Investment msce: pennies and then for a long time nothing

Commodity markets have been rising sharply since the arrest of the holidays. After the loss of the first half of the year, most of the globally traded commodities reached the Black Sea compared to the end of the year. In addition to reversing developments in the currency markets, where the US dollar reversed the upward trend, commodity aid continued to reduce risk aversion.

The problems of the European economy have so far been forgotten and investors expect the economic recovery to continue.

Commodity markets are growing rapidly

Pesto, the current growth rates are unexpected. After the loss of the second quarter, a correction could be expected, but it is amazing how hard the commodity markets have embarked on them. Commodity indices are a good middle of market performance. Like stock indices, the performance of individual financial assets varies according to their weights.

Probably the best-known S&P GSCI commodity index, which includes price changes for twenty commodities, has risen 10 percent since its arrest in July. The fastest growing commodities of the index were the metals and agricultural commodities industries. But if we were looking for the fastest growing commodity, it would definitely be a penny.

He completed the turn

At the same time, the penny was one of those who pulled the commodity markets down in the first half of the year. The penny reached its minimum at the end of June, when it lost 16 percent compared to the end of the year. Then the bag started really hard, which continues to this day. Of its lows, it has strengthened by 60 percent on the Chicago Commodity Exchange, which is the fastest growth of this commodity since 1973. And it still did not end.

The reason, of course, is more. In addition to the factors described, growth started at the end of June, initially with a sharp decline in the total area of ​​maize sowing in the USA. Piem penice is its main substitute.

In July, he drank the first warning of the drought that affected the European Union and Russia. Gradually, the addition of other states began, which reduced production estimates due to the dry weather – Kazakhstan, Ukraine and the USA. On the contrary, Canada was affected by raincoats, which had the same effect on drought as drought.

While the problems of individual countries began to calm down at the end of July, the situation in Russia, on the other hand, worsened. Pore ​​and drought were estimated at 70 million tons per year, so the bag is updated daily. Unofficial estimates are at 50 million tons. Last week, even the Russian state administration banned cereal exports on Thursday. Russia has long been the world’s fourth largest export of money, and this move will strongly affect its global prices.

The other cereals follow the penny handed over

In this way, the prices of the pennies are extremely high, and the population of the Czech Republic. In addition to hot customers and a happy farmer, they have so much investment. It is only possible to estimate how long the panic will last on the market.

The reaction of the penny substitute will be interesting. Kukuice has added less than 16 percent and 17 percent since the end of June. If the situation on the penny market did not calm down soon, these cereals could react first. Compared to the end of the year, they are still in the red and large investment houses could soon adjust their world prices for these commodities upwards.