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www.thelandonline.com — “Where Farm and Family Meet”
THE LAND — SEPTEMBER 18/SEPTEMBER 25, 2020
Prices labored to show movement in holiday-shortened week This column was written for the marketforecast, but up 11.1 bushels from last ing week ending Sept. 11. year. Area harvested for grain was forecast at 83.5 million acres, down 1 percent Higher milk prices are — and will — from the previous forecast, but up 3 perfuel more milk output. The U.S. cent from a year ago. Department of Agriculture again raised its 2020 and 2021 milk production foreCorn used for ethanol was lowered 100 cast from last month’s estimate in the million bushels based on the continued latest World Agriculture Supply and slow recovery in motor gasoline demand Demand Estimates report issued Sept. as a result of Covid-19. Exports were MIELKE MARKET 11. The department cited higher expected raised 100 million bushels reflecting WEEKLY growth in milk per cow on both forecasts. reduced supplies in competitor countries. By Lee Mielke With supply falling more than use, corn 2020 production and marketings were ending stocks were lowered 253 million estimated at 222 and 221 billion bushels from last month. The corn pounds respectively, up 200 million price was raised 40 cents to $3.50 pounds on production from their per bushel. July estimate and up 300 million pounds on marketings. If realized, 2020 production would be up 3.6 U.S. soybean supply and use changes included lower billion pounds or 1.6 percent from 2019. beginning stocks, production and ending stocks. Lower beginning stocks reflect increases in exports 2021 production and marketings were estimated and crush for 2019-20, according to the WASDE. at 225.4 and 224.4 billion pounds respectively, up 100 million pounds on both. If realized, 2021 proThe Crop Production report shows soybean production would be up 3.4 billion pounds or 1.5 perduction at 4.31 billion bushels, down 3 percent from cent from 2020. last month’s forecast but up 21 percent from last year. Yields were expected to average a record high The 2020 fat basis import forecast was lowered, 51.9 bushels per harvested acre, down 1.4 bushels primarily on recent trade data and the expectation from the previous forecast but 4.5 bushels above of slower butterfat imports. The fat basis export 2019. Area harvested for beans was forecast at 83.0 forecast was raised on stronger global import million acres, unchanged from a month ago, but 11 demand for cheese, butter and whey products. The percent higher than 2019. skim-solids basis import forecast was unchanged from the previous month, while the export forecast Soybean and product prices were projected higher was raised on expectations of robust exports of non- for 2020-21. The U.S. season-average soybean price fat dry milk and whey products. Cheese, butter, and was forecast at $9.25 per bushel, up 90 cents from whey price forecasts were reduced from last month, last month. The soybean meal price was projected at but the forecast for nonfat dry milk was unchanged. $315 per short ton, up $25. The soybean oil price forecast was 32.0 cents per pound, up 2 cents. The Class III milk price forecast was reduced on lower cheese and whey price forecasts. Look for the Cotton production was forecast at 17.1 million 2020 Class III average to hit $17.25 per hundred480-pound bales, down 6 percent from last month’s weight . This would be down 15 cents from last estimate and 14 percent below a year ago. Yields month’s forecast and compares to a $16.96 average are expected to average a record 910 pounds per in 2019 and $14.61 in 2018. The 2021 average is harvested acre, down 28 pounds from last month’s projected at $16.00, down a dime from what was forecast but 87 pounds above 2019. Harvested area anticipated a month ago. The Class IV price forecast was reduced on the lower butter price. The Class IV is expected to average $13.40 per cwt., down 15 cents from last ST. PAUL — Minnesota livestock farmers and month’s estimate, and compares to a $16.30 average ranchers seeking to improve their livestock operation in 2019 and $14.23 in 2018. The 2021 Class IV averare encouraged to apply for the Agricultural Growth, age was projected at $13.60, down a nickel from a Research and Innovation (AGRI) Livestock month ago Investment Grant program. The Minnesota This month’s 2020-21 U.S. corn outlook is for Department of Agriculture anticipates awarding up reduced production, lower corn used for ethanol, to $789,000 using a competitive review process. larger exports, and smaller ending stocks, according The AGRI program’s Livestock Improvement to the WASDE. Grants encourage long-term industry development The Crop Production report shows U.S. corn outin Minnesota’s $7 billion livestock industry through put at 14.9 billion bushels, down 2 percent from last investment in facilities, infrastructure and equipmonth’s forecast but up 9 percent from 2019. ment. The program encourages new farmers and generational transitions in order to sustain the liveBased on conditions as of Sept. 1, yields are expected to average a record 178.5 bushels per har- stock industry in the state. vested acre, down 3.3 bushels from last month’s Applicants may apply for up to 10 percent of their
MARKETING
is forecast at 9.01 million acres, down 3 percent from the previous forecast and 22 percent below 2019. All cotton planted area totaled 12.1 million acres, down 1 percent from the August forecast and 12 percent below 2019. The latest Crop Progress report showed 97 percent of U.S. corn was in the dough stage as of the week ending Sept. 6. This is up from 87 percent a year ago and 3 percent ahead of the five-year average. Seventy-nine percent is dented, up from 51 percent a year ago and 8 percent ahead of the five-year average. Sixty-one percent was rated good to excellent, up from 55 percent a year ago. The report shows 20 percent of U.S. soybeans are dropping leaves, up from 7 percent a year ago and 4 percent ahead of the five-year average. Sixty-five percent were rated good to excellent, up from 55 percent a year ago. n Prices were mixed in the Labor Day holiday-shortened week. The Chicago Mercantile Exchange cheddar blocks marched to $2.1575 per pound on Sept. 9, slipped back, but rallied to a Sept. 11 close at $2.1650. This is up 4 cents on the week, but 4 cents below a year ago when they jumped almost 21 cents. The barrels got to $1.7150 on Sept. 8, but reversed the next day and finished Sept. 11 at $1.5950. This is down 10.5 cents on the week, 32.50 cents below a year ago, and 57 cents below the blocks, third highest spread ever, at the close of trading. Thirteen cars of block exchanged hands on the week and 19 of barrel. n Lots of eyes are on California where scorching high temperatures and wild fires have taken their toll on man and beast. We shall see if Golden State milk output may be impacted. Parts of Oregon and Washington State have also seen their share of fires, smoke and devastation. The glorious view of Mt. Baker from my home office was clouded in See MIELKE, pg. 18
Funds to update livestock operations project’s total cost. Grant awards can range in size from $400 to $25,000. Each livestock operation is eligible to receive a lifetime maximum of $50,000 from this grant program. To be eligible for reimbursement by this grant, you must be invoiced and pay for all project materials and services between Jan. 1, 2021 and Dec. 31, 2022. Proposals must be received no later than 4 p.m. on Nov. 4. Applications are available online at https://www. mda.state.mn.us/. This article was submitted by the Minnesota Department of Agriculture. v
