Posted November 12, 2013
USDA is projecting a record corn crop and record milk
production for 2013 and 2014, according to an AgWeb article available here.
The projections are based on the World Agricultural Supply and
Demand Estimates (WASDE) report from USDA’s National Agricultural
Statistics Service (NASS). Recent NASS
crop production reports are available here.
U.S. corn growers are on track for a record-high 14.0
billion-bushel production year. Milk
output for the next year is estimated at 204.9 billion pounds, an increase of
3.2 billion pounds over 2013’s expected production.
The Milwaukee
Journal Sentinel reported that traders anticipated the change, and as a
result, corn prices dropped below $4.20 a bushel which is the lowest since 2010
and nearly the cost of raising the crop, according to USDA.
The record corn crop could cause meat prices to drop
due to lower production costs. John
Harrington, chief livestock analyst with DTN said that lower feed prices should
encourage farmers to beef up their animal operations and put more meat into the
market place. He said that it should
have an overall “cooling effect on meat prices that have risen significantly in
recent years.”
