Agricultural Prices

Agricultural commodity prices rose 2.3% month on month in April, following March’s 4.2% decline and marking the strongest increase in a year.

Prices for 8 out of 10 agricultural commodities tracked by our panel of analysts increased over the past month. In particular, key food commodities, including corn, sugar and rice, averaged higher in April from the previous month. The U.S. WASDE April report was largely supportive of prices amid downward revisions in projected global production of corn, rice and soybeans and higher expected demand. Wheat was the only grain that traded lower in April due to higher supply projections by the U.S. WASDE, improved weather forecasts and better crop quality. Uncertainty around the extension of the Black Sea Grain Initiative—currently set to expire in mid-May—likely prevented a larger drop. Nevertheless, the headline price growth masks a downtrend in the second half of April: Corn, soybean and wheat prices dropped towards month-end due to a technical sell-off of grains.Meanwhile, prices for softs were driven up by supply concerns amid tighter inventories of cocoa, coffee and sugar and an anticipated market deficit this year..