Milling & Baking News - September 25, 2018 - 29

Organic Update

Organic hard winter wheat prices
up, but other organic prices slip

to $22 per bu over July-August," Mr.
Koory said. "Like corn, forward contracts for fourth-quarter delivery are
running at a discount to spot contracts,
"As anticipated, organic durum down about $2 per bu. With soybean
KANSAS CITY - The price of organic food-grade hard winter wheat wheat prices are moving lower over harvest around the corner, spot conincreased in the July-August period the third quarter, with the July-Au- tracting activity is expected to pick up,
while values for hard red spring, soft gust average delivered price down and with yields expected to be higher
red winter and durum wheat declined, $2.76 per bu from the prior two- year-over-year, buyers may want to
according to Mercaris, the organic and month period," Mr. Koory said. "Af- watch for purchasing opportunities."
In its September Market Update,
non-G.M.O. trading platform and ter last year's drought, 2018 wheat
yields look much improved, adding Mercaris urged U.S. grain importers to
market information company.
Of the four food-grade organic to U.S. supplies. Mercaris has yet to continue to watch imports.
"It appears ships from Romania
wheat classes quoted by Mercaris, see trade activity increase in response
only hard red winter showed price to the increase in supplies. However, routinely deliver more organic corn to
strength in the July-August period, with prices being pressured lower, the U.S. than actually originate from
while the other three classes showed the next few months should provide Romania (per official trade statistics),"
the opportunity for purchasers to fill the Mercaris report said. "Recently,
notable weakness.
Mercaris Maritime Imports Report
Food-grade organic hard red win- any outstanding needs."
Food-grade organic corn and soy- (MIR) data showed a substantial spike
ter wheat averaged $12.40 a bu in
July-August, up $1.68 from May-June bean prices continued to move higher in Romanian export activity. Over
June and July, 25,700 tonnes
but down $1.08 from Marchof organic corn arrived in
April. The most recent price
Organic food-grade grain prices
the U.S. from Romania, of
was up 77c from a year ago.
which only 1,400 tonnes
"Organic hard red winter
National average price based on
eight-week rolling average
were produced in Romania.
wheat prices have continThe jump in export activued moving higher, in con- Change from -
ity can be attributed to Sertrast to many other organic
in $ per bu
July-Aug. May-June Mar.-Apr. Year ago
bia's emergence as a major
commodities, with the twoHard red spring
$15.58
-1.01
-4.34
-$4.23
source of U.S. organic corn
month average price reachHard red winter
$12.40
+1.68
-1.08
+$0.77
imports.
ing $12.40 per bu over July
Soft red winter
$9.66
-1.19
-0.36
-$0.60
"Using MIR to look at
and August," said Ryan
Durum
$16.78
-2.76
-0.58
+$3.68
Corn
$11.36
NA
+0.81
+$1.63
more recent imports, it apKoory, an economist with
Soybeans
$21.96
+0.02
+0.45
+$1.36
pears another large shipMercaris. "Purchasing activment arrived in the U.S.
ity has remained steady, proSource: Mercaris
from Romania in August.
viding bullish support to the
Whether or not this batch
market. However, it is not at
of organic corn originated from Serbia
all certain that this support will be sus- in the latest two-month period.
Corn was priced at $11.36 per bu in has yet to be determined."
tainable through the fourth quarter."
In other organic news, the Organic
Meanwhile, prices for organic July-August, with no comparison for
food-grade hard red spring wheat May-June, up 81c from March-April Trade Association on Sept. 6 said it
was moving forward with a voluntary,
were quoted at $15.58 a bu in the Ju- and up $1.63 from a year ago.
"Organic corn prices moved slightly industry-invested organic research,
ly-August period, down $1.01 from
May-June, down $4.34 from March- higher over July-August," Mr. Koory promotion and education check-off
April and down $4.23 from July-Au- noted. "Contracting activity remained program. The U.S. Department of Aggenerally subdued as spot contracts riculture in May ended the process for
gust 2017.
"Organic hard red spring wheat seem to be stalled ahead of harvest. a proposed nationwide federal organhas continued to decline from its Forward contracts for fourth-quarter ic check-off program.
The O.T.A. has formed a steering
June peak, with the July-August aver- delivery are running at a $1-per-bu
age price declining to $15.58 per bu, discount to the contracts formed over committee, a governance subcommitits lowest level since mid-2017," Mr. July and August. Thus far corn yields tee and an immediate programming
Koory said. "So far, September has in key organic corn producing states subcommittee. A comment period
seen the hard red spring price remain are generally positive, suggesting seeking input on how to maximize
fairly stable at its lower level, near post-harvest supplies will apply some participation in the voluntary probearish pressure to prices over the last gram and how to prioritize invest$15.50 per bu."
Food-grade organic soft red winter part of 2018. Mercaris is in the process ments will be held this fall.
Mercaris is a comprehensive source
wheat prices also declined, quoted at of finalizing its 2018 organic and non$9.66 per bu. The July-August price G.M.O. acreage forecast, which will of market data and online trading for
was down $1.19 from May-June, down provide a more complete perspective feed-grade and food-grade organic
and non-G.M.O. commodities based
36c from March-April and down 60c of U.S. organic corn supplies."
Organic food-grade soybean pric- in Silver Spring, Md. For more inforfrom last year.
Durum was quoted at $16.78 es edged up 2c to $21.96 per bu in mation visit www.mercaris.com. Soa bu in July-August, down $2.76 the July-August period, up 45c from sland Publishing Company runs this
from May-June and down 58c from March-April and up $1.36 from a food-grade organic grain price report
in the second issue of Milling & Baking
March-April but up $3.68 from July- year ago.
"Organic soybeans remained close News each month. MBN
August last year.
bakingbusiness.com / world-grain.com

Milling & Baking News

September 25, 2018 / 29

http://www.mercaris.com http://www.bakingbusiness.com http://www.world-grain.com

Milling & Baking News - September 25, 2018

Table of Contents for the Digital Edition of Milling & Baking News - September 25, 2018