North American Agribusiness Review June 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.
Our economic data shows a rebound from the sharp contraction in March and April. In May, the economy began opening up again, but it is a gradual process that is regional and sector specific. We expect the recovery to be reflected in Q3, although we anticipate the economy to fall back again in Q4. The economic impact of the economic lockdowns has been severe and, all considered, for 2020 as a whole, Rabobank expects US GDP to fall by 6%.
The damage to the demand and supply side is likely to remain a drag on the economy. Also, some business models may not be viable anymore in the new normal, and the deterioration of the weather toward the end of the year could reignite concerns about Covid-19.