Organic soybean prices are rising sharply according to merchandisers as rain has continued to hamper the future projections of the harvest. Indian soybean prices on the NCDEX have broken out to fresh highs which are pushing up the price of organic soybeans. Merchandisers are telling The Jacobsen that organic soybean prices FOB India have reached $665 per metric ton up to $40 per metric ton over the past week. The quotes are for Q1, and beans that are on the way to Baltimore that has yet to find a home are discounted to these levels.
The Outlook for the Indian Harvest Continues to be Reduced
Sources are telling The Jacobsen that India is likely to produce 10.45 million metric tons of soybean in 2020, nearly 15% lower than the previous estimate. The decline in the forecast is due to excessive rainfall during harvesting along with pest diseases that have eroded some of the oilseed produced. Yields have declined due to continued rain in the Madhya Pradesh and Rajasthan, where are the biggest and third-biggest producers in the country. This has negatively affected crop and led to low yields, according to the Soybean Processors Association of India. Prior estimates had been for India to produce more than 12.25 million metric tons of soybeans. The news pushed India soybeans on the NCDEX to a fresh 12-month high.