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RaboResearch explores slowing inflation impacts in ag

Rabobank analysts are projecting the last interest rate hike of the year to come next month.

Lucas Fuess tells Brownfield their latest Agribusiness Review is, “expecting a final 25 basis hike in May and then likely to remain on hold for the remainder of the year.”

Fuess says shipping rates continue to normalize despite labor union negotiations which is benefiting supply chain logistics.

“Ocean freight was a huge deal whether it was port congestion or just the cost of moving goods overseas—a lot of that has returned to normal,” he says.

When asked what lasting impacts the agricultural sector could see following the past two years, analysts expect farmers to use more biological products, seed prices to remain higher, and quicker adaptability to volatility.