Market conditions for agricultural commodities are influenced principally at weather and farmgate prices.

Market conditions for agricultural commodities are influenced principally at weather and farmgate prices. Non-fuel commodities are extremely vulnerable to El Nino weather patterns which can damage lops through protracted drought in one growing areas and heavy rainfall in other regions and cause fill up problems. In 1997-98 season, the climatic powers of El Nino led to large draw-downs of inventories and an increase in commodity prices.

This year, demand has picked up as the global economic redemption has gathered momentum. The World Bank look forward tos prices of cereals (wheat, maize, barley and soybeans) and beverages (coffee cocoa and tea)