North American Agribusiness Review June 2022

June 2022

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: Peak inflation is the new transitory. Consumer price inflation in the US rose to 8.6% in May.

- Logistics: Global container rates saw downward pressure. In contrast to dry container rates, global reefer rates are expected to continue increasing throughout 2022.

- Cattle: Drought, high temperatures, and high feed prices continue to disrupt the market.

- Corn: Corn futures remain at levels not seen since the mid-2000s. Corn basis values remain at elevated levels and are expected to stay there.

- Dairy: With tighter supplies and milk prices setting records, demand is beginning to push back.

- Farm Inputs: The relationship between grower margins and the energy market continues to be hammered home, as diesel prices domestically (and globally) spike to record levels.

- Feed: Feedstuff continues to be a challenging factor for much of the western US, with most feedstuff price increases growing by double digits.

- Soybeans: Strong crush margins, smaller-than-expected Brazilian production, and insatiable demand for vegetable oil is all supportive to soybean complex prices at or near record highs.

- Vegetables: Retail prices of fresh produce continue to climb unabated.

- Wheat: The focus of the wheat market remains squarely on Ukraine and Russia. Wheat prices are expected to revisit their mid-May highs.