Organic corn prices remain subdued with some small divergences reported throughout the mid-west. Prices are generally hovering around $6 per bushel but there have been a few spot prices that have come in closer to $7. This has helped buoy the spirits of the organic corn farmer which has reduced the amount of activity. Consumers are still convinced that organic corn prices will trade closer to $6 per bushel for new-crop and the Q1 and Q2.

Low organic corn prices could in conjunction with rising conventional prices be a catalyst that helps buoy organic corn prices next year. Historically when the ratio of organic corn prices to conventional falls to 1.5, there is the potential for a shift from organic back to conventional. This is only likely to happen to farmers and land funds that are relatively new to the organic market. For farmers that are well established, they are unlikely to change as their cost…