South American soybean meal basis hits three-month high

Soybean meal port differentials in South America have strengthened over the past few days, reaching their highest level since December 2024. On March 20, Platts, part of S&P Global Commodity Insights, assessed the Brazilian FOB Paranaguá basis for shipment in May at a $7/st premium to the Chicago Board of Trade futures, after reaching $8/st on March 19, the highest for a spot delivery since Dec. 13, 2024. In Argentina, the FOB Up River premium for May stood at $2/st over the CBOT on March 20, the highest value for a front-month loading since Dec. 19, 2024, according to Platts data. Brazil and Argentina are global leaders in exporting soybean meal. The strengthening of port differentials from these origins occurs at a time when the trend would typically be downward pressure on them due to harvests in these countries. The escalation of tensions in global trade, particularly involving the US, China, and the EU, partially accounts for this scenario, market participants said. In ...