- A new report predicts that global food price inflation will fall next year.
- The report highlights positive trends in agriculture, but at the same time warns of challenges and difficulties, noting that times are not easy after years of economic instability.
- Despite a 27% drop in wheat prices, there will be difficulties in wheat recovery, mainly due to Russian exports.
Food commodity prices fall after three years of highs
According to Rabobank’s annual report, global food commodity prices are expected to fall from record levels in 2024, after three years of uncertainty. Lower agricultural commodity prices are expected to help ease inflation, but weak consumer demand and economic difficulties will remain. Possible economic growth in 2024 is expected to curb demand for agricultural commodities.
Rabobank’s Outlook report assesses the outlook for key agricultural commodities, predicting falling prices for corn, soybeans, sugar and coffee. Producers have time to adjust to high prices, but the market situation for some commodities, such as wheat, will continue to be uncertain, due to weather conditions and exports.
Difficulties for wheat and corn
Next year, in addition to lower inflation, we will face challenges such as climate change, which could affect food production. Wheat will still be in deficit, and the Russian-Ukrainian war will continue to affect production and exports, reducing the export surplus of both countries.
Although wheat prices have fallen by 27%, Rabobank anticipates difficulties in its recovery due to Russian exports. There has been a rebound in demand for corn, but consumers are still struggling.
Want to stay up to date on the market situation? Stay in touch with Foodcoom S.A.! We offer regular World News and a newsletter full of industry news!
