A new day, a new outlook. Rabobank recently released its global agricultural commodity outlook for 2015, and its forecast for 12 major agricultural commodities over the next year.
According to the report, the fundamentals in the ag commodity markets appear more balanced, but a narrower trading range is expected. Growth in demand has slowed recently, but the report indicates that lower prices may spur consumption growth and thus support prices.
“Key variables to watch in the year ahead are U.S. dollar strength, uncertain Chinese demand growth, slowing biofuel demand, and oil price weakness,” the report says.
Of course, drivers for the year ahead include planting decisions, demand and weather. But assuming normal growing conditions, stocks are expected to rebuild for most commodities.