Newsroom & Financials

CoBank Report Predicts Easing Of U.S. Protein Glut In 2016

Posted 1/25/2016

The supply glut that plagued U.S. beef, pork and poultry markets last year and ratcheted down margins is expected to ease in 2016, according to a new research report from CoBank. The bank, a major agribusiness lender, says leading indicators point to animal protein supplies transitioning toward a better balance in the marketplace, with protein stocks more in line with overall levels of demand.

“It’s clear that in the coming year, the headwinds and adverse conditions created by excessive protein stocks are clearing,” said Trevor Amen, animal protein economist with CoBank. “Surprisingly strong U.S. consumer demand helped lay the groundwork for improving market conditions in the coming year, combined with the fact that the net trade balance is expected to shift toward growing exports and fewer imports. This is welcome news for U.S. beef, pork and poultry producers.” Read more...

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