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Organic soy prices rallying following oversight changes in India

An ag economist says the U.S. ending its equivalency agreement with India at the beginning of this year is having a substantial impact on organic soybean prices.

Ryan Koory with Mercaris tells Brownfield India is the largest organic soybean meal supplier in the U.S.

“India accounts for about a third of U.S. organic soybean supplies overall,” he explains.  “So with the USDA’s announcement, that puts that supply chain under threat.”

He says producers in India have until this August to begin an updated USDA organic certification process and until August 2022 to complete it before they lose access to the U.S.  In the meantime, U.S. importers are currently driving up prices to lock in their supply.

“We’ve seen a lot of forward purchasing and we’ve seen a lot of upward pressure on soybean prices in the U.S.,” he says.

Since December, USDA reports Midwest organic soybean prices have surged $10 to $16 per bushel in both spot and forward contracts.

About 70 percent of organic soybeans and soybean meal is imported into the U.S. annually.