Organic soybean meal prices remain elevated, and consumers are focused on the spot market. Merchandisers tell The Jacobsen that most consumers are unwilling to lock in prices other than nearby rates. The elevated level of prices is making it, so the market is living hand to mouth. Consumers are unwilling to lock in prices near $1,400 per short ton, but if the U.S. organic soybean meal petition is successful and duty is levied, prices will rise 258%. Merchandisers tell The Jacobsen that organic soybean meal at Baltimore on a truck are offered and have traded at $1,450 per short ton. In Oakland, organic soybean meal is offered and has traded at $1,350. Organic soybean meal FOB India is offered in a range between $1150 and $1,000. Shipping remains very high. FCLs are quoted on the spot market as high as $5,700, which adds nearly $280 per metric ton before customers clearing and transloading on the East coast of the United States.
The increase in feed costs has yet to change the demand at the wholesale level. Organic chicken slaughter by weight rebounded in the latest week, according to figures from the AMS. Organic chicken slaughter by weight is up 2.5% year over year for marketing season to date. This year-over-year gain includes part of the decline in slaughter due to the spread of covid in April of 2020. Organic turkey slaughter by weight is up a robust 78% year over year for the marketing season to date. The question for handlers is whether this upbeat increase in organic poultry slaughter will remain with higher feed costs.