Mercaris’ Murmurings: Imports prop up organic soybean meal supplies

Considering all of the challenges faced by U.S. organic soybean markets, the first quarter of 2021 ended with the U.S. supplies being propped up by organic soybean meal imports. According to Mercaris Maritime Import trade data, U.S. organic soybean meal maritime imports exceeded 38,000 MT over March, 26% more than March 2020. March’s imports were consistent with the trend U.S. organic soybean meal imports have held since the start of the 2020/21 marketing year, with imports up 73% y/y from September 2020 through March 2021. In contrast to meal imports, whole organic soybean imports were much lower over March, down 47% y/y to about 12,000 MT. 

The growing gap between the imports of whole organic soybeans and organic soybean meal is a key piece to the difficult marketing situation that has developed around organic soybeans over the first quarter of 2021. Beginning with the USDA NOP’s January announcement that it would be ending its organic equivalency agreement with the government of India, and most recently propelled by the Organic Soybean Processers of America’s petition to impose anti-dumping duties against Indian organic soybean meal, the reliability of organic soybean meal imports from India has become uncertain. Under this uncertainty, U.S. organic soy purchasers have quickly moved to secure supplies, driving feed-grade organic soybean prices sharply higher. According to Mercaris’ market price survey, organic feed-grade soybeans delivered have increased 17% since the NOP’s announcement, averaging $23.26/bu delivered to U.S. Corn Belt locations over the month of March. Additionally, March saw the price range around contracts widen significantly, with some spot delivery contracts reported as high as $29/bu delivered. 

Mercaris, the nation’s leading market data service and online trading platform for organic and non-GMO agricultural commodities, is an SSGA member and a monthly contributor to the SSGA newsletter.