Title: Commodity market in 2021: platinum, wheat, sugar and cotton
Headings: Commodity market in 2021: platinum, wheat, sugar and cotton
Commodity market in 2021: platinum, wheat, sugar and cotton
What drives the value of agricultural commodities?
Commodity market in 2021: further upside potential
Wheat
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Cotton
Platinum
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Content: Check out this commodity market analysis video in which Capital.com’s chief market strategist David Jones provides an overview of the platinum, wheat, sugar and cotton and uses technical indicators to suggest potential trades. What drives the value of agricultural commodities? Supply and demand are the main price drivers in the agricultural markets, more so than any other commodity markets. China is a major buyer of agricultural products and has been building its stockpile, helping to lift prices. The Covid-19 pandemic has disrupted trade flows around the world and large food suppliers have been buying stockpiles to ensure supply. The La Niña weather phenomenon is in play this year and could disrupt global crop production, increasing volatility in the markets. La Niña increases the risk of heavy rainfall and flooding in some parts of the world; and drought through reduced rainfall in others. It can have a severe impact on agriculture and food security, notes a report from the Food and Agriculture Organisation of the United Nations. The US dollar also plays a role, as most commodities are traded around the world in this currency.