Around the Markets
Trading activity for organic corn is steady, but volume is light ahead of harvest deliveries. Prices are trading near $8.00 per bushel off the farm, and $1 higher at elevators. Despite the forecast for robust yields, it appears that harvest will be delayed until mid-October. Non-GMO Yellow #2 CIF moved lower last week, trading close to a $0.10 premium over conventional, as expected supply continues to overwhelm solid demand.
CBOT board prices have stabilized, after hitting lows at the end of August, as hedge fund covered their short position in futures and options, according to the latest Commitment of Trader’s report released for the date ending September 13th, 2016. Managed money reduced 31,600 contracts of short positions, while adding slightly more than 2,000 contracts to long positions.
Midwest organic soybean prices remain steady and continue to consolidate in the $17.50 – 18.00 per bushel range. Similar to corn, imports are offsetting the dearth of U.S. supply relative to demand. Volume has been light. Non-GMO soybean CIF are trading $0.75 – $1.25 above cash prices. There will still likely be a short supply of specific beans with certain protein levels, which could cause some price divergence.
Hard red winter wheat is seen with feed grade seen near $7.00-$7.25 per bushel, in light trading.
In the News
USDA Organic Survey Favors Dairy, Eggs
The USDA NASS annual organic farming survey was released last week; the document showed dairy and eggs to be the predominant commodities in the organic sector, with $1.2 billion in organic dairy sales, and $732 million in organic eggs sold last year. The latest figures, documented in NASS’ 2015 Certified Organic Survey, speak to the concentration of organic farms in certain sectors. Broiler chickens, apples, and lettuce—in that order—were the organic agriculture sectors earning the next most.
Total U.S. organic farming sales hit $6.2 billion last year—up 13% from 2014. Approximately 151,000 acres were seen as currently transitioning to certified organic. California and Wisconsin were the two largest producing states. (NASS).
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EU Approves GM Maize
On Friday, the EU said that it would authorize 11 different varieties of GM maize produced by a major seed firm, for use as feed and food. The authorization does not include cultivation—a hot topic for EU growers—but is valid for 10 years, and subjects the GM maize to “labeling and traceability rules”. (Reuters).
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South American Projections for New Seed
Farmers are expected to sow 57% more acres using the next-generation seed of a prominent seed technology. The new seed, Intacta RR2 Pro, which is both glyphosate-resistant and resistant to pests, was planted on 35.8 million acres in Brazil, Argentina, Paraguay, and Uruguay in the 2015/16 growing season, according to estimates. A representative of the company that produces the seed indicated that between 31% to 38% of the planted area in Brazil, Argentina, Paraguay, and Uruguay will use the soybean technology this season—up from 24% in the 2016/17 crop year. (Reuters).
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