Global: Agricultural markets are increasingly unstable and prices are volatile

Published 2024년 11월 27일

Tridge summary

The agricultural commodity markets are expected to be unstable in 2025 due to several factors including low stocks of agricultural products, exchange and duty policies, devaluation of the Turkish currency, ongoing wars, and active trade in BRICS countries. The availability of cereals, oilseeds, rice, and legumes are particularly affected by supply-side issues such as excessive rainfall in north-western Europe and drought in eastern Europe, which impact yields and quality. The report also highlights China's shift in sourcing corn from the USA to Brazil, which changes the balance of trade. The report suggests that farmers should diversify their crops to manage business risk and calls for the EU to establish mechanisms to safeguard business income in the face of dropping prices of main agricultural products.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Lowering of stocks of many agricultural products, exchange and duty policies, devaluation of the Turkish currency, two ongoing wars (Ukraine-Russia and Israel-Gaza) and lively trade in the BRICS countries (Brazil, India, China, Russia and South Africa), but also in Egypt, the United Arab Emirates, Ethiopia and Iran. These are the main factors that will lead to strong instability in the agricultural commodity markets (cereals, oilseeds, rice, legumes, etc.) also in 2025. This is stated by the Aretè company in its most recent market analysis, entitled "Agricultural Commodities 2025". The report highlights that there is total uncertainty about the price trend in the coming months, also due to the occurrence of new movements, such as China, which has always sourced corn mainly from the USA and now buys mainly from Brazil, shifting the balance of trade. The world is full of examples like these. But let's briefly analyze the global availability for some products that interest our ...

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