Fertilizer Markets and Finance

Soaring corn prices have, in the beef market, put southern hemisphere producers in the driving seat by favouring the economics of pasture-fed cattle over those fattened on grains, Rabobank said.

Producers in Argentina, Australia and Brazil “may already be benefiting” from the market dynamics which have left many peers in the northern hemisphere, and notably the US, facing squeezed margins as high grain prices raise feed bills while soft economic growth keeps demand in check.

Some US protein producers have, unusually, turned to Brazil for corn supplies because of the expense of domestic supplies.

“Record grain prices will shift importers’ focus to the southern hemisphere as grain-based beef production in the northern hemisphere becomes less competitive,” the bank said.

“Countries whose beef production systems are mostly based on pasture will be better-positioned to supply the world at lower prices.”

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