Commodity Situation and Outlook (Corn, Wheat, Soybeans, and Livestock)
Corn outlook.2014 fall conference.final
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Crop Outlook:Now What?!Frayne Olson, PhD
Crop Economist/Marketing [email protected] 701-231-7377
NDSU Extension ServiceND Agricultural Experiment Station
Dept. of Agribusiness & Applied Economics
STUDENT FOCUSED • LAND GRANT • RESEARCH UNIVERSITY
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Corn Supply & Demand TableU.S. Corn 2012/2013 2013/2014 (est.) 2014/2015 (Sep)
Planted A. 97.2 Mill. A. 95.4 Mill. A. 91.6 Mill. A.Harvested A. 87.4 Mill. A. 87.7 Mill. A. 83.8 Mill. A.Yield/Harvest A. 123.4 bu. 158.8 bu. 171.7 bu.Begin Stocks 989 Mill. Bu. 821 Mill. Bu. 1,181 Mill. Bu.Production 10,780 Mill. Bu. 13,925 Mill. Bu. 14,395 Mill. Bu.Imports 160 Mill. Bu. 35 Mill. Bu. 30 Mill. Bu.
Total Supply 11,929 Mill. Bu. 14,781 Mill. Bu. 15,607 Mill. Bu.Feed & Residual 4,339 Mill. Bu. 5,175 Mill. Bu. 5,325 Mill. Bu.Food, Seed, Ind. 6,039 Mill. Bu. 6,500 Mill. Bu. 6,530 Mill. Bu.
Ethanol 4,641 Mill. Bu. 5,125 Mill. Bu. 5,125 Mill. Bu.
Exports 730 Mill. Bu. 1,925 Mill. Bu. 1,750 Mill. Bu.Total Use 11,108 Mill. Bu. 13,600 Mill. Bu. 13,605 Mill. Bu.
Ending Stocks 821 Mill. Bu. 1,181 Mill. Bu. 2,002 Mill. Bu.USDA – WASDE – September 11, 2014
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Corn Supply & Demand TableU.S. Corn 2012/2013 2013/2014 (est.) 2014/2015 (Sep)
Planted A. 97.2 Mill. A. 95.4 Mill. A. 91.6 Mill. A.Harvested A. 87.4 Mill. A. 87.7 Mill. A. 83.8 Mill. A.
Yield/Harvest A. 123.4 bu. 158.8 bu. 171.7 bu.Begin Stocks 989 Mill. Bu. 821 Mill. Bu. 1,181 Mill. Bu.Production 10,780 Mill. Bu. 13,925 Mill. Bu. 14,395 Mill. Bu.Imports 160 Mill. Bu. 35 Mill. Bu. 30 Mill. Bu.
Total Supply 11,929 Mill. Bu. 14,781 Mill. Bu. 15,607 Mill. Bu.Feed & Residual 4,339 Mill. Bu. 5,175 Mill. Bu. 5,325 Mill. Bu.Food, Seed, Ind. 6,039 Mill. Bu. 6,500 Mill. Bu. 6,530 Mill. Bu.
Ethanol 4,641 Mill. Bu. 5,125 Mill. Bu. 5,125 Mill. Bu.
Exports 730 Mill. Bu. 1,925 Mill. Bu. 1,750 Mill. Bu.Total Use 11,108 Mill. Bu. 13,600 Mill. Bu. 13,605 Mill. Bu.
Ending Stocks 821 Mill. Bu. 1,181 Mill. Bu. 2,002 Mill. Bu.USDA – WASDE – September 11, 2014
Lower 2014 Planted Acreage is being offset by a record average yield
forecasts.
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80
90
100
110
120
130
140
150
160
170
Bushels /Ac
re
Average YieldOutlook Trend Line
July 11, 2014 WASDE – Feed Grains Data Base Table 1
Is 171.7 bu/a possible?
Is 171.7 bu/a “reasonable”?
What is the “new” U.S. trend line yield?
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80
90
100
110
120
130
140
150
160
170
Bushels /Ac
re
Average YieldOutlook Trend Line
July 11, 2014 WASDE – Feed Grains Data Base Table 1
171.7 bu/a is 6.7 bu above trend line.
2009 = 10.6 bu above2004 = 16.1 bu above1994 = 14.2 bu above1992 = 11.0 bu above
What is the “new” U.S. trend line yield?
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Corn Supply & Demand TableU.S. Corn 2012/2013 2013/2014 (est.) 2014/2015 (Sep)
Planted A. 97.2 Mill. A. 95.4 Mill. A. 91.6 Mill. A.Harvested A. 87.4 Mill. A. 87.7 Mill. A. 83.8 Mill. A.Yield/Harvest A. 123.4 bu. 158.8 bu. 171.7 bu.Begin Stocks 989 Mill. Bu. 821 Mill. Bu. 1,181 Mill. Bu.
Production 10,780 Mill. Bu. 13,925 Mill. Bu. 14,395 Mill. Bu.Imports 160 Mill. Bu. 35 Mill. Bu. 30 Mill. Bu.
Total Supply 11,929 Mill. Bu. 14,781 Mill. Bu. 15,607 Mill. Bu.Feed & Residual 4,339 Mill. Bu. 5,175 Mill. Bu. 5,325 Mill. Bu.Food, Seed, Ind. 6,039 Mill. Bu. 6,500 Mill. Bu. 6,530 Mill. Bu.
Ethanol 4,641 Mill. Bu. 5,125 Mill. Bu. 5,125 Mill. Bu.
Exports 730 Mill. Bu. 1,925 Mill. Bu. 1,750 Mill. Bu.Total Use 11,108 Mill. Bu. 13,600 Mill. Bu. 13,605 Mill. Bu.
Ending Stocks 821 Mill. Bu. 1,181 Mill. Bu. 2,002 Mill. Bu.USDA – WASDE – September 11, 2014
14,395Mill. Bu. is the second record corn crop in a row!
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Corn ‐ Total Use(Billion Bushels)
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
Billion
Bushe
ls Feed & Residual
Ethanol
Non‐Ethanol Food,Seed & Industrial
Exports
Sept. 11, 2014 WASDE Report & USDA – Feed Grains Data Base Table 4
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Corn Supply & Demand TableU.S. Corn 2012/2013 2013/2014 (est.) 2014/2015 (Sep)
Planted A. 97.2 Mill. A. 95.4 Mill. A. 91.6 Mill. A.Harvested A. 87.4 Mill. A. 87.7 Mill. A. 83.8 Mill. A.Yield/Harvest A. 123.4 bu. 158.8 bu. 171.7 bu.Begin Stocks 989 Mill. Bu. 821 Mill. Bu. 1,181 Mill. Bu.Production 10,780 Mill. Bu. 13,925 Mill. Bu. 14,395 Mill. Bu.Imports 160 Mill. Bu. 35 Mill. Bu. 30 Mill. Bu.
Total Supply 11,929 Mill. Bu. 14,781 Mill. Bu. 15,607 Mill. Bu.
Feed & Residual 4,339 Mill. Bu. 5,175 Mill. Bu. 5,325 Mill. Bu.Food, Seed, Ind. 6,039 Mill. Bu. 6,500 Mill. Bu. 6,530 Mill. Bu.
Ethanol 4,641 Mill. Bu. 5,125 Mill. Bu. 5,125 Mill. Bu.
Exports 730 Mill. Bu. 1,925 Mill. Bu. 1,750 Mill. Bu.Total Use 11,108 Mill. Bu. 13,600 Mill. Bu. 13,605 Mill. Bu.
Ending Stocks 821 Mill. Bu. 1,181 Mill. Bu. 2,002 Mill. Bu.USDA – WASDE – September 11, 2014
Feed & Residual is forecast to increase
2.9%.
How fast will livestock numbers increase?
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Corn Supply & Demand TableU.S. Corn 2012/2013 2013/2014 (est.) 2014/2015 (Sep)
Planted A. 97.2 Mill. A. 95.4 Mill. A. 91.6 Mill. A.Harvested A. 87.4 Mill. A. 87.7 Mill. A. 83.8 Mill. A.Yield/Harvest A. 123.4 bu. 158.8 bu. 171.7 bu.Begin Stocks 989 Mill. Bu. 821 Mill. Bu. 1,181 Mill. Bu.Production 10,780 Mill. Bu. 13,925 Mill. Bu. 14,395 Mill. Bu.Imports 160 Mill. Bu. 35 Mill. Bu. 30 Mill. Bu.
Total Supply 11,929 Mill. Bu. 14,781 Mill. Bu. 15,607 Mill. Bu.Feed & Residual 4,339 Mill. Bu. 5,175 Mill. Bu. 5,325 Mill. Bu.
Food, Seed, Ind. 6,039 Mill. Bu. 6,500 Mill. Bu. 6,530 Mill. Bu.Ethanol 4,641 Mill. Bu. 5,125 Mill. Bu. 5,125 Mill. Bu.
Exports 730 Mill. Bu. 1,925 Mill. Bu. 1,750 Mill. Bu.Total Use 11,108 Mill. Bu. 13,600 Mill. Bu. 13,605 Mill. Bu.
Ending Stocks 821 Mill. Bu. 1,181 Mill. Bu. 2,002 Mill. Bu.USDA – WASDE – September 11, 2014
Ethanol use is forecast to be steady, but other
Industrial use is forecast to increase.
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Corn Supply & Demand TableU.S. Corn 2012/2013 2013/2014 (est.) 2014/2015 (Sep)
Planted A. 97.2 Mill. A. 95.4 Mill. A. 91.6 Mill. A.Harvested A. 87.4 Mill. A. 87.7 Mill. A. 83.8 Mill. A.Yield/Harvest A. 123.4 bu. 158.8 bu. 171.7 bu.Begin Stocks 989 Mill. Bu. 821 Mill. Bu. 1,181 Mill. Bu.Production 10,780 Mill. Bu. 13,925 Mill. Bu. 14,395 Mill. Bu.Imports 160 Mill. Bu. 35 Mill. Bu. 30 Mill. Bu.
Total Supply 11,929 Mill. Bu. 14,781 Mill. Bu. 15,607 Mill. Bu.Feed & Residual 4,339 Mill. Bu. 5,175 Mill. Bu. 5,325 Mill. Bu.Food, Seed, Ind. 6,039 Mill. Bu. 6,500 Mill. Bu. 6,530 Mill. Bu.
Ethanol 4,641 Mill. Bu. 5,125 Mill. Bu. 5,125 Mill. Bu.
Exports 730 Mill. Bu. 1,925 Mill. Bu. 1,750 Mill. Bu.Total Use 11,108 Mill. Bu. 13,600 Mill. Bu. 13,605 Mill. Bu.
Ending Stocks 821 Mill. Bu. 1,181 Mill. Bu. 2,002 Mill. Bu.USDA – WASDE – September 11, 2014
Exports are forecast to decrease 9.1% due to
strong world competition and large feed wheat supplies.
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Corn Supply & Demand TableU.S. Corn 2012/2013 2013/2014 (est.) 2014/2015 (Sep)
Planted A. 97.2 Mill. A. 95.4 Mill. A. 91.6 Mill. A.Harvested A. 87.4 Mill. A. 87.7 Mill. A. 83.8 Mill. A.Yield/Harvest A. 123.4 bu. 158.8 bu. 171.7 bu.Begin Stocks 989 Mill. Bu. 821 Mill. Bu. 1,181 Mill. Bu.Production 10,780 Mill. Bu. 13,925 Mill. Bu. 14,395 Mill. Bu.Imports 160 Mill. Bu. 35 Mill. Bu. 30 Mill. Bu.
Total Supply 11,929 Mill. Bu. 14,781 Mill. Bu. 15,607 Mill. Bu.Feed & Residual 4,339 Mill. Bu. 5,175 Mill. Bu. 5,325 Mill. Bu.Food, Seed, Ind. 6,039 Mill. Bu. 6,500 Mill. Bu. 6,530 Mill. Bu.
Ethanol 4,641 Mill. Bu. 5,125 Mill. Bu. 5,125 Mill. Bu.
Exports 730 Mill. Bu. 1,925 Mill. Bu. 1,750 Mill. Bu.Total Use 11,108 Mill. Bu. 13,600 Mill. Bu. 13,605 Mill. Bu.
Ending Stocks 821 Mill. Bu. 1,181 Mill. Bu. 2,002 Mill. Bu.USDA – WASDE – September 11, 2014
Export pace should be watched closely for price direction.
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Corn Supply & Demand TableU.S. Corn 2012/2013 2013/2014 (est.) 2014/2015 (Sep)
Planted A. 97.2 Mill. A. 95.4 Mill. A. 91.6 Mill. A.Harvested A. 87.4 Mill. A. 87.7 Mill. A. 83.8 Mill. A.Yield/Harvest A. 123.4 bu. 158.8 bu. 171.7 bu.Begin Stocks 989 Mill. Bu. 821 Mill. Bu. 1,181 Mill. Bu.Production 10,780 Mill. Bu. 13,925 Mill. Bu. 14,395 Mill. Bu.Imports 160 Mill. Bu. 35 Mill. Bu. 30 Mill. Bu.
Total Supply 11,929 Mill. Bu. 14,781 Mill. Bu. 15,607 Mill. Bu.Feed & Residual 4,339 Mill. Bu. 5,175 Mill. Bu. 5,325 Mill. Bu.Food, Seed, Ind. 6,039 Mill. Bu. 6,500 Mill. Bu. 6,530 Mill. Bu.
Ethanol 4,641 Mill. Bu. 5,125 Mill. Bu. 5,125 Mill. Bu.
Exports 730 Mill. Bu. 1,925 Mill. Bu. 1,750 Mill. Bu.Total Use 11,108 Mill. Bu. 13,600 Mill. Bu. 13,605 Mill. Bu.
Ending Stocks 821 Mill. Bu. 1,181 Mill. Bu. 2,002 Mill. Bu.USDA – WASDE – September 11, 2014
Stocks to Use Ratio is forecast to increase from 8.7% to 14.7%,
almost double 2012/13.
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Corn Supply & Demand TableU.S. Corn 2012/2013 2013/2014 (est.) 2014/2015 (Sep)
Planted A. 97.2 Mill. A. 95.4 Mill. A. 91.6 Mill. A.Harvested A. 87.4 Mill. A. 87.7 Mill. A. 83.8 Mill. A.Yield/Harvest A. 123.4 bu. 158.8 bu. 171.7 bu.Begin Stocks 989 Mill. Bu. 821 Mill. Bu. 1,181 Mill. Bu.Production 10,780 Mill. Bu. 13,925 Mill. Bu. 14,395 Mill. Bu.Imports 160 Mill. Bu. 35 Mill. Bu. 30 Mill. Bu.
Total Supply 11,929 Mill. Bu. 14,781 Mill. Bu. 15,607 Mill. Bu.Feed & Residual 4,339 Mill. Bu. 5,175 Mill. Bu. 5,325 Mill. Bu.Food, Seed, Ind. 6,039 Mill. Bu. 6,500 Mill. Bu. 6,530 Mill. Bu.
Ethanol 4,641 Mill. Bu. 5,125 Mill. Bu. 5,125 Mill. Bu.
Exports 730 Mill. Bu. 1,925 Mill. Bu. 1,750 Mill. Bu.Total Use 11,108 Mill. Bu. 13,600 Mill. Bu. 13,605 Mill. Bu.
Ending Stocks 821 Mill. Bu. 1,181 Mill. Bu. 2,002 Mill. Bu.USDA – WASDE – September 11, 2014
Quarterly Stocks Report showed 1,236
Mill. Bu.
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Corn Supply & Demand TableU.S. Corn 2012/2013 2013/2014 (est.) 2014/2015 (Sep)
Planted A. 97.2 Mill. A. 95.4 Mill. A. 91.6 Mill. A.Harvested A. 87.4 Mill. A. 87.7 Mill. A. 83.8 Mill. A.Yield/Harvest A. 123.4 bu. 158.8 bu. 171.7 bu.Begin Stocks 989 Mill. Bu. 821 Mill. Bu. 1,181 Mill. Bu.Production 10,780 Mill. Bu. 13,925 Mill. Bu. 14,395 Mill. Bu.Imports 160 Mill. Bu. 35 Mill. Bu. 30 Mill. Bu.
Total Supply 11,929 Mill. Bu. 14,781 Mill. Bu. 15,607 Mill. Bu.Feed & Residual 4,339 Mill. Bu. 5,175 Mill. Bu. 5,325 Mill. Bu.Food, Seed, Ind. 6,039 Mill. Bu. 6,500 Mill. Bu. 6,530 Mill. Bu.
Ethanol 4,641 Mill. Bu. 5,125 Mill. Bu. 5,125 Mill. Bu.
Exports 730 Mill. Bu. 1,925 Mill. Bu. 1,750 Mill. Bu.Total Use 11,108 Mill. Bu. 13,600 Mill. Bu. 13,605 Mill. Bu.
Ending Stocks 821 Mill. Bu. 1,181 Mill. Bu. 2,002 Mill. Bu.USDA – WASDE – September 11, 2014
This would result in a revised Ending Stocks of 2,057 Mill. Bu. and
Stocks‐to‐Use of15.1 %
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Corn – Total U.S. Production & Use(Billion Bushels)
0.00
0.05
0.10
0.15
0.20
0.25
0.30
0.35
0.40
0.45
0.50
6.0
7.0
8.0
9.0
10.0
11.0
12.0
13.0
14.0
15.019
94/95
1995
/96
1996
/97
1997
/98
1998
/99
1999
/00
2000
/01
2001
/02
2002
/03
2003
/04
2004
/05
2005
/06
2006
/07
2007
/08
2008
/09
2009
/10
2010
/11
2011
/12
2012
/13
2013
/14
2014
/15
Stocks‐to‐Use Ratio
Billion
Bushe
ls
Stocks‐to‐Use Total Production Total Use
September 11, 2014 WASDE Report & USDA – Feed Grains Data Base Table 4
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3.953.47
3.943.48
2.732.48 2.442.562.953.00
2.482.32
3.44
4.56 4.403.79
5.40
6.336.89
1.50
2.50
3.50
4.50
5.50
6.50
7.50
8.50
0.060 0.080 0.100 0.120 0.140 0.160 0.180 0.200
PriceperBushel
PercentStocks‐to‐Use
HistoricalPrice
Corn Price vs. Stocks/Use Ratiowith Inflation Adjustment
1993/94 to 2012/13
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3.953.47
3.943.48
2.732.48 2.442.562.953.00
2.482.32
3.44
4.56 4.403.79
5.40
6.336.89
4.45
1.50
2.50
3.50
4.50
5.50
6.50
7.50
8.50
0.060 0.080 0.100 0.120 0.140 0.160 0.180 0.200
PriceperBushel
PercentStocks‐to‐Use
HistoricalPrice ForecastedPrice
Corn Price vs. Stocks/Use Ratiowith Inflation Adjustment
1993/94 to 2012/13
1993/94 to 2012/13 adjusted for
inflation; 2013 dollars
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3.953.47
3.943.48
2.732.48 2.442.562.953.00
2.482.32
3.44
4.56 4.403.79
5.40
6.336.89
4.45
1.50
2.50
3.50
4.50
5.50
6.50
7.50
8.50
0.060 0.080 0.100 0.120 0.140 0.160 0.180 0.200
PriceperBushel
PercentStocks‐to‐Use
HistoricalPrice ForecastedPrice
Corn Price vs. Stocks/Use Ratiowith Inflation Adjustment
1993/94 to 2012/13
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World Corn Prod, Use & Stocks/Use(Million Metric Ton)
0.10
0.20
0.30
0.40
0.50
0.60
300
400
500
600
700
800
900
1,000
Stoc
ks-t
o-U
se R
atio
Mill
ion
Met
ric
Tons
Stocks-to-Use Total Production Total Use
September 11, 2014 USDA ‐WASDE & PSD Custom Query
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Questions?