1. Ag Outlook Rock County Corn & Soybean Growers Annual Meeting
Luverne, Minnesota
Jan. 16, 2015
Chad Hart
Associate Professor/Crop Markets Specialist 1 1

2. U.S. Corn Supply and Use 2010 2011 2012 2013 2014 Area Planted
(mil. acres)
88.2
91.9
97.3
95.4
90.6
Yield
(bu./acre)
152.8
147.2
123.1
158.1
171.0
Production
(mil. bu.)
12,447
12,360
10,755
13,829
14,216
Beg. Stocks
1,708
1,128
989
821
1,232
Imports 28 29
160 36 25
Total Supply
14,182
13,517
11,904
14,686
15,472
Feed & Residual
4,795
4,557
4,315
5,036
5,275
Ethanol
5,019
5,000
4,641
5,134
5,175
Food, Seed, & Other
1,407
1,428
1,397
1,367
1,395
Exports
1,834
1,543
730
1,917
1,750
Total Use
13,055
12,528
11,083
13,454
13,595
Ending Stocks
1,877
Season-Average Price
($/bu.)
5.18
6.22
6.89
4.46
3.65
Source: USDA-WAOB 2 2

3. U.S. Soybean Supply and Use
2010
2011
2012
2013
2014
Area Planted
(mil. acres)
77.4
75.0
77.2
76.8
83.7
Yield
(bu./acre)
43.5
41.9
40.0
44.0
47.8
Production
(mil. bu.)
3,329
3,094
3,042
3,358
3,969
Beg. Stocks
151
215
169
141 92
Imports 14 16 41 72 15
Total Supply
3,495
3,325
3,252
3,570
4,076
Crush
1,648
1,703
1,689
1,734
1,780
Seed & Residual
130 88
105 97
116
Exports
1,501
1,365
1,317
1,647
1,770
Total Use
3,280
3,155
3,111
3,478
3,666
Ending Stocks
410
Season-Average Price
($/bu.)
11.30
12.50
14.40
13.00
10.20
Source: USDA-WAOB 3 3

4. Corn Yields Top: 2014 Yield Bottom: Change from last year
Units: Bu/acre
Source: USDA-NASS

5. Soybean Yields Top: 2014 Yield Bottom: Change from last month
Units: Bu/acre
Source: USDA-NASS

6. World Corn Production
Source: USDA-WAOB 6 6

7. World Soybean Production
Source: USDA-WAOB 7 7

8. Hog Crush Margin
The Crush Margin is the return after the pig, corn and soybean meal costs.
Carcass weight: 200 pounds Pig price: 50% of 5 mth out lean hog futures
Corn: 10 bushels per pig Soybean meal: 150 pounds per pig
Source: ISU Extension

9. Cattle Crush Margin
The Crush Margin is the return after the feeder steer and corn costs.
Live weight: pounds Feeder weight: 750 pounds
Corn: 50 bushels per head
Source: ISU Extension

10. U.S. Meat Production & Prices
Source: USDA-WAOB 10 10

11. Corn Export Shifts
Source: USDA-FAS

12. Corn Export Sales
Source: USDA-FAS

13. Soybean Export Shifts
Source: USDA-FAS

14. Soybean Export Shifts
Source: USDA-FAS

15. Corn Grind for Ethanol

16. Ethanol Stocks

17. Current Corn Futures
3.88
3.68
Source: CME Group, 1/15/2015

18. Current Soybean Futures
9.99
9.44
Source: CME Group, 1/15/2015

19. 2014/15 Crop Margins

20. 2015/16 Crop Margins

21. Corn Production Costs
Source: ISU Extension

22. Soybean Production Costs
Source: ISU Extension

23. Crude Oil Prices
Sources: EIA and CME

24. Fertilizer Prices Last Year
Source: USDA-AMS

25. Fertilizer Prices This Year
Source: USDA-AMS

26. Land Values and Income
Source: Mike Duffy, ISU

27. Land Values and Income
Source: Mike Duffy, ISU

28. Net Farm Income

29. Corn Prices vs. Costs
Per Bushel Cost calculated as Per Acre Cost from ISU Extension divided by Actual Yield per Acre
Sources: USDA-NASS for Prices, Duffy for Costs

30. Soybean Prices vs. Costs
Per Bushel Cost calculated as Per Acre Cost from ISU Extension divided by Actual Yield per Acre
Sources: USDA-NASS for Prices, Duffy for Costs

31. Thoughts for 2015 and Beyond
Supply/demand concerns
Record corn and soybean crops, but also record demand
Markets are in a holding pattern, waiting for news
Watching South American crop progress
Projected negative margins for 2014 and 2015 crops
2013/14
USDA
2014/15
Futures
(1/15/15)
2015/16
Corn
$4.46
$3.65
$3.68
$3.88
Soybeans
$13.00
$10.20
$9.99
$9.44

32. Thank you for your time. Any questions. My web site: http://www. econ
Thank you for your time! Any questions? My web site: Iowa Farm Outlook: Ag Decision Maker: