7 years, 2 months ago by Jim Dewey
Thursday's World Agricultural Supply and Demand report included Lower Ending Stocks For US Wheat And Corn Balance Sheets
Rod Bain reports
play sound bite
In Thursday's WASDE report USDA lowered its total red meat and poultry production forecast for 2017, largely reflecting decreased pork and poultry forecasts and despite raising its beef production forecast.
Meatingplace reports USDA raised its cattle placements and marketings for the year, and reduced its forecast for cattle weights for 2017 as producers are expected to remain current in feedlot marketings.
USDA raised its 2017 average steer price forecast to a range of $109 to $116 per hundredweight from last month’s range of $106 to $113.
Pork production in the first quarter is reduced on the current pace of slaughter and slightly lighter carcass weights. No changes were made to pork trade estimates.
USDA raised its 2017 average price forecast for barrows and gilts to a range of $42 to $45 per hundredweight from last month’s range of $38 to $41.
The broiler production forecast was lowered, as increases in production in the first quarter are expected to be more than offset by reductions in the second half of the year. No changes were made to broiler trade predictions.
USDA raised its 2017 average broiler price forecast to a range of 82 to 87 cents per pound from last month’s range of 80 cents to 86 cents.
No changes were made to turkey production or trade estimates.
The Federal Reserve Bank of Kansas City’s Agricultural Survey shows a moderate decline in cash rents and farmland values in the fourth quarter of 2016.
Tenth-District Bankers in seven states note that weakness in farm income is having a negative impact on farmland value.
Non-irrigated and irrigated farmland value dropped six percent on average and ranchland values were seven percent lower over the same period.
Cash rents for both irrigated and non-irrigated cropland dropped eight percent last year while ranchland cash rents were 12 percent lower in the fourth quarter.
Credit conditions also weakened because of lower farm income and bankers have responded by adopting some risk prevention measures.
Those measures include increasing interest rates for all variable and fixed-rate farm loans.
Although a credit shortage appears unlikely for now, marginal operations will find it harder to obtain credit at the same pace as when the farm economy was stronger.
