Source:  Rita Jane Gabbett, MEATINGPLACE.COM, 8/28/09

U.S. corn prices are expected to average $3.47 per bushel in the 2009/2010 marketing year beginning Sept. 1 then gradually increase annually to reach $3.98 by 2014/15, according to the University of Missouri.

In an update of its Food and Agricultural Policy Research Institute report on U.S. agricultural markets, the university incorporated USDA's August crop production and use forecasts to update its projections.

The report forecast ethanol produced from corn will continue to dominate the ethanol market over the next five years, predicting that in 2014/15 a total of 14.94 billion gallons of ethanol will be produced, of which 14.24 billion gallons will come from corn.

Ethanol from other feedstocks is expected to grow modestly from 258 million gallons to 310 million gallons over the next five years. Cellulosic ethanol is forecast to climb from just 11 million gallons in 2009/10 to 391 million gallons by 2014/15.

Soybean and meat prices

The report forecast U.S. soybean prices will average $9.44 per bushel in 2009/2010, fall to $9.12 in 2010/2011 then climb incrementally to average $9.74 by 2014/15. It predicted soybean meal prices will remain below $300 per ton over the next five years.

The university said its newest hog price projections take into account current export restrictions stemming from the H1N1 virus. It put average prices for barrows and gilts during calendar 2009 at $42.82, increasing to $50.68 in 2010, peaking at $58.35 in 2012 before falling back to $52.75 by 2014.

Nebraska direct steers (1100-1300 lbs) were pegged to average at $85.07 in 2009, then expected to increase annually to reach $101.93 by 2013 before tapering off to $100.05 in 2014.

Twelve city wholesale broiler prices were forecast to average just over 80 cents per pound in 2009, then increase annually to reach about 91 cents per pound by 2014.

The report assumes that petroleum prices will increase over the next five years, but remain far below the levels that prevailed a year ago.

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