Rabobank is predicting that global food prices will remain low and steady next year – good news for consumers, but not for farmers.
The report calls China the “wildcard” in this scenario because of that nation’s large share of global agricultural commodity imports, which would affect world markets if China begins selling these commodities.
It also says president-elect Donald Trump might disrupt trade with “wide-reaching effects on U.S. imports and exports of comodities . . .”
Meanwhile, ongoing consumer shifts in developing countries are expected to turn toward more meat-based, Western-style diets, which is expected to drive consumption and support the prices of soybeans and beef, the report noted.