Global agricultural market conditions have changed significantly in the last decade, with two price spikes and relatively high and volatile prices. A historic drought in the U.S. Midwest led to another spike in the price of cereals and many were suggesting that very high prices for agricultural commodities would continue indefinitely. However, more favorable weather has brought prices down dramatically, a further example of the volatility that has been a feature of markets in recent years. Recent updates of FAPRI-MU market projections provide insights into market developments during the next 10 years. Where will prices go from here? What is driving these movements? We begin with a review of the latest FAPRI-MU projections and discuss the likely changes in the global market and policy environment over the next decade.
Global markets to 2020: fapri-mu outlook and implications for policy