For the first time in two years, the export offer price of Argentina's soybean meal is below CBOT

02-Jul-2024 03:11 PM

Buenos Aires. In the Latin American country Argentina, the export offer price of soybean DOC has fallen below the prevailing futures price in the Chicago Board of Trade (CBOT) for the first time in the last 2 years. According to critics, on one hand,

Argentina has produced a great amount of soybean this time and due to the crushing-processing units getting sufficient raw material, the production and stock of soymeal is increasing and secondly, its export demand has weakened to some extent.

As a result, a decline is being seen in the export offer price of soy DC. According to a leading analyst firm, on June 27, the free on board offer price of soybean DOC on an up river basis for August delivery in Argentina was $ 2 per short ton below (minus) the prevailing futures price for the August contract in the Chicago Board of Trade (CBOT).

This decline was recorded for the first time after September 6, 2022 for the opposite month. At that time, the export offer price had come down by $5 per short ton (ST).

In fact, for the last several months, the free on board export offer price of soymeal in Argentina was much higher than that of neighboring country Brazil, due to which its demand gradually started decreasing in the importing countries. On the other hand, by offering lower prices,

Brazilian exporters were successful in increasing the export of their soymeal in many countries. In fact, due to the weakening of the Brazilian currency,

the price of soymeal became very attractive for the importers. On June 3, the exchange rate of Brazil's currency - Real was 5.2322 against the US dollar, which increased to 5.5023 on June 27. The export offer price of Brazil's soymeal was also 2 dollars per HT lower than CBOT at Paranagua port for August delivery.