PRESS ROOM
Agricultural commodities sprouting in January
Thursday 28th January '21
Agricultural commodities, otherwise suppressed due to several years of price weakness, have made strong gains since December. The Bloomberg Agriculture Subindex is up 5.8% this month (as of 27 January) and has outpaced the broader Bloomberg Commodity Index over the same period. Starting from a lower base, commodity prices appear to have more scope for a rebound from the prospect of lower hostility in US-China trade ties with the Biden administration taking the helm. Weakness in the US dollar, vaccine optimism in risk assets more broadly, and improved consumption particularly from China are among some of the macro tailwinds behind the sector.