1. Assistant Professor/Grain Markets Specialist
Crop Markets
TSB Bank Ag Dinner
Thompson, Iowa
Sept. 7, 2011
Chad Hart
Assistant Professor/Grain Markets Specialist 1 1

2. U.S. Corn Supply and Use 2008 2009 2010 2011 Area Planted (mil. acres)
86.0
86.4
88.2
92.3
Yield
(bu./acre)
153.9
164.7
152.8
153.0
Production
(mil. bu.)
12,092
13,092
12,447
12,914
Beg. Stocks
1,624
1,673
1,708
940
Imports 14 8 30 20
Total Supply
13,729
14,774
14,185
13,874
Feed & Residual
5,182
5,140
5,000
4,900
Ethanol
3,709
4,568
5,020
5,100
Food, Seed, & Other
1,316
1,371
1,400
1,410
Exports
1,849
1,987
1,825
1,750
Total Use
12,056
13,066
13,245
13,160
Ending Stocks
910
714
Season-Average Price
($/bu.)
4.06
3.55
5.25
6.70 2 2

3. U.S. Soybean Supply and Use
2008
2009
2010
2011
Area Planted
(mil. acres)
75.7
77.5
77.4
75.0
Yield
(bu./acre)
39.7
44.0
43.5
41.4
Production
(mil. bu.)
2,967
3,359
3,329
3,056
Beg. Stocks
205
138
151
230
Imports 13 15
Total Supply
3,185
3,512
3,495
3,301
Crush
1,662
1,752
1,645
1,635
Seed & Residual
106
110
125
111
Exports
1,279
1,499
1,495
1,400
Total Use
3,047
3,361
3,265
3,146
Ending Stocks
155
Season-Average Price
($/bu.)
9.97
9.59
11.35
13.50 3 3

5. Projected Corn Yields
Source: USDA-NASS

6. Projected Soybean Yields
Source: USDA-NASS

7. Crop Conditions
Source: USDA-NASS

8. Crop Conditions & Corn Yields

9. World Corn Production
Source: USDA 9 9

10. Corn – Argentina & Brazil
Source: USDA 10 10

11. World Soybean Production
Source: USDA 11 11

12. Soybeans – Argentina & Brazil
Source: USDA 12 12

13. 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: Shane Ellis, ISU Extension

14. Cattle Crush Margin
The Crush Margin is the return after the feeder steer and corn costs.
Live weight: pounds Feeder weight: 750 pounds
Corn: 50 bushels per head
Source: Shane Ellis, ISU Extension

15. Corn vs. Wheat
Source: CME Group, 9/6/2011

16. Export Pace vs. Last Year
Source: USDA, FAS

17. Corn Export Shifts
Source: USDA, FAS

18. Soybean Export Shifts
Source: USDA, FAS

19. Corn Advance Export Sales
Source: USDA, FAS

20. Corn Advance Export Sales
Source: USDA, FAS

21. Soy Advance Export Sales
Source: USDA, FAS

22. Soy Advance Export Sales
Source: USDA, FAS

23. Nearby Futures (Jan. 3, 2011 = 1) 23 23

24. Ethanol Margin
Source: CARD

25. Ethanol Blending Advantage

26. Corn Grind for Ethanol
Source: DOE, EIA

27. Supply vs. Demand
Corn
Soy

28. Supply vs. Demand
Corn
Soy

29. Projected 2011 Season-Average Corn Price

30. Projected 2011 Season-Average Soy Price

31. Corn Prices vs. Costs

32. Soybean Prices vs. Costs

33. Thoughts for 2011 and Beyond
General economic conditions
Continued worldwide economic recovery is a major key for crop prices
Debt limit, US credit rating
US job recovery, European financial concerns, Chinese inflation
Supply/demand concerns
Prevented planting, flooding, heat wave, nighttime temps?
Biofuel growth and energy demand
Will supply be able to keep pace with demand?
2010/11: USDA: Corn $5.25, Soy $11.35
2011/12: USDA: Corn $6.70, Soy $13.50
Futures (as of 9/6/2011): Corn $7.31, Soy $13.81

34. Thank you for your time. Any questions. My web site: http://www. econ
Thank you for your time! Any questions? My web site: Iowa Farm Outlook: Ag Decision Maker: