The biggest winners — and losers — in global agriculture in 2016
Goldman Sachs is among those predicting more gains in the year ahead
New York — Investors who defied surpluses and low prices to make winning bets on agriculture in 2016 have tiny bugs and hungry Chinese pigs to thank for their windfalls. Orange juice, which soared 34%, was the biggest winner for crop and livestock markets. Futures zoomed as a citrus disease shrunk fruit production. The soybean complex, which includes the vegetable oil and animal feed made from the beans, rallied as US exports to China surged. In contrast, there was pain for those who bet on cocoa or wheat, where supply remains plentiful. It was a lacklustre year for the asset class as a whole — the Bloomberg agriculture subindex of nine components was up less than 2% in 2016. Still, that was the first annual advance since 2012. Goldman Sachs is among those predicting more gains for 2017. The bank in November recommended an overweight commodities position for the first time in four years and predicted a 12-month return of more than 4% for agriculture as rising demand erodes cheap sup...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.