It’s a good year for global commodity prices

he World Bank’s Agricultural Price Index increased more than 9% in the first quarter (Q1) of 2021 (q/q), building on the previous quarter’s momentum. Overall, prices for agricultural commodities have risen 20% over the past year and are close to a seven-year high. Price gains have been driven by supply shortfalls for some food commodities, especially maize and soya bean, strong demand for feed commodities by China, and US dollar depreciation. The largest price increase in the quarter was for grains due to production shortfalls, followed by oils and meals [oilcake]. Agricultural prices are expected to average 14% higher in 2021 compared with 2020, followed by a small