May 14 Weekly Update

5/14 – In last week’s WASDE report, the USDA released its first look at the 2018/19 crop year for grains, and 2019 for proteins and dairy. Cattle, hog, broiler, cheese and butter prices for 2019 are all projected to be within 1% of 2018 levels. Turkey is forecast to jump 6.7%, from $82.00/cwt in 2018 to $87.50 in 2019. Eggs will come down from record highs of $1.39/dozen in 2018 to a still historically high $1.25 in 2019. Wheat prices will jump from $4.70 per bushel in 2017/18 to $5.00 in 2018/19; corn from $3.40 to $3.80. The USDA made big changes to its beef production forecast. Previously expected 7-8% increases were reduced to 5.4% for Q2 and 2.9% for Q3 2018. The USDA now is forecasting beef production to grow by 3.9% in 2018 and by just 1.8% in 2019. A summary of USDA price forecasts can be found at http://www.mktvsn.com/forecast-report/