Today's chart of the day shows that Agri-commodities have taken an absolute beating over the last couple of months just like every other market apart from US Dollar and DM Government Bonds. However, unlike majority of the markets, Agricultural commodities have great fundamentals within the demand and supply context.
The truth of the matter is that demand and supply outlook only continues to get worse with time, as we continue to neglect supply shortages in almost every major grain and soft. This will guarantee that Agriculture will have a great future. Therefore, I do not think that the current cyclical downturn in Agriculture will last for too much longer, before secular fundamentals take over.
Therefore, another leg down in selling pressure will be enough to lure me to invest for a longer term buy. My favourite commodities in this space continue to be Rice, Soybeans, Sugar and Cocoa.