USDA’s dairy product price outlook was increased due to a decreasing cow herd. The forecast for the average number of milk cows in 2022 has been lowered by 15,000 head, to 9.405 million. However, the projected average yield per cow in 2022 was adjusted slightly higher, at 24,075 pounds per year. The net impact is a reduction of milk produced for the year of 300 million pounds – down about 0.1 percent – to 226.5 billion pounds. Though better than last year at the same time, the feed cost of production has steadily risen this year. The milk to feed ratio – which is the amount of feed equivalent to the all-milk price (on a pound per pound basis) has steadily dropped this year, fueling the cow culling...
What You Need to Know Today: Markets got a surprise with a corn yield of 181.2 bushels/acre in the October WASDE, above the average estimate of 177.6 bushels/acre and up from USDA’s September estimate of 178.5 bushels/acre. Although stronger demand is expected to absorb some of the addit...
Key Takeaways: On Friday afternoon, President Trump announced that Russia will “immediately supply over 300,000 Tons of Diesel Fuel” to the United States. The deal, typical of this administration, is light on details but promises an additional 500,000 tons in November and 1 m...
The USDA has lowered its 2026 red meat production forecasts slightly while forecasting a slight increase in broiler production. Beef is now projected at 24.802 billion pounds, 75 million pounds less than in September. Cow slaughter is expected to be up; however, this will be offset by lower ste...
From WPI Consulting
Forecasting developments in production agriculture
On behalf of a private U.S. agricultural technology provider, WPI’s team generated an econometric model to forecast the movement of concentrated corn production north and west from the traditional U.S. Corn Belt. WPI’s model has subsequently provided quantitative support to a multi-million-dollar investment into short-season corn variety development. WPI’s methodology included a series of interviews with regional grain elevators and seed consultants. Emphasizing outreach and communication with stakeholders who possess intimate sectoral knowledge – on-the-ground insights – is a regular component of WPI’s methodologies, made possible by WPI’s ever-growing network of industry contacts.