Good News for Beef & Dairy Feed Costs
Good News for Beef and Dairy Producer Feed Costs says Rabobank
Rabobank analysts report that world grain supplies are rebuilding and moderating prices, but there are some wild cards in the mix, including production in South America and Chinese demand. Details are spelled out in the March 6 Capital Press. But moderating prices are already boosting margins for dairy and beef production and could go even lower in 2014. Strong global demand will also underpin a stellar year for dairy and beef producers.
Moderating feed prices, combined with strong demand, has U.S. beef and dairy producers on target for an exceptional year, according to Rabobank analysts. In the big picture, grain markets are rebuilding and prices have moderated over the last six months and could go lower, said Bill Cordingley, managing director and chief of Rabobank agribusiness research and advisory group.
Rabobank officials are on a tour of the Northwest, speaking to clients about global commodity markets in terms of price and outlook. The tour made a stop in Twin Falls on March 4.
It will be a strong year for U.S. dairy producers and exporters, and the tightening U.S. beef supply will continue favorable cattle prices and provide a big growth market for lean beef, Cordingley said. Read more at http://goo.gl/YcIbTg