Mercaris Murmurings: U.S. supplies continue to tighten

Over the month of May, market conditions for organic soybeans continued to indicate tightening U.S. supplies. Over the month, organic soybean imports declined to their lowest level since November 2011 as the U.S. did not import organic soybeans from Argentina, India, Russia or the Black Sea region. The month did see further expansion of U.S. organic soybean imports from Africa, with the majority of U.S. organic soybean imports originating from the country of Togo. 

Organic soybean meal maritime imports continued to show signs of slowing relative to the start of this MY, up only 11% y/y compared to up 83% y/y over the first half of 2020/21. In general, the remainder of 2020/21 is likely to see organic soybean meal imports slow relative to the start of the MY, as Indian supplies are tightening and transportation logistics remain challenging. Imports from the Black Sea region may offset this trend if higher prices and limited soybean supplies in the U.S. persist through the summer months. 

Overall prices continue to reflect a tightening U.S. supply situation, with organic feed-grade soybean delivered to U.S. elevators averaging $25.92/bu during May, up $14% from the prior month, and up nearly 26% y/y. 

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 E-newsletter.