Agricultural commodities are less sensitive to the economic cycle than other commodities such as oil and copper, mainly because, in the short term, income and price elasticities for essential foodstuffs are low. Nevertheless, prevailing macroeconomic and financial factors such as the price of oil or the strength of the US dollar do influence agricultural prices. Over the longer term, changes in meat consumption will be a key factor in future demand for animal feed and crop prices - but not necessarily in the way that many assume. The potential implications of climate change could be more nuanced too.
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