Low meal prices pose risks to soybean crush margins in South America

Low soybean meal prices have reduced crushing margins in South America, creating uncertainties about the processing pace of the oilseed in two of the world’s leading suppliers, Argentina and Brazil. On Aug. 22, Platts, part of S&P Global Commodity Insights, assessed the Brazil Soybean Crush Spread, a theoretical crushing margin involving the prices of soybeans, meal, and oil at the port of Paranaguá, at $21.79/mt, a decline of more than 50% compared to the previous year. Meanwhile, in Argentina, the FOB crush margin was last seen at zero, sharply down from $51/mt by this time in 2024, according to Commodity Insights’ calculations. “Weaker soybean meal prices combined with higher-than-normal South American soybean basis due to additional Chinese demand have led to lower crush margins in Brazil and Argentina,” Commodity Insights’ analysts said in the latest Weekly Soybean Complex Update report, released on Aug. 22. Indeed, spot export prices for soybean meal in both South American ...