European feed prices hit record highs on volatile futures

European soybean meal and corn prices climbed to their highest levels since Platts, part of S&P Global Energy, launched its EU feed assessments in May 2025, on Sept. 3, as market participants pointed to a combination of rising futures and strengthening physical premiums.

Platts, part of S&P Global Energy, assessed FOB Netherlands soybean meal at €400/metric ton ($464.88/mt) and EXW Spain soybean meal at €403/mt on Sept. 3, both up €18/mt week over week. Meanwhile, EXW Spain corn was assessed at €248/mt, up €4/mt over the same period.

Participants described an increasingly volatile market environment, with a Dutch broker saying uncertainty over the direction of futures had made it difficult to predict where prices could move next.

"We don't have any idea where the market will be in the next few days; the future is so volatile now," the broker said.

The volatility itself was encouraging buyers back into the market, a Dutch trader said.

A Spanish trader said that despite the sharp gains in futures and premiums, underlying feed demand remained relatively subdued.

"Demand is still slow, but futures and premiums keep moving higher," the trader said.

Looking ahead, the trader added that concerns surrounding the implementation of the EU Deforestation Regulation (EUDR) and associated compliance premiums were likely to return toward the end of the year.

These concerns were echoed in a Sept. 2 report from the European Feed Manufacturers' Federation (FEFAC), which estimated that the implementation of EUDR could increase soy sourcing costs by more than €1 billion in 2027. The association also called for measures to simplify procedures to safeguard feed supply security across the bloc.

Meanwhile, a second Dutch trader highlighted that US soybean meal typically gains a foothold in the European market during the US harvest period and is currently the most competitively priced origin available to EU buyers.

"At the moment, US soybean meal is the cheapest option for Europe," the second trader said.

A second Dutch broker added that the duration of this trade window would largely depend on developments in Brazil.

In the grains market, Spanish participants reported that rising corn prices were prompting feed manufacturers to reassess feed formulations.

"Feed millers are already looking at alternative formulations as corn becomes more expensive," a Spanish broker said.

The broker also estimated the country's barley harvest closer to 6.5 million mt rather than 7 million mt, citing reduced planted area and heat stress during May as key factors behind the lower output.

"The crop is smaller than many expected because of lower planting and the high temperatures in May," the Spanish broker added.

"Ukraine logistics remain challenging, and with futures moving higher, it is lifting prices across Europe," a second Spanish trader said.