Big Drops in Conventional Soybean Meal Pricing

In Germany, UFOP reports that prices for conventional soybean meal have fallen significantly over the year with global supply exceeding demand and putting downward pressure on asking prices. Since the beginning of the year, asking prices for 48 percent protein soybean meal have dropped by 18 percent to the current lowest level since April 2016 of EUR 296 per tonne.

Similarly, the decline in prices for 44 percent protein soybean meal over the past six months exceeded 19 percent. Recent prices were at EUR 270 per tonne. In other words, asking prices for these two qualities collapsed by around 33 percent from their June 2016 peaks. The reason for the declining trend is excessive supply of South American soybeans, Agrarmarkt Informations-Gesellschaft (AMI) explains. The abundant global supply also weighs on the prices of joint products such as soybean meal or soybean oil.