Market Strategy - Agribusiness Company Strategy - FEB 2017


Company Strategy

  • Livestock: Meatpackers in Brazil will see improved share price performance relative to US counterparts over the coming quarters, as US companies suffer from weak retail meat prices and rising wage growth, while Brazilian companies benefit from a weakening currency (improving export competitiveness) and lower corn and cattle prices.

  • Sugar: Sugar prices will average higher year-on-year (y-o-y) over the coming quarters, as the global market turns to deficit. Brazilian companies will benefit from higher prices and stronger domestic ethanol demand, while European sugar companies will face challenges relating to the removal of quotas. Asian sugar companies will benefit from stronger supply prospects after El Nino-related droughts curbed production.

  • Strong Improvement For Now
    Select Sub-Sectors - Average Share Price Performance Over Six Months (LHC) & One Year (RHC, %)
    Note: January 4 2017. Source: BMI, Bloomberg

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