The editors at AgWeb.com are looking at experts’ projections for a variety of commodities in 2020 to help you succeed and be profitable in the coming year. Here’s a look at what analysts are expecting for the upcoming year in the protein segments.
Mother Nature threw enough obstacles at ranching in 2019 to discourage even the most hardened of cowboys. They responded by sending more heifers and cows to slaughter than expected, which has given analysts reason for optimism in 2020.
“Broadly speaking, 2020 is shaping up to be better than 2019 for cattle prices,” says Kansas State University livestock economist Glynn Tonsor. “The main drivers would be that we are slowing down the volume of production of animals in the system, and there’s some optimism that feed costs will be supportive and trade will hold its own if not improve.”
African swine fever (ASF) and tariffs are topping the list of the biggest game changers in the pork outlook. Will 2020 be a similar story to 2019 with a new verse?
It all depends on China.
The factors that drive milk prices are often complex. Dairy farmers recently walked through a three-year cycle of low prices, and while they significantly improved in the fourth quarter of 2019, questions about 2020 remain.
Analysts say prices could range from $16 to $19.50 next year. Monitor the following three factors to determine price direction.
Wild weather patterns took a toll on the 2019 hay season causing the nation’s hay stock to reach its lowest level since 2012 and quality to be “hit” or “miss.” Looking to 2020, regional supply and demand will continue to be the driving force behind the swing in hay acres and prices.
“Due to poor-quality hay and challenging weather in 2019, I anticipate there is going to be some feed shortages for a lot of farmers going into 2020,” says Greg Bussler, deputy director at USDA’s National Agricultural Statistics Service. “Because of this shortage, I think next year there is going to be a strong demand for farmers in the Midwest to plant more acres to hay.”