Appeals Court Strikes Down EPA’s Denial of SREs
*Please Note – Bob Lane was out of the office today and will return on Tuesday, November 28, 2023.
On November 22, a U.S. appeals court struck down a decision...
The focus in the market remains on organic soybean prices and organic soybean meal prices. Prices remain elevated, and activity is stable, but the volumes are very light. Organic soybean meal is trading at $1,260 a short-ton at Baltimore for the balance of Q2. The petition brought by the Organic Soybean Processors of America and a group of other organic soybean crushers is halting the supply chain even further than was the case following the issues with APEDA.
According to India’s exporters, there are only approximately 5% of the organic soybean exporters currently NOP certified, and come Q3, if more exporters are not permitted, prices could surge come the beginning of the Q4. Merchandisers tell The Jacobsen that it is very challenging if you want to purchase 5K tons of organic soybeans. Only small volumes are getting transacted.
Merchandisers now await whether the Department of Commerce will move forward with a recommendation of duty on India’s organic soybean meal. If tarrif is to implement, it will increase the delivery price of organic soybean meal, which might price additional players out of the market.
Organic chicken slaughter by weighted rose in the latest week but declined month over month for March 2021. While the average organic chicken weight decreased throughout the month, the average number of birds slaughtered increased by approximately 1.5%. According to The Jacobsen, organic chicken slaughter by weight is up 0.5% year over year for the six months of the old crop season. Seasonally, organic chicken slaughter usually peaks in May and then heads lower throughout the summer months. While the supermarket’s demand continues to grow, it’s unclear whether the elevated prices for organic feed will spill over into the organic retail sector, reducing need at the consumer level.