02.10.2014 - Will the Commodity Slump Weigh on Agribusiness ETFs?
Agricultural commodities performed impressively in the first four months of 2014 helped by a weaker dollar, adverse weather and greater demand. However, the space snapped the trend soon to reflect a benign weather outlook and accelerated crop plantation that exceeded demand. If this was not enough, the six-year high U.S. dollar against the yen put pressure on commodity prices. Sluggish global demand thanks to rough global recovery has also been playing a crucial role in pulling down agricultural commodity prices. Some crops including corn, soybeans and wheat are expected (by market participants) to leave the year with huge inventories...............................................Full Article: Source
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