Poultry USA - September 2019 - 6

6 ❙ WATTPoultryUSA

❱❱NEXT
NEXT ON THE PLATE
Poultry Market Prospects

BY MARK JORDAN

Wet spring sparks fear
of a feed cost spike
Heavy rain and flooding resulted in unprecedented planting delays.
With yield prospects also dimming, grain buyers are concerned
about a potentially underwhelming harvest.

USDA calms market
temporarily
Given the challenges U.S. farmers
faced this spring, anticipation of the U.S. Department of
Agriculture's (USDA) National
Agricultural Statistics Service
(NASS) June 2019 Acreage report
seemed stronger than usual.

Corn and soybean meal prices rebound
Corn, cash, South-Central Illinois (left)

$ per bushel

Soybean meal, cash, Decatur, Illinois (right)
6.5

510

6.0

480

5.5

450

5.0

420

4.5

390

4.0

360

3.5

330

3.0

2013

2014

2015

2016 2017
Years

2018

2019

2020

$ per ton

Feed costs, recently subdued, may
threaten poultry companies again
in 2019.
From the end of the 2013/14
marketing season through April,
corn rarely topped $3.75 per
bushel. Historic flooding then
stymied planting efforts, stoking
bullish sentiments. Roughly twothirds of intended corn plantings
were completed by June, well short
of the five-year average of 96%.
This spooked traders into bidding
up December corn futures, which
rallied to nearly $4.70 per bushel
by mid-June. While the price
reaction in the soybean complex
was tame by comparison, echoes
of prior feed cost shocks were
suddenly heard.

300

Sources: United States Department of Agriculture's Agricultural Marketing Service,
LEAP Market Analytics' forecasts for 2019-20
Credit: Mark Jordan

Feed input costs are projected to increase at least 5% to10% in 2020.
Corn carries the greatest upside price risk.
Observers were surprised to see
corn planted acreage estimated
at 91.7 million, not far below the
92.8 million acres the USDA
estimated in its March 2019
Prospective Plantings report and
up 3% from the year-prior total.
Soybean planted acreage was
pegged at 80.0 million, representing a much larger cut from
March intentions of 84.6 million.
The acreage mix represented

something of a best-case scenario
for poultry companies. Corn was at
risk of continued appreciation, but
the larger-than-expected acreage
report created some breathing room.
With USDA projecting 2018/19
ending soybean stocks at more than
1 billion bushels, and the complex
burdened by ongoing demand
concerns, there was plenty of room
for soybean acreage to come down
without risk of a price rally.  
www.WATTAgNet.com ❙ September 2019


http://www.WATTAgNet.com

Poultry USA - September 2019

Table of Contents for the Digital Edition of Poultry USA - September 2019

Poultry USA - September 2019
Contents
Consumers: Sustainability is as important as welfare
Wet spring sparks fear of feed cost spike
Wayne Farms grows and diversifies in changing market
To control coccidia, control litter moisture
Global meat production to see largest ever decline in 2019
Identifying biomarkers for poultry intestinal health
In research and reality slower-growing birds cost more
Water: The first thing to take care of in poultry production
3 poultry technology innovations to watch
Product Review
Market Place
Poultry USA - September 2019 - CT1
Poultry USA - September 2019 - CT2
Poultry USA - September 2019 - Poultry USA - September 2019
Poultry USA - September 2019 - Cover2
Poultry USA - September 2019 - Contents
Poultry USA - September 2019 - Consumers: Sustainability is as important as welfare
Poultry USA - September 2019 - 3
Poultry USA - September 2019 - 4
Poultry USA - September 2019 - 5
Poultry USA - September 2019 - Wet spring sparks fear of feed cost spike
Poultry USA - September 2019 - 7
Poultry USA - September 2019 - 8
Poultry USA - September 2019 - 9
Poultry USA - September 2019 - 10
Poultry USA - September 2019 - 11
Poultry USA - September 2019 - Wayne Farms grows and diversifies in changing market
Poultry USA - September 2019 - 13
Poultry USA - September 2019 - 14
Poultry USA - September 2019 - 15
Poultry USA - September 2019 - 16
Poultry USA - September 2019 - 17
Poultry USA - September 2019 - 18
Poultry USA - September 2019 - 19
Poultry USA - September 2019 - 20
Poultry USA - September 2019 - 21
Poultry USA - September 2019 - To control coccidia, control litter moisture
Poultry USA - September 2019 - 23
Poultry USA - September 2019 - 24
Poultry USA - September 2019 - 25
Poultry USA - September 2019 - 26
Poultry USA - September 2019 - 27
Poultry USA - September 2019 - Global meat production to see largest ever decline in 2019
Poultry USA - September 2019 - 29
Poultry USA - September 2019 - Identifying biomarkers for poultry intestinal health
Poultry USA - September 2019 - 31
Poultry USA - September 2019 - 32
Poultry USA - September 2019 - 33
Poultry USA - September 2019 - In research and reality slower-growing birds cost more
Poultry USA - September 2019 - 35
Poultry USA - September 2019 - 36
Poultry USA - September 2019 - 37
Poultry USA - September 2019 - Water: The first thing to take care of in poultry production
Poultry USA - September 2019 - 39
Poultry USA - September 2019 - 40
Poultry USA - September 2019 - 41
Poultry USA - September 2019 - 42
Poultry USA - September 2019 - 43
Poultry USA - September 2019 - 3 poultry technology innovations to watch
Poultry USA - September 2019 - 45
Poultry USA - September 2019 - Product Review
Poultry USA - September 2019 - 47
Poultry USA - September 2019 - Market Place
Poultry USA - September 2019 - Cover3
Poultry USA - September 2019 - Cover4
http://www.wattpoultryusa-digital.com/201909
http://www.wattpoultryusa-digital.com/201908
http://www.wattpoultryusa-digital.com/201907
http://www.wattpoultryusa-digital.com/201906
http://www.wattpoultryusa-digital.com/201905
http://www.wattpoultryusa-digital.com/201904
http://www.wattpoultryusa-digital.com/201903
http://www.wattpoultryusa-digital.com/201902
http://www.wattpoultryusa-digital.com/201901
http://www.wattpoultryusa-digital.com/201812
http://www.wattpoultryusa-digital.com/201811
http://www.wattpoultryusa-digital.com/201810
http://www.wattpoultryusa-digital.com/201809
http://www.wattpoultryusa-digital.com/201808
http://www.wattpoultryusa-digital.com/201807
http://www.wattpoultryusa-digital.com/201806
http://www.wattpoultryusa-digital.com/201805
http://www.wattpoultryusa-digital.com/201804
http://www.wattpoultryusa-digital.com/201803
http://www.wattpoultryusa-digital.com/201802
http://www.wattpoultryusa-digital.com/201801
http://www.wattpoultryusa-digital.com/201712
http://www.wattpoultryusa-digital.com/201711
http://www.wattpoultryusa-digital.com/201709
http://www.wattpoultryusa-digital.com/201710
http://www.wattpoultryusa-digital.com/201708
http://www.wattpoultryusa-digital.com/201707
http://www.wattpoultryusa-digital.com/201706
http://www.wattpoultryusa-digital.com/201705
http://www.wattpoultryusa-digital.com/201704
http://www.wattpoultryusa-digital.com/201703
http://www.wattpoultryusa-digital.com/201702
http://www.wattpoultryusa-digital.com/201701
http://www.wattpoultryusa-digital.com/201612
http://www.wattpoultryusa-digital.com/201611
http://www.wattpoultryusa-digital.com/201610
http://www.wattpoultryusa-digital.com/201609
http://www.wattpoultryusa-digital.com/201608
http://www.wattpoultryusa-digital.com/201607
http://www.wattpoultryusa-digital.com/201606
http://www.wattpoultryusa-digital.com/201605
http://www.wattpoultryusa-digital.com/201604
http://www.wattpoultryusa-digital.com/201603
http://www.wattpoultryusa-digital.com/201602
http://www.wattpoultryusa-digital.com/201601
http://www.wattpoultryusa-digital.com/201512
http://www.wattpoultryusa-digital.com/201511
http://www.wattpoultryusa-digital.com/201510
http://www.wattpoultryusa-digital.com/201509
http://www.wattpoultryusa-digital.com/201508
http://www.wattpoultryusa-digital.com/201507
http://www.wattpoultryusa-digital.com/201506
http://www.wattpoultryusa-digital.com/201505
http://www.wattpoultryusa-digital.com/201504
http://www.wattpoultryusa-digital.com/201503
http://www.wattpoultryusa-digital.com/201502
http://www.wattpoultryusa-digital.com/201501
http://www.wattpoultryusa-digital.com/201412
http://www.wattpoultryusa-digital.com/201411
http://www.wattpoultryusa-digital.com/201410
http://www.wattpoultryusa-digital.com/201409
http://www.wattpoultryusa-digital.com/201408
http://www.wattpoultryusa-digital.com/201407
http://www.wattpoultryusa-digital.com/201406
http://www.wattpoultryusa-digital.com/201405
http://www.wattpoultryusa-digital.com/201404
http://www.wattpoultryusa-digital.com/201403
http://www.wattpoultryusa-digital.com/201402
http://www.wattpoultryusa-digital.com/201401
http://www.wattpoultryusa-digital.com/201312
http://www.wattpoultryusa-digital.com/201311
http://www.wattpoultryusa-digital.com/201310
http://www.wattpoultryusa-digital.com/201309
http://www.wattpoultryusa-digital.com/201308
http://www.wattpoultryusa-digital.com/201307
http://www.wattpoultryusa-digital.com/201306
http://www.wattpoultryusa-digital.com/201305
http://www.wattpoultryusa-digital.com/201304
http://www.wattpoultryusa-digital.com/201303
http://www.wattpoultryusa-digital.com/201302
http://www.wattpoultryusa-digital.com/201301
http://www.wattpoultryusa-digital.com/201212
http://www.wattpoultryusa-digital.com/201211
http://www.wattpoultryusa-digital.com/201210
http://www.wattpoultryusa-digital.com/201209
http://www.wattpoultryusa-digital.com/201208
http://www.wattpoultryusa-digital.com/201207
http://www.wattpoultryusa-digital.com/201206
http://www.wattpoultryusa-digital.com/201205
http://www.wattpoultryusa-digital.com/201204
http://www.wattpoultryusa-digital.com/201203
http://www.wattpoultryusa-digital.com/201202
http://www.wattpoultryusa-digital.com/201201
http://www.nxtbookMEDIA.com