Extension and Outreach/Department of Economics
Current Grain Market Values
Crop Challenges for 2013Charles City, Iowa
Dec. 14, 2012
Chad HartAssociate Professor/Grain Markets Specialist
Extension and Outreach/Department of Economics
U.S. Corn Supply and Use2008 2009 2010 2011 2012
Area Planted (mil. acres) 86.0 86.4 88.2 91.9 96.9
Yield (bu./acre) 153.9 164.7 152.8 147.2 122.3Production (mil. bu.) 12,092 13,092 12,447 12,358 10,725Beg. Stocks (mil. bu.) 1,624 1,673 1,708 1,128 988
Imports (mil. bu.) 14 8 28 29 100Total Supply (mil. bu.) 13,729 14,774 14,182 13,515 11,814Feed & Residual (mil. bu.) 5,182 5,125 4,795 4,547 4,150Ethanol (mil. bu.) 3,709 4,591 5,019 5,011 4,500
Food, Seed, & Other (mil. bu.) 1,316 1,370 1,407 1,426 1,367Exports (mil. bu.) 1,849 1,980 1,834 1,543 1,150Total Use (mil. bu.) 12,056 13,066 13,055 12,527 11,167Ending Stocks (mil. bu.) 1,673 1,708 1,128 988 647
Season-Average Price ($/bu.) 4.06 3.55 5.18 6.22 7.40
Source: USDA-WAOB
Extension and Outreach/Department of Economics
U.S. Soybean Supply and Use2008 2009 2010 2011 2012
Area Planted (mil. acres) 75.7 77.5 77.4 75.0 77.2Yield (bu./acre) 39.7 44.0 43.5 41.9 39.3Production (mil. bu.) 2,967 3,359 3,329 3,094 2,971
Beg. Stocks (mil. bu.) 205 138 151 215 169Imports (mil. bu.) 13 15 14 16 20Total Supply (mil. bu.) 3,185 3,512 3,495 3,325 3,160
Crush (mil. bu.) 1,662 1,752 1,648 1,703 1,570Seed & Residual (mil. bu.) 106 110 130 90 116Exports (mil. bu.) 1,279 1,499 1,501 1,362 1,345Total Use (mil. bu.) 3,047 3,361 3,280 3,155 3,031
Ending Stocks (mil. bu.) 138 151 215 169 130Season-Average Price ($/bu.) 9.97 9.59 11.30 12.50 14.55
Source: USDA-WAOB
Extension and Outreach/Department of Economics
Prices
11.50
12.25
13.00
13.75
14.50
15.25
16.00
16.75
4.50
5.00
5.50
6.00
6.50
7.00
7.50
8.005/
21/2
012
6/4/
2012
6/18
/201
2
7/2/
2012
7/16
/201
2
7/30
/201
2
8/13
/201
2
8/27
/201
2
9/10
/201
2
9/24
/201
2
10/8
/201
2
10/2
2/20
12
11/5
/201
2
11/1
9/20
12
12/3
/201
2
$ pe
r bus
hel
$ pe
r bus
hel
Corn Soybeans
Extension and Outreach/Department of Economics
Projected Corn Yields
Extension and Outreach/Department of Economics
Projected Soybean Yields
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 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 pounds Pig price: 50% of 5 mth out lean hog futuresCorn: 10 bushels per pig Soybean 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 pounds Feeder 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
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
9/1 10/1 11/1 12/1 1/1 2/1 3/1 4/1 5/1 6/1 7/1 8/1
Mill
ion
bush
els
Week2010 2011 2012
Extension and Outreach/Department of Economics
Soy Export Shifts
Source: USDA-FAS
0
200
400
600
800
1,000
1,200
1,400
1,600
9/1 10/1 11/1 12/1 1/1 2/1 3/1 4/1 5/1 6/1 7/1 8/1
Mill
ion
bush
els
Week2010 2011 2012
Extension and Outreach/Department of Economics
Corn Grind for Ethanol
82
84
86
88
90
92
94
96
98
100
102
104
Sep-10 Jan-11 May-11 Sep-11 Jan-12 May-12 Sep-12
Mill
ion
bush
els
Extension and Outreach/Department of Economics
U.S. Blended Gasoline Consumption
Source: DOE-EIA, via USDA-ERS
7.6 bil. gal.
7.4 bil. gal.
Extension and Outreach/Department of Economics
5.60
5.80
6.00
6.20
6.40
6.60
6.80
7.00
7.20
7.40
Dec
-12
Mar
-13
Jun-
13
Sep
-13
Dec
-13
Mar
-14
Jun-
14
Sep
-14
Dec
-14
Mar
-15
Jun-
15
Sep
-15
Dec
-15
$ pe
r bus
hel
Current Corn Futures
Source: CME Group, 12/13/2012
6.68
5.895.55
Extension and Outreach/Department of Economics
12.00
12.50
13.00
13.50
14.00
14.50
15.00
Dec
-12
Mar
-13
Jun-
13
Sep
-13
Dec
-13
Mar
-14
Jun-
14
Sep
-14
Dec
-14
Mar
-15
Jun-
15
Sep
-15
$ pe
r bus
hel
Current Soybean Futures
Source: CME Group, 12/13/2012
13.91
12.4712.03
Extension and Outreach/Department of Economics
Total Acreage Shift
Source: USDA-NASS
Extension and Outreach/Department of Economics
Acreage Shift by Crop
Source: USDA-NASS
Acreage change from 2011Units: 1,000 acres
Extension and Outreach/Department of Economics
Acreage Shift by State
Source: USDA-NASS
Top: Planted in 2012Bottom: Change from 2011Units: 1,000 acres
Extension and Outreach/Department of Economics
Extension and Outreach/Department of Economics
Thoughts for 2013 and BeyondSupply/demand concerns
Soil moisture issuesBiofuel and export strengthWorldwide response to drought-induced pricing
2012/13USDA
2012/13Futures
(12/13/12)
2013/14Futures
(12/13/12)Corn $7.40 $6.68 $5.89Soybeans $14.55 $13.91 $12.47
Risk managementCrop insurancePrice protection
Extension and Outreach/Department of Economics
Thank you for your time!
Any questions?
My web site:http://www.econ.iastate.edu/~chart/
Iowa Farm Outlook:http://www.econ.iastate.edu/ifo/
Ag Decision Maker:http://www.extension.iastate.edu/agdm/
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