Agricultural Commodity Prices will be Maintained

The European Commission (EC) predicts that for the next eight years the prices of agricultural commodities will remain high.

Monday, January 16, 2012

According to a report by the EC, global food demand, the development of the biofuel sector and the a drop in crop production are contributing factors.

"The EC is basing its projections on forecasts by the European Organization for Economic Cooperation and Development (OECD) and the United Nations Food and Agriculture Organization (FAO) made last June," taking into account the latest global economic survey. "

Grain prices will continue to rise due to market conditions and low reserve levels, as well as low production growth (0.5% last year) and increased demand for biofuels in the European Union", reported Prensalibre.com

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Global Food Prices - November 2017

November 2017

With the exception of cereals, all the indexes used in the calculation of the FAO food price index fell in October.

From a statement issued by the World Food Organization:

The FAO Food Price Index* (FFPI) averaged 176.4 points in October 2017, down 2.2 points (1.3 percent) from September.

Commodities Projections for 2018

October 2017

The World Bank projects that the price of a barrel of oil will rise to $56, metal prices will stabilize, gold prices will tend to rise and agricultural prices will increase, due to a decline in supply.

From a report by the World Bank:

WASHINGTON, October 26 - Oil prices are forecast to rise to $56 a barrel in 2018 from $53 this year as a result of steadily growing demand, agreed production cuts among oil exporters and stabilizing U.S. shale oil production, while the surge in metals prices is expected to level off next year, the World Bank said on Thursday.

Global Food Prices - August 2016

September 2016

Except for cereals, in August prices rose for all commodities covered by the FAO food price index, led by dairy, oils and sugar.

From a statement issued by the Food and Agriculture Organization:

 The FAO Food Price Index* (FFPI) averaged 165.6 points in August 2016, up 3 points (1.9 percent) from July and almost 7 percent above the corresponding period last year.

Commodity prices fall

September 2008

There are many explanations for this: signs of intervention by the CFTC, expectations (or reality) of recession, massive liquidation of funds to neutral positions; it could be that none, or all of them, are valid.

For now it is best to list the components of commodities: soft, grains, energy and metals.

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