Ag prices to remain high, volatile: report

Prices for agricultural commodities are likely to remain higher due to the biofuel industry’s growing use of feedstock and renewed food demand in developing nations, an CD report said Wednesday.

PARIS — Prices for agricultural commodities are likely to remain higher due to the biofuel industry’s growing use of feedstock and renewed food demand in developing nations, an CD report said Wednesday.

Prices may also be more volatile as a result of oil and energy costs and erratic weather conditions, the Organization for Economic Co-operation Development said in its Agricultural Outlook for 2009-18.

Prices are not expected on average to remain at the current levels, which are near the record high of 2007-08.

However, they are “unlikely to fall back to their average levels before the 2007-2008 peaks,” the report added.

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