BEEF PRICES DECLINE; CORN PRICES RISE

Beef prices are down and corn prices up.

That comes as good news to farmers who expect to increase corn acreages this year. But it is bad news to beef producers, who already have watched choice steer prices dip more than $10 below the 1995 level of $73.11 per 100 pounds.

Beef production neared a record during the first quarter of 1996, and is likely to reach a record this year, pushing down prices to the lowest level in almost a decade.

The good news for the beef industry, say university cooperative extension marketing specialists, is that the outlook could start to brighten in 1997.

The latest U.S. Department of Agriculture "Cattle on Feed" report reveals that feedlot managers placed more cattle than expected in March, despite rising corn and sorghum prices. It was expected that placement would have been reduced in March because of high corn prices, which passed $4 a bushel. It didn't happen, and beef production for 1996 is up more than 7 percent, with prices dropping below $60 per 100 pounds.

Grocery wholesalers say beef prices could be a real bargain into the summer.

Despite the industry forecast of more beef production and lower cattle prices, cattle producers have some reasons to be hopeful, said Leon Kreisler, chairman of the Missouri Beef Industry Council and a member of the U.S. Meat Export Federation.

Kreisler agrees, however, that beef prices may go down over the next 60 to 90 days. He cited the cost of corn and the abundance of beef cattle.

The federation estimates that the increase in U.S. beef sales to foreign markets could absorb up to 54 percent of the beef industry's projected increase in production this year. It projects exports may reach 673,000 metric tons, up 18 percent from the 570,000 metric tons in 1995.

"The investments we've been making in foreign market development will pay off especially well this year," said Kreisler, who raises beef cattle in the Rolla area. "Though increased production will put heavy pressure on cattle prices this year, the additional beef sales to foreign markets will provide a solid floor of support."

Japan is the largest importer of U.S. beef, said Kreisler. "We had sharp increases in beef exports to Japen, Korea, Russia, Hong Kong and Canada," he said.

Missouri is the second leading state in the number of beef cows, 2.2 million, with annual sales of beef cattle and calves at almost $1 billion. Missouri has 62,000 beef cattle farms.

"The average beef cow herd in the state is 36," said Steve Taylor of the Missouri Beef Industry Council in Jefferson City. The state has approximately 12 million acres of pasture land and 3.5 million acres of hay.

Every county in Southeast Missouri raises beef cattle. About 25,000 are raised in Cape Girardeau County.

Farmers are making significant progress on corn planting.

"We're probably 50 percent planted in Cape Girardeau County," said Terry Birk of the Cape Girardeau County Agriculture Stabilization and Conservation Service office at Jackson.

That figure is over the state average of 44 percent, according to the Missouri Agricultural Statistics Service.

Thundershowers that have moved across parts of Missouri during the past week provided beneficial rain where moisture supplies were short.

"It rained about two-tenths of an inch in parts of Cape County Thursday night," said Birk. "But by noon Friday farmers were back in the fields, thanks to winds that quickly dried the soil."

About 75 percent of the corn acreage in the Bootheel has been planted.

All planting averages are well ahead of last year's extremely delayed plantings, and 18 to 20 days ahead of the five-year average. Statewide, planting progress was the most advanced for this time on record, ranging from 20 percent in the northeast to 77 percent in the southeast.

"We're pleased with the progress in Cape County," said Birk. "If it stops raining for a few days, we'll have all the corn planted ... and there will be a lot of corn planted."

Missouri farmers intend to plant more than 2.5 million acres of corn this year, up 52 percent from a down year in 1995, and the largest corn crop since 1992.

Nationally, corn planting for 1996 is projected at 79.9 million acres, 12 percent more than in 1995.

More than 440,000 acres of corn usually is planted in Southeast Missouri each year, but 1995 plantings were down in the area because of weather conditions that lead to late plantings.

Between 30,000 and 35,000 acres are usually planted in Cape Girardeau County but Stoddard County is usually the top corn county in the state, averaging between 95,000 and 110,000 acres.

Also ranking among the top 10 corn counties are New Madrid, Mississippi and Scott counties, which range in corn acreage from 50,000 to 65,000 each.