Milling & Baking News - July 17, 2018 - 38

Organic Update

Organic wheat mixed, soybeans
higher in May and June

"So far, weather has been a generally
positive factor for the U.S. corn crop. From
crop condition data provided by the U.S.
Department of Agriculture, Mercaris esKANSAS CITY - Prices for organic farther north. Once harvest is complete timates that 72% of the organic corn crop
food-grade hard red spring wheat and and state-level yield data become avail- across the top 10 organic corn producing
hard red winter wheat declined sharply able, Mercaris will assess the 2018-19 or- states was rated in good-to-excellent conin the May-June period, with corn down ganic winter wheat crop and determine dition the week of July 9, even with last
slightly, but values for organic soft red just how much supply the market will year. Drought conditions in Texas have begun to raise concerns about the state's orwinter wheat, durum and soybeans have to ration over the next year."
Food-grade organic soft red winter ganic corn crop. In 2017, Mercaris estimatmoved higher, according to Mercaris, the
organic and non-G.M.O. trading platform wheat had sufficient trading volume to ed that Texas harvested 26,140 acres of orreport prices this period. Soft red winter ganic corn, or 7% of total U.S. organic corn
and market information company.
Prices for organic food-grade hard red wheat averaged $10.85 per bu in May- acres. Food-grade organic corn is largely
spring wheat were quoted at $16.59 a bu June, up 83c from the March-April period protected, however, from the worsening
conditions in Texas as the majority of the
in the May-June period, down $3.33 from with year-ago prices not available.
"Recently Mercaris began collecting state's organic corn production is used to
March-April but up 62c from $15.97 a bu
a year ago amid steady trading, accord- sufficient data to release pricing data for feed its growing organic dairy industry."
Organic food-grade soybean prices
U.S. organic soft red winter wheat," Mr.
ing to Mercaris data.
"Organic hard red spring wheat trade Koory said. "Through the second quar- edged higher in May-June and were
remained steady into June, with prices ter, soft red winter wheat has held mostly $1.92, or 10%, above the year-ago price of
$19.92 per bu.
generally down from their peak
"Organic soybeans approached
at the end of the first quarter,"
Organic food-grade grain prices
$22 per bu at the end of the second
said Ryan Koory, Mercaris senior
National average price based on
quarter, averaging $21.87 per bu
economist. "With spring wheat
eight-week rolling average
over the May-June time period folplanting completed, weather is
- Change from -
lowing a slight uptick in contractthe factor to watch over the rein $ per bu
May-June Mar.-Apr. Jan.-Feb. Year ago
ing activity over June," Mr. Koory
mainder of the growing season,
Hard red spring
$16.59
-3.33
NA
$15.97
said. "Prices for new-crop fourthas severe drought conditions deHard red winter
$10.70
-2.78
-0.18
$8.59
quarter 2018 delivery are currently
veloped last year significantly reSoft red winter
$10.85
+0.83
NA
NA
running at a notable discount at
ducing spring wheat yields. Thus
Durum
$19.54
+2.18
+1.27
NA
Corn
$10.35
-0.21
+0.48
$10.06
slightly below $20 per bu. Howfar, U.S. Drought Monitor data
Soybeans
$21.87
+0.40
+1.41
$19.92
ever, purchasers may be preparing
provided by the University of Nefor tighter post-harvest supplies
braska-Lincoln indicates that soil
Source: Mercaris
as contract prices for first-quarter
moisture has remained sufficient
this year across the Northern Plains states steady in the $10 to $11 per bu range, av- and second-quarter 2019 delivery are curof Montana, North Dakota and South Da- eraging $10.85 over the May-June time rently running well above $22.50 per bu.
"Overall, the quality of the organic soykota where the majority of U.S. organic period. With continued expansion in our
food grade organic wheat pricing, Mer- bean crop appears to be in good condition.
spring wheat acres are located.
"Mercaris is of the opinion that spring caris will continue to add insight and From crop condition data provided by the
wheat conditions are worth keeping an market commentary pertaining to soft U.S.D.A., Mercaris estimates that 71% of
eye on this summer, as the combination red winter wheat as well as other wheat the organic soybean crop across the top
10 organic soybean producing states was
of recovering yields and expanding acre- varieties as the data become available."
Prices of food-grade organic durum rated as in good to excellent condition the
age could result in a significant increase
in spring wheat supplies for the 2018-19 jumped to $19.54 per bu in May-June, up week of July 9, up four percentage points
$2.18 from March-April with year-ago from last year. Missouri has seen its soymarketing year."
bean crop condition deteriorate this year
Food-grade organic hard red winter quotes not available.
"Organic durum wheat purchasing as heat and dryness persisted over the mawheat averaged $10.70 a bu in May-June,
down $2.78 from the March-April period continued to increase in June, pulling the jority of June. However, a decent amount
May-June average delivered price up to of rain did fall in late June and early July.
but up $2.11 from $8.59 a bu a year ago.
"Organic hard red winter wheat prices $19.54 per bu," Mr. Koory said. "June saw Subsequently, Missouri's soybean crop
continued to decline in June following har- the volume of durum wheat contracted quality has improved from its low point
in mid-June of 44% rated good to excelvesting progress," Mr. Koory said. "The reach its highest level thus far in 2018."
Organic corn prices eased in May-June lent. Mercaris estimates that Missouri harMercaris recorded average delivered hard
vested 17,000 acres of organic soybeans in
red winter wheat price averaged $10.70 but held above year-ago levels.
"Organic corn trade began to run slack 2017, or about 8% of total U.S. harvested
per bu over the May-June time period,
down $2.78 per bu from the March-April again in June, with the Mercaris recorded organic soybean acres."
Mercaris is a comprehensive source
time period. With harvest underway, the delivered price averaging $10.35 per bu
extent to which yields have been impacted over the May-June time period," Mr. Koory of market data and online trading for
this year by the severe drought conditions said. "Despite the slowing pace of trades, feed-grade and food-grade organic and
across the southern portion of the United prices remained above the $10-per-bu non-G.M.O. commodities based in Silver
range for the third consecutive month in Spring, Md. For more information visit
States will begin to be fully understood.
"Mercaris looks for organic winter June. At this point, contracts for fall new www.mercaris.com. Sosland Publishing
wheat production to be mostly spared crop delivery are mostly settled with prices Company publishes this food-grade orfrom the majority of the drought's impact, for fourth-quarter 2018 delivery averaging ganic grain price report in the second issue
of Milling & Baking News each month. MBN
as organic wheat is predominantly grown even with current prices at $10.35 per bu.
38 / July 17, 2018

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Milling & Baking News - July 17, 2018

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