USDA crop report a shock to livestock industries

A drastic downgrade in the U.S. Department of Agriculture's expectations for this year's corn yield is "a complete game changer" for livestock producers, a beef industry economist said. The government on Oct. 8 projected a national corn yield of 12.7 billion bushels, down 4 percent from the September forecast and down 3 percent from last year's record production of 13.1 billion bushels. Soybean production is forecast at a record high 3.41 billion bushels, down 2 percent from September's prediction but up 1 percent from last year. Tighter grain supplies invariably mean skyrocketing input costs for livestock producers. That can turn a profit into a loss for many a rancher, lamented Gregg Doud, the National Cattlemen's Beef Association's chief economist. "We've gone probably eight of the last nine months in this industry where everyone from the rancher to the retailer was making a little bit of money," Doud told the Capital Press. "Now that's probably not going to be the case any longer. The report pushed input costs up immediately. On Oct. 8, corn prices rose 30 cents to settle at $5.2825 a bushel; soybeans for November delivery rose 70 cents to $11.35 a bushel, and wheat for December delivery rose 60 cents to settle at $7.1925 a bushel...more