The recent spike in soft commodity prices has prompted some concerns that emerging markets could be at risk of higher inflation, but market watchers are downplaying those worries for now.
Agricultural stock prices are particularly important to emerging market economies because a significant proportion of their populations live below the poverty line and are more vulnerable to higher food prices, analysts say.
The price of coffee reached a two-year high earlier this month as extreme droughts in Brazil prompted supply fears, while wheat futures traded on the Chicago Board of Trade have surged almost 23 percent since late January.
According to research house Capital Economics, even though food prices are rising in emerging markets, they are still lower than a year ago, reducing the risk of a sudden spike in headline inflation.
"The sharp increase in agricultural prices since the start of the year has awakened memories of previous bouts of food-led increases in emerging market inflation," analysts at Capital Economics said in a note Friday.