market participants in Spain, the Netherlands and Italy said corn and soybean meal prices have remained elevated since the beginning of August, citing a combination of factors including heatwaves across Europe, an escalation in the Russia-Ukraine conflict and weaker soybean crush margins in Brazil.

Platts corn and soybean meal prices reached record highs in April, driven by tighter supply at origin and elevated freight costs.

Corn

Weather-related challenges and the Russia-Ukraine war have continued to support prices in the European corn market.

A trader based in Spain said concerns about disruptions to Ukrainian supplies have increased Europe's reliance on alternative suppliers. "Spain is relying more on Brazil and the US for corn," the trader said.

Another trader said uncertainty surrounding supply flows has contributed to volatility in futures markets, and that has been reflected in physical prices.

"Even though prices are high, demand has remained limited as we are in the holiday period," the trader said. "Consumption is not as strong as it would be under normal market conditions."

Market participants in Spain and the Netherlands also cited heatwaves as a key factor supporting corn values, with concerns over crop development helping to lift Matif corn and wheat futures.

A Dutch broker said higher futures prices had translated into stronger offers in the physical market, discouraging buyers from stepping in.

According to European Commission data updated July 30, EU corn production is forecast at 52.11 million mt for the 2026-27 marketing year, down from 60.45 million mt in MY 2025-26.

A Spanish broker said feed manufacturers may increasingly turn to barley as a substitute for higher-priced feed grains.

"The barley harvest has been completed in Spain, and the crop is now available on the market," the broker said. "Feed mills could shift from more expensive grains such as wheat and corn."

Soybean meal

Soybean meal prices have been aided by stronger premiums in Brazil, a key origin supplying the European market.

A Netherlands-based trader said higher Brazilian premiums have been largely linked to weaker crush margins. "The Brazilian premium has strengthened, pushing prices higher in Europe, mainly because of lower crush margins in Brazil," the trader said.

A Spain-based market participant said direct purchases of US soybean meal are relatively uncommon but may occur when South American alternatives are priced higher. "The elevated values of Brazilian and Argentine soybean meal have recently made US meal more competitive in Spain," the market participant said.

Another Dutch trader said US soybean meal typically enters the European market when prices become attractive. "US soybeans always find a way to enter the EU market," the trader said. "That is not unusual."