Agricultural commodities last year achieved something not seen since 2016 – positive returns.
Will they in 2021 accomplish what they have not managed since 2010, in chalking up a second successive year of gains? Certainly, we enter the year with plenty of production concerns, including dryness sapping South American corn and soybean crops, as well winter wheat in Russia and the US. Brazil is suffering a rain shortfall which, soybean-area adjusted, is the largest since at least 2000, and which is hitting hopes for the country’s 2021 output of coffee, cotton and sugar too.
This when expectations of the retreat of the Covid-19 pandemic, as vaccination programmes are rolled out, are fuelling hopes for enhanced demand. How these factors, and more, play out on ag markets is debated by some of the best brains in the sector, in Agrimoney’s second Agricultural Commodity Price Outlooks briefing.
We hope you find it useful and thought-provoking, and look forward to continuing to guide you as the story of 2021 unfolds.
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June 27, 2022