Global Soybean Market Weekly Summary

• Ukraine is shifting toward domestic processing to meet EU demand, with crushing volumes projected at 2.9 million tons in the 2025/26 season, some 51.4% above the five-year average, against a harvest estimated at 5 million tons. Compliance with EU traceability requirements, including EUDR standards, is adding costs particularly for smaller producers, and is expected to weigh on export margins.
• The European Union's structural protein deficit, with domestic production of around 3 million tons against an annual requirement exceeding 35 million tons, sustains heavy import dependency. Compliance costs and GMO-free requirements are complicating trade relationships with non-EU exporters.
• Pakistan's crushing sector, with a capacity of 5.93 million tons and critical to its poultry industry, faces strain from rising petroleum costs and regional geopolitical instability, both of which are undermining its ability to sustain import-dependent processing operations.
• Argentina's soybean output for 2026/27 is forecast at 49 million tons, but domestic crush volumes are expected to decline to 42 million tons despite adequate capacity, due to unfavorable processing margins and elevated fertilizer costs weighing on soybean meal export profitability.
• Brazil's harvest has exceeded 179 million tons, consolidating its position as the dominant global exporter. Logistical challenges around transport costs and export delays persist, but China remains the primary destination and the bilateral trade relationship continues to anchor global supply balances and pricing.
• China's tightening phytosanitary standards have contributed to reduced soybean import volumes, with Brazilian shipments among those affected. Given China's role as the largest global importer, any sustained shift in its buying patterns carries significant consequences for producing nations and futures pricing.
• Uruguay is on course for a production recovery to approximately 3.1 million tons, supported by increased sowing and normalizing yields. Moisture content standards continue to limit international competitiveness, though export flows to China remain economically significant for the country.