Argus Murmurings: African organic soybean meal availability declines

Organic soybean imports in June 2024 are estimated at 2,400 metric tons (t), down 92% from the prior year and 7% from the prior month. Ukraine was the largest source with 1,500 MT, followed by Paraguay with 500 MT and Turkey with 400 MT.

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 July 19, 2024, was $20.12, which is up $0.62 from the prior month but down $2.63 from the prior year. Trading activity has been picking up now that the organic soybean crop has been planted.

Availability of African organic soymeal has been tightening, according to market contacts. North America-based importers have reported greater difficulty finding volumes for exports to the U.S., with many African exporters unwilling to offer detailed quotes for organic soybean meal past July. It is unclear if the tightness in the African market is going to continue long-term. Organic soybean stocks in Africa have been drawn down by persistent strong exports to the U.S. Availability is likely to increase when North Africa harvests in the fall, but in the short term the tighter stocks could be a challenge for some end users that have relied on spot purchases to cover their needs.

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.