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Soybean oil prices in Argentina and Brazil moved closer to parity this week, reversing the divergence recorded in the previous week. Argentine soybean oil strengthened while Brazilian prices declined, sharply narrowing Brazil's traditional premium over its regional competitor.
As of September 15, Argentine soybean oil FOB Up River for October delivery rose by $5.74 per tonne, or 0.47%, over the week to $1,223.13 per tonne. In contrast, Brazilian soybean oil FOB Paranaguá fell by $7.50 per tonne, or 0.61%, to $1,227.53 per tonne.
The shift reduced Brazil's premium over Argentine soybean oil to just $4.40 per tonne, down from $17.64 per tonne a week earlier. Over the same period, Chicago soybean oil futures posted a modest decline of 0.48%.
Market sentiment was also shaped by fresh data from the National Oilseed Processors Association (NOPA) on US soybean processing. In August, NOPA member companies crushed 205.46 million bushels of soybeans, falling short of market expectations of 211.55 million bushels. Soybean oil inventories came in lower than anticipated at 1.201 billion pounds, compared with forecasts of 1.257 billion pounds.
In Brazil, Conab estimated the soybean crop at 180.4 million tons, a slight downward revision from its previous forecast. The USDA, meanwhile, projects a substantially larger Brazilian crop at 186 million tons, a gap that is likely to remain a key driver of soybean and soybean oil price dynamics going forward.
Source: UkrAgroConsult