Trump's Negative Impact on Agriculture Markets

The outlook for soft commodities is uncertain thanks to climate change, but experts warn Donald Trump is a bigger threat to returns

Karen Kwok 27 February, 2017 | 4:33PM

Investors in agriculture will be no stranger to volatile pricing. But the unpredictable nature of soft commodities is usually down to weather events, not politics. Agriculture markets have rallied alongside their commodity cousins over the past year, with sugar at significantly higher levels today – thanks to production being disrupted by Brazilian and Indian weather events.

However, professional investors are warning that, in the near term, Donald Trump will have a bigger impact on soft commodity pricing than climate change.

“America’s two biggest trading partners when it comes to agriculture are Mexico and China – the two countries Trump is being most negatively outspoken about,” Henry Boucher, manager of the Sarasin Food & Agriculture Opportunities fund told Morningstar.

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About Author

Karen Kwok

Karen Kwok  is a Reporter for Morningstar.co.uk

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