About Soybean Meal Prices
Soybean meal is the dominant protein source in animal feed worldwide, accounting for roughly 65% of all protein meal consumption. It is a byproduct of crushing soybeans to extract soybean oil.
Soybean meal prices are quoted in U.S. dollars per short ton and traded on the Chicago Board of Trade (CBOT). Prices are driven by livestock and poultry production levels, competing protein meals (rapeseed, sunflower), soybean supply, and the crush spread economics.
As the primary value product from soybean crushing (~65% of crush value), soybean meal demand often dictates the pace of soybean processing. Growth in global meat consumption, especially in Asia, continues to support long-term demand.
Soybean Meal Market Overview
Global Production
~260 million tonnes
Top Producer
China (~24%)
Top Exporter
Argentina (~40%)
Share of Protein Meals
~65% globally
Key Use
Poultry & swine feed
Meal per Bushel
~44 lbs soy meal
Argentina is the world
Soybean Meal Historical Price Milestones
2006 — Pre-crisis Low
$175/ton
2008 — Food Crisis
$450/ton
2014 — Supply Squeeze
$560/ton
2020 — Pandemic Rally
$430/ton
2022 — Argentine Drought
$530/ton
15-Year CAGR
~6.2%
Soybean meal prices tend to spike during periods of tight soybean supply, particularly when Argentine production is disrupted by drought (La Niña events). The meal-to-oil ratio fluctuates based on relative demand for animal feed versus biodiesel, creating distinct price cycles within the soybean complex.
Ways to Invest in Soybean Meal
Futures
CBOT ZM
100 short tons per contract
Crush Spread
ZS vs ZM+ZL
Spread trade on processing margin
Agri Stocks
ADM, BG, INGR
Processors with crush exposure
Livestock ETFs
COW, MOO
Indirect meal demand exposure
Soybean meal futures are widely used by livestock producers to hedge feed costs. The crush spread trade (buying soybeans, selling meal and oil) is a classic commodity processing margin trade. Agribusiness companies like ADM and Bunge derive significant revenue from their soybean crushing operations.
Frequently Asked Questions
Why is soybean meal important for agriculture?
Soybean meal is the world's most widely used protein source for animal feed, providing essential amino acids for poultry, swine, cattle, and aquaculture. It accounts for ~65% of all protein meal consumed globally, making it irreplaceable in modern livestock production.
What is the relationship between soybean meal and oil?
Soybean meal and oil are joint products of soybean crushing. Approximately 44 lbs of meal and 11 lbs of oil are produced from each bushel of soybeans. When meal demand is strong, crushers process more soybeans, increasing oil supply (and vice versa), creating an inverse price relationship known as the crush dynamics.
Why is Argentina key to soybean meal markets?
Argentina is the world's largest soybean meal exporter, accounting for ~40% of global trade. Its crushing industry is concentrated along the Paraná River near Rosario. Argentine export taxes on whole soybeans (higher) versus meal (lower) incentivize domestic crushing, making Argentina the dominant global supplier of processed soy products.
How does soybean meal demand growth look?
Global soybean meal demand is projected to grow at 2-3% annually, driven by rising meat consumption in developing countries, especially in Southeast Asia, Africa, and Latin America. Aquaculture is the fastest-growing segment, with fish farming increasingly relying on soybean meal as a protein source.