The use of wheat as animal feed is expected to hit a 25-year high in 2021. As noted by Carl Zulauf of Ohio State University, it is the ratio of the price of wheat to corn that determines the amount of wheat that goes to the feed and residual category. Zulauf ran the numbers for the U.S. from 1974 to 2017 and the graph below extends it to the present. The key is the price of the two commodities during June – August when wheat is generally priced lowest at the start of its marketing year. This generally skews feeding in favor of HRW, though SRW was the feed of choice in 2017/18. The correlation of this price ratio and wheat used as feed has been -0.69 percent in recent years. With HRW currently at a 6.8 percent price discount to...
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...
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