Slow recovery expected for commodities


06 May 1999


Slow recovery expected for commodities


THE World Bank is forecasting an end to the steep dive in commodity prices, but expects plentiful supplies and weak demand to mean a slow recovery.

The outlook for many sectors, including soft commodities such as grain, wheat, oilseeds and sugar, is poor with further falls expected, it said.

Grain stocks held by the main exporters have more than doubled since 1995-96, while sugar output has exceeded consumption for the fourth consecutive year.

These stocks will need to be reduced before a recovery in prices tales place, said the bank.

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