USDA maintains projection of record soybean crush for 2025/26

The United States Department of Agriculture (USDA) maintained its projection for a record soybean crush in the 2025/26 crop year, estimated at 69.5 million tons, even in the face of the decline in processing margins observed in recent months. Maintaining this volume reflects the expectation that demand will remain strong, especially due to renewable fuel policies. According to the agency, the definition of mandatory targets and possible exemptions should occur in early 2026, a factor that will be decisive for the pace of soybean oil consumption in the country.

Photo: Disclosure/OP Rural

In South America, the Argentine government announced a permanent reduction in export tariffs for grains and their derivatives, in an attempt to alleviate the tax burden on the agricultural sector. The rate applied to soybeans was reduced from 26% to 24%, while byproducts saw a cut from 24.5% to 22.5%. For wheat and barley, the rate fell from 9.5% to 7.5%; corn and sorghum went from 9.5% to 8.5%; and sunflower, from 5.5% to 4.5%. According to the Minister of Economy, Luis Caputo, the measure seeks to strengthen the competitiveness of the Argentine agribusiness, responsible for approximately 60% of the country's exports.

In Europe, the European Council and Parliament reached a provisional agreement to postpone the entry into force of the European Anti-Deforestation Act (EUDR) by one year. The proposal still needs to be voted on, with a vote scheduled between December 15 and 18. If approved, large operators will have until December 30, 2026 to comply with the requirements, while small operators — including individuals and micro or small enterprises — will have until June 30, 2027.

The EUDR prohibits the sale in the European market of products linked to the cocoa, coffee, palm oil, soy, timber, rubber, and livestock supply chains originating from areas deforested after December 30, 2020. The regulation also requires importers to guarantee the traceability of goods, with the aim of ensuring that European consumption is not associated with new deforestation.