Food Price Surge is Unlikely to Revert
Agricultural commodity prices have surged almost 50% since mid-2020, causing concerns over food price inflation around the world and sometimes resulting in increased export taxes and quotas by producers at a time when importing countries want to import more.
Rabobank can identify four major factors driving the surge across agri commodities that will remain active in 2021: 1) US dollar weakness: Rabobank forecasts the US dollar to remain soft through 2021 (US dollar index -7% lower since mid-2020), but no further weakness is expected. 2) Weather: La Niña could extend into the US spring planting season. 3) Global demand: Good global demand (either for animal feed or storage) to continue through...
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