Expansion of soybean meal exports from Brazil challenges Argentina

Brazil is rapidly catching up to Argentina in soybean meal exports, threatening the competitiveness of the South American country's top export as lower soybean meal prices and swings in oil markets squeeze the profit margins of Argentine processors, according to a report released on Friday.

Brazil is expected to export more than 12.3 million metric tons of soybean meal in the first half of 2026, against an estimate of 13.3 million tons for Argentina, according to the Rosário Commerce Exchange report, which highlights how the gap between the two largest exporters is narrowing.

The report indicates that Argentina's advantage over Brazil could fall to around 8% by June, compared to 86% in 2021 and 23% in the first half of 2025, as Brazil expands its crushing capacity, while Argentine processing remains practically stagnant.

Brazil's advance has been driven by the growth of its biodiesel industry, which has increased domestic demand for soybean oil and encouraged greater crushing, increasing the supply of soybean meal available for export, according to the report.

This represents a direct challenge for Argentina, where soybean meal is the country's main export and a determining factor in domestic soybean prices.

Argentina's crush margins are becoming increasingly dependent on soybean oil prices, the report argued, as lower soybean meal values erode a traditional source of revenue for processors.

With meal export prices 10% below their May peak, any further decline in the price of soybean oil could further reduce the purchasing power of processors and limit support for local soybean prices.

How does the producer finance the harvest in Brazil?

Source: CNN