Outside markets

Several factors impact on international commodity markets, including energy prices, the cost of fertilizer, the dollar exchange rate, and freight rates. High energy prices, in particular, have been identified as one of the main causes of the agricultural price spike of 2008/09. The cost of fertilizer affects the agricultural production process and thus the price of commodities while the dollar exchange rate defines a country's terms of trade. Finally, freight rates impact on the final price paid by consumers of internationally traded commodities.

About AMIS indicators

AMIS promotes a better understanding of developments in global food markets. A central task in this regard is to monitor market and policy drivers that impact on global food prices and their volatility.

Energy and other indicators

Oil prices

Oil is used throughout the agricultural production process, for example as fuel for agricultural machinery and as input in upstream chemical industries, particularly fertilizers. Apart from directly impacting the cost of agricultural production, oil prices also affect global demand for biofuels.

Chart description

Chart description

Brent is the leading global price benchmark for Atlantic basin crude oils, which is used to price two thirds of the world's internationally traded crude oil supplies. West Texas Intermediate (WTI) is another important benchmark in oil pricing, and the underlying commodity for CME oil futures contracts.