Soybean meal prices rise driven by national demand and global appreciation

Published Dec 14, 2023

Tridge summary

Soybean meal prices in Brazil rose 7.5% from October to November due to increased domestic demand and external appreciation, with an annual comparison showing a 5.5% drop. The demand for soybean oil also increased in November, with prices rising 3.6% in the São Paulo region, driven by higher industrial sector demand and expectations of increased exports to India. Soybean liquidity increased in the national spot market, with Brazil shipping a record 5.2 million tons of soybeans in November, leading to a 105.8% increase in shipments compared to the same month in 2022. However, field activities are behind previous years, with soybean sowing in Brazil reaching only 83.1% of the national area by December 2, below the 90.7% cultivated a year ago.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The dispute for soybean meal between domestic and international buyers was more intense in November. Consumers Households showed a need for new purchases in the national spot, due to reduced stocks. This scenario linked to the external appreciation of bran – in the face of greater global demand – boosted domestic prices of the product. On average for Brazilian regions monitored by Cepea, soybean meal prices rose 7.5% from October to November. In the annual comparison (November/22 to November23), prices dropped 5.5%. On the CME Group (Chicago Stock Exchange), the Dec/23 soybean meal contract appreciated by a significant 13% between October and November, averaging US$452.15/short ton (US$498.41/t). In one year, the increase was 9.5%. As for soybean oil, domestic demand was also higher in November, especially from the industrial sector. As a result, raw and degummed soybean oil in the São Paulo region (with 12% ICMS included) was once again traded at the highest levels since March ...

Source: Opresenterural