Posted November 12, 2013
USDA is projecting a record corn crop and record milk production for 2013 and 2014, according to an AgWeb article available here.
The projections are based on the World Agricultural Supply and Demand Estimates (WASDE) report from USDA’s National Agricultural Statistics Service (NASS). Recent NASS crop production reports are available here.
U.S. corn growers are on track for a record-high 14.0 billion-bushel production year. Milk output for the next year is estimated at 204.9 billion pounds, an increase of 3.2 billion pounds over 2013’s expected production.
The Milwaukee Journal Sentinel reported that traders anticipated the change, and as a result, corn prices dropped below $4.20 a bushel which is the lowest since 2010 and nearly the cost of raising the crop, according to USDA.
The record corn crop could cause meat prices to drop due to lower production costs. John Harrington, chief livestock analyst with DTN said that lower feed prices should encourage farmers to beef up their animal operations and put more meat into the market place. He said that it should have an overall “cooling effect on meat prices that have risen significantly in recent years.”
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