Market Journal - February 14, 2014

Market Analysis –“ The USDA Monday released its latest estimates on supply and demand. Domestically, the agency lowered corn ending stocks by increasing exports. In soybeans, it held firm at its ending stocks number of 150 million bushels. Internationally, the USDA increased Brazil's soybean production from 89.0 to 90.0 million metric tons (MMT). It also lowered Argentina's output from 54.5 to 54.0 MMT. Roy Smith, farmer and grain marketing consultant from Plattsmouth, Neb., discusses the projections, as well as the recent soybean market run.

Farm Income Drop –“ The USDA expects U.S. net farm income to drop more than 25% this year. In projections released Tuesday, the agency forecast 2014 net farm income at $95.8 billion. The number is a sharp drop from $130.5 billion in 2013 and would be the lowest since 2010. Tina Barrett, Nebraska Farm Business, Inc., discusses how her group of producers fared in 2013. Tina also looks ahead at 2014 levels. Tina's recent CropWatch article can be found here.

PEDv Update –“ Bruce Brodersen, UNL School of Veterinary Medicine and Biomedical Sciences assistant professor, talks about how the Porcine Epidemic Diarrhea virus is impacting hog operations in Nebraska and across the country.

Part 2 –“ Growing Conditions –“ Farmers in both Argentina and Brazil expect to mirror the U.S. in 2014, in that margins will be tighter than previous seasons. In Brazil, a caterpillar caused early trouble in soybeans. In Argentina, concerns over precipitation were starting to emerge during our mid-January trip. There are stark differences between here and there: the use of crop insurance isn't widespread, and irrigation is sparse. The benefits and challenges for both countries are very different than those in the Midwest.

Weather Forecast –“ Al Dutcher, UNL Extension state climatologist, gives his forecast for the coming week.