The Highs and Lows of Crop Marketing Crop Advantage Series Mason City, Iowa Jan. 8, 2015 Chad Hart Associate Professor/Crop Markets Specialist chart@iastate.edu 515-294-9911 1 1
U.S. Corn Supply and Use 2010 2011 2012 2013 2014 Area Planted (mil. acres) 88.2 91.9 97.3 95.4 90.9 Yield (bu./acre) 152.8 147.2 123.1 158.8 173.4 Production (mil. bu.) 12,447 12,360 10,755 13,925 14,407 Beg. Stocks 1,708 1,128 989 821 1,236 Imports 28 29 160 36 25 Total Supply 14,182 13,517 11,904 14,782 15,668 Feed & Residual 4,795 4,557 4,315 5,132 5,375 Ethanol 5,019 5,000 4,641 5,134 5,150 Food, Seed, & Other 1,407 1,428 1,397 1,363 1,395 Exports 1,834 1,543 730 1,917 1,750 Total Use 13,055 12,528 11,083 13,546 13,670 Ending Stocks 1,998 Season-Average Price ($/bu.) 5.18 6.22 6.89 4.46 3.50 Source: USDA-WAOB 2 2
U.S. Soybean Supply and Use 2010 2011 2012 2013 2014 Area Planted (mil. acres) 77.4 75.0 77.2 76.8 84.2 Yield (bu./acre) 43.5 41.9 40.0 44.0 47.5 Production (mil. bu.) 3,329 3,094 3,042 3,358 3,958 Beg. Stocks 151 215 169 141 92 Imports 14 16 41 72 15 Total Supply 3,495 3,325 3,252 3,570 4,065 Crush 1,648 1,703 1,689 1,734 1,780 Seed & Residual 130 88 105 98 115 Exports 1,501 1,365 1,317 1,647 1,760 Total Use 3,280 3,155 3,111 3,478 3,655 Ending Stocks 410 Season-Average Price ($/bu.) 11.30 12.50 14.40 13.00 10.00 Source: USDA-WAOB 3 3
Projected Corn Yields Top: 2014 Yield Bottom: Change from last month Units: Bu/acre Source: USDA-NASS
Projected Soybean Yields Top: 2014 Yield Bottom: Change from last month Units: Bu/acre Source: USDA-NASS
World Corn Production Source: USDA-WAOB 6 6
World Soybean Production Source: USDA-WAOB 7 7
Hog Crush Margin The Crush Margin is the return after the pig, corn and soybean meal costs. Carcass weight: 200 pounds Pig price: 50% of 5 mth out lean hog futures Corn: 10 bushels per pig Soybean meal: 150 pounds per pig Source: ISU Extension
Cattle Crush Margin The Crush Margin is the return after the feeder steer and corn costs. Live weight: 1250 pounds Feeder weight: 750 pounds Corn: 50 bushels per head Source: ISU Extension
U.S. Meat Production & Prices Source: USDA-WAOB 10 10
Corn Export Shifts Source: USDA-FAS
Corn Export Sales Source: USDA-FAS
Soybean Export Shifts Source: USDA-FAS
Soybean Export Shifts Source: USDA-FAS
Corn Grind for Ethanol
Current Corn Futures 4.01 3.77 Source: CME Group, 1/7/2015
Current Soybean Futures 10.23 9.91 Source: CME Group, 1/7/2015
Corn Prices vs. Costs Per Bushel Cost calculated as Per Acre Cost from ISU Extension divided by Actual Yield per Acre Sources: USDA-NASS for Prices, Duffy for Costs
Soybean Prices vs. Costs Per Bushel Cost calculated as Per Acre Cost from ISU Extension divided by Actual Yield per Acre Sources: USDA-NASS for Prices, Duffy for Costs
2014/15 Crop Margins
2015/16 Crop Margins
Thoughts for 2015 and Beyond Supply/demand concerns Record corn and soybean crops, but also record demand Markets are in a holding pattern, waiting for news Watching South American crop progress Projected negative margins for 2014 and 2015 crops 2013/14 USDA 2014/15 Futures (1/7/15) 2015/16 Corn $4.46 $3.50 $3.77 $4.01 Soybeans $13.00 $10.00 $10.23 $9.91
Thank you for your time. Any questions. My web site: http://www. econ Thank you for your time! Any questions? My web site: http://www.econ.iastate.edu/~chart/ Iowa Farm Outlook: http://www.econ.iastate.edu/ifo/ Ag Decision Maker: http://www.extension.iastate.edu/agdm/