By: Josh Maples, Mississippi State College
The annual Acreage report launched final week by USDA-NASS included larger-than-expected corn acres which put downward stress on corn costs. The report listed corn acres at 91.5 million acres which is 1.4 million acres greater than the March Potential Plantings report projected. After corn costs surpassed $6 for the 2022/23 advertising 12 months, costs are under $5 for the present advertising 12 months, and are projected to be nearer to $4 for the 2024/2025 advertising 12 months.
Whereas greater than beforehand projected, corn acres shall be barely decrease than 2023 totals. Nonetheless, advantageous rising circumstances are supporting greater yield expectations when in comparison with 2023. The newest WASDE report included a yield estimate of 181 bushels per acre which might be greater than the 177.3 from a 12 months in the past. Stronger yields might result in corn manufacturing for 2024 not being far off from the 2023 complete.
Additionally launched final week was the USDA Quarterly Grain Shares Report which incorporates estimates of corn shares held on the farm. Whole corn shares on June 1st have been estimated at 5 billion bushels which is up 22 % from 2023 and is the very best June 1 complete since 2020. Most of those shares are nonetheless being held on farms as farmers await higher pricing alternatives. On farm corn shares have been simply over 3 billion bushels, which is roughly 800 million greater than final 12 months and is the biggest June 1 complete since 1988.
General, the information is constructive for livestock producers. The easy takeaway is that corn manufacturing and shares are anticipated to be plentiful, and corn costs are again to decrease ranges after surging a couple of years in the past. This could proceed to convey aid to livestock feed prices and cut back the price of acquire for cattle. This 12 months’s corn crop shouldn’t be within the bin but, so manufacturing dangers stay that would affect worth. However record-high cattle costs at a time when corn costs are anticipated to reasonable is a welcome mixture for cattle producers.
The Markets
Cattle market costs have been typically regular to greater final week. Many markets shall be closed this week for the vacation. Fed cattle costs reached a brand new file excessive final week at $195.81 per CWT common for negotiated fed steers.
Pasture Circumstances
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