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For animal ag, cheap grain is good, but might not be enough

The monthly average price of corn received by U.S. producers has been less than $4 per bushel for 27 consecutive months and prices below $4 are expected to persist well into 2017, writes University of Illinois professor emeritus Darrel Good. Expected larger South American corn supplies on the world market next year would contribute to keeping U.S. corn prices down. Brazil production is expected to rebound from last year’s drought and Argentina is expected to expand corn area due to reduced export taxes. Meanwhile, U.S. farmers are just finishing harvesting a large corn crop. This is a bit of good news for livestock producers and vertically integrated processors, particularly since the prices they are receiving for the livestock they sell and the meat they produce have also declined.  

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