January 29

1/29 - In Jan’s WASDE, the USDA increased corn yield to 177.3 bushels per acre and raised production to 15.34B bushels, both record highs. Corn futures had averaged a drought-induced $6.49 per bushel for the first 7 months of 2023, until late-season rain helped the crop recover. Prices tumbled to $4.75 (on average) for Q4 2023. Lower corn/feed prices should keep poultry producers in the black for 2024. But they’re not cranking up output just yet. The USDA is (so far) projecting 2024 broiler production at just 0.5% above last year. Boneless skinless breast at $1.22 per pound (USDA, 1/26) has rebounded from seasonal lows and is up $.25 over the past 6 weeks. April/May highs should be in the $1.50s. USDA whole wings at $1.76 are already near a pre-Superbowl high. CME corn futures closed at 4.46 per bushel on Friday (1/26). Forward futures contracts for 2024 are averaging $4.58. Sounds like more chicken.