Agricultural Prices

Agricultural prices decreased 0.9% month on month in May, following April’s 1.3% fall.

Four of the nine agricultural commodities tracked by our panelists traded lower in May than in April, leading to the subdued performance of the agricultural complex as a whole. Trade uncertainty stemming from the U.S.’s stop-and-go tariff policy likely dampened market sentiment and capped demand across agricultural commodities. A robust supply outlook undercut prices for corn, sugar and wheat, while competition from cheaper substitute oils capped prices for palm oil. On the flipside, soybeans traded higher on lower projected U.S. supply and higher demand. A weaker supply outlook led cocoa to trade above April. Brazil’s adverse weather and softer exports pushed up coffee prices.