Key Takeaways:
Expected returns to production for U.S. cow-calf producers have shifted lower from prior forecasts as cattle values fall and feed costs rise. Producer revenues are forecast 1 percent below our August outlook and will be 1.2 percent below 2025 levels. Feed costs have lessened in the past month as hay prices have retreated, but upward pressure on grains remains a risk factor for producers going forward. Despite the deterioration in expected margins, profits will still likely be just shy of 2025’s record-breaking levels and maintain strong financial conditions for the industry. That profitability should help boost beef heifer retention, which WPI now forecasts at 4.9 million head, up 4 percent from last year. ...
What You Need to Know Today: USDA cut the 2026 corn yield forecast by 1.6 BPA to 179.6, shaving 141 Mbu off the crop. Corn ending stocks were cut by 91 Mbu to a level that pushed the ending stocks-to-use (ESU) ratio to 10.8 percent. Conversely, USDA raised the soybean yield forecast 0.2 BPA to...
Key Takeaways: Expanding U.S. soybean crushing capacity is strengthening domestic demand, driven largely by growing soyoil consumption from the renewable diesel and biofuels industries. Despite increased domestic processing, substantial quantities of U.S. soybeans are expected to remain availa...
