Organic Corn Forward Contracts Will Pop Up, and We’ll Connect You

 

By Mike Schulist

At NForganics, we recognize a great deal of potential for the organic grain marketing program, and even better, for the farmers we intend to help, having gained a substantial number of bushels to work with, and new people.

It was a good recruitment time through the winter. Farmers want to be represented in the marketplace, and that underpinning is key for protecting growers’ interests. To our newer producers, welcome once again. And to our longtime NForganics patrons, we appreciate the privilege of working with you.

The organic grain market continues to have its challenges with a fair amount of light test weight corn still in the bins. Downward pressure is present in the short-term for organic corn.

The market may be bumpy for a while, but we know it won’t last forever. We wrote some desirable new-crop corn contracts, for example. Contracts from that same certified organic corn processor offer more than what is currently being offered by other buyers. Forward contracting opportunities for corn will pop up, and we’ll be ready to connect your crop to buyers when that happens.

With the uncertainty of current economic conditions, the food-grade market has presented challenges for small grains. Temporary delays have been arising in some of the organic food-grade markets in terms of buyer demand and cautiousness on the processors’ side. This has caused weaker markets and prices for small grains. Despite the challenges in small grains, there should be good opportunities by early summer.

Overall, the 2019-20 crop and marketing season are very similar to 2009-10. We’d had a poor growing season, light test weights and higher moistures, and it reflected into lower prices. However, they bounced back from the fall of 2010 through 2011-12. We can hope that is the case this time, as well.

Certified organic soybean demand is rolling in with strength right now. The late harvest of 2019, and poor growing conditions, have resulted in a shortage of organic soybeans currently. The new-crop soybean market is attractive, as it needs to be, given 2019’s growing season. There will be plenty of opportunities to do forward contracting with new-crop soybeans. The 2019 growing conditions seem to be a theme for the NForganics column.

Some buyers are now using dark hilum for food-grade purposes. I do encourage growers to grow both clear and dark hilum soybeans and to be diverse with feed-grade soybeans also. Generally, it’s important to be diverse in soybean rotations.

For those seeking certified organic grains, because soybeans are short, other protein sources should be considered, including field peas. We can help you acquire additional protein sources, as well.

Hay harvest time is coming, and now buyers are more attracted to big square bales than they are to round bales. Big square bales are better for shipment, and it’s possible to transport more tonnage per semitrailer with them. Quality makes the sale, too.

We began a relationship with a new buyer of organic straw, so that operation could be in the market as COVID-19 continues to subside through the summer, hopefully.

The market is always changing and we’re in it each and every day, looking out for your best interests. Get in touch at mschulist@nfo.org or 715.496.3956 and tell us what you need.

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