Soybean meal continues to decline in July while oil prices rise

The soybean derivatives market saw mixed movements across key products in July. Soybean meal posted its sixth consecutive monthly decline on the Chicago Board of Trade, finding no room for recovery, while oil continued its upward trend, reflecting solid global demand.

According to Itaú BBA Agro, bran fell 6.2% in July compared to June, trading below US$$ 269 per ton. Increased crushing in several regions around the world has generated supply above demand, increasing downward pressure. In Brazil, the decline was similar, at 6.1% in the period, with the additional impact of Argentine competition, which is squeezing premiums in the domestic market.

Photo: Disclosure/OPR Archive

Soybean oil, on the other hand, is trending in the opposite direction. In Chicago, the product appreciated 9% in July, reaching US$$ 0.5229 per pound, its fourth consecutive monthly increase. In the domestic market, prices also rebounded after two months of decline: in Mato Grosso, the ton was quoted at R$$ 5,955, an increase of 4%. Expectations of higher demand, driven by the mandatory 15% biodiesel (B15) blending coming into effect in August, contributed to this movement.

Palm oil, which had been pressured by increased production in Malaysia, also found support in the appreciation of soybean oil, ending July with an increase of 3%, at US$ 1,005 per tonne.

Brazilian oil product exports reinforce this scenario. Between January and July, the country shipped 14 million tons of bran, 5% more than in the same period in 2024. Meanwhile, foreign oil sales totaled 1 million tons, an increase of 16.5% compared to last year.