This periodical update provides a market outlook for dairy, cattle, wheat, and other key commodities, and gives the following overview of what developments to watch in the upcoming months in North America:
- Economy: Challenges
- Climate: Crop looks secure despite dryness, while El Niño persists into 2024
- Logistics: Low demand, schedule reliability, emissions surcharges, and rising fuel costs
- Consumer Retail & Foodservice: Downtrading and continued search for value
- Cattle: Cattle supplies tighten as drought remains a concern across relatively wide swaths of North America
- Corn: Will additional demand materialize to accommodate “better-than-expected” yields
- Dairy: Milk production marked two consecutive months of weakness, driven by a smaller herd size and lower yield
- Farm Inputs: Soybean farmers beware
- Feed: Pasture and range conditions are better, but remain below average
- Fruit: Blueberry, table grape, and stone fruit prices are higher as weather irregularities impact availability
- Pork: Improved productivity and slow herd reductions will pressure market
- Poultry: Chicken production moves lower; prices slow to respond
- Soybeans: Renewable diesel production gets ahead of itself
- Sweeteners: Drought continues to add pressure in the region
- Tree Nuts: Harvest time featuring a record pistachio crop in California
- Vegetables: US potato production rebounds
- Wheat: Global stocks remain tight on production woes
Visit research.rabobank.com for the full report.
By Al Griffin