Around the Markets Organic Corn Prices and Organic Soybean Prices

Organic Corn trading activity has slowed during holiday season.  Prices will likely remain stable until activity picks up in the new year. There are Q1 bids near $7.25 and offers at $8.0. The carry for Q2 has declined back to zero. NON-GMO yellow #2 CIF remained steady at $0.10 premium over conventional the balance of Q4, and Q1.

Corn board futures prices have rebounded this week after declining back to levels seen in the beginning of December. Hedge fund traders substantially added to short positions in futures and options. Per the most recent commitment of trader’s report released for the date December 20, 2016, managed money added nearly 20K contracts to short positions and reduced long position in futures and options by 3K.  That takes the number of short futures and options contracts that outnumber managed money that is long to approximately, 97K contracts up from 74K contracts, 1-week ago.

Mid-west organic soy bean trading activity is subdued.  Prices have dropped to the $16.50 levels driven by declines in bean meal prices. Import activity for bean meal, from China and India have pushed mid-west prices down to 775 range, driving down the price of organic beans. The carry for the second quarter is flat. NON-GMO soybean CIF for November and December delivery are trading $0.10 –  $0.30 above cash.

Soy bean oil prices tumbled back to earth as rain finally appeared in Argentina relieving tensions that yields would be scares. A stronger dollar is also generating headwinds for bean oil. Target support is seen near the 10-week moving average at 34.48 cents per pound.

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