New-crop soybean crushing in Argentina remains active despite a decline in domestic soybean production this season. Crushing volumes in the second quarter are estimated at 11.8 mln tons, up 4% from the same period last year, supporting higher soybean oil exports.
Argentine crushers are currently shifting their purchasing focus from sunflower seed to soybeans. Overall, the country’s soybean sector remains relatively resilient, while high capacity utilization at crushing plants is allowing Argentina to increase the supply of processed soybean products to international markets.
In June, Argentina’s soybean oil exports reached a record 742 thsd tons, compared with 589 thsd tons in June last year. Shipments were primarily supported by strong demand from India and Nepal. However, exports in the first half of the year totaled 3.22 mln tons, down 3% from the same period in 2025.
Last week, strikes in Argentina added uncertainty to the market as they threatened to disrupt seaborne export logistics, particularly shipments via the Paraná River. However, the situation normalized within several days, preventing a sharp increase in South American soybean oil prices. Prices also received some support from a rebound in CBOT soybean futures after hitting lows at the beginning of the week.
Strong demand for palm oil from biodiesel producers is prompting a number of importing countries to increasingly consider Argentine soybean oil as an alternative. This could support strong soybean oil exports from Argentina in the third quarter of 2026.
Tags: Argentina, soybean oil, soybean
