This short-term market outlook is impacted by adverse summer weather conditions. These have mixed impacts across the EU as yields of different arable and specialised crops were affected by hot and dry conditions and floods while, on the other hand, rainfall surplus helped grassland to recover. However, not all rainfall proved to be beneficial as it also caused delays to harvest, development of pests and diseases, and had a negative impact on the quality of some products. At the same time, there have been signs of positive market prospects, as input costs continued declining (e.g. energy, fertilisers and feed). Lower EU agricultural prices led to a further reduction in the EU farmer price index from its record level reached in October 2022. While processor and consumer price indices resisted this downward move for some time, they stopped increasing in the last months, which could potentially bring some relief to the domestic food demand in the coming months. Impacts of adverse weather conditions and uncertainty of developments in Ukraine could, however, still present upward risks for commodity and agricultural prices. The recovery of EU exports in certain agricultural commodities was supported by more competitive EU commodity prices. This is likely to continue in 2024 as EUR to USD exchange rate is expected to remain relatively low. On the other hand, the EU market remains attractive for imports. The EU macroeconomic situation has been slightly revised downwards compared to the Summer 2023 outlook, with the EU economy subdued in the first half of 2023 and with a tighter monetary policy to fight inflation. The weaker growth is expected to extend to 2024.