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
Facebook Twitter LinkedIn

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.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Facebook Twitter LinkedIn

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Sarasin Food & Agriculture Opps A Acc2.21 GBP-1.28Rating

About Author

Karen Kwok

Karen Kwok  is a Reporter for