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World Bank Sees Commodity Slump, Warns of Farm Risks for Argentina

The World Bank urges Argentina to use the price lull to fortify finances against looming farm risks.

Overview

  • The Bank projects global commodity prices to fall 7% in both 2025 and 2026, reaching their lowest level in six years.
  • Energy prices are forecast to drop 12% in 2025 and 10% in 2026, with Brent averaging $68 in 2025 and $60 in 2026 as a large oil surplus builds.
  • Fertilizer prices are expected to jump 21% in 2025 before easing in 2026, pressuring farm margins even as crop prices retreat.
  • A likely La Niña late 2025 or early 2026 could bring hotter, drier conditions to Argentina and dent maize, wheat, and soybean yields.
  • With agriculture near 70% of export earnings, Argentina faces weaker export receipts even as cheaper energy helps cool inflation, prompting the World Bank’s call for fiscal resilience and investment.