Good news for livestock producers and the price of feed. Earlier this month, we told you how a new report from the Food and Agricultural Policy Research Institute (FAPRI) at the University of Missouri said that livestock producers had seen some some high prices for their animals this year, but those prices were expected to taper a bit in the next couple of years. A new report from FAPRI shows that even larger crop estimates are expected to push down the prices of a couple of the most popular feeds, corn and soybeans.
– Larger corn and soybean crops translate into lower projected 2014/15 prices for many grains and oilseeds. Corn prices drop to $3.50 per bushel, soybeans to $9.92 per bushel… In all … cases, these projected prices are close to the midpoint of the price ranges reported in the September USDA World Agricultural Supply and Demand Estimates.
– Larger crops in 2014/15 also result in larger beginning stocks and total crop supplies in 2015/16. As a result, corn and soybean prices for next year’s crop are lower than projected in August. Corn prices average $3.80 per bushel in 2015/16, and soybean prices drop to $9.04 per bushel.
– Prices recover as markets adjust. Corn prices average $4.10 per bushel, soybeans average $10.21 per bushel … over the 2016‐18 period.
The latest FAPRI report makes no mention of what livestock prices might do.