Non-GMO / Organic December 7th, 2016

Non-GMO / Organic December 7th, 2016

Around the Markets

Organic Corn trading activity has slowed as most consumers have booked bushels through the end of Q1.  There is light activity in the spot market with bids near $7.25 and offers at $8.0. The carry for Q2 has edged back to the $0.10 level. NON-GMO yellow #2 CIF remained steady at $0.10 premium over conventional the balance of Q4, and Q1.

Corn board futures prices have bounced back up to the top of an 8-week range, as hedge fund traders added to short positions and reduced long position in futures and options. Per the most recent commitment of trader’s report released for the date November 29, 2016, managed money, that is short futures and options, outnumber managed money that is long by approximately, 70K contracts up from 60K contracts, 1-week ago.

Mid-west organic soy bean trading activity is slower for December and Q1.  Prices have dropped to the $16.50 levels driven by declines in bean meal prices. Import activity for bean meal have pushed mid-west prices down to the low $700’s, driving down the price of organic beans. The carry for the second quarter is flat. NON-GMO soybean CIF for November and December delivery are trading $0.10 –  $0.30 above cash.

The growth in the organic space is for proteins, which is driving feed demand. The Agricultural Marketing Service recently reported that organic whole milk utilization for October totaled 14.99 million pounds, up 18.1% from October 2015.

Soy bean oil prices continues to break out on relatively solid volume. The next level of target resistance on the futures contract is seen near the April 2014 highs at 41.15 cents per pound.

In the News

USDA Issues Draft Guidance on Calculating Organic Percentage

The U.S. Department of Agriculture’s Agricultural Marketing Service has published draft guidance on calculating the percentage of organic ingredients in products. This guidance clarifies how to calculate organic percentages of multi-ingredient ingredients used in organic processed products, determine the organic content of single-ingredient ingredient, exclude water from the calculation of ingredients used in organic processed products, calculate the organic content of carbonated beverages, exclude salt from ingredients used in organic processed products (USDA)

More than Half of Americans Value the Health Benefits of Organic Food, Poll Shows

The Pew Research Center has released a poll that has found that 55% of Americans believe that organic food, particularly organically grown fruits and vegetables, are healthier than conventional. The poll also showed that 41% believe that there is no difference between the two. (Organic Authority)

China and NZ Sign-off on Organics Deal

Organic producers and exporters in New Zealand and China have signed off on a new bilateral agreement. The Mutual Recognition Arrangement for Certified Organic Products was signed by the two countries in China late last month. New Zealand exports of organic produce to China are currently valued at NZ$27 million per year. (Fruit Net)

Acquisition will Push Greeley’s Pilgrim’s Pride Further into Organic Chicken Market

Pilgrim’s Pride will push a little further into the organics and natural foods market with its impending acquisition of a Minnesota chicken company. Pilgrim’s announced Tuesday it would spend $350 million to buy GNP Company, which is heavily focused on processing organic chicken. (The Tribune)

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