Iowa Farm Outlook & News

  • June 2016 Prices for 2015/16 Crops:
       Corn $3.70 per bushel, up 10 cents from last month
       Soybean $9.05 per bushel, up 20 cents from last month
  • June 2016 Prices for 2016/17 Crops:
       Corn $3.50 per bushel, up 15 cents from last month
       Soybean $9.50 per bushel, up 40 cents from last month
  • Mar. 2016 Planted Area for 2016/17 Crops:
       Corn 93.6 million acres, up 6% from last year
       Soybean 82.2 million acres, down less than 1% from last year
  • Iowa Cash Receipts for 2015
       Cattle and Calves: $4.414 billion, down 6.4% from 2014
       Hogs and Pigs: $7.512 billion, down 18.1% from 2014
       Milk: $835 million, down 26.7% from 2014
  • Iowa Production Values for 2015
       Turkeys: $287 million, down 10.4% from 2014
       Eggs: $1.534 billion, up 9.2% from 2014
Pasture and Rangeland (6/1/16)

Each Monday from May through October, USDA's National Agricultural Statistics Service releases pasture and range conditions by state. Its weekly Crop Progress Report rates pasture and range conditions as very poor, poor, fair, good and excellent. The report for the week ending May 29, 2016 confirms that many areas are beginning the growing season with even better pasture and range conditions than last year. Nationwide, only 8% of all pasture and ranges are in poor to very poor condition, down from 10% a year ago. On the flip side, 66% of the nation's pasture and rangeland is in good to excellent condition. Several states are reporting at least 75% good to excellent ratings. This list includes: Nebraska (88%) South Dakota (81%), Iowa (78%), and Minnesota (77%) then a strip across the Eastern Corn Belt-Illinois (85%), Ohio (82%), and Indiana (81%). So we are off to a really good start with everything looking pretty green and plentiful in most of the country as we head into early June-certainly approaching record territory. Favorable forage conditions in 2016 will provide opportunities for cattle producers to have more flexible production and marketing plans.

Positive Demand News from USDA (6/10/16)

USDA's June updates contained good news on the demand front for corn and soybeans. International demand continues to strengthen, while domestic usage holds steady. With no major changes on the supply side, this implies lower ending stocks and projections of higher prices. Starting with corn, the losses and delays in the South American harvest have opened up some off-season selling opportunities for the U.S. Old crop (2015/16) exports were raised 100 million bushels as a result. Although corn imports were increased slightly, the overall impact for old crop corn is a 95 million drop in ending stocks and a 10 cent increase in the season-average price to $3.70 per bushel. That drop in ending stocks, combined with another increase in new crop (2016/17) exports of 50 million bushels, lowered new crop ending stocks by 145 million bushels. The changes added 15 cents to the new crop corn season-average price estimate, raising it to $3.50 per bushel.

For soybeans, both old crop domestic and international demand were on the upswing. Crush added 10 million bushels, while exports grew by 20 million bushels. With the 30 million bushel drop in old crop ending stocks, USDA raised its 2015/16 season-average price by 20 cents to $9.05 per bushel. As with corn, the export demand increase extended into the new crop as well, adding another 15 million bushels. That pushed new crop ending stocks below 300 million bushels and lifted the 2016/17 season-average price estimate by 40 cents, to $9.50 per bushel.