Food Business News - February 24, 2015 - (Page 64)

INGREDIENTMARKETTRENDS In The Spotlight At A Glance Belt-tightening time for U.S. agriculture in 2015-16 401,228 410,367 386,824 382,318 357,467 383,962 369,866 397,753 from $6 a bu in the current year. Corn area was forecast at 89 million acres in 2015, down 1.6 million acres from 2014. Corn prices were forecast to average $3.50 a bu, down from $3.65 a bu forecast for 2014-15. Soybean area was forecast at 83.5 million acres, down 200,000 acres from 2014, with prices averaging $9 a bu in 2015-16 compared with $10.20 this year. The livestock sector outlook was mixed with lower feed costs benefiting producers overall. Record high production of pork, poultry and milk along with lower exports were expected to pressure prices. Beef prices were expected to rise as producers continued to rebuild herds from historically low numbers the past few years. For consumers, Mr. Johansson forecast food inflation at 2.4%, which was below the 20-year average, as lower energy costs and lower prices for cereals, pork and dairy partially offset higher prices for beef, eggs, fruit and nuts, with the latter two commodities affected by the worsening California drought. "Overall, the forecast for the coming production year is bright," Mr. Johansson said, despite a number of bearish outlooks. Producers will benefit from historically low debt-to-asset ratios, implementation of new farm programs that will cushion revenue declines, better crop insurance options and lower input costs. FBN 389,527 L in 1,000 cwt 375,118 ower prices, reduced planted area and shrinking exports for most U.S. grain and oilseed crops along with record production but lower prices for hogs, broilers and milk products indicate lower net farm income in 2015-16, U.S. Department of Agriculture Chief Economist Robert Johansson said at the U.S.D.A.'s annual Agricultural Outlook Forum last week. Key short-term factors expected to positively affect agriculture in 2015-16 were lower energy prices, improved transportation performance at lower costs, implementation of new farm bill programs, reduced drought conditions (except in California) and cheaper imports due to the stronger dollar. On the negative side were increased export competition due to the stronger dollar and ample global supplies of many grains and oilseeds. While commodity forecasts were given in greater detail at later sessions of the Outlook Forum, Mr. Johansson said in his opening remarks that the U.S.D.A. expected 2015 planted area for the eight major crops to be 254.6 million acres, down 3.3 million acres from 2014 "as falling crop prices and narrowing production margins push some acres out of production." Wheat area was forecast to fall 1.3 million acres to 55.5 million acres, despite gains in durum area, while wheat prices were forecast to average $5.10 a bu in 2015-16, down 15% Fall potato production 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: U.S. Department of Agriculture Ingredient Indexes Mayonnaise Pork Sausage Commodity Trends Corn, wheat and soybean prices still historically strong, given record output '08-09 '09-10 '10-11 '11-12 '12-13 '13-14 '14-15 '15-16* Wheat1 6.78 4.87 5.70 7.24 7.77 6.87 6.00 5.10 Corn1 4.06 3.55 5.18 6.22 6.89 4.46 3.65 3.50 Soybeans1 9.97 9.59 11.30 12.50 14.40 13.00 10.20 9.00 Cotton3 47.80 62.90 81.50 88.30 72.50 77.90 61.00 60.00 All rice2 16.80 14.40 12.70 14.50 15.10 16.30 14.00 13.10 *forecast Numbers in red denote record levels. Source: U.S. Department of Agriculture 64 FOODBUSINESS NEWS ® 1 2 3 in $ per bus in $ per cwt in cents per lb Cropland area expected to remain high in 2015, but down from last year Corn Soybeans Wheat All cotton Rice 2009 86.4 77.5 59.0 9.1 3.1 2010 88.2 77.4 52.6 11.0 3.6 2011 91.9 75.0 54.3 14.7 2.7 million acres 2012 97.2 77.2 55.3 12.3 2.7 2013 95.4 76.8 56.2 10.4 2.5 2014 90.6 83.7 56.8 11.0 2.9 2015* 89.0 83.5 55.5 9.7 2.9 *forecast Numbers in red denote record levels. Source: U.S. Department of Agriculture February 24, 2015

Table of Contents for the Digital Edition of Food Business News - February 24, 2015

Food Business News - February 24, 2015
General Mills accepts the C.P.G. challenge
Gluten-free front and center
Mexican trade rift looms over Sweetener Colloquium
Table of Contents
Web Contents
Editorial - Subscription models may offer unique marketing opportunities
Confectionery companies switching to simpler ingredients
McCormick to acquire Italian spices and seasonings company
Mondelez has big plans to grow small platforms
WhiteWave Foods ‘busting at the seams'
More c-suite change at Kraft Foods
Keurig in transition
Mondelez acquires Enjoy Life Foods
Innovation paying for PepsiCo
TreeHouse Foods trims expectations
Kraft cleans up Capri Sun
Washington - Federal bills seek to mandate G.M.O. food labeling
Company Profile - Dr Pepper Snapple Group seizing opportunities
Capitalizing on R.C.I.
Ingredient Innovations - Clean label starches get tougher
Are clean labels and G.M.O. ingredients compatible?
More clean label ingredient opportunities
Dairy Business News - Yogurt, the next generation
New Food Products
Ingredient Market Trends - Belt-tightening time for U.S. agriculture in 2015-16
Ingredient Markets
Supplier Innovations and News
Ad Index
Food Business in the News

Food Business News - February 24, 2015