- Food Outlook: Global market analysis2.13 MB
In spite of improved supply prospects and weakening demand, agricultural commodity market conditions remain fairly tight, which is the major factor underpinning prices. Production forecasts for nearly all key food crops in 2011 have risen steadily since the previous report in June. For cereals, while the forecast for ending stocks in 2012 has also been revised up significantly, larger anticipated inventories reflect not only improved production prospects but also expectations of a slowing demand growth because of the unfavourable macroeconomic environment. In spite of these developments, however, international prices of all commodities covered in this report continue to be high and, in most cases, above the previous year. Strong underlying demand in certain countries, where economic growth is robust, is price supportive. Aside from being high, most prices are also extremely volatile, moving in tandem with unstable financial and equity markets. Fluctuations in exchange rates and uncertainties in energy markets are also contributing to sharp price swings in agricultural markets.
Report published by the Food and Agriculture Organisation.