1. Current Feed Situation and Outlook
Iowa Egg Industry Symposium
Ames, Iowa
Nov. 7, 2012
Chad Hart
Associate Professor/Grain Markets Specialist 1 1

2. U.S. Corn Supply and Use 2008 2009 2010 2011 2012 Area Planted
(mil. acres)
86.0
86.4
88.2
91.9
96.9
Yield
(bu./acre)
153.9
164.7
152.8
147.2
122.0
Production
(mil. bu.)
12,092
13,092
12,447
12,358
10,706
Beg. Stocks
1,624
1,673
1,708
1,128
988
Imports 14 8 28 75
Total Supply
13,729
14,774
14,182
13,514
11,769
Feed & Residual
5,182
5,125
4,793
4,562
4,150
Ethanol
3,709
4,591
5,021
5,000
4,500
Food, Seed, & Other
1,316
1,370
1,407
1,421
1,350
Exports
1,849
1,980
1,835
1,543
1,150
Total Use
12,056
13,066
13,055
12,526
11,150
Ending Stocks
619
Season-Average Price
($/bu.)
4.06
3.55
5.18
6.22
7.80
These are the latest numbers from USDA. Record production and demand is gone and was replaced by record prices. All sectors of demand took major cuts. Ending stocks are projected to be at pipeline levels.
Source: USDA-WAOB 2 2

3. U.S. Soybean Supply and Use
2008
2009
2010
2011
2012
Area Planted
(mil. acres)
75.7
77.5
77.4
75.0
77.2
Yield
(bu./acre)
39.7
44.0
43.5
41.9
37.8
Production
(mil. bu.)
2,967
3,359
3,329
3,094
2,860
Beg. Stocks
205
138
151
215
169
Imports 13 15 14 16 20
Total Supply
3,185
3,512
3,495
3,325
3,050
Crush
1,662
1,752
1,648
1,703
1,540
Seed & Residual
106
110
130 92
115
Exports
1,279
1,499
1,501
1,360
1,265
Total Use
3,047
3,361
3,280
3,155
2,920
Ending Stocks
Season-Average Price
($/bu.)
9.97
9.59
11.30
12.50
15.25
For soybeans, a tight market continues to get tighter. USDA ratcheted down demand for the new crop to hold 2012/13 ending stocks at 115 million bushels. As with corn, all sectors of demand took a big cut.
Source: USDA-WAOB 3 3

4. U.S. Soybean Meal Supply and Use
2009
2010
2011
2012
Production
(thou. short tons)
41,707
39,251
41,240
36,700
Beg. Stocks
235
302
350
300
Imports
160
180
210
Total Supply
42,101
39,732
41,800
37,300
Domestic
30,640
30,301
31,900
29,500
Exports
11,160
9,081
9,600
7,500
Total Use
39,382
41,500
37,000
Ending Stocks
Season-Average Price
($/short ton)
311.27
345.52
393.53
485.00
Source: USDA-WAOB 4 4

5. Price Ratios Since May 1

6. Projected Corn Yields
These are based on conditions around Sept. 1.

7. Objective Corn Yield Data
USDA crop adjusters found grain weights well below those for the last 8 years.
Source: USDA-NASS

8. Projected Soybean Yields
These are based on conditions around Sept. 1.

9. Objective Soybean Yield Data
USDA crop adjusters found pod numbers well below those for the last 8 years.
Source: USDA-NASS

10. World Corn Production Source: USDA-WAOB
Global corn production took a hit last month, with Canada and Europe seeing reductions in potential corn production.
Source: USDA-WAOB 10 10

11. World Soybean Production
Soybean prices have spurred on increased soybean plantings worldwide. South America will lead the charge.
Source: USDA-WAOB 11 11

12. U.S. Meat Production & Prices
Higher feed costs have led to lower meat production projections.
Source: USDA-WAOB 12 12

13. Corn Export Shifts
Source: USDA-FAS

14. Soy Export Shifts
Source: USDA-FAS

15. Soy Meal Export Shifts
Source: USDA-FAS

16. Corn Grind for Ethanol
Negative margins at some ethanol plants have dragged down production.

17. U.S. Blended Gasoline Consumption
7.6 bil. gal.
But the industry still faces blend wall issues as fuel consumption has dropped with the economy and the E-10 market is basically full.
7.4 bil. gal.
Source: DOE-EIA, via USDA-ERS

18. Current Corn Futures
6.87
5.99
5.63
Source: CME Group, 11/6/2012

19. Current Soybean Futures
14.11
12.81
12.38
Source: CME Group, 11/6/2012

20. Total Acreage Shift Source: USDA-NASS
We brought back a lot of acres in Can we hold them in 2013?
Source: USDA-NASS

21. Acreage Shift by State Top: Planted in 2012 Bottom: Change from 2011
Weather was great for planting in 2012 (just not for producing). To hold acreage we will need great planting weather again.
Top: Planted in 2012
Bottom: Change from 2011
Units: 1,000 acres
Source: USDA-NASS

23. Acreage Shift by Crop Acreage change from 2011 Units: 1,000 acres
Cotton will likely give up acreage again. But with crop prices strong across the board, the acreage battle could be interesting in 2013.
Source: USDA-NASS

24. Thoughts for 2012 and Beyond
Supply/demand concerns
Soil moisture issues
Biofuel and export strength
Worldwide response to drought-induced pricing
2012/13
USDA
Futures
(11/6/12)
2013/14
Corn
$7.80
$6.87
$5.99
Soybeans
$15.25
$14.11
$12.81

25. 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: