Where Are Organic Corn Prices Relative to the Historical Average?

Where Are Organic Corn Prices Relative to the Historical Average?

The Jacobsen has heard through the grapevine that organic corn farmers are frustrated by the drop in organic corn prices and need to sell down their old crop inventory to make room for new crop organic corn. Organic corn prices are hovering near the $8/$8.25 level for old crop picked up at the farm in the mid-west. Prices hit multi-year highs at $10.50 a year ago, but a robust 2018/2019 harvest weighed on organic corn prices.

What farmers fail to remember is that organic corn prices picked up at the farm where even lower 3-years ago. The organic corn swap has a three-year range which peaks near $10 and has a floor near $7.5. The average price of the organic corn swap during the past 3-years is $8.67.

For farmers, the current organic corn price of $8.00/$8.25 is only 5% of the long-term mid-price. The question for organic corn producers is whether this price is historically viable. If you can lock in $8.67 over time, can you consistently make money? Based on the costs to produce organic corn, relative to conventional corn, the answer is likely yes, according to the Jacobsen insight.

There is some seasonality to the organic corn swap. It appears to peak in the Q1, with an average corn swap price of $8.77.

Blog

11.21.2024

Domestic US biodiesel blending helps lift October RFS RIN production

Domestic US biodiesel blending helps lift October RFS RIN production

US domestic biodiesel blending of 147.5 million gallons in October produced a monthly high of 221.2 million renewable identification number (RIN) credits for January-October. This was 11.5% above September...

11.21.2024

CWG trades lower as broader animal fats markets hold steady

CWG trades lower as broader animal fats markets hold steady

The US animal fats and oils markets held steady on Thursday November 21, with limited trading as attention shifted toward broader macroeconomic factors and...

11.21.2024

October commercial cattle, hog production above 2023

October commercial cattle, hog production above 2023

US animal protein prices were steady on Thursday November 21. Limited trade was reported from market sources due to the proximity of the extended Thanksgiving holiday weekend in the...

Latest Tweets