Analysts believe that prices for raw materials have already passed their cyclical lows.

Despite an oversupply of grains and oilseeds in the global market, the increase in biofuel production and improved export conditions are raising hopes that prices have passed their cyclical lows, according to analysts at CoBank Knowledge Exchange in a new forecast for the coming year. Despite the increase in soybean sales to China, it is unlikely that the U.S. will be able to restore historical export volumes, as Brazilian soybeans remain significantly cheaper. Additionally, record oilseed production in countries near China, such as Kazakhstan, will reduce the competitiveness of U.S. soybeans in the PRC market. Almost all exporting countries have significant grain reserves and expect good corn and wheat harvests, which will complicate exports from the U.S. If China resumes purchases of U.S. sorghum, it will significantly support grain prices. At the same time, demand for U.S. grains and oilseeds will continue to grow as low prices stimulate consumption. Mexico, which is the main ...