Global food prices are predicted to decrease after three years of instability caused by war, climate change, and rising costs. While this decline is expected to alleviate some of the inflationary pressure on food prices, weak consumer demand due to economic challenges, such as high inflation and interest rates, is projected to continue. Rabobank anticipates that the main agricultural commodities will experience lower prices as production adjusts to high prices and demand remains weak.
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Global food prices are expected to fall from record highs in 2024 after three years of turmoil caused by war, climate and escalating energy and input costs, according to Rabobank's annual Agri Commodity Markets Outlook report. With lower agricultural commodity prices, one of the main drivers behind food price inflation is on track to decline. Despite the easing of prices and availability, Rabobank still predicts that demand will remain weak as consumers continue to deal with economic challenges, including high inflation and interest rates. Rabobank expects weak economic growth in 2024 to limit growth in demand for agricultural commodities. "Describing the last three years of global agricultural commodity prices as volatile is an understatement," said Carlos Mera, head of agricultural commodities at Rabobank. "Manufacturers are still struggling with the effects of war, inclement weather, high input inflation and weak consumer demand, but see 2024 as a return to some semblance of ...