U.S. grain exports could face challenges, as the global oversupply of grain is expected to continue to 2020 due to expansion to acreage and production improvements that result in higher yields, according to a new report issued by CoBank.
On the upside, the report titled 2018-2020: Pressure on Grain and Farm Supply Sectors to Persist, details that demand for grain, particularly for livestock and poultry production, will continue to remain strong as consumers increase their demand for animal protein.
And despite the oversupply falling heavy on farmers’ incomes, it could also benefit others in the grain supply chain including elevators and storage facilities. However, shifting political landscapes tied to uncertain trade negotiations involving the U.S. could also have a negative effect on the sector as a whole.
Lynda Kiernan is Editor with HighQuest Group Media and of the Oilseed & Grain News. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at email@example.com.