1. Crop Pressures ISU ANR Extension Conference Ames, Iowa Mar. 23, 2011
Chad Hart
Assistant Professor/Grain Markets Specialist 1 1

2. Supply Demand U.S. Corn Supply and Use Feed Fuel Food 2007 2008 2009
2010
Area Planted
(mil. acres)
93.5
86.0
86.4
88.2
Yield
(bu./acre)
150.7
153.9
164.7
152.8
Production
(mil. bu.)
13,038
12,092
13,092
12,447
Beg. Stocks
1,304
1,624
1,673
1,708
Imports 20 14 8
Total Supply
14,362
13,729
14,774
14,175
Feed & Residual
5,913
5,182
5,140
5,200
Ethanol
3,049
3,709
4,568
4,950
Food, Seed, & Other
1,338
1,316
1,371
1,400
Exports
2,437
1,849
1,987
1,950
Total Use
12,737
12,056
13,066
13,500
Ending Stocks
675
Season-Average Price
($/bu.)
4.20
4.06
3.55
5.40
Supply
Feed
Fuel
Food
Demand
Source: USDA 2 2

3. Factors Leading to Higher Commodity Prices
Source: USDA-ERS, Trostle, July 2008

4. Corn
The last few years have changed that relationship. Crop prices are now much more responsive to tighter stocks.

5. Iowa Corn Prices vs. Costs
Margins look good for the 2010 and 2011 crops. But costs will likely catch us in 2012.

6. Price Movements

7. World Corn Markets
Source: USDA 7 7

8. 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: