North American Agribusiness Review August 2020
This periodical update provides a market outlook for dairy, cattle, wheat, and other key commodities, and gives an overview of what developments to watch in the upcoming months in North America.
As anticipated, another economic contraction – or at least a substantial slowdown – is expected in Q4, with an eventful end of the year marked by a second wave of Covid-19, contested elections, civil unrest, and escalating tensions with China.
Retail sales trends remain strong, and foodservice is showing a faster-than-expected recovery.
Fed cattle slaughter saw an incredible recovery, so the fed cattle supply is expected to be current by early Q4, and the price pressure is relieved.
Continued market volatility is expected for the corn market until harvest, when production is known.
Milk production returned to the historical trend in July, and milk prices are coming back down to earth. Demand for dairy products at retail remains elevated.