Soybean meal registers price increase.

Bran soy The Brazilian market showed strong appreciation during September, driven by external demand, the exchange rate, and lower regional availability during the off-season. In Rondonópolis, Mato Grosso, the average reached R$ 1,929 per ton, an increase of 13.3% compared to August, according to the Itaú BBA Monthly Agro bulletin.

In the international market, the first contract for soybean meal on the Chicago Board of Trade registered an average price of US$ 356 per ton, a monthly increase of 12.4%. The price increase reflected strong consumption of protein destined for animal feed, the recovery of soybean prices, and concerns related to the progress of the North American harvest.

The lower availability of the product in some Brazilian regions contributed to higher replacement costs. At the same time, the firmer stance of the industries supported negotiations, while domestic buyers focused their purchases on short-term needs.

Soybean oil also saw price increases, although less pronounced. On the Chicago Board of Trade, the average price reached 69.3 cents per pound in September, a 0.6% increase compared to the previous month. This performance was influenced by demand for biofuels and the behavior of oil prices.

In Mato Grosso, soybean oil reached an average of R$ 6,271 per ton, a monthly increase of 4%. The price increase was supported by the exchange rate, the higher cost of raw materials, and domestic consumption destined for biodiesel production.

The outlook for soybean byproducts, however, presents differences. According to Itaú BBA, the projected growth in soybean crushing in Argentina and Thailand should increase the international availability of soybean meal. The Argentine expansion deserves attention because the country holds a prominent position in global exports of the product.

Part of this additional supply may be absorbed by demand related to animal protein production. Growth in feed consumption tends to limit more intense price pressures, although increased international competition represents a challenge for Brazilian soybean meal.

In the vegetable oil market, the main point of attention is the reduction in palm oil production in Indonesia. The USDA lowered its estimate by 2.2 million tons, to 45 million tons, due to prolonged drought in Sumatra and Kalimantan. Projected productivity was reduced by 5% compared to the previous estimate.

The lower availability of palm oil in Indonesia could favor the substitution of palm oil with other vegetable oils, including soybean, canola, and sunflower oil. For soybean oil, Itaú BBA indicates that this movement tends to support prices, while soybean meal remains more exposed to increased international competition.