2016 Outlook: Tough markets create opportunities for adaptable producers
Michael Swanson, Ph.D.,Wells Fargo Chief Agricultural Economist
A recurring theme in the 2016 outlook for the agriculture and food sectors is challenging. The long-term trend of improving demand due to population growth and developing country income gains has met with some difficult cyclical developments.
Egg market: Limited supplies and high prices prevail
Michael Swanson, Ph.D.,Wells Fargo Chief Agricultural Economist
The U.S. outbreak of highly pathogenic avian influenza (HPAI) in spring 2015 has predominantly affected turkey and egg producers; broiler producers have felt minimal effects. Prior to the outbreak, analysts estimated the U.S. egg laying flock at roughly 303 million birds.
Softwood lumber market remains volatile
Kevin Bergquist, Wells Fargo Agribusiness Consultant
The U.S. lumber industry faces continual volatility, with major market swings a reality for those working within the industry. The interplay between domestic and foreign trade contributes to an unpredictable lumber market. Additionally, macroeconomic demand factors, such as U.S. housing starts, have a major effect on the market.
2015 Expectations for the hog and pork protein sector
Ted Tice, Wells Fargo Agribusiness Consultant
Pork supply is large. A March 27, 2015 United States Department of Agriculture (USDA) report indicated sharply higher supplies of hogs and pork in 2015, caused by an over-expansion of animal breeding in a proactive effort to compensate in case the Porcine Epidemic Diarrhea Virus (PEDv) epidemic repeated itself during the 2014 winter.
California drought has regional, national, and global impact
Andrew Broaddus, Wells Fargo Agricultural Advisor
Since the beginning of April and the return of planting season, it has been almost impossible to read, watch, or listen to national news without hearing increasingly detailed stories about the continuing drought in California.
The changing composition of the grocery store dairy aisle
James Cardoza, Wells Fargo Agribusiness Consultant
The composition of grocery store dairy aisles is shifting due to changing consumer perceptions and expectations, evolving production constraints, innovative product development, marketing, and packaging design.
Lower grain prices and higher production break-even costs foreshadow financial challenges for farmers
Ted Tice, Wells Fargo Agribusiness Consultant
With the outlook for corn and soybean prices decidedly bearish for the remainder of the 2014 – 2015 crop season and into the 2015 – 2016 crop season, the economics of corn and soybean farming have become a challenging proposition.