1. Current Feed Situation and Outlook
Iowa Egg Industry Symposium
Ames, Iowa
Nov. 9, 2011
Chad Hart
Assistant Professor/Grain Markets Specialist 1 1

2. U.S. Corn Supply and Use 2008 2009 2010 2011 Area Planted (mil. acres)
86.0
86.4
88.2
91.9
Yield
(bu./acre)
153.9
164.7
152.8
146.7
Production
(mil. bu.)
12,092
13,092
12,447
12,310
Beg. Stocks
1,624
1,673
1,708
1,128
Imports 14 8 28 15
Total Supply
13,729
14,774
14,182
13,453
Feed & Residual
5,182
5,125
4,792
4,600
Ethanol
3,709
4,591
5,021
5,000
Food, Seed, & Other
1,316
1,370
1,407
1,410
Exports
1,849
1,980
1,835
1,600
Total Use
12,056
13,066
13,054
12,610
Ending Stocks
843
Season-Average Price
($/bu.)
4.06
3.55
5.18
6.70
Source: USDA-WAOB 2 2

3. U.S. Soybean Supply and Use
2008
2009
2010
2011
Area Planted
(mil. acres)
75.7
77.5
77.4
75.0
Yield
(bu./acre)
39.7
44.0
43.5
41.3
Production
(mil. bu.)
2,967
3,359
3,329
3,046
Beg. Stocks
205
138
151
215
Imports 13 15 14
Total Supply
3,185
3,512
3,495
3,275
Crush
1,662
1,752
1,648
1,635
Seed & Residual
106
110
130
120
Exports
1,279
1,499
1,501
1,325
Total Use
3,047
3,361
3,280
3,080
Ending Stocks
195
Season-Average Price
($/bu.)
9.97
9.59
11.30
12.60
Source: USDA-WAOB 3 3

4. U.S. Soybean Meal Supply and Use
2009
2010
2011
Production
(thou. short tons)
41,707
39,251
38,835
Beg. Stocks
235
302
350
Imports
160
180
165
Total Supply
42,101
39,732
39,350
Domestic
30,640
30,282
30,250
Exports
11,160
9,100
8,800
Total Use
41,800
39,382
39,050
Ending Stocks
300
Season-Average Price
($/short ton)
311.27
345.52
325.00
Source: USDA-WAOB 4 4

5. World Corn Production
Source: USDA-WAOB 5 5

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

7. Corn vs. Wheat
Source: CME Group, 11/8/2011

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: Shane Ellis, ISU Extension

9. Corn Export Shifts
Source: USDA-FAS

10. DDG Exports
Source: USDA-FAS

11. Soy Export Shifts
Source: USDA-FAS

12. 2010 U.S. Soybean Meal Exports
Source: USDA-FAS

13. Renewable Fuels Standard (RFS)
Crop
Year
Billion Bushels
2011
4.64
2012
4.86
2013
5.07
2014
5.29 13 13

14. Corn Grind for Ethanol
Source: DOE-EIA

15. Ethanol Blending Advantage

16. Projected 2011 Season-Average Corn Price

17. Projected 2011 Season-Average Soy Price

18. Projected 2012 Season-Average Corn Price

19. Projected 2012 Season-Average Soy Price

20. Iowa Corn Prices vs. Costs

21. Iowa Soybean Prices vs. Costs

22. Principal Crop Area
Source: USDA-NASS

23. States with Room to Grow
Number is the difference in planted acres between 2008 and 2011

24. Iowa Crop Margins

25. Thoughts for 2012 and Beyond
General economic conditions
Continued worldwide economic recovery is a major key for crop prices
US job recovery, European financial concerns, Chinese inflation
Supply/demand concerns
Smaller than anticipated U.S. crops
Biofuel growth and energy demand
Corn still has the upper hand in the acreage competition
Will supply be able to keep pace with demand?
2011/12: USDA: Corn $6.70; Soy $12.60
Futures (as of 11/8/11): Corn $6.32; Soy $11.71
2012/13:
Futures (as of 11/8/11): Corn $5.95; Soy $11.85

26. 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: