Field Crop Margin Outlook: 2021 – Higher Prices Lift Margins and Global Spirits

Higher margins are expected in 2021:

· In the US, higher soybean and corn prices (+40% YOY) will boost 2021 margins. 2021 Kansas wheat farmer margins will also benefit from higher prices.

· Brazilian farm margins will further improve, due to continued currency devaluation and high global and domestic prices. Watch for La Niña weather risks in Q1.

· Argentine 2021 gross margins are estimated to increase to a decade-high, assuming current future contract prices and despite lower yield expectations caused by La Niña effects.

· In Europe, margins will improve due to higher (wheat) prices and production. France, the UK, and Romania expect higher 2021 margins and harvest volumes. Dutch margins will partially improve in 2021.

· In Australia, margins are expected to recover in Western AU, due to higher production, and in NSW, as local prices are still above the five-year average.