The hog market, along with the futures market on hogs, has been on fire. October 2013 futures are at almost the same price as July 2014 hog futures! I can’t remember ever seeing this happen before....More
The headline message on Monday’s Daily Livestock Report sponsored by CME Group asked “Where Did All The Hogs Go?” It’s a question likely being asked by a lot of people after last week’s 2.172 million head fell 10.3% short of last year’s level and well-short of even my relatively low forecast for weekly slaughter (Figure 1)....More
Despite the excessively wet spring and hot, dry summer, U.S. crop farmers are on the verge of harvesting the largest corn crop in history, according to a report today from the U.S. Department of Agriculture’s National Agricultural Statistics Service (NASS).
NASS forecasts corn production at 13.8 billion bushels, up less than 1% from the August forecast and up 28% from 2012. If realized, this will be a new record production for the United States....More
The widespread hot, dry weather producing sharp increases in feed prices has scorched the potential for hog producers to return to profitability, warns Purdue Extension agricultural economist Chris Hurt says.
December corn futures rose to $5 per bushel - a $0.50 increase since the early August lows and soybean meal increased $90 per ton. These equate to about $5 higher hog production costs per live hundredweight. While that doesn't completely dash producers' hopes of returning to profitability, it does mean they need to think twice before growing their operations....More
Just as early June hog futures prices soared to $100 per hundredweight, so, too, did feed ingredient prices nearly increase in lockstep to $97 to raise a finished pig (50 to 280 lb.), lamented Joel DeRouchey of Kansas State University in a talk at World Pork Expo (WPX) held June 5-7 in Des Moines, IA....More
Changes in the federal mandate for biofuels production in 2014 will make the Renewable Fuels Standard (RFS) workable, according to an analysis of the program by a Purdue University energy policy specialist.
The nation likely can produce federally mandated levels of biofuels in 2014 if the U.S. Environmental Protection Agency reduces its requirements by 2.3 billion gallons, Wally Tyner says....More
The total first half 2013 commercial slaughter at 54.651 million head vs. 54.765 million head last year or 114,000 head lower, is reflected in higher average first-half hog prices and also stronger year-over-year demand for pork products, says the Livestock, Dairy and Poultry Outlook published today by USDA’s Economic Research Service (ERS).
Average first half 2013 prices of 51-52% live equivalent hogs were $62.25/cwt., nearly 1% greater than average prices in the same period a year ago, the ERS report indicates....More
At 3.411 million acres, the number of acres on which planting was prevented for corn in 2013, is the highest figure in the past three years, according to the Daily Livestock Report published today....More
Is the opportunity for the lowest possible costs for the next crop year gone? That depends on a lot of factors, but today’s World Agricultural Supply and Demand Estimates (WASDE) report from USDA predicts lower-than-expected yields and, consequently, higher prices than futures markets had been reflecting. USDA’s actual forecasts for corn and soybean supply and usage appear in Tables 1 and 2 of today’s report....More
In the top 18 states for corn and soybean production, crop conditions are holding steady with solid advances being made in crop maturity, according to USDA’s National Agricultural Statistics Service (NASS) report for July 29.
Corn condition at 46% good and 17% excellent duplicated last week’s rating. However, in states like Kansas, only 29% of the crop was rated as good and just 4% was listed as excellent....More
Total pork inventories as of June 30 were 4.7% lower than last year but remained just over 8% larger than the average of the past five years. That was a major feature of last week’s Cold Storage report. Pork stocks normally fall in June as hog numbers decline but this year’s June drawdown was extraordinary. In fact, it was the largest June decline in frozen pork stocks in 20 years....More
University of Illinois Professor of Animal Sciences Hans Stein believes that pork producers need accurate information on the energy value of fat in feed ingredients to ensure that diets are formulated economically and in a way that maximizes pork fat quality.
University of Illinois research has determined the true ileal and total tract digestibility of fat in four corn co-products, as well as in full fat soybeans and corn oil....More
On Wednesday, Purdue University agricultural economist Chris Hurt will testify in Washington, DC before a congressional panel considering whether law requiring production of biofuels should be altered to meet changing conditions.
Hurt will explain how the Energy Independence and Security Act of 2007 has been a boon to crop producers, such as corn growers, but also has helped to drive prices for animal feed and food for people higher by requiring a significant portion of the crops go to the production of ethanol. ...More
An Iowa State University animal scientist may soon have data for niche market swine producers to precisely match the nutrients in feed with the needs of their pigs.
John Mabry, professor of animal science at Iowa State University, is working with the Iowa Pork Producers Association (IPPA) to study the nutritional needs of pigs raised for niche markets. The market is a relatively new development in agriculture with a growing consumer demand....More
A University of Manitoba research project has demonstrated that enzyme supplements improve the net energy content of swine.
Deepak Velayudhan, a graduate student at the University of Manitoba, presented his studies of enzyme supplements in swine at last week’s Joint Annual Meeting of the American Dairy Science Association, the American Society of Animal Science and the Canadian Society of Animal Science....More
The “promised land” of lower feed costs will usher in an extended period of profitability, according to a Purdue University Extension economist. Those lower costs are not here yet but could be just weeks away as prospects for U.S. corn and soybean production have improved in recent days....More
U.S. farmers successfully overcame a cold and wet early spring this year, planting 97.4 million acres of corn, up slightly from 2012, according to the Acreage report released today by the U.S. Department of Agriculture’s National Agricultural Statistics Service (NASS).
This is the highest acreage planted to corn since 1936 and marks the fifth year in a row of corn acreage increases in the United States....More
The National Council of Chain Restaurants recently launched “Feed Food Fairness: Take RFS Off the Menu,” a new grassroots campaign focused on repealing the federal Renewable Fuel Standard (RFS) and the corn ethanol mandate. Coalition members joined with Rep. Bob Goodlatte (R-VA) to expose the harmful economic effects of the RFS on American consumers, diners and small business-owners and operators....More
The lack of hot, dry weather has continued to hamper crop progress, according to the Crop Progress report released Monday by USDA’s National Agricultural Statistics Service (NASS).
Corn crop emergence stands at 92% for the 18 major corn-producing states vs. 85% a week ago but below the average of 97% for 2008-2012.
Corn condition dipped slightly to 52% in good condition compared to 53% a week ago. Only 12% of the crop is rated in excellent condition. In the 18 states surveyed, 34% of the corn crop was listed as in fair or poor condition....More
With delayed planting and uncertainty about this fall’s corn harvest, pork producers who are currently enjoying a return to breakeven levels should forego any expansion plans for now, advises Purdue University Extension agricultural economist Chris Hurt....More
USDA’s World Agricultural Supply and Demand Estimates (WASDE) released this week lowers the prospects for feedgrain supplies as delayed plantings reduce yield prospects for corn. Projected corn production is lowered 135 million bushels to 14.0 billion bushels. Average yield is projected at 156.5 bushels per acre, a drop of 1.5 bushels from last month’s projections....More
Struggling all season to catch up, corn planting reached 95% completion as of June 9, according to USDA’s National Agricultural Statistics Service (NASS) Crop Progress report released June 10.
A year ago, 100% of the corn crop had been planted, compared with 98% for the 2008-2012 average in the 18 top corn-producing states....More