...Agricultural Commodity Prices Contract Several agricultural commodities are now 20% to 30% lower than a year ago, following accelerated price drops between May 2014 and early 2015. These declines are the result of sector- and region-specific concerns: the imminent or anticipated end of regimes of artificially high prices in the European Union (milk and sugar); the introduction of an import ban on food products in Russia (fruit and vegetables, milk, fish); and slower growth in developing countries affecting emerging middle classes' consumption (cocoa and dairy). In addition, bumper corn and sugar harvests have inflated carry-over stocks. Conversely, meat prices ¡ which tend to lag the costs of grains and oilseeds used as animal feed ¡ are still high, but dropped this January based on FAO data. Wheat and soybean prices have also fallen. Therefore we do not rule out further reductions in meat prices. What to Watch Consumers Trade Up: Food and beverages make up about a quarter of a Western...
