Argentina’s soybean oil prices have plunged to a decade low against US supplies, driven by a record Pampas harvest and surging US biofuel demand. The country, which supplies nearly 40% of global soybean oil exports, saw its benchmark contract drop 12% in June compared to US prices, reversing a multi-year trend. Farmers in the Pampas region—the nation’s agricultural heartland—are flooding markets with surplus crops as favorable weather boosted yields.

Meanwhile, US biofuel mandates have intensified competition, creating a widening price gap between the two regions. Argentina’s soybean oil now trades at $950 per ton, down from $1,080 a year ago, while US soy oil holds steady near $1,100 per ton.