For the Quarter Ending September 2025
North America
• In the United States, the Soybean Meal Price Index fell quarter-over-quarter in Q3 2025, due to increased supply and rising inventories.
• Downward pressure on the Soybean Meal Price Index resulted from increased supply and subdued export activity.
• Soybean feedstock costs weakened in Q3 2025, and natural gas prices eased, lowering production expenses.
• Domestic demand for soybean meal strengthened in Q3 2025, supported by robust retail sales and low unemployment.
• U.S. retail sales increased 5.42% year-over-year in September 2025, bolstering consumer demand for animal protein.
• The unemployment rate remained low at 4.3% in September 2025, supporting strong consumer purchasing power.
• U.S. soybean and soybean meal ending stocks built in Q3 2025, while exports faced increased competition.
• Rising CPI (3.0% in September 2025) and PPI (2.6% in August 2025) contributed to higher end-user input costs.
• Stronger cattle and hog prices in Q3 2025 supported feed demand, despite lower beef production.
Why did the price of Soybean Meal change in September 2025 in North America?
• Soybean feedstock costs weakened in Q3 2025, reducing production expenses.
• U.S. soybean and meal ending stocks increased in Q3 2025, contributing to ample supply.
• Domestic demand strengthened, driven by higher crush activity and robust retail sales.
Europe
• In Germany, the Soybean Meal Price Index rose in Q3 2025, driven by robust demand and elevated energy costs.
• Soybean Meal production costs increased due to elevated natural gas and wholesale electricity prices in Germany during Q3 2025.
• Demand for Soybean Meal strengthened in Q3 2025, supported by a recovering EU meat industry and upward animal protein.
• The Manufacturing Index contracted in Q3 2025, and industrial production declined 1.0% in September, signaling economic weakness.
• Retail sales rose 0.2% in September 2025, indicating stable consumer demand; unemployment remained stable at 6.3%.
• EU domestic stocks of alternative protein meals declined in Q3 2025, shifting demand towards Soybean Meal imports.
• Importers actively built up Soybean Meal supplies in Q3 2025, anticipating the EU Deforestation Regulation.
• Producer prices of industrial products were lower by 1.7% in September 2025, generally benefiting feed manufacturers.
• Rising general price levels, with CPI at 2.4% in September 2025, contributed to higher operational costs.
Why did the price of Soybean Meal change in September 2025 in Europe?
• Elevated natural gas and wholesale electricity prices in Germany increased production costs for feed manufacturers.
• Stronger EU demand for vegetable fractions and animal protein consumption significantly boosted Soybean Meal demand.
• Declining domestic stocks of alternative protein meals shifted demand towards Soybean Meal imports in Q3 2025.
APAC
• In China, the Soybean Meal Price Index fell quarter-over-quarter in Q3 2025, influenced by declining livestock demand.
• Soybean Meal demand contracted in Q3 2025 as the livestock industry faced prolonged losses, curbing feed demand.
• Production costs were pressured by extremely tight, often negative, crush margins in September 2025.
• Soybean Meal inventories in China rose by July 2025 due to record imports and tepid animal feed demand.
• China's soybean imports surged to near-record levels in Q3 2025, predominantly from South America.
• The Manufacturing Index was contracting in September 2025, signaling a slowdown in overall economic activity.
• Consumer Price Index decreased by 0.3% year-over-year in September 2025, indicating deflationary pressures.
• Retail sales grew by 3.0% year-over-year in September 2025, reflecting robust consumer spending.
• Unemployment remained at 5.2% in September 2025, contributing to weaker consumer purchasing power.
Why did the price of Soybean Meal change in September 2025 in APAC?
• Declining demand from the livestock industry, facing prolonged losses, created a domestic market surplus.
• The Producer Price Index declined 2.3% in September 2025, reducing profitability for downstream animal farming.
• High soybean imports in Q3 2025 led to increased inventories, despite tepid demand from feed producers.
