WASHINGTON, DC, US — Mixed outlooks are in store for organic wheat, soybean and spring wheat, according to a recent report from Mercaris, a market data service and online trading platform for organic and non-GMO certified agricultural commodities.
The domestic organic corn market finished strong with prices recovering from last year’s dips. Production reached a 9% year-over-year increase with harvests estimated to reach 49.5 million bushels, according to Mercaris. The harvest is expected to slow the steady stream of organic corn imports in 2022. The increase in supply could also potentially lower prices for the upcoming summer, Mercaris noted.
It was a record-breaking year for the domestic organic soybean market, where production was expected to reach a new high of 9.4 million bushels. Unlike corn, imports of organic soybean are not projected to diminish nor is the large domestic output anticipated to have an impact on soybean’s premium price tag, according to Mercaris. Part of the import issue stems from US importers being unable to source organic soybean meal from India due to multiple actions that were taken against that country in 2021.
Domestic organic wheat did not see the same boon as the domestic organic corn and soybean markets witnessed. Severe drought conditions across the High Plains depleted the yields of spring wheat, which fell 4% year-over-year to 19.6 million bushels, according to Mercaris.
Mercaris noted that US organic corn producers are expecting to expand their crop production by 4%. The increase in organic corn production would expand harvestable area to nearly 392,000 acres, providing a potential 5% year-over-year increase in yields, Mercaris said. Meanwhile, domestic organic soybean producers are seeking to increase their production fields to 252,000 acres. Their yields are expected to increase 5% year-over-year, providing 37.45 bushels per acre. Mercaris said it does not expect any increase in organic spring wheat yield. This year’s brutal drought ravaged the soil creating disastrous growing condition across the High Plains region of the United States.