Volume 28, No.10
WPI Bull/Bear Leanings for Agribusiness
A summary and graphical depictions of WPI’s expectations for future agribusiness performance.
The Flour Milling Industry
Excellent operational management and hedging effectiveness are critical features of this historically low-margin business.
U.S. soybean crushers’ margins will likely be undermined by weak soymeal exports and competition from DDGS in feed rations.
The U.S. Biofuels Industry
Ethanol margins remain exceptional and are expected to continue. Biodiesel margins and the industry’s outlook turned more negative after Congress failed to renew the blenders’ tax credit.
The U.S. Livestock Industry
After a decade of volatile corn prices, export hurdles and a soft U.S. economy, the meat and poultry sector has enjoyed a strong comeback in 2016. Looking forward, additional growth for the sector can be expected.
A retreat in thermal coal prices in China will reduce pressure on margins while rising spot gas futures in the U.S. are weighing down nitrogen margins.
Rightly or wrongly, the market is taking the intrigue of Donald Trump and is looking up.Read Full Issue