Agro boom – a little further to go

We have been long agricultural commodities (corn, wheat, soyabeans) since 18 January 2021 (see our report Buying food). Prices have exploded in the last year. Is the party over? Our original reason for going long was that there was a fundamental supply- and demand-driven case to do so. Many other assets do not offer such a justification for their inflated prices. We have revisited the concept. It is by no means as strong as it was back when we invested. But agriculturals fundamentally still look fairly well balanced. So, we are maintaining our long positions.

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