2012 fall in global food commodity prices no cause for alarm: analysts
Food producers will be encouraged by new reports from Rabobank and Davy Stockbrokers. While both reports suggest trends similar to the latest downward food price predictions of the UN’s Food and Agriculture Organisation — with December prices 11.3% off their 2011 peak — their views are qualified by general optimism. The Davy report singles out beef prices for particular positive mention.
Luke Chandler, Rabobank associate director for Food and Agri Research, and co-author of the report, said: “We believe the long-term bull run in agri commodities remains, but expect prices across the complex to ease from their record highs, continuing their downward trajectory in place since mid-2011.
