Tyson Foods and other local poultry companies are breathing easier with expectations of record U.S. corn and soybean crops this year, according to U.S. Department of Agriculture’s latest forecast.
Poultry companies keep a close eye corn and soybean meal prices at all times as they are the two main ingredients used to feed chickens.
USDA forecast record corps this year based on actual field surveys. U.S. corn production for the 2014 to 2015 year is forecast at 14.03 billion bushels, up 172 million bushels from last month’s forecast. The projected season-average farm price for corn is lowered 10 cents at both ends of the range to $3.55 to $4.25 per bushel.
Corn supplies for this next year are projected at a record 15.24 billion bushels with the increase in production partly offset by a 65-million-bushel reduction in beginning stocks. Exports are expected to be 25 million bushels, compared to 20 million bushels last year.
Soybean production is forecast at 3.81 billion bushels, up 16 million due to a higher yield.
Soybean supplies for this year are projected slightly above last month’s estimate. With minimal supply gains, soybean exports and crush are unchanged, leaving ending stocks projected at 430 million bushels.
The U.S. season-average soybean price for this year is forecast at $9.35 to $11.35 per bushel, down 15 cents on both ends.
Soybean meal and oil prices are forecast at $340 to $380, down 10 dollars at the midpoint.
In the first nine months of this year Tyson Foods reported a $460 million savings in feed costs from the same period last year. Those savings should be larger next year if pricing stays strong.