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Grains Outlook for 2011. Insuring Iowa’s Agriculture Ames, Iowa Nov. 9, 2010 Chad Hart Assistant Professor/Grain Markets Specialist chart@iastate.edu 515-294-9911. U.S. Corn Supply and Use. Source: USDA. Source: USDA-NASS. Translates to a yield in the 170-175 bu. range.

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slide1

Grains Outlook for 2011

Insuring Iowa’s Agriculture

Ames, Iowa

Nov. 9, 2010

Chad Hart

Assistant Professor/Grain Markets Specialist

chart@iastate.edu

515-294-9911

slide4

Translates to a yield in the 170-175 bu. range

Translates to a yield around 160 bu.

Source: USDA-NASS

slide10

La Niña Winter

Source: NOAA

slide11

Clearing Old Stocks

The current stocks set-up is reminiscent of the transition between the 2006 and 2007 crops.

Source: USDA

hog crush margin
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

cattle crush margin
Cattle Crush Margin

The Crush Margin is the return after the feeder steer and corn costs.

Live weight: 1250 pounds Feeder weight: 750 pounds

Corn: 50 bushels per head

Source: Shane Ellis, ISU Extension

historical export levels
Historical Export Levels

Week 9 of marketing year

Source: USDA, FAS

corn export shifts
Corn Export Shifts

Source: USDA, FAS

soy export shifts
Soy Export Shifts

Source: USDA, FAS

iowa corn prices vs costs
Iowa Corn Prices vs. Costs

Right now, futures are in $5.40 range for 2010 and 2011 corn

Even with higher fertilizer costs, corn’s profitable

iowa soybean prices vs costs
Iowa Soybean Prices vs. Costs

Futures are nearly $12 for 2010 and 2011 beans

this year
This Year

Soy $12.10

Corn $5.43

thoughts for 2011 and beyond
Thoughts for 2011 and Beyond
  • General economic conditions
    • Continued economic recovery is a major key for crop prices
    • Long-term oil price remain in the $90 range
  • Supply/demand concerns
    • Stocks: 2009 vs. 2010 crop
    • South America: La Niña impacts
    • Biofuels: E10, E12, or E15; Do the tax credits get extended/renewed?
    • Will supply be able to keep pace with demand?
  • 2010/11: USDA: Corn $5.20, Soy $11.45

Futures (as of 11/8/2010): Corn $5.46, Soy $11.80

  • 2011/12:

Futures (as of 11/8/2010): Corn $5.34, Soy $11.71

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Thank you for your time!Any questions?My web site:http://www.econ.iastate.edu/~chart/Iowa Farm Outlook:http://www.econ.iastate.edu/outreach/agriculture/periodicals/ifo/Ag Decision Maker:http://www.extension.iastate.edu/agdm/