1. Associate Professor/Crop Markets Specialist
Crop Market Outlook
Crop Advantage
Storm Lake, Iowa
Jan. 15, 2014
Chad Hart
Associate Professor/Crop Markets Specialist 1 1

2. U.S. Corn Supply and Use 2009 2010 2011 2012 2013 Area Planted
(mil. acres)
86.4
88.2
91.9
97.2
95.4
Yield
(bu./acre)
164.7
152.8
147.2
123.4
158.8
Production
(mil. bu.)
13,092
12,447
12,360
10,780
13,925
Beg. Stocks
1,673
1,708
1,128
989
821
Imports 8 28 29
162 35
Total Supply
14,774
14,182
13,517
11,932
14,781
Feed & Residual
5,125
4,795
4,557
4,335
5,300
Ethanol
4,591
5,019
5,000
4,648
Food, Seed, & Other
1,370
1,407
1,428
1,396
1,400
Exports
1,980
1,834
1,543
731
1,450
Total Use
13,066
13,055
12,528
11,111
13,150
Ending Stocks
1,631
Season-Average Price
($/bu.)
3.55
5.18
6.22
6.89
4.40
Source: USDA-WAOB 2 2

3. U.S. Soybean Supply and Use
2009
2010
2011
2012
2013
Area Planted
(mil. acres)
77.5
77.4
75.0
77.2
76.5
Yield
(bu./acre)
44.0
43.5
41.9
39.8
43.3
Production
(mil. bu.)
3,359
3,329
3,094
3,034
3,289
Beg. Stocks
138
151
215
169
141
Imports 15 14 16 36 25
Total Supply
3,512
3,495
3,325
3,239
3,454
Crush
1,752
1,648
1,703
1,689
1,700
Seed & Residual
110
130 88 90
109
Exports
1,499
1,501
1,365
1,320
1,495
Total Use
3,361
3,280
3,155
3,099
3,304
Ending Stocks
150
Season-Average Price
($/bu.)
9.59
11.30
12.50
14.40
Source: USDA-WAOB 3 3

4. Corn Yields Top: 2013 Yield Bottom: Change from 2012
Units: Bushels/acre
Source: USDA-NASS

5. Soybean Yields Top: 2013 Yield Bottom: Change from 2012
Units: Bushels/acre
Source: USDA-NASS

6. World Corn Production
Source: USDA-WAOB 6 6

7. World Soybean Production
Source: USDA-WAOB 7 7

8. World Weather
Source: USDC and USDA 8 8

9. 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

10. 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: ISU Extension

11. U.S. Meat Production & Prices
Source: USDA-WAOB 11 11

12. Corn Export Shifts
Source: USDA-FAS

13. Corn Export Sales
Source: USDA-FAS

14. Soybean Export Sales
Source: USDA-FAS

15. Soy Export Shifts
Source: USDA-FAS

16. Corn Grind for Ethanol

17. Renewable Fuels Standard (RFS)17 17

18. Renewable Fuels Standard (RFS)18 18

19. Source: DOE-EIA, Annual Energy Outlook

20. (Million Barrels Oil Equivalent per Day)
Liquid Fuel Usage
2010
2015
2020
2025
2030
2035
(Million Barrels Oil Equivalent per Day)
(Percent of 2010 Value)
United States
18.9
101%
103%
99%
98%
Canada
2.2
100%
Mexico
2.4
105%
110%
117%
127%
138%
Europe
14.8
91%
93%
94%
Japan
4.4
106%
97%
China
9.3
125%
146%
165%
178%
195%
India
3.3
113%
134%
158%
186%
217%
Africa
3.4
107%
112%
119%
126%
Central and South America
6.0
108%
114%
121%
128%
World
86.7
111%
116%
120%
Source: DOE-EIA

21. Current Corn Futures
4.46
4.38
4.37
Source: CME Group, 1/14/2014

22. Current Soybean Futures
12.67
10.88
10.65
Source: CME Group, 1/14/2014

23. 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

24. 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

25. Crop Acreage
Source: USDA-NASS

26. 2013/14 Crop Prices

27. 2014/15 Crop Margins

28. Thoughts for 2014 and Beyond
Supply/demand concerns
Corn demand rebounding? Yes, so far, so good
Acreage allocation for 2014: Where do the extra corn acres go?
Markets favoring soybeans in the short term and corn longer term
2012/13
USDA
2013/14 USDA
2013/14
Futures
(1/14/14)
2014/15
Corn
$6.89
$4.40
$4.38
$4.37
Soybeans
$14.40
$12.50
$12.67
$10.88

29. 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: