Source: Rabobank AgriFinance

Over the next three to five years, agribusiness companies are likely to face increased market volatility and higher prices, according to a new Rabobank Food & Agribusiness Research and Advisory (FAR) report.

According to the report, "Looking for Delta: Tectonic Shifts Toward Higher and More Volatile Agricultural Markets," this will present challenges as risk management and positioning become even more important. However, a more volatile environment will also create opportunities — and not just of a trading and market-positioning nature.

"With slow world economic growth and food demand shifting east, companies will need to rebalance their operating portfolios or risk having regional imbalances, or more importantly, risk being left behind in the establishment of global production, distribution and trading networks," said Rabobank FAR global strategist David Nelson, who spearheaded the report and who focuses on the global grains, oilseed and protein markets. 

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