Until recently, there has been little visibility into the organics and non-GMO market when it comes to price discovery. But that demand is growing as more and more people consume organics and rely on non-GMO products. Commodity traders are increasingly seeking access and visibility into these new marketplaces as investments in organic farming and organic food production continue to grow.
DTN realized this need and recently established a partnership with Mercaris, the market-leader in organic commodity data. With our long-standing reputation of providing reliable and actionable commodity insights, the partnership makes perfect sense in order to better equip and positively impact the entire agriculture industry. Mercaris’ tailored intelligence around organic and non-GMO commodities will bring a broader level of understanding to our customers who rely on ProphetX® for their commodity-market insights.
Since the 1940s, organic farming has been part of our agriculture system. What started as an experimental garden plot, has grown to include thousands of large farms selling commodity products like corn, soybeans and wheat – along with other crops – to food manufacturers and organic livestock farmers.
The National Organic Program (NOP), a U.S. Department of Agriculture (USDA) marketing program, recently reported that there was 3 percent increase in certified organic farms last year – up to 17,648 total U.S. organic farms. These farms represent an estimated 6.5 million certified organic acres, which is up 2 percent from the previous year.
The demand for organic livestock feed is a key driver of organic crop expansion, and specifically, organic corn, soybeans and wheat are expected to account for approximately 1.2 million acres of those organic acres.
Organic farms account for just 1 percent of all crop farms. However, the upward trend of organic and non-GMO commodities is seeing more visibility in the marketplace. This is leading to a growing demand for market data in the identity-preserved agriculture industry as producers, agribusiness, traders and consumers seek a deeper understanding of the organic and non-GMO markets.
Much like traditional commodity trading, there is a need for data that delivers up-to-date and accurate information for organic and non-GMO commodities. In fact, if you can compare prices for organic corn, soybeans and wheat side-by-side with corresponding conventional market prices at weekly or monthly frequencies, on a rolling 12-month basis, there’s an even greater opportunity for increased profits and decreased expenses. That’s what Mercaris provides. Mercaris customers have access to in-depth organic market reports and to an online trading platform that enables traders to diversify their marketing efforts or find new buyers/sellers for organic and non-GMO commodities.
Through our partnership with Mercaris, our ProphetX subscribers now can follow closely how organic commodities are trading, compare that against conventional commodities and make better, more informed decisions.
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