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FxWirePro Commodities Watch (Grains and Oilseeds)
Understanding commodities are vital to gauge the performance of other asset classes such as bonds, equities, and even currencies. Since, 2014, any regular follower of financial markets would be able to recall that how devastating the drop in oil prices has been for many countries like Russia, Brazil, Mexico, and Malaysia whereas net importers of oil like India have largely benefitted from it. Hence, it is of utmost importance to investors to keep a tab on the trends in the commodities market.
Historically speaking, a rise in commodity prices has triggered a vicious chain reaction. First, the prices of commodities go up, which in turn triggers a rise in inflation, which again has historically triggered selloffs in bonds, which has not been good for equities in some cases.
In these Commodities Watch we present to our readers, the performance of commodities, which in turn decide the wellbeing of many commodity producing and consuming nations. For example, the price of Cocoa is extremely important for Ivory Coast, which is the biggest supplier of the commodity.
For another Example, India imported record wheat in 2018; hence, the wheat price was of utmost importance for inflation in India.
In this article, we evaluate the performance of the grains and oilseeds, which are consumed by almost the entire world.
In 2016, this pack was down 1.6 percent on an average, but in 2017, it was up 3.3 percent.
In 2018, Wheat was the best performer with +16.3 percent gain, followed by Oats (+13.3 percent), and Corn (+6.7 percent).
The worst performer has been Rough Rice (-14.6 percent), followed by Soybeans, which was down 7.4 percent, and Canola oil (-1.55 percent).
In 2018, the pack was up 2.1 percent.
In 2019, Rough Rice the best performer with +10.6 percent gain, followed by Corn (+5.2 percent), and Oats (+2.1 percent).
The worst performer has been Soybeans (-6.3 percent), followed by Soybeans (-6.3 percent), and Canola oil (-5.5 percent).
In 2019, the pack is up 0.4 percent. The pack is up 4.1 percent since our last review, a month ago.