High crop prices and China’s COVID-19 rebound are expect to bolster farmers, chemical suppliers, and grain traders, reports The Wall Street Journal.
This year, grain-trading intermediaries will also see strong demand for crops, vegetable oils, and livestock feed. According to experts, China will likely increase crop imports as pandemic restrictions ease in the country.
“We expect the market environment to be similar to 2022,” said chief executive Greg Heckman of Bunge Ltd., a food production company. “That includes a globally tight crop supply, strong demand.”
Global grain supply has been reduced by the war in Ukraine, one of the largest global suppliers of the crop, as well as poor weather conditions. This strained supply shot up demand for corn and wheat, which helped U.S. net farm income to peak.
Crop seed and pesticide company executives believe the stronger agricultural market will help support farmers’ incomes.
“Farmers are financially healthy with strong liquidity,” said CEO Chuck Magro of Corteva Inc. Corteva, an agriculture and seed company, reported a seven percent increase in crop seed sales for 2022, and a more considerable increase for its pesticides and other related products. Full Story (Subscription Required)
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