Argentine meal premium over Brazil hits 4-month high amid EUDR buying

Argentine soybean meal export premiums against Brazilian cargoes widened to their highest level since mid-May, as market participants reported stronger buying interest from European destinations ahead of the implementation of the EU Deforestation Regulation.

On Sept. 29, Platts, part of S&P Global Energy, assessed the FOB Up River soybean meal basis for November-loading cargoes at a premium of $24/short ton to Chicago Board of Trade futures, while the FOB Paranaguá basis in Brazil was assessed at plus $18.50/st.

The resulting $5.50/st premium in favor of Argentine soybean meal was the widest since mid-May, when delays in Argentina's soybean harvest pushed local values to a $7/st premium over the Brazilian commodity.

In flat-price terms, Platts assessed FOB Up River soybean meal at $422.18/mt on Sept. 29, compared with $416.12/mt for FOB Paranaguá soybean meal.

The current market structure is unusual, as Argentine soybean meal is typically priced at a discount to Brazilian cargoes, largely due to logistical and geographical limitations. Most Argentine exports are shipped through the Up River export corridor, where draft restrictions limit vessel size and loading capacity.

Argentina is the world's largest soybean meal exporter, followed by Brazil, and both origins are key suppliers of the protein feed ingredient to EU buyers. However, market sources said demand for Argentine soybean meal intensified in late September as importers sought to secure supplies ahead of the EUDR compliance deadline.

"The EUDR timeline is moving forward," a market participant said.

The EUDR is the EU's deforestation regulation, which will require importers and traders of commodities, including soybean, cattle, palm oil, coffee, cocoa, rubber and wood, to demonstrate that products placed on the EU market are free from deforestation and fully traceable to their origin. Under the current timeline, large and medium-sized operators will be required to comply from Dec. 30, 2026, while small and micro enterprises will face later implementation deadlines.

An Italian trader said Italy remains the primary destination within the EU for Argentine soybean meal, with recent buying interest driven more by the product's higher protein and fiber content than by price competitiveness.

In contrast, a Dutch broker said buyers in the Netherlands continue to favor Brazilian soybean meal, citing concerns over the HB4 trait in Argentine supplies.

Some traders said Brazilian soybean meal is becoming increasingly competitive again for international buyers, a factor that could lend support to the FOB Paranaguá basis in the coming weeks.

S&P Global Energy CERA forecasts Argentina's soybean meal exports at 30 million mt in the 2025-26 marketing year, which runs from April through March. Brazil, whose marketing year follows the January-December calendar, is expected to export 26 million mt over the same period.

Both combined account for more than 60% of global soybean meal exports.