December 30, 2010

Malaysia's agri produce prices to increase

Although many of the commodities in Malaysia are already at elevated price levels, further price gains in the country are expected over the next 12 months, according to Rabobank.

In its Agri Commodity Markets Research released on Thursday (Dec 30), Rabobank said the market direction for agriculture commodities in the following year would depend on numerous factors.

Among them are tightening stock levels, supply limitations, strong demand from emerging markets, political risks amid tightening supplies.

Rabobank said the combination of these factors and uncertainty would result in increased price volatility across most agriculture markets and this is expected to continue next year.

"We see corn and soy holding the most upside potential for prices in the year ahead," it added.