Organic Wheat Prices Are Stable Despite Rise in Flour Demand

Organic Wheat Prices Are Stable Despite Rise in Flour Demand

Happy Thanksgiving!

Organic wheat prices remain stable, and after briefly rising in tandem with conventional prices, organic feed wheat has moved back in line at a discount to organic corn prices. Organic milling wheat prices remain stable, but merchandisers are telling The Jacobsen that most consumers of organic milling wheat are covered for the Q1.  This comes despite a continued increase in demand for organic flour, as at-home baking returns after taking a hiatus during the summer.

At-Home Baking is Rising

During the first wave of the pandemic, baking was all the rage. It was nearly impossible to purchase flour and baking powder at a supermarket, big-box stores, or online during the spring. During the first 4-months of the pandemic, organic flour sales rose 134% year over year according to The Jacobsen. Non-GMO flour sales were also very robust. They increase 94% year over year compared to the same period in 2019.

This compared to a 45% increase in conventional flour sales. During the summer of 2020, as the spread of the virus eased, at-home baking slowed but was still higher year over year. The second wave has led to a rise in demand for baking goods, and ahead of the holiday, it appears that organic flour sales are on the rise again.

organic flour sales

Consumer Confidence Slid

Ahead of the holiday season, which unofficially kicks off on Friday, November 27, 2020 (Black Friday), consumer confidence appears to be slipping. According to the Conference Board, consumers’ economic outlook slid in November as coronavirus cases soared across the country. The Conference Board reported that its index of consumer confidence fell to 96.1 in November, from a revised 101.4 in October. Expectations were for consumer confidence to slide to 98.0. It appears that the levels of consumer confidence are negatively correlated to the sales of organic flour. The dip in confidence during the period March through June came as organic flour sales hit multi-year highs. The uptick in confidence during the summer reflected a corresponding dip in organic flour sales.

 

Note.  There will be no daily analysis this Friday November 27, 2020

 

Blog

01.13.2021

Soybean Oil Falls on Weakness in Soybean Futures

Soybean Oil Falls on Weakness in Soybean Futures

Vegetable oil prices were mixed on Wednesday, with soybean oil prices falling on weakness in soybean futures due to profit-taking following Tuesday's bullish USDA data. Palm oil prices stabilized...

01.13.2021

Firm Demand for Heavy Native Steer Hides

Firm Demand for Heavy Native Steer Hides

Heavy Native Steer (HNS), Heavy Native Dairy Steer (HNDS) and Dairy Cow (DC) hide demand has been firm due to the strong furniture upholstery business. The majority of...

01.12.2021

Fats, Oils, & Fuels Webinar 1/12/21: Customer Q&A

Fats, Oils, & Fuels Webinar 1/12/21: Customer Q&A

Video shorts from the Fats, Oils, & Fuels Webinar Report Our team of Senior Analysts break down questions from the live Webinar audience during the call on Tuesday, January...

Latest Tweets

Join us at our first virtual Hemp Conference looking at Hemp Fiber, Flower and CBD - https://thejacobsen.com/events/hemp-conference #hemp #cbd #cbg #industrialhemp

Now you can hedge organic corn, wheat, soybean etc. https://thejacobsen.com/consulting/hedging-commodities/ #organic #corn #soybeans #wheat #grains

Load More...