IMF sees modest increase in agri products in the next 12 months
The International Monetary Fund sees a modest increase in the price of agricultural products over the next 12 months as the El Nino phenomenon continues to impact on production.
In the March 2016 edition of the IMF’s Commodity Market Monthly, the IMF said agricultural prices increased by 0.2 percent in February. While food and agricultural raw materials went up slightly, beverage prices fell by two percent.
Rice prices increased by four percent because harvest in Asia is expected to be lower than initially forecast, with the El Nino phenomenon continuing to affect production in Indonesia and Malaysia.
Tight supply of beef from Australia and the United States pushed prices up by eight percent while pork prices spiked because of strong demand from China.
Coffee prices were generally unchanged, with the decrease in robusta prices balanced out by the two-percent increase in Arabica prices.
Wheat and corn prices fell by three and one percent respectively because of large inventories and good prospects for the upcoming harvest.
Better than expected crop conditions in Brazil, meanwhile, meant more supply, dragging down sugar prices by seven percent.