BMO Equity Research IN Tune Food, Ag, Fertilizer, and ESG From BMO’s 19th Annual Farm to Market Conference
May 28, 2024
Discover the pressing insights from the latest Farm to Market Conference, covering the impact of commodity price volatility and emerging trends in ag tech. Analysts explore the renewed investor optimism driven by weather patterns and fertilizer price stabilization. Delve into changing U.S. consumer behaviors, including trade-down trends in food spending. Water scarcity emerges as a critical issue for agriculture, while the focus on biofuels highlights policy shifts and investment opportunities. Tune in for a deep dive into the future of food and ag industries!
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Episode notes
Renewed Investor Optimism
- Investors left the conference noticeably more optimistic due to firmer crop prices and weather-driven premiums.
- Fertilizer prices showed signs of bottoming which supported sentiment despite Q2 crop chemical demand concerns.
Concentrated Fundamental Strength
- Fundamental strength has narrowed compared with a year ago, with protein and some prepared foods outperforming.
- Overall earnings have normalized after prior record profitability, limiting broad sector strength.
Stock-Picker Market Returns
- Company-specific strategies regained prominence, turning the sector into a stock-picker's market.
- Investors focused on which firms invested in digital, tech, and talent during recent disruptions.