Grain Outlook

Grain Outlook

At last week’s Cattle Industry Convention and NCBA Trade Show, CattleFax provided an U.S. and Global Protein and Grain Outlook. CattleFax Grain Market Specialist Analyst Chad Spearman provided the Grain Outlook for the year and said that there is an ample supply of grain stocks currently.
Headwinds for the grain and any future exports are the slower world growth and the strong U.S. dollar. So unless there is a major production loss somewhere in the globe for one of these grains or soybeans — there will be reasonable feed costs for livestock producers. Spearman said
Spearman: “So we are looking at cheaper protein and energy feed costs continuing in 2016. That pressure is going to continue to weigh on hay prices as well. US Hay production has rebounded sharply from 2012. Hay stocks have also rebounded sharply this past year. We are seeing those prices come down substantially. We suspect that will be a supportive factor down to the cow-calf sector for input costs as well. Other hay and alfalfa hay prices are expected to decline 6 and 16 percent respectively in the current marketing year that will end in April.
Spearman said that nearly 40 percent of the U.S. corn market is now tied to the energy market. He predicted no big change in corn prices for 2016 with an average of $3.75 per bushel in 2016.

 

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