WillAgri
According to the World Bank report on agricultural commodities, even if their prices are stabilising, the reasons for the downward pressure are still very much present. And the bank cites, among other factors: high stocks of cereals including wheat and rice, favourable weather conditions in the big growing regions, international trade tensions, the low cost of energy and, lastly, the lower demand for certain products. The World Bank’s agricultural commodity prices index has again dropped again by 2% in the third quarter, and by 3.3% compared to the same period last year. According to the Bank’s forecasts, prices are expected to fall by 5% for the full year 2019, before stabilising in 2020. Apart from wheat and rice, the prices of oil seeds and cacao have also fallen slightly. On the other hand, the prices of robusta, cotton and natural rubber have all but collapsed. Finally, the fertiliser index, which has been in decline since the start of the year, lost a further 4.2% in the third quarter.
Source: CommodAfrica