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Commodities in focus
“ We favour soybean oil over soybean meal as the demand outlook for renewable diesel and biodiesel remains rosier than that for US and global protein-feed demand ”
Benjamin Ross Head of commodities at Cohen & Steers
Grains
Ross says one of the major factors driving the high price of grains has been the weather , with La Niñainduced droughts in Argentina , Brazil and the US affecting production .
“ We favour corn and soybeans on a medium-term basis , as US stocks are on pace to hit their lowest level in nearly a decade at the end of the 2020 / 21 marketing year and will likely stay there given strong export and biofuel demand ,” he says .
Ross adds prices will need to rise further to defer demand until after the 2021 US harvest and to incentivise farmers to plant more .
However , he warns the near term is fraught with risks , such as potential surprises in the USDA Acreage and Grain Stocks reports .
“ We favour soybean oil over soybean meal as the demand outlook for renewable diesel and biodiesel remains rosier than that for US and global protein-feed demand ,” Ross finishes .
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