Agricultural commodity prices for goods like coffee, feed grains, and oilseeds could decline next year as major economies enter recession, according to a Rabobank report cited by Reuters. The prices, however, will remain high compared to historic pricing.
Consumers face energy shortages, geopolitical danger, and key commodity shortages like wheat threatening global food security.
Wheat remains affected by the war in Ukraine and the supply will face a 6 million ton deficit next year, exacerbated by uncertain weather conditions in the European Union, the United States, and Argentina.
For coffee production, Rabobank sees demand growing well below average levels at 1.5 percent, with weather leaving the market in a 4 million bag surplus, despite poor coffee harvests in Brazil.
"Agricultural prices might recede, that’s not because production will improve significantly but because demand is set to be so weak," said Carlos Mera, Rabobank’s head of agricultural commodities market research.
The bank also included that agricultural commodity prices are about 50 percent higher than before the pandemic. Full Story
Related: Poor Coffee Crops May Raise Product Prices; Specialty Makers Underscore Importance of Diversifying Crops