Milling & Baking News - June 19, 2018 - 28

Organic Update

Organic grain volume gathers
momentum during May

quotes in the $9.50 to $13 per bu range.
"Early concerns about the pace of U.S.
corn planting have been all but erased
as drier conditions in May and June alKANSAS CITY - Trading volume of mostly in the $15.50 to $16 per bu range. lowed farm operators to quickly make
food-grade organic wheat and corn As the year progressed, drought condi- up for the delayed start to the year.
continued to build in May, but soybean tions set in across the northern Plains From crop progress data provided by
volume eased somewhat, while pric- region of the United States, leading to the U.S.D.A., Mercaris estimates that
es during the April-May period were a significant reduction in spring wheat planting across the top 10 organic corn
mixed compared with February-March, yields and an escalation of organic hard producing states reached 96% complete
according to Mercaris, the organic and red spring wheat prices. So far, though, the week of June 10, slightly ahead of the
non-G.M.O. trading platform and mar- 2018 has seen better weather condi- planting pace in 2017."
Organic food-grade soybean prices
tions allowing spring wheat planting
ket information company.
Food-grade organic hard red winter to progress rapidly. Given growing were quoted at $21.13 a bu for the AprilMay period, also up from the
wheat averaged $11.03 a bu in
prior two-month price and from
April-May, down $2.54 from
Organic food-grade grain prices
a year earlier, but trading activthe prior two-month period but
ity slowed during May.
up $1.55 from a year ago, with
National average price based on
eight-week rolling average
"Organic soybeans remained
pressure on prices thought to be
above $21 per bu through the
related to the advancing winter
- Change from -
first half of the second quarter
wheat harvest.
in $ per bu
Apr.-May Feb.-Mar. Dec.-Jan. Year ago
2018," Mr. Koory said. "The
"Organic hard red winter
Hard red spring
$17.81
NA
NA
$15.28
end of the first quarter saw a
wheat has declined over the
Hard red winter
$11.03
-2.54
-0.77
$9.48
slowdown in spot trades as
second quarter, following a
Durum
$17.25
-0.16
+0.36
$17.34
purchasers focused on securing
brief price spike in March," said
Corn
$10.62
+1.07
+0.75
$9.73
contracts for fall new-crop deRyan Koory, senior economist
Soybeans
$21.13
+0.94
-2.32
$19.52
livery. With spring well underat Mercaris. "Despite pulling
Source: Mercaris
way, focus has again turned to
back more than $2 per bu from
spot supplies, providing modest
the close of the first quarter, the
organic hard red winter wheat price re- conditions remain favorable, the 2018- support to prices. Over the two-month
mained elevated more than $1.50 per bu 19 hard red spring wheat crop is like- April-May time period, delivered organover the two-month April-May period ly to be substantially larger than that ic food-grade soybean prices averaged
$21.13 per bu, up nearly $1 per bu from
produced last year."
compared to the prior year.
Trading of food-grade organic durum the February-March time period. Unlike
"Mercaris estimates that in 2017, the
size of the winter wheat crop was lim- also increased, with prices down slightly corn, the pace of U.S. soybean planting
ited by a 6% decline in yields. The 2018- from the prior two-month period and has run ahead of 2017 by nearly a week.
Mercaris estimates that planting across
19 crop has brought similar concerns as from the same two months a year ago.
"Organic durum wheat has picked up the top 10 organic soybean producing
severe drought conditions have significantly impacted the quality of the U.S. in the second quarter of 2018, with the states averaged 90% complete the week
winter wheat crop. According to the U.S. delivered price averaging $17.25 per bu, of June 10."
Organic corn and soybean acreage
Department of Agriculture, only 38% of mostly flat with the first quarter of 2018,"
U.S. winter wheat acres were reported as Mr. Koory said. "After a brief decline in tends to be concentrated in the Upbeing in good-to-excellent condition the 2017 at the start of the summer harvest, per Midwest and Great Lakes region
week of June 10, down from 50% a year U.S. delivered organic durum prices to provide feed to organic dairies, and
ago. Organic winter wheat appears to have remained fairly steady with most food-grade organic production tends to
mirror organic feed-grain production.
be spared from the worst of the drought trades in the $15 to $19 per bu range."
Organic corn prices also ticked higher Michigan, Minnesota, Wisconsin and
as the majority of organic winter wheat
acres are located further north, above in April-May and were above year-ago Iowa have considerable organic acreage,
the drought-impacted areas. Mercaris levels. Trading volume increased in May, along with New York, Texas and Caliestimates that across the top 10 organic but supplies of food-grade organic corn fornia, the latter three of which also are
winter wheat producing states, 58% of have been hard to find, and volume re- large dairy states.
Price changes from earlier periods
acres are rated as in good-to-excellent mains below the year-ago level.
"Organic corn trade continued to sometimes vary from prior published
condition, up from 51% a year ago."
Prices for organic food-grade hard red build in May, with the Mercaris record- quotes because prices are reported as
spring wheat were quoted at $17.81 a bu, ed delivered price averaging $10.62 per a rolling average and are sometimes
down from last month's report but also bu over the April-May time period," "backfilled" by traders, Mr. Koory said.
Mercaris is a comprehensive source
Mr. Koory said. "Since the start of 2018,
well above $15.28 per bu a year ago.
"Organic hard red spring wheat trade food-grade corn spot trades have re- of market data and online trading for
remained active in May with reported mained scarce, reflecting the generally feed-grade and food-grade organic and
trade volumes reaching a 10-month tight U.S. supply situation. Spring has non-G.M.O. commodities based in Silhigh," Mr. Koory said. "Over the April- brought an increase in market activity, ver Spring, Md. For more information
May time period, the delivered hard red presumably supported by farmers look- visit www.mercaris.com. Sosland Pubspring price averaged $17.81 per bu, up ing for cash flow ahead of planting, and lishing Company will run this foodmore than $2.50 per bu from the same purchasers upping their bids for spot de- grade organic grain price report in the
period in 2017. Organic hard red spring liveries. The range around price quotes second issue of Milling & Baking News
wheat began 2017 with volumes trading tightened over April-May, with most each month. MBN
28 / June 19, 2018

Milling & Baking News

bakingbusiness.com / world-grain.com

http://www.mercaris.com http://www.bakingbusiness.com http://www.world-grain.com

Milling & Baking News - June 19, 2018

Table of Contents for the Digital Edition of Milling & Baking News - June 19, 2018