Agricultural Prices

Agricultural prices decreased 3.1% month on month in June, following May’s 0.9% fall.

All but one of the nine agricultural commodities tracked by our panelists traded lower in June than in May, pushing aggregate prices for the agricultural complex to an eight-month low. Demand-wise, trade uncertainty stemming from volatile U.S. trade policy likely continued to weigh on market sentiment and capped demand across agricultural commodities. Supply-wise, favorable weather conditions in most producing regions supported the supply outlook for most commodities, restraining prices further. Meanwhile, wheat was the only commodity to trade higher month on month due to a weakening supply outlook.