Going forward, feed and meat companies will be forced to consolidate and drive efficiency measures in order to remain economically viable in an environment of high grain costs. Fertilizers, seeds and crop protection will continue to experience increasing demand.
Although environmentally questionable, Obama’s support for a US-centric biofuels policy and a continued shunning of ethanol imports could drive some growth back into agribusiness after two months of plummets and doldrums. Share prices for Monsanto, ADM, Potash Corp and Bunge were all reacting favourably to yesterday’s speculation of Barack’s win.