As traders await this year’s harvest, the price of organic soybean oil has surged. It appears that the harvest cannot come soon enough for those that are in need of organic soybean oil. Prices have climbed nearly 100% over the course of the last few months, driven by the lack of supply. Inventories of organic soybean oil have dropped, and there is no buffer. This comes from the lack of domestic crush and the high demand of organic soybean meal that has driven the import market.

Soybean oil is coveted by the Indian population but they have ample capacity of organic soybean meal. During the past 2-years, organic soybean meal imports have displaced organic soybean imports. The ration has changed from 80-20 beans to meal that was imported to 55-45.

This dichotomy led to a surge in Indian exports to destinations that have rising demand for organic soybean meal.  Competitive meal prices led to a decline in US domestic crushing, and have provided the backdrop for the rise in organic soybean oil prices during the latter portion of the old crop season. Organic soybean prices have been buoyed as feed mills continuing to search for organic soybean oil to mix into their feed. Merchandisers are quoting organic soybean oil picked up at the mid-west crush between $0.60 and $0.70 per pound.