Extension and Outreach/Department of Economics Update on Cash Crops Coleman Research Group Presentation Mar. 20, 2015 Chad Hart Associate Professor/Crop Markets Specialist

Extension and Outreach/Department of Economics U.S. Corn Supply and Use Area Planted(mil. acres) Yield(bu./acre) Production(mil. bu.)12,36010,75513,82914,21613,595 Beg. Stocks(mil. bu.)1, ,2321,777 Imports(mil. bu.) Total Supply(mil. bu.)13,51711,90414,68615,47215,397 Feed & Residual(mil. bu.)4,5574,3155,0365,3005,275 Ethanol(mil. bu.)5,0004,6415,1345,2005,225 Food, Seed, & Other(mil. bu.)1,4281,3971,3671,3951,410 Exports(mil. bu.)1, ,9171,8001,850 Total Use(mil. bu.)12,52811,08313,45413,69513,760 Ending Stocks(mil. bu.) ,2321,7771,637 Season-Average Price($/bu.) Source: USDA-WAOB

Extension and Outreach/Department of Economics U.S. Soybean Supply and Use Area Planted(mil. acres) Yield(bu./acre) Production(mil. bu.)3,0943,0423,3583,9693,800 Beg. Stocks(mil. bu.) Imports(mil. bu.) Total Supply(mil. bu.)3,3253,2523,5704,0864,205 Crush(mil. bu.)1,7031,6891,7341,7951,840 Seed & Residual(mil. bu.) Exports(mil. bu.)1,3651,3171,6471,7901,820 Total Use(mil. bu.)3,1553,1113,4783,7013,775 Ending Stocks(mil. bu.) Season-Average Price($/bu.) Source: USDA-WAOB

Extension and Outreach/Department of Economics U.S. Wheat Supply and Use Area Planted(mil. acres) Yield(bu./acre) Production(mil. bu.)1,9992,2522,1352,0262,125 Beg. Stocks(mil. bu.) Imports(mil. bu.) Total Supply(mil. bu.)2,9743,1183,0212,7762,966 Food(mil. bu.) Seed(mil. bu.) Feed & Residual(mil. bu.) Exports(mil. bu.)1,0511,0121, Total Use(mil. bu.)2,2312,4002,4312,0852,204 Ending Stocks(mil. bu.) Season-Average Price($/bu.) Source: USDA-WAOB

Extension and Outreach/Department of Economics Top: 2014 Yield Bottom: Change from last year Units: Bu/acre Corn Yields Source: USDA-NASS

Extension and Outreach/Department of Economics Top: 2014 Yield Bottom: Change from last month Units: Bu/acre Soybean Yields Source: USDA-NASS

Extension and Outreach/Department of Economics Winter Wheat Acreage Source: USDA-NASS Top: 2015 Planted Acreage Bottom: Change from last year Units: Thousand acres

Extension and Outreach/Department of Economics Small Grains Summary Source: USDA-NASS SorghumBarleyOats Area Planted(mil. acres) Yield(bu./acre) Production(mil. bu.) Beg. Stocks(mil. bu.) Imports(mil. bu.) Total Supply(mil. bu.) Feed & Residual(mil. bu.) Food, Seed, & Other(mil. bu.) Exports(mil. bu.) Total Use(mil. bu.) Ending Stocks(mil. bu.) Season-Average Price($/bu.)

Extension and Outreach/Department of Economics World Corn Production Source: USDA-WAOB

Extension and Outreach/Department of Economics World Soybean Production Source: USDA-WAOB

Extension and Outreach/Department of Economics World Wheat Production Source: USDA-WAOB

Extension and Outreach/Department of Economics World Weather Source: USDC and USDA

Extension and Outreach/Department of Economics Hog Crush Margin Source: ISU Extension The Crush Margin is the return after the pig, corn and soybean meal costs. Carcass weight: 200 poundsPig price: 50% of 5 mth out lean hog futures Corn: 10 bushels per pigSoybean meal: 150 pounds per pig

Extension and Outreach/Department of Economics Cattle Crush Margin Source: ISU Extension The Crush Margin is the return after the feeder steer and corn costs. Live weight: 1250 poundsFeeder weight: 750 pounds Corn: 50 bushels per head

Extension and Outreach/Department of Economics U.S. Meat Production & Prices Source: USDA-WAOB

Extension and Outreach/Department of Economics Corn Export Shifts Source: USDA-FAS

Extension and Outreach/Department of Economics Corn Export Sales Source: USDA-FAS

Extension and Outreach/Department of Economics Soybean Export Sales Source: USDA-FAS

Extension and Outreach/Department of Economics Soy Export Shifts Source: USDA-FAS

Extension and Outreach/Department of Economics Wheat Export Pace Source: USDA-FAS

Extension and Outreach/Department of Economics Wheat Export Shifts Source: USDA-FAS

Extension and Outreach/Department of Economics Corn Grind for Ethanol

Extension and Outreach/Department of Economics Renewable Fuels Standard (RFS)

Extension and Outreach/Department of Economics Crude Oil Prices Sources: EIA and CME

Extension and Outreach/Department of Economics Strength of the U.S. Dollar Source: Federal Reserve

Extension and Outreach/Department of Economics Current Corn Futures Source: CME Group, 3/17/

Extension and Outreach/Department of Economics Current Soybean Futures Source: CME Group, 3/17/

Extension and Outreach/Department of Economics Current Wheat Futures Source: CME Group, 3/17/

Extension and Outreach/Department of Economics Crop Acreage Source: USDA-NASS

Extension and Outreach/Department of Economics Crop Shifts Source: USDA-NASS

Extension and Outreach/Department of Economics Thoughts for 2015 and Beyond  Supply/demand concerns  Biofuel production and policy, broader energy demand  Export strength/weakness, China’s moves in the corn & wheat markets  Acreage allocation for 2015, Where do the extra acres go? 2014/15 USDA 2015/16 USDA 2015/16 Futures (3/17/15) Corn$3.70$3.50$3.79 Soybeans$10.20$9.00$9.05 Wheat$6.00$5.10$5.22

Extension and Outreach/Department of Economics Thank you for your time! Any questions? My web site: Iowa Farm Outlook: Ag Decision Maker: