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Livestock
Recent live cattle futures prices have been extremely depressed, sending signals of much lower cash prices next year. While prices are expected to be lower next year, they may not be as low as suggested by futures.
Read MoreThis article discussed recent trends in feed costs for a swine finishing enterprise. Feed costs have dropped dramatically since the first quarter of 2014. Feed cost is expected to be slightly below 2015 levels in 2016 and 2017.
Read MoreThe longer-term economic implications of Brexit may be the most important and could reduce the rate of world economic growth. If Brexit does slow world income growth, that could be negative for global sales of pork and other U.S. agricultural products.
Read MoreTwo important factors determining margins this year are the potential for higher pork exports and thus higher hog prices and the potential for higher feed prices. These are tugging at margins in opposite directions.
Read MoreCattle prices have had a rough spring. After peaking in late 2014 and early 2015, prices have been adjusting downward from very lofty peaks. High prices and profits at that time provided the incentives to expand beef production.
Read MoreThis article discusses recent trends in feed costs for a dairy cow enterprise. A ration consisting of alfalfa, corn silage, corn, soybean meal, and supplements was used to create the feed cost indices.
Read MoreThe nation’s pork producers have indicated to USDA that they are not expanding the breeding herd and, in fact, intend to reduce farrowings this spring and summer. This means pork supplies will be somewhat less than had been anticipated and that hog prices will be somewhat higher.
Read MoreNothing like record cattle prices and profitability to get an industry excited about expansion. The latest USDA Cattle report shows a rapid expansion is underway with cattle and calf numbers up three percent and beef cow numbers up four percent in the past year.
Read MoreThe outlook for the pork industry has turned somewhat more optimistic in recent weeks. The sources of that optimism include a $2 to $4 increase in spring and summer lean hog futures prices since the first of the year and slightly lower new-crop soybean meal prices. A bit higher hog prices and a little lower cost add to the potential for a profitable year.
Read MorePork producers in 2016 are expected to experience another year of tight margins similar to the year just completed. Pork production is expected to rise by about one percent, but beef production will rise by four percent and poultry by about three percent.
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