Trends
. . . OUTLOOK IS FOR FEEDSTUFFS
TO REMAIN VERY EXPENSIVE
On August 11th, USDA-NASS lowered
their 2011 crop production forecasts for major feedstuffs and the WAOB raised
USDA’s price forecasts. The estimated
national average corn yield was reduced to 153 bushels per acre, a decline of
nearly 6 bushels from the month-earlier forecast and below industry
expectations. The national average
sorghum yield was reduced by nearly 11 bushels per acre compared to one month
ago, due to drought in the Southern Plains.
For soybeans, the national yield was reduced by 2 bushels per acre over
the last month.
USDA-WAOB raised their national average corn
price for the 2011-12 crop marketing year dramatically to a record-high range
of $6.20 to $7.20 per bushel, an increase of 70 cents per bushel. Sorghum prices were raised by 90 cents per
bushel and soybean meal was increased by $10.00 per ton (national price range
of $355.00 to $385.00 per ton). By-product
feedstuff costs, like dried distillers grain and cottonseed, will continue to be
very expensive too. In fact, some regions
that traditionally feed cottonseed meal to livestock may switch to less
expensive soybean meal; U.S. cotton acreage harvested was reduced by USDA to
reflect expected abandonment at 30% of plantings due to drought.
USDA-NASS
indicated large hay production reductions in the latest Crop Production
report. For example, hay production this
year in