# Brazil's FOB soybean meal basis drops to discount to CBOT | S&P Global

> The FOB Paranagua soybean meal basis dropped to a discount of $3/st to CBOT January futures on November 17, the first front-month discount since June. The drop reflects a surge in CBOT meal prices, thin physical demand, and the start of Brazil's new soybean harvest. Brazil expects to export 17.05 million mt of meal in 2021-22 per CONAB.

- Date: 2021-11-18 · published 2021-11-18T12:00:00.000Z
- Category: market · region Brazil · magnitude low
- Page: https://feedsoft.ai/events/44124-brazil-s-fob-soybean-meal-basis-drops-to-discount-to-cbot-s-and-p-global
- Commodities: [Soybean Meal](https://feedsoft.ai/c/SBM.md)

## Why it matters

Weaker Brazilian meal premiums and harvest pressure make South American meal cheaper relative to CBOT, which can pull export demand away from US meal and cap further gains.

## Read by commodity

- SBM: bearish ▼

## Sources

- spglobal.com: https://www.spglobal.com/energy/en/news-research/latest-news/agriculture/111821-brazils-fob-soybean-meal-basis-drops-to-discount-to-cbot

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.