Corn’s second-largest livestock market is set for a rebound, according to U.S. Department of Agriculture reports.
With poultry forecast to consume more than 1.2 billion bushels of corn in the 2011-2012 marketing year, the significant recovery in broiler production since its September low benefits poultry producers and corn farmers alike.
“Corn farmers have always understood the importance of strong livestock markets to support corn demand,” said National Corn Growers Association Chairman Bart Schott.
“The recovery in poultry markets plays an essential role in maintaining demand for our crops. Now, more than ever, we are seeing how cooperation and understanding between grain farmers and livestock producers plays a pivotal role in ensuring our own future success.”
While broiler placements were slightly lower than at this time in 2011, the significant recovery bodes well for the coming year.
Current USDA projections forecast a continued increase in broiler production that will last throughout 2012, with the annual total reaching 36.5 billion pounds.
If realized, 2012 production would still stay below the 2011 record of 37.2 billion pounds, but would near the 2010 total.
Revisions to earlier forecasts were made in light of strong export shipments in the last quarter of 2011.