What’s Ahead in the FOG Markets?
Rising Tide – What’s Ahead in the FOG Markets Ryan Standard, Fastmarkets / The Jacobsen The following video is a capture from The Jacobsen Fuels & Feedstocks Virtual Conference...
Organic corn prices are continuing to creep higher, and strong retail sales demand should help buoy prices. Merchandisers are quoting The Jacobsen mid-west prices that are hovering near the $8 level. Organic corn in the Pennsylvania region is hovering near $10 per bushel. Organic corn prices across the pond are also buoyed. Merchandisers are quoting organic corn picked up in Constanta are hovering near 280-euros per metric ton.
The demand for organic animal proteins should eventually spill over into organic animal feed demand. According to the latest report from the US Commerce Department, the overall gauge of retail sales continues to rise. In January, Stimulus checks helped buoy consumer demand, sending retail sales for the month up 5.3%, generating a strong start to 2021. The substantial number was driven by merchandise other than autos and gasoline as total retail sales ex-autos rose 5.9%. The strong demand followed the Congressional approval of a $900 billion additional stimulus package on top of the $2.2 trillion approved earlier in 2020.
Retails grocery sales were also robust. According to the Commerce Department, US Grocery Store retail sales rose more than 11% year over year in January. This gain followed an 8.5% year-over-year gain in grocery store sales in December. The 11.39% year over year gain in January Grocery Store retail sales was the largest gain since May of 2020, which saw increases of 14.2% year over year. The substantial gains helped buoy organic yogurt sales in January. Organic yogurt sales increased 8% year over year in January and have grown a solid 10% year over year for the 12-months ending January 2021.