December 2022 Market Report

Most global agri-commodity prices resumed their decline in November and December and levels are now practically the same as in late 2021. In annual terms, the FAO Food Price index experienced its slowest growth in 28 months. The index is now at practically the same level as in November 2021. Falling input prices and a generalized decline in demand are the main bearish factors moving forward, but there are some upside risks. Demand recovery is expected to boost prices by H1 2023, but price hikes could happen sooner if any of the bullish factors (geopolitical tension, a weaker US dollar, logistical problems, and unfavorable weather) is triggered.