Farm Suppliers and Cooperatives Looking for Favorable Year

DENVER, CO – A recent CoBank 2021 outlook report examines key factors that will shape agriculture and market sectors that serve rural communities throughout the U.S. this year.

Specifically looking at the grain and farm supply sectors as we enter the new year on reasonably firm footing supported by rising commodity prices, farmer stability and favorable domestic fuel, feed, and food usage, as well as firm export demand, especially from China.

The outlook for grain is more favorable than a year ago, although carry has evaporated with the inversion of futures prices.

The outlook for farm supply cooperatives is positive for 2021 following a very orderly harvest, rising grain prices, and decent farm liquidity.

The ethanol outlook is stable but guarded, with considerable growth and margin opportunities favoring ethanol co-products vs. fuel.

After experiencing a near 50 percent reduction in demand during early-Spring (2020), fuel ethanol in the U.S. has recovered to about 90 percent of pre-COVID levels.
(SOURCE: All Ag News)