Around the Markets
The market for organic corn has shifted to new crop, with harvest deliveries trading near $8 per bushel off-the-farm, and $1 higher at elevators. Despite the forecast for robust yields, demand remains steady for both feed and food, with activity picking up for non-GMO corn, according to the USDA. CBOT board prices have stabilized, after hitting lows at the end of August. Hedge fund traders continue to line up on the short side of conventional corn: last week, 15,000 contracts were added to short positions. Short futures and options are now double the long positions in the market, according to the latest Commitment of Trader’s report for the date ending September 6th, 2016.
Midwest organic soybean prices remain steady, and continue to consolidate near in the $17.25 – 18.00 per bushel range. Similar to corn, imports are offsetting the dearth of U.S. supply. Volume has been light. Non-GMO soybean CIF are trading $0.75 – $1.25 per bushel above cash prices. They are down from $1.50 earlier in 2016, as over-contracting and a saturated market have weighed on prices. There will likely still be a short supply of specific beans with certain protein levels—but overall, the market appears heavy.
Hard red winter wheat is active, trading with feed grade seen near $7 per bushel.
In the News
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Lawsuit Against USDA Secretary, Organic Policy Moves Forward
The Center for Food Safety filed a lawsuit against U.S. Secretary of Agriculture Tom Vilsak, alleging that the USDA changed the Organic Foods Production Act without notice or legislation. The case expounds that the government failed to uphold its provision to remove synthetic substances from the list of approved organic farming substances every five years, barring a two-thirds opposition by the National Organic Standards Board. The plaintiff, along with 13 others, filed the original edition of their complaint last year, and saw it rejected in court. After making amendments and resubmitting, a federal judge ruled that the food safety advocates “adequately alleged harm”, and has allowed the case to move forward. Other plaintiffs reportedly include Beyond Pesticides, Organic Seeds Growers and Trade Association, the Organic Consumers Association. (CNS).
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Earth Balance Survey Shows Consumer Preferences
An online consumer survey asked 2,000 participants to rank which healthy food options held the most appeal. In the survey, participants were asked to rank what factors were most important to them while shopping for healthy food: buying “local” was ranked at a high level of importance for 37% of consumers, followed by “organic” (33%) and “non-GMO” (30%). The questionnaire, organized by Earth Balance, also asked participants about their biggest deterrent to trying new types of health food—to which 64% responded “price”. (PRNewsire).
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ADM Launches New Non-GMO Flax Product
After a string of specialty food company acquisitions, including Eatem Foods, Harvest Innovations, Wild Flavors, Archer Daniels Midland has launched a new non-GMO flaxseed product, Onavita. The company’s General Health and Nutrition manager indicated that the new brand serves to “provide innovative, on-trend solutions” to customers. (FoodBev).
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