European soybean meal prices to stay low in near term on record harvest, increased supply

European soybean meal prices are expected to remain low in the short term due to a record harvest and certain government policies in producing countries that have increased supply in the European market, according to Alessandro Vitiello, a commodity trader based in Italy. Platts, part of S&P Global Commodity Insights, assessed soybean meal FOB Netherlands for the July period at Eur305/mt on June 10, down from Eur317/mt a month earlier. Vitiello attributed the price decline to the large stocks of soybean meal available. Many European feed mills rushed to import and stockpile feed materials in anticipation of the EU’s deforestation regulation, which has yet to take effect. He noted that the significant crushing of soybeans over the past nine months has contributed to the abundant supply of soybean meal in Europe. “The main reason for the increase in soybean crushing has been the elevated prices of vegetable oils, such as palm oil and rapeseed oil. Mills have been forced to crush ...