Cost of Production Expected to Grow and Latest WASDE Report
From the Ag Information Network, I’m Bob Larson with your Agribusiness Update.
**USDA’s first cost of production forecast for major field crops like corn, soy, wheat, cotton, rice, and others shows input costs are expected to remain elevated into the next growing season.
The costs will likely be the third-highest of all time and only slightly lower than last year’s record high.
While some inputs like fertilizer and chemicals are expected to decline, others like seed, labor, equipment, taxes, and insurance are expected to rise.
**The USDA has issued the latest Monthly World Ag Supply and Demand report.
This month’s corn outlook is for fractionally higher supplies and ending stocks.
Corn production is forecast up 55 million bushels as greater planted and harvested area from the June 30 Acreage report is partially offset by a four-bushel reduction in yield to 177.5 bushels per acre.
The season-average farm price is unchanged at $4.80 per bushel.
**The Consumer Price Index for Urban Consumers rose 0.2% in June.
According to the Bureau of Labor Statistics, the index for food AT home was unchanged, while the index for food AWAY from home rose 0.4%.
The index for fruits and vegetables increased 0.8%, following a 1.3% increase in May.
The cereals and bakery products index rose 0.1%, while the index for meats, poultry, fish, and eggs was down 0.4%.
