Where are Argentina’s organic beans?
An ag economist says recent trade data suggests Argentina could be behind major swings higher in the organic soybean market.
Ryan Koory with Mercaris tells Brownfield following the January announcement the U.S. is ending an organic equivalency agreement with India, the largest supplier of organic soybean imports, he’s been closely monitoring if there’s a connection to the current tightness in the market.
“We don’t see a reduction in either imports or an increase in price from that country which indicates that the current tightness within the U.S. market and price increases in the U.S. market aren’t really related to supplies coming from that country,” he says.
Koory says it appears the supply challenges are coming from whole organic soybeans with imports down nearly 25 percent for the marketing year which he says is significant for domestic crush needs.
“If we look at where that tightness is coming from, it clearly seems to be Argentina,” he says.
Imports through April are down nearly 70 percent from Argentina but Koory says the cause is still unknown, but if it’s a shipping logistical issue, their arrival in the market will likely drive prices for the remainder of the year.