Around the Markets
New crop corn prices have converged with old crop prices, as traders await the acceleration of the harvest, after heavy rains in the Farm Belt slowed initial collection from the fields. End users appear to be holding long organic positions, and are unwilling to further contract ahead of a likely robust supply. Imports continue to enter the U.S. at a steady pace, allowing organic corn prices to slip slightly, to the $7.50-$7.75 per bushel range on the farm, and $1 higher at elevators. Non-GMO Yellow #2 CIF remained steady at a $0.10 premium over conventional.
CBOT corn board prices dipped back into the middle of a tight range, as hedge fund traders added to short positions in futures and options, according to the latest Commitment of Trader’s report, released for the date ending September 20th, 2016. Managed money increased short positions by 16,900 contracts, while adding 2,200 contracts to long positions.
Midwest organic soybean prices are experiencing light activity ahead of harvest. As opposed to corn, bean contracts are typically transacted at harvest, as predicting yields on beans is less precise than predicting yields on corn. Prices have drifted to the $17.50-17.75 per bushel range. Non-GMO soybean CIF are trading $0.75-$1.25 above cash prices. Bean oil prices are beginning to catch a small bid, as crushing capacity increases in India. Market sources reveal that the government might be providing some incentive to hold vegetable oils for domestic supply, which should reduce exports to the United States.
In the News
OTA Study Quantifies Millennial Organic Buyers
A new survey from the Organic Trade Association (OTA) breaks down the buying power of U.S. families from different age generations—segregating the market into Millennials, Generation X, and Baby Boomers. Millennial families were classified as parents 18-34 years of age with at least one child under 18: that market segment contributes 52% of organic market purchases. Generation X made up 35%, and Baby Boomers 14%. The number of families “never buying” organic was seen at 18%, down from 30% in 2009.
Perhaps most notably, 77% of Millennials considered themselves “well informed” about organic products. One often voiced concern from the production side of the industry is the lack of thorough understanding of specialty food label implications. Perception is usually what counts, though, and the OTA survey results capture a strong theme amongst the younger generation, and its growing sensitivity to food labels. (OTA).
|
|
Non-GMO Milk Label Raises Ire from All Sides
Last week, a major U.S. West Coast dairy operation became one of the first of its kind, as it converted all of its conventional milk products to non-GMO varieties; the label already has an organic arm. Organic and conventional growers, as well as scientists, reproofed the announcement: they cited that non-GMO labeling often misleads uninformed consumers, a now-familiar complaint. Organic farmers often state that non-GMO labeling leads consumers into thinking non-GMO products are produced under the same criteria as organics. A reputable 2014 scientific analysis also showed that, over 30 years of GMO-fed livestock studies, there was no statistically significant evidence for changes in the nutritional content of meat or milk. (SF Chronicle).
|
|
Chinese, Global Consumers Surveyed on Food Preferences
Another survey was released last week, focusing on global attitudes towards organic products. Readers took an interest in the results from Chinese participants. Conducted by Nielsen, the Global Health and Ingredient-Sentiment survey showed that 70% of Chinese respondents follow a diet that prohibits or limits consumption of some type of ingredient; that figure is above the global average of 64%. Furthermore, 65% of respondents desired more all natural foods, 55% wished to see more organic, and 52% wanted more GMO-free products. The results also showed 82% of those surveyed would pay more for products absent unwanted ingredients, which was above the global average for that question, of 68%.
The survey was conducted worldwide, and results can be seen for other countries and regions, as well. (Nielsen).
|
|