Declining organic corn imports assisted in market stabilization during the first four months of 2020/21, according to the Mercaris Market Update released Tuesday.
Organic feed-grade corn averaged nearly $0.40/bushel higher than the end of 2019/20 reaching $6.98/bushel in December; while organic soybeans declined slightly to $19.66/bushel.
The 2019/2020 marketing year proved challenging for organic corn markets, with prices tumbling from September 2019 to September 2020, while the 2020 harvest promised record setting U.S. production. Decreased imports and reduced harvest estimates, however, have stabilized prices so far in 2020/21. Mercaris data shows that imports of organic corn were down 30% for the first four months of the marketing year compared to the prior marketing year.
Although organic corn prices have leveled off, Mercaris cautions the year ahead holds the potential to catch markets off-guard.
“The transitioning of the U.S. government and ongoing COVID-19 response will likely drive changes in demand and trade,” says Ryan Koory, director of economics for Mercaris. “Consumer incomes and the U.S. growing reliance on organic soybean meal imports continue to warrant close observation.”
Koory adds the pace of U.S. organic soybean meal imports more than doubled over the first four months of 2020/21 compared to the prior year.
In addition to the pricing information found in the Monthly Market Update, Mercaris’ organic trading platform continues to see growth in both volume and customers. To access a copy of the Monthly Market Update or to learn more about the additional tools from Mercaris, click here.
About Mercaris
Mercaris has helped its customers capitalize on the growing demand for organic and non-GMO agriculture by providing market intelligence, analysis, and trading services exclusively for the identity-preserved agriculture industry.
