Source: Chris Scott, MEATINGPLACE, 11/23/16


High global stock price levels are expected to hold down food prices worldwide next year, although the Trump presidency brings currency uncertainty that could lead to volatile food prices, according to a new report from Rabobank.

Three years of declining food prices, extreme weather that damaged crops in major agricultural regions and record grain storage – a key component for livestock diets – should lead to “much-needed stability for food prices,” according to the Rabobank Global Outlook 2017.

The projection is good news for consumers, but less so for the world’s farmers, who will be affected by the prices that they will be paid in the coming year. 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.

The Rabobank report also notes that the election of Donald Trump as U.S. president sparks caution in that one of the president-elect’s campaign platforms suggested the future adoption of more protectionist economic policies. Rabobank said such actions could have wide-reaching effects on U.S. imports and exports of commodities if current trade agreements are revised as part of the new administration.

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.

Additional information on the Rabobank global outlook for 2017 is available here.

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