Prices of conventional soybean meal took a nosedive

In Germany, UFOP reports that prices of conventional soybean meal have come down significantly since the beginning of May 2018. Ample supply from Brazil, favorable growing conditions in the U.S. and the escalating trade dispute between China and the U.S. are putting downward pressure on prices. Asking prices of soybean meal have weakened considerably following a sharp rise in the first quarter of 2018.

Since their annual highs at the beginning of May, soybean meals fell 14 per cent to EUR 363 EUR per tonne (48 per cent protein) and 16 per cent to EUR 333 per tonne (44 per cent protein) respectively. Nevertheless, in each case prices are still around 18 per cent above the level seen in June 2017. The significant drop in asking prices over the past few weeks is due to the weakening trend in the futures market, Agrarmarkt Informations-Gesellschaft (AMI) has reported. Soybean meal prices in Chicago have fallen continuously since the beginning of May 2018. The market outlook continues to be bearish.