Fats, Oils, & Fuels Webinar 3/2/21: 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, March...
Organic corn prices are somewhat bifurcated. There are several different prices the Jacobsen has seen recently in the mid-west area. With transportation, the prices seem to converge. Organic corn in Illinois is bid at $7.25 delivered. Prices are a little lower in the Wisconsin area, but some trades have traded in the middle $6 range for small quantities.
Organic corn prices have yet to react to the large upswing in conventional prices and with plenty of organic corn around, the upside might be limited in the short-term. Over the next season, prices might experience an upside, as the drought in Argentina and the rise in conventional prices could make achieving similar import levels year over year challenging. The volume of organic corn imported from South America could be down 25-30% year over year. While there is less of an issue with production in the Black sea region, cracked corn that comes to the U.S. will likely face stiff competition from conventional prices, which have surged to $260 per metric ton FOB Black sea.
Organic chicken slaughter edged lower in the last week of the year. This decline was in line with seasonal demand at the end of the year and the beginning of the new year. Generally, the slaughter numbers begin to rise in the middle of January. According to The Jacobsen, despite the decline in organic chicken slaughter seen in April and May during the lockdown, organic chicken slaughter in 2020 was unchanged year over year. Higher organic chicken levels at supermarkets and big-box stores are likely to buoy organic chicken slaughter in the months to come.