US, Brazil soybean landed costs to China, Europe face decline

GLOBAL – In the first quarter of 2025, the landed costs for shipping soybeans from the United States and Brazil to China and Europe decreased compared to the previous year.

This decline is partly due to lower transportation costs and decreasing soybean farm values, as reported in the May 29 Grain Transportation Report (GTR) from the US Department of Agriculture.

For US soybeans shipped to China from the Pacific Northwest, year-over-year landed costs decreased by 14.4% to US$456.01 for North Dakota and by 14.2% to US$469.50 for South Dakota.

When shipped via the Gulf, the costs dropped by 13.7% to US$485.63 for Minnesota and by 13.8% to US$477.12 for Iowa.

For Brazilian soybeans shipped to China, the landed costs fell by 8.2% to US$436.90 from Santos and by 7% to US$412.81 from Paranaguá.

In terms of shipments to Europe, US soybeans shipped via the Gulf saw a year-over-year decrease of 13% to US$463.59 for Minnesota and 13.2% to US$455.08 for Iowa.

Brazilian soybeans to Europe similarly experienced a drop, with landed costs falling by 8.2% to US$434.80 from Santos and by 7.1% to US$408.91 from Paranaguá.

In the United States, the decreased landed costs for shipments to China were attributed to lower transportation costs and reduced farm values, while European shipments declined mainly due to falling farm values.

For Brazil, the declines in landed costs were primarily a result of decreasing transportation costs and lower soybean farm values.

When comparing quarter to quarter, all US routes saw an increase in landed costs during the first quarter, except for those from the Pacific Northwest to China, where costs remained nearly unchanged.

The increase in shipment costs from the United States was reflective of rising transportation costs and farm values.

In the first quarter of 2025, transportation accounted for 23% to 26% of US landed costs for shipments to China and 20% to 23% for shipments to Europe.

In Brazil, falling landed costs were primarily due to lower farm values. Transportation made up 21% to 27% of Brazil’s total landed costs for shipments to both China and Europe.

As the leading soybean producers globally, the United States and Brazil compete in the same overseas markets, making low transportation and landed costs essential for remaining competitive on the global stage, according to the USDA.

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