The Grain Industry
Farmland values have been among the last to experience the impact of low commodity prices, but the downward pressure has now begun.
Oilseed Processing
Several factors appear to be converging for the benefit of exporters and processors of U.S. soybeans as well as the livestock and poultry sectors over the next year.
The U.S. Biofuels Industry
Comparing a long-term and short-term outlook of the biofuels sector reveals two different stories.
Farm Inputs
The fertilizer industry continues to face a challenging business environment with a mostly neutral-to-bearish outlook for the majority of sub-segments. Current prices have stabilized, but near-term demand will likely face headwinds from decreasing farming margins as global acreage in the next cropping cycle stalls and use of inputs gets rationalized.
The U.S. Livestock Industry
An increase in cattle placed on feed and a growing rate of heifer slaughter means a bigger cattle supply for packers. Hog packer margins are rising, supported by ample hog supplies and steady demand, and this trend should continue through the fall.
Farm Machinery
Low commodity prices have helped bring the farm equipment industry back down to ground level after previous years’ lofty highs, while the heavy equipment industry works against the dual headwinds of slackened demand and a glut of used machinery.
Policy Trends
The International Monetary Fund listed governance in the developed economies as the greatest threat to economic growth, and the contentiousness of politics leaves little hope in sight.
WPI Bull/Bear Leanings for Agribusiness
A summary and graphical depictions of WPI’s expectations for future agribusiness performance.
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TAGS – Softs, Farm Inputs, Soy & Oilseeds, Wheat, Feed Grains, Biofuels, Energy