Corn gluten meal and feed prices continued to decline sharply in June. Meal was down 7.5 percent from May and down 20 percent year over year. Feed pricing was down 8 percent month over month and down 26 percent YOY. Even with these declines, meal and feed remain priced above levels typical of the market before COVID. This season’s monthly population of cattle on feed has been the lowest population for the Nov-May period since 2018. USDA will release numbers for Q2 2023 hogs and pigs at the end of the month.
In June, formula-based crude corn oil pricing (derived from a 93.2 percent correlation to soybean oil futures) averaged around 49 cents per pound, up 2 cents from equivalent pricing in May. At this price, corn oil accounted for about 31 percent of the coproduct credit.
The coproduct credit in June was down 4 percent from May and down 29 percent from a year ago as feed and meal prices continued to slide. However, with corn futures this period averaging down $1.45 or 19 percent from June 2022, and with basis close to year-ago levels, June net corn cost was down 10 percent YOY.
The full version of this commentary appeared on our IQ platform Jun. 27, 2023. Further information, statistics, and pricing for the corn market are available to IQ subscribers. Learn more about becoming a subscriber.
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