Agricultural prices set to remain historically high through 2022 – Westpac

Agricultural commodity prices are at record highs. However, the price baton is passing between export sectors as the global economic recovery gathers steam.Economists at Westpac believe that it is the meat sector’s turn to shine.

Dairy commodity prices are taking a back seat

“Over the rest of 2021, we expect overall meat and wool prices to make further gains, with beef and lamb prices set to hit record highs.”

“Over the coming months, we expect commodity prices to recede from their record highs, as lower dairy prices offset strength elsewhere.”

“From 2022, we expect to see a more uniform agricultural supply response and for overall prices to moderate. However, despite this moderation, prices are set to remain historically high through 2022.”