North American Agribusiness Review October 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.
- There’s some turbulence ahead for the economies of the US, Mexico, and Canada.
- Continued dryness has caused drought conditions to intensify in the West and spread to the Midwest. Also, La Niña might cause an extremely active hurricane season.
- Frozen, and easy-to-prepare foods remain strong, while foodservice recovery decelerates, particularly for fine dining and institutional foodservice.
- The fed cattle backlog has cleared but fed cattle carcass weights are still 20-plus pounds above year-ago. Total 2020 beef production is expected to close roughly 0.5% above 2019.
- In just two months, the whole narrative around the US corn market changed, except for the burdensome stocks situation. New crop futures (CZ20) have rallied to levels not seen since the beginning of the year and not expected to be seen for quite some time.
- Elevated levels of milk production could lead to a surplus if government aid disappears suddenly.