According to a private report, the prices of the most consumed foods will have better supply prospects.
According to a report prepared by Rabobank, the consumers will have some relief from price increase of food in 2024, due to lower costs of agricultural raw materials.
According to a report released Wednesday, the prices of sugar, coffee, corn and soybeans They should be reduced in some products given the better supply prospects. Demand will also remain weak, as buyers are still affected by the crisis cost of living.
The prices of the food raw materials They are calming down after a few years of turmoil due to the Covid virus pandemic, extreme weather conditions and the Russian invasion of Ukraine. A United Nations indicator of global costs is down about 25% since reaching a record in March 2022, which contributed to reducing general inflation.
But it takes time for those costs to trickle down to supermarkets, which faced high energy and labor costs.
“Producers continue to deal with the aftermath of the war, adverse weather, high inflation of agricultural inputs and weak consumer demand, but they hope that 2024 will be the year of return to normality,” declared Carlos Mera, Rabobank analyst. “It won’t be a bed of roses, but the more positive outlook for most agricultural commodities should provide relief to buyers.”
Even so, the outlook remains uncertain for some commodities such as wheat. According to Rabobank, In addition to meteorological threats, the cereal could face possible restrictions on Russian exports. And although Ukraine will continue to send supplies, it will have a smaller exportable surplus in the coming years, he said.
For the 2023-24 campaign, Rabobank foresees greater reserves of corn and wheat than the latest forecasts of the US Department of Agriculture published last week.
Source: Ambito
