The USDA says slightly lower feed prices in 2020 will benefit the livestock sector. The USDA expects corn prices to remain higher for the first half of 2020 but will fall along with other grain commodities in the second half of the year.
The USDA has increased its targets for 2020/21 planted acreage, with corn expected to total 94 million acres and soybeans to total 85 million acres. The USDA is projecting a record 15.5 billion bushel corn crop for the next season and a 4.195 billion bushel soybean crop.
Corn ending stocks are expected to increase by 745 million bushels. According to Chris Clayton of DTN, this will raise the stocks-to-use ratio and bring prices down. Soybean ending stocks are expected to come down 7.4%.
Wheat supply, ending stocks and total use are all expected to come down in the year 2020.
Farm income for farms this year looks slightly better than last year in USDA’s predictions.” In 2020 net farm income is expected to rise from $93.6B to $96.7B with higher cash receipts and lower farm program payments and lower indemnity check on better weather.” USDA’s Rob Johnasson.
Farm debt is expected to climb this year to 425 billion dollars.
Data from the USDA and DTN Progressive Farmer.