FAPRI-MU
A new global outlook report highlights both challenges and opportunities for U.S. farmers and ranchers as international markets continue to shift. The 2026 International Agricultural Market Outlook, released by the Food and Agricultural Policy Research Institute, projects tighter margins in key commodity sectors but sustained demand for agricultural products.
The report notes that while crop expansion in countries like Brazil and Argentina will continue, growth is slowing, potentially easing competitive pressure over time. Meanwhile, rising global feed demand, driven largely by increased meat production, offers continued market opportunities for U.S. grain producers.
Livestock producers may also benefit from strong global beef prices and steady demand, even as production challenges persist.
“Margins have been tight in cereals markets where prices have fallen from peaks…, but input costs remain stubbornly high,” the report noted.
Despite volatility and global uncertainty, analysts say consistent demand for feed grains, oilseeds, and protein provides a foundation for long-term growth in U.S. agriculture.
Some key results:
• Brazil and Argentina are projected to continue to expand crop area, albeit at a slower rate. In other parts of the world increases in production will come from yield improvements.
• Margins have been tight in cereals markets where prices have fallen from peaks in 2022 and 2023, but input costs remain stubbornly high. Global feed use continues to rise on increased meat (especially chicken) production. In China, the rate of increase of feed use of grains slows, and imports are flat.
• In oilseed markets, increased mandated use of biomass-based diesel (BBD) supports vegetable oil markets, but strong production keeps nominal prices flat. China continues to be an important market for soybeans with growing demand.
• Beef prices have been strong in several key markets, as production in the U.S. stalls with strong demand, and the dairy herd shrinks in the EU.
• Demand for dairy products is expected to keep growing and to result in a recovery in prices around the world. Increasing incomes, growing middle classes, and the development of cold chains and markets should keep dairy products as a popular source of protein.
SOURCE: FAPRI-MU, NAFB news service
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