North American Agribusiness Review Agribusiness August 2023
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.
- Economy: Improvement in inflation data without a perceived decline in economic activity raises hopes of a soft landing, but a recession in 2H is still possible.
- Logistics: Panama Canal congestion, trucking bankruptcy, and El Niño impact global logistics.
- Consumer Retail & Foodservice: Overall inflation has eased, but restaurants have not received the memo.
- Cattle: Cattle supplies tighten as drought remains a concern across relatively wide swaths of North America.
- Corn: Topsoil moisture remains low in parts of the Corn Belt.
- Dairy: Milk production was flat in June as cow numbers dropped, driven by low milk prices in Q2.
- Farm Inputs: August/September offer the first blush into next year’s cost structure as seed price transparency emerges.
- Feed: Corn is getting more affordable in animal feed rations.
- Fruit: Reduced “Flor Loca” crop pushes avocado prices near historic highs.
- Pork: Larger seasonal production to weigh on returns.
- Poultry: Chicken markets reach a supply inflection, improved profits to follow.
- Soybeans: Price spread draws Brazilian beans to the US.
- Sweeteners: Mexico’s balance sheet remains really tight.
- Tree Nuts: Elimination of retaliatory tariffs by India to foster US exports.
- Vegetables: Aside from short-term seasonality, higher production and lower prices are expected for marketing year 2023/24.
- Wheat: Global uncertainty to remain the wild card.
Download previous editions
North American Agribusiness Review - June 2023
North American Agribusiness Review - April 2023
North American Agribusiness Review - February 2023
North American Agribusiness Review - October 2022
North American Agribusiness Review - August 2022
North American Agribusiness Review - June 2022
North American Agribusiness Review - April 2022
North American Agribusiness Review - February 2022
North American Agribusiness Review - October 2021
