Argus Murmurings: African soybean meal imports remain strong

Organic soybean imports in April 2024 are estimated at 13,000t (metric tons), up 148% from the prior year but down 55% from the prior month. Turkey was the largest source with 8,000t, followed by Canada with an estimated 2,000t. Ukraine supplied 2,000t, while Paraguay and Argentina both sent volumes under 1,000t.

The Argus AgriMarkets Organic and non-GMO service weekly delivered spot price for feed-grade organic soybeans delivered to the U.S. Corn Belt for May 24, 2024, was $19.45, a decrease of $0.01 from the prior month and $4.93 from the prior year. The market has been quiet as buyers wait to get a better idea of how organic soybean planting goes.

Even as U.S. organic soybean pricing has fallen, Africa has continued to ship significant volumes of organic soybean meal into the U.S. Market contacts have reported that some loads are brought into the U.S. without a buyer, at which point the importer regularly discounts the price until it is sold. As a result of the availability of African organic soybean meal, traders have reported difficulty selling domestic soybean meal into the East Coast. The steady shipment of 10,000-15,000t per month of African soybean meal into the U.S. has applied further bearish pressure to an already amply supplied market.

Energy and commodity price reporting agency Argus acquired Mercaris, the leading provider of organic and non-GMO agricultural commodities in the US, in June 2023. The company is an SSGA member and a monthly contributor to the SSGA E-newsletter.