Milling & Baking News - December 18, 2018 - 34

Organic Update

Organic grain prices decline in
October-November period

it is unlikely organic food grade corn
contracting will increase before the
start of the new year. Anecdotally,
farmers still hold a good amount of
"Organic durum wheat purchas- corn in their bins. Purchasers should
KANSAS CITY - Prices for organic
food-grade hard red spring wheat, du- ing increased in November, with the watch for price volatility and buying
rum and soybeans in the two-month price level down only slightly from opportunities toward the end of firstOctober-November period declined the end of quarter two," Mr. Koory quarter 2019 as operators look to make
from the prior two two-month peri- said. "Through the last half of 2018, cash flow ahead of planting."
Soybean prices also declined in the
ods and from a year ago, according to organic durum wheat prices have reMercaris, the organic and non-G.M.O. mained mostly steady between $16 latest period, but trading volume held
about steady through November.
trading platform and market informa- and $17 per bu."
"Organic soybean prices have conFood-grade organic corn and soytion company.
Trading of food-grade organic bean prices were lower over the latest tinued to fall through quarter four,
durum increased over the latest pe- period, although corn trading volume with the October-November average
market price declining to its lowest
riod, while trading of other wheat was not sufficient for a price quote.
"Organic corn contracting slowed level since quarter one of this year,"
classes mostly was slow, according
Mr. Koory said. "Previously,
to Mercaris.
Mercaris has discussed the
"Organic hard red spring
Organic food-grade grain prices
potential for food grade soywheat prices fell again in
National average price based on
beans to miss their fourthOctober-November, almost
eight-week rolling average
quarter bullish window, and
falling below the $15-per-bu
- Change from -
now it appears that this has
mark," said Ryan Koory, sein $ per bu
Oct.-Nov. Aug.-Sept. June-July Year ago
been the case. Unlike organic
nior economist at Mercaris.
Hard red spring
$15.08
-1.34
-2.59
$19.60
corn, organic soybean con"Food- grade wheat continHard red winter
NA
...
...
$9.95
tracting activity remained
ues to struggle under mulSoft red winter
NA
...
...
...
steady through the month of
tiple layers of bearish price
Durum
$16.39
-0.35
-3.63
$17.88
November. But, like organic
pressure with overall wheat
Corn
NA
...
...
$9.83
corn, purchasing activity is
supplies higher year over
Soybeans
$21.35
-0.64
-0.73
$22.34
expected to slow along seayear, but protein content
Source: Mercaris
sonal lines over the next sevgenerally lower. Wheat priceral weeks."
es will likely struggle until
In its monthly market update, Merwinter wheat crop conditions become to a crawl over November, with the
known and buyers start to form a per- number of reported transactions too caris noted that organic soybean despective of what wheat supplies will few to quote a price," Mr. Koory said. mand (food-grade and feed-grade) re"In general, the price for organic food- mained "remarkably strong" through
look like over the last half of 2019."
Neither hard red winter wheat nor grade corn continued to fall over the 2017-18. Supplies were estimated in
soft red winter wheat prices were month, with the market average price excess of 29 million bus, comprising
quoted by Mercaris for October-No- remaining in the $10 to $10.25 a bu both domestically-produced supply
vember, but durum was quoted in the range (compared with $9.83 a bu a and imports. Domestic organic soylatest period after not having suffi- year ago). Now, with December fully bean production in 2018 was up about
cient trading volume for quotes in the underway and holiday breaks loom- 15% from a year earlier, equal to just
ing for the second half of the month, over 1 million bus, "which is progress
prior two periods.
toward meeting U.S. market needs,"
Mercaris said. But with organic soybean imports at 22 million bus in 201718, "it will require many more years
of double-digit acreage growth for the
U.S. to curtail its reliance on imports."
"Without question, purchasers
WASHINGTON - The Organic Farm- of the Organic Farmers Association.
ers Association applauded farm bill "American commodity farmers need prefer to source domestically proconferees on completion of the Ag- support to diversify their production duced organic soybeans," Mercaris
riculture Improvement Act of 2018, and enter new markets, like organic, said. "How to relate this preference
which includes important programs and the domestic organic market back to growers in a way that proneeds more supply. This farm bill will duces more acres is a question the
for organic farming.
The association thanked House and help to enhance U.S.D.A.'s enforce- industry needs to answer."
Mercaris is a comprehensive source
Senate agriculture committee leaders ment of the organic label so that all
for addressing organic priorities by producers are farming within con- of market data and online trading for
improving the integrity of the organic sistent and fair standards. It will also feed-grade and food-grade organic
supply chain, providing much needed support programs to grow our domes- and non-G.M.O. commodities based
organic research funds, continuing the tic production to meet the increasing in Silver Spring, Md. For more information visit www.mercaris.com. Soorganic certification cost share pro- demand for local, organic food."
The association also noted that con- sland Publishing Company runs this
gram and other fixes to programs imferees made two changes involving food-grade organic grain price report
portant to its members.
"Organic farming is at a critical operation of the National Organic Stan- in the second issue of Milling & Baking
News each month. MBN
junction," said Dave Colson, president dards Board that it did not support. MBN

Organic Farmers Association
applauds farm bill

34 / December 18, 2018

Milling & Baking News

bakingbusiness.com / world-grain.com

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Milling & Baking News - December 18, 2018

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