February 19

2/19 - Last week’s USDA Agricultural Outlook Forum gave a first look at crop potential for the 2024/25 growing season – and it was a good one for feed prices. Corn output next year is projected to be 15.04B bushels, down 2.0% from a record large 15.43B this year (2023/24). However, it will be enough to raise the corn stocks-to-use ratio to 17.2% for 2024/25, up from 14.9% this year. Stocks-to-use of under 10% in 2021/22 and 2022/23 led to corn prices averaging above $6.00 per bushel both years. For now, USDA is projecting corn to average $4.80 per bushel this year (2023/24) and $4.40 in 2024/25. Soymeal production for 2024/25 is forecast to increase by 4.4% and help prices fall from an average of $380 per short ton in 2023/24 to $320 in 2024/25. If the USDA’s corn/soymeal price forecasts hold up, it would go a long way toward offsetting higher labor and borrowing costs for poultry producers.