February 2024
Is the government here to help?
Lance Zimmerman, senior beef and cattle market research analyst at Rabo AgriFinance, said if farmers and ranchers want to use government programs, it’s important to engage in public policy discussions. “The reality is, the government is more involved in all of our lives every day,” Zimmerman said. “If you’re using these programs and they’re not working as they should, don’t just complain. Go talk to your elected officials and work toward a solution that benefits your operation.”
Milk prices see little recovery: weaker supply balanced by slower demand
"The overarching themes of recent weeks continue to persist, with a weaker global milk supply balanced by sluggish overall demand, keeping most dairy product prices unchanged and rangebound into the beginning of 2024", writes Lucas Fuess, Senior Dairy Analyst. In contrast to the cheese market, robust butter demand coupled with tighter supply has kept the price elevated above the long-term average. After the CME spot butter market hit a record high of $3.5025 per pound in October 2023, the price has seen persistent strength into 2024, driven by tight December stocks and an early Easter. End-users are likely concerned about how expensive butter could again be later this year, with budgets being set above the historical average range.
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Positive shifts for global poultry market
Rabobank Senior Analyst Christine McCracken discussed market shifts that have drastically improved the outlook for global poultry production during the 2024 International Production & Processing Expo (IPPE). In its “Global poultry quarterly Q1 2024: Outlook 2024,” Rabobank forecasted poultry to be the fastest-growing protein in the global animal protein market. Lower feed costs, which should drive a decline in prices, are expected to generate 1.5% to 2% growth, according to the report.
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Unpacking the complex relationship between oil and agriculture
The petroleum industry isn’t setting prices for food crops, but it is, according to some industry experts, determining the minimum price for key food items. “Petroleum is the floor,” says Owen Wagner, senior grain and oilseeds analyst for RaboResearch. “That’s the best way to think of it; petroleum sets the foundation.” And then those other factors – inflation, commodities trading, greed, etc. – do the rest.
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Why drought on the prairies is making your steak more expensive
"When you talk to producers, whether it's in the Canadian provinces or key cattle-producing regions of the United States, many producers will tell you they've had to experience two 'hundred-year droughts' back-to-back over the course of 10 years," said Lance Zimmerman, a Kansas-based senior beef analyst with Rabobank.
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