SILVER SPRING, MD, May 14, 2019 — Mercaris, a market data and auctions startup supporting the growth of organic and non-GMO agriculture in the U.S., today released its monthly market update for May, reporting the potential for a highly-mixed, but generally positive, year for organic winter wheat yields.
Generous moisture added to soil since last fall puts U.S. overall winter wheat yields on track for their best year since 2016. Mercaris estimates 66% of U.S. organic winter wheat crops are rated “good” to “excellent” for the week ending May 5, in comparison to only 49% last year at this time, according to data gathered from the U.S. Department of Agriculture National Agricultural Statistics Service (USDA NASS).
The positive outlook is buoyed by the winter wheat-producing states of Montana, Kansas, and Texas showing more than 25% increases in “good” to “excellent” crop ratings. Big gains in organic wheat yields are also expected across the High Plains and Northeastern U.S.
However, the Midwest and the Great Lakes show less positive outlooks, thanks to heavy winter snowfall and spring rain resulting in flooding and wet soil conditions. Many states, from Michigan to New York, show drops of 15% or more in “good” to “excellent” crop ratings compared to the prior year. Ohio alone, showed only 30 percent of crops rated “good” to “excellent,” the lowest level since 1996.
Some major organic producing states are showing signs of a lower quality wheat crop, the report also noted, which may pose challenges for buyers and sellers over the next two quarters. With higher yields expected to the West and poorer crop quality in the Midwest and East, feed-grade wheat may be more bullish through the summer, the report suggests.
“The elaborate nature of the U.S. wheat landscape makes it difficult to paint the yield picture with broad strokes,” said Mercaris Founder and CEO, Kellee James. “While the overall crop outlook appears positive, some states are certainly struggling. Traders will need to conduct their share of due diligence to meet goals.”
Since 2013, Mercaris has been helping its customers capitalize on growing demand for organic and non-GMO foods by providing market access and services tailored to the needs of the identity-preserved agriculture industry. Mercaris focuses its data and services on identity-preserved commodities, including organic and non-GMO corn, soybean, meal, and organic wheat and other small grains markets across all regions of the United States and Canada, and recently launched an organic dairy initiative. Mercaris also maintains an online Trading Platform, a pioneering tool that enables buyers and sellers to find new markets and more profitably trade organic and non-GMO commodities.
Chad Wise | [email protected] | (480) 568-7988