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Organic crop prices not immune to supply pressures

Organic crop prices have not been immune to the overall downturn in commodity markets.

Ryan Koory with Argus Media says strong organic corn and soybean supplies are expected after a record harvest.

“Despite some weather challenges over this past spring and summer, yields and crop conditions look like they’re very strong coming off this fall.”

He tells Brownfield factors that had been supporting organic grain markets like the war in Ukraine, disruptions in global shipping, and the pandemic, are having less of an impact.

Koory cautions growers there is a fair amount of downward risk going forward.

“The advice I always give people is try to always market yourself to a position where you think you’re going to remain profitable. There’s a lot of bearish risk out there, and there area always chances prices could turn around and things could change. But be smart with your balance sheet and lock in positions that keep you in the black.”

U.S. organic soybean markets are expected to see record supplies in the next marketing year, with organic corn supplies 11 percent higher compared to the previous marketing year.