U.S. Drought Conditions Top of Mind with Organic Corn and Soybean Markets
The organic corn, soy and wheat markets are not immune from the moderate to exceptional drought impacting much of the U.S. growing region. Mercaris notes that while rain is very much needed, there is a silver lining from all the dry weather when it comes to planting.
“Mercaris estimates that organic corn planting progress is up 16 percent year-over-year as of May 30 and organic soybeans are up 24 percent in the same time frame,” says Megan Thomas, economist for Mercaris. “The dry weather has really helped planting move ahead for both organic corn and organic soy in 2021, compared to the cool, wet spring U.S. farmers saw in 2020.”
The Dakotas saw the biggest shift in year over year planting progress, with North Dakota’s organic corn planting going from 26 percent a year ago to 73 percent this year and organic soybeans shifting from 12 percent in 2020 to 65 percent this year. South Dakota’s corn and soybean planting shifted from 72 percent to 93 percent and 44 percent to 86 percent, respectively.
“The extreme drought in the Dakotas and parts of the Midwest is something we are keeping a close eye on moving forward,” adds Thomas. “These weather conditions could have a significant impact on fall harvest, prices and imports for corn and soybeans, as well as an uncertain impact on planting and harvesting organic wheat.”
In addition to planting progress, the Mercaris Monthly Update provides pricing trends and y/y insights for the organic feed corn, organic feed soybeans, organic hard red spring wheat and organic red winter wheat markets, as well as the latest import data. To see the latest report, visit www.mercaris.com.
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