Conventional soybean meal prices jump sharply

In Germany, UFOP reports that prices of conventional soybean meal firmed substantially at the end of November 2017 following the sharp drops seen in the first three quarters of 2017. Dryness in Argentina fueled concerns about soybean crop failures and, as a result of this, a decline in processing. Since hitting this year’s low at the beginning of September 2017, 48 per cent protein soybean meal picked up around 14 per cent to reach EUR 333 per tonne. 44 per cent protein soybean meal even went up 15 per cent to EUR 310 per tonne. However, this trend still left prices for both meal qualities at a level just below the mid-January peaks. The substantial decrease in the price level over the first eight months of 2017 was followed by a longer consolidation phase where ample global supply limited price increases. The reason for the past few weeks’ sudden surge was the dry weather conditions in Argentina, Agrarmarkt Informations-Gesellschaft (AMI) reported. Argentina is the world’s biggest exporter of soybean meal. The current lack of soil moisture is causing a delay in soybean plantings and checks in plant growth. The coming weeks will show whether the price increase is sustained over the longer term. Currently, only 50 per cent of the soybean production areas have been planted.