GrainMarketOutlook-TCFA.pdfVIP

Volume 47, Number 36 September 6, 2013 Grain Market Outlook “We’re talking about a multi-year trend of weakening grain prices. Actually, we think the multi-year trend of weakening grain prices could last until 2016 or 2017.” With those words, Dan Basse, president of AgResources Company in Chicago, had the complete and undivided attention of every cattle feeder in the room at the recent Certified Angus Beef Feeding Quality Forum in Garden City, Kan. While Basse cautioned that a 2017 timeline for grain price predictions is a long way out and that Mother Nature will have a lot to say about its accuracy, it was welcomed news to a crowd that has long been paying remarkably high cash premiums for corn. Harvest is nearing and while yield predictions are still variable, a decent crop appears to be in the offing. Between now and then, however, cattle feeders will have to continue to pay the piper for cash corn. “In six weeks, we’ll be harvesting corn in the Midwest. I assume that basis will restrict even more. But I want you to understand that you’ve got another three to five weeks of high basis levels before all this starts to reverse.” But as harvest progresses from the field to the elevator, cash corn conditions could change. “We think corn could go to $4.25 by harvest,” Basse said. “When was the last time you were able to buy $4 corn for cattle feeding purposes? It’s been a long time.” Start Your Convention off with a Little Fun! Reconnect with friends starting Sunday, Nov. 3, at the Omni Fort Worth Hotel in the relaxing atmosphere of TCFA’s Welcome Party Sports Lounge where you will enjoy the Cowboys game, snacks and beverages. Members of the BEEF-PAC Feeders 500 Club are also invited to attend a reception Sunday evening from 6:00–8:00 p.m. at the historic Ashton Depot. Shuttle service will be provided. Registrations are flowing in, and we are looking f