• Condensed by Lynda Kiernan-Stone

U.S. Organic Corn and Wheat Faced With Oversupply

Mercaris, the organic and non-GMO trading and market data platform, contends that U.S. organic corn and wheat will face challenges due to larger-than-anticipated beginning stocks and a larger harvested area for the 2019-20 marketing year.

Despite less than optimal conditions, corn and wheat harvests for 2019 exceeded expectations. In addition, U.S. corn imports took a sharp upturn at the end of the 2018-19 marketing year to end 12 percent above estimates. Now Mercaris forecasts U.S. organic corn production to total 39.7 million bushels in 2019-20 - an increase of 9 percent over prior estimates.

Likewise, U.S. organic wheat output also saw a sizable increase in 2019, with a year-on-year jump of 15 percent, totaling 20 million bushels. In contrast, U.S. organic soybeans have a more positive outlook based on strong demand and lower import volumes, despite production being estimated to be up by 9 percent to 7.6 million bushels for 2019-20.

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