Organic soy market expected to remain volatile
Tariffs on organic soymeal exports from India continue to disrupt the market.
Mercaris economist Ryan Koory says the U.S. initiated antidumping and countervailing duty investigations on Indian organic meal nearly two years ago.
“It caused a lot of uncertainty around where organic soy supplies would be over the next two years. And with that we saw a lot of volatility really escalating prices within the organic soy industry.”
Prior to the tariffs, imports of Indian organic soybean meal accounted for 46 percent of domestic supplies.
In the aftermath, he tells Brownfield U.S. production and prices have escalated.
“It seems to show that there was a lot of risk, and that risk lead to aggressive purchasing behavior.”
He says that risk is still present in the market and highlights the need for the industry to protect against it in 2023.
Koory was a keynote speaker during last month’s Unconventional Ag Conference in Minneapolis.