NCGA's Snider Reports Positive Grain Outlook From Sparks Livestock Convention
(5-19-03)
National Corn Growers Association
(NCGA) Livestock Information and Programs Manager Tracy Snider returned
from the Sparks Companies Annual Spring Conference in Memphis, Tenn.,
reporting the potential for a strong corn and feed outlook in the
livestock industry.
"According to the
outlook presented at the conference," she said, "there is
the potential for at least a moderate increase in protein-consuming
animal units over the next year, which would increase the market for
corn in 2003-2004. This is yet another example of how the livestock
industry affects corn growers, since livestock is the number-one customer
for domestic corn. Profitability in all three meat sectors - beef,
pork, and poultry - continues to affect corn.
"After a 180 million
bushel decline last year, feed use will likely recover modestly this
year," Snider continued. "While there will be fewer actual
calves to feed, those calves will be feeding longer due to the tight
supply of calves this year and the necessity of keeping those calves
in the feedlots longer to satisfy the lots' contracts with meat-packers.
Another factor in the feed equation is distillers grains, made as
a result of ethanol production."
According to commodity
traders, the distillers grains market remains tight and in high demand
throughout the country, said Snider. This demand has pushed distillers
grains into the fastest-growing by-product used for livestock feed.
Snider attended
the conference to speak to livestock experts to search for marketing
and profitability opportunities for the nation's corn growers. Attending
the event were meat processors, financial experts, representatives
from the food industry, and non-profit organizations such as NCGA.
Sessions were presented on beef, poultry, pork, dairy, and grain and
topics included supply-chain analysis, an assessment of farm policy
and its impact on the value-added industry, and a discussion on the
import and export outlook for meats over the next few years.