Grain harvest delays worry U.S. meat producers

Fri Oct 16, 2009 6:57pm BST
 
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* Livestock producers face rising feed costs

* Corn accounts for 25 pct of cost to raise chickens

* Corn harvest slowest in 30 years

By Bob Burgdorfer

CHICAGO, Oct 16 (Reuters) - The slowest U.S. grain harvest in 30 years is increasing the cost to feed cattle, hogs and chickens, adding to the pain from the recession that has cut demand for meat.

Daily rains in the Midwest grain belt have sidelined combines and could hurt yields and grain quality. And that has sent corn and soybean prices higher.

Corn prices Cc1 have surged toward $4 a bushel as the harvest delays mount. Just weeks ago they briefly dropped below $3 amid forecasts for the second-largest corn crop ever that promised plenty of grain for livestock producers, food makers and ethanol plants.

The slow harvest has pushed soybeans Sc1 close to $10 per bushel, up more than 10 percent this month.

"We were hoping for a great harvest that would bring (corn prices) down close to $3. Instead we have a so-so harvest that is bringing it closer to $4. That is a big difference," said poultry economist Paul Aho.  Continued...

 

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