2016 Agribusiness Performance Recap and 2017 Outlook
WPI Bull/Bear Leanings for Agribusiness in 2017
A summary and graphical depictions of WPI’s expectations for future agribusiness performance.
The U.S. Grains Industry
Now, perhaps more than ever, the U.S. grain industry’s success is closely tied to political decisions.
Oilseed Processing
Bullish fundamental changes from USDA could be undone by market concerns over international trade issues.
The U.S. Biofuels Industry
Ethanol and biodiesel set record levels of production last year while maintaining positive margins, but both will have to navigate some uncertainties and overcome challenges this year in order to repeat their 2016 performance.
The U.S. Livestock Industry
The outlook for packers is neutral due to meat production growth and lower projected red meat prices while the planned NAFTA renegotiation clouds the export situation.
Farm Inputs
Cautious optimism is growing in the fertilizer industry as spring planting in the Northern Hemisphere firms near-term prices.
U.S. Farm Equipment Industry
Slackened demand still permeates the market, but a tempering of the bearishness that has clouded commodity markets resulted in better-than-expected business activity in 4Q 2016 and into 1Q 2017.
Policy Trends
Policy must focus on technology uptake by the agricultural sector.
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TAGS – Equities, Farm Inputs, Soy & Oilseeds, Wheat, Feed Grains, Biofuels, Energy