Feed ingredients are the No. 1 cost component of the protein business, followed by labor and energy. Oil prices are historically linked to feed-ingredient crops. 

While U.S. markets last year benefited from a drought in Brazil that affected the country’s corn and soybean production, this year’s projections are for record crops that will affect 2018 markets. Current projections call for a continued excess supply of both corn and soybeans.

The market is truly global in nature. One hiccup in any major crop producing region of the world can result in a significant market shift.

The fundamentals of the commodity market have changed dramatically in one year.