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Feed prices affect livestock outlook

Cheryl Anderson
DTN Staff Reporter
DTN file photoFeed price uncertainty is the wild card for 2009 and will continue to be the number one cost affecting beef, dairy, hog and poultry producers.

OMAHA (DTN) – Grain prices brought many livestock producers near the breaking point in 2008, and, while they have abated from record highs, feed prices will likely continue to trouble producers in 2009.

Corn prices have cut profit margins and breakevens enough that livestock producers have lost massive amounts of money in recent years, according to Darrell Mark, extension livestock marketing specialist for the University of Nebraska-Lincoln.

Mark said corn prices may not go as high as in 2008, but price uncertainty is a big wild card in the coming year. Such volatility makes calculating break-even prices difficult for producers, he said.



That uncertainty affects production levels. Some poultry producers cut back on birds, and Don Bell, University of California poultry specialist emeritus, thinks poultry prices will continue to fall in 2009.

Falling farm level prices and rising input prices cut profit margins in 2008 for dairy producers. Those margins will probably be worse heading into 2009, according to Chris Galen, senior vice president of communications for the National Milk Producers Federation.



The bright spot may be in the hog market. Dr. Gerald Shurson, professor of swine nutrition and management at the University of Minnesota, said lower crude, corn, soy meal and DDG prices, coupled with increased pig prices tied to a smaller breeding herd, should bring some relief to the swine industry in 2009.

OMAHA (DTN) – Grain prices brought many livestock producers near the breaking point in 2008, and, while they have abated from record highs, feed prices will likely continue to trouble producers in 2009.

Corn prices have cut profit margins and breakevens enough that livestock producers have lost massive amounts of money in recent years, according to Darrell Mark, extension livestock marketing specialist for the University of Nebraska-Lincoln.

Mark said corn prices may not go as high as in 2008, but price uncertainty is a big wild card in the coming year. Such volatility makes calculating break-even prices difficult for producers, he said.

That uncertainty affects production levels. Some poultry producers cut back on birds, and Don Bell, University of California poultry specialist emeritus, thinks poultry prices will continue to fall in 2009.

Falling farm level prices and rising input prices cut profit margins in 2008 for dairy producers. Those margins will probably be worse heading into 2009, according to Chris Galen, senior vice president of communications for the National Milk Producers Federation.

The bright spot may be in the hog market. Dr. Gerald Shurson, professor of swine nutrition and management at the University of Minnesota, said lower crude, corn, soy meal and DDG prices, coupled with increased pig prices tied to a smaller breeding herd, should bring some relief to the swine industry in 2009.

OMAHA (DTN) – Grain prices brought many livestock producers near the breaking point in 2008, and, while they have abated from record highs, feed prices will likely continue to trouble producers in 2009.

Corn prices have cut profit margins and breakevens enough that livestock producers have lost massive amounts of money in recent years, according to Darrell Mark, extension livestock marketing specialist for the University of Nebraska-Lincoln.

Mark said corn prices may not go as high as in 2008, but price uncertainty is a big wild card in the coming year. Such volatility makes calculating break-even prices difficult for producers, he said.

That uncertainty affects production levels. Some poultry producers cut back on birds, and Don Bell, University of California poultry specialist emeritus, thinks poultry prices will continue to fall in 2009.

Falling farm level prices and rising input prices cut profit margins in 2008 for dairy producers. Those margins will probably be worse heading into 2009, according to Chris Galen, senior vice president of communications for the National Milk Producers Federation.

The bright spot may be in the hog market. Dr. Gerald Shurson, professor of swine nutrition and management at the University of Minnesota, said lower crude, corn, soy meal and DDG prices, coupled with increased pig prices tied to a smaller breeding herd, should bring some relief to the swine industry in 2009.

OMAHA (DTN) – Grain prices brought many livestock producers near the breaking point in 2008, and, while they have abated from record highs, feed prices will likely continue to trouble producers in 2009.

Corn prices have cut profit margins and breakevens enough that livestock producers have lost massive amounts of money in recent years, according to Darrell Mark, extension livestock marketing specialist for the University of Nebraska-Lincoln.

Mark said corn prices may not go as high as in 2008, but price uncertainty is a big wild card in the coming year. Such volatility makes calculating break-even prices difficult for producers, he said.

That uncertainty affects production levels. Some poultry producers cut back on birds, and Don Bell, University of California poultry specialist emeritus, thinks poultry prices will continue to fall in 2009.

Falling farm level prices and rising input prices cut profit margins in 2008 for dairy producers. Those margins will probably be worse heading into 2009, according to Chris Galen, senior vice president of communications for the National Milk Producers Federation.

The bright spot may be in the hog market. Dr. Gerald Shurson, professor of swine nutrition and management at the University of Minnesota, said lower crude, corn, soy meal and DDG prices, coupled with increased pig prices tied to a smaller breeding herd, should bring some relief to the swine industry in 2009.

cheryl warren can be reached at cheryl.warren@dtn.com