Over the last few years, the prices of agro-cultures have moved in a downward direction, with most of the main agro-cultures consolidating at record low prices. In 2018. consumption is expected to reach record values, and this will lead to a "shortage" of some raw materials.
The risk that the United States may impose more trade sanctions may lead to greater price uncertainty. In the event of a trade war between the US and China, soybean crops will initially lose value but then quickly return the losses.
Clearly technical, comparing the two indexes on the chart, it is clear that the deviation of the agricultural index from the Commodity benchmark and significantly. Taking into account the history of Agriculture Index-a tends to return to the benchmark yield, and therefore we believe that the moment is convenient for long-term investments in agro-cultures.
Source: Bloomberg Pro Terminal
Jr Trader Petar Milanov
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