North American Agribusiness Review February 2021
This periodical update provides a market outlook for dairy, cotton, wheat, and other key commodities, and gives an overview of what developments to watch in the months to come.
- An expansive fiscal policy aimed at stimulating economic growth is expected in the US in the next two years.
- Sales of food consumed at home increased by 11.7% in 2020, and this is expected to continue with above-average growth in 2021, even as foodservice sales rebound.
- The large supply of Q3 2020 cattle placements hit the market with the new year and will continue to provide large fed supplies through Q1 and early Q2. Fed cattle prices will depend on leverage and currentness.
- The corn market continues to evolve, and China continues to be the headline market factor.
- Milk production numbers keep showing substantial gains, as a result of more milk per cow, as well herd expansion.
- Phosphates prices are now at the highest levels in North America since 2012. Urea is likely to see further price movement as higher corn prices improve appetite for demand.
- Feed exports to China remain strong, increasing domestic feed prices.
- Pork production is expected to decline in the coming weeks, and carcass values are up sharply as stronger demand from retail and early signs of recovery in foodservice are boosting meat values.
- Chicken prices rebounded sharply in January in response to reduced slaughter and stronger demand. Supply constraint in Mexico is boosting margins.