The period of high ag commodity prices is “quite likely over”, sapped by a slowdown in population growth, the OECD and United Nations said – although milk powder, ethanol and soymeal values look poised to outperform.
The drop in agricultural commodity prices last year – when the sector offered negative returns of 15.6%, taking three-year losses to 34%, according to Bcom indices – highlighted a structural shift in value prospects.
“Prices for the main crops, livestock and fish products all fell in 2015, signalling that an era of high prices is quite likely over for all sub-sectors,” according to a report from the OECD and the UN’s Food and Agriculture Organization.
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