The view of several merchandisers’ who have visited, Ohio, Indiana, Illinois and Michigan show that Organic corn planted in the eastern mid-west could pose a problem that will buoy prices. Additionally, there is news that very little corn has also been planted in the Ontario region of Canada. While imports will likely help make some of the organic corn that is lost, the Jacobsen calculates that there were approximately 10-million bushels harvested in this region during the 2018/2019 season. Estimates of the crops that have been lost range from 20-40% or 2-million to 4-million bushels. The Jacobsen, sent a survey and are waiting for respondents to gauge the damage in the region. There is also commentary that both New York and Pennsylvania will also experience a decline in organic corn that is planted in those states.

Organic Corn Prices Are Oversold

Organic corn prices mid-west picked up at the farm are now oversold. The relative strength index, which is a momentum oscillator that measures accelerating and decelerating momentum as well as overbought and oversold levels, measures the weekly change in organic grain prices, over a 14-week period. Prices have accelerated lower to the point where the index is now printing a reading of 24, which is below the oversold trigger level of 30, and could foreshadow a technical correction in organic corn prices. Organic corn prices can remain oversold for an extended period, and this is the first time in the past 2-years that organic corn prices have reached a weekly oversold level.