Welcome to final 2020 edition of the Ghost In The Machine, which is broadly themed around reviews of the impact of the Covid-19 on economies and markets, while looking ahead to what will hopefully be a brighter and better new year.
In the agricultural commodity arena, it is fair to say that weather and other disruptions prompted what proved to be a very sharp reassessment of the supply and demand outlook which had formed as the initial shock of the pandemic ebbed, we take a closer look at how this has impacted grains, livestock and sugar, and how this has also prompted a sharp increase in non-commercial (funds) flows into many sectors.
There is also an evaluation of how the pandemic has or has not accelerated the overarching trends and progress towards Decarbonization, Decentralisation and Digitalization.
China’s demand for raw materials and commodities has long been a key factor in price formation, the launch of the INE yuan denominated Shanghai copper contract set to signal a further shift east for the market. Uncertainty remains the watchword for investors, but it may be wiser for equity investors to focus more on what is known in formulating investment decisions to ‘catch the wave’ of the post pandemic recovery, particularly as the maxim of ‘not fighting the Fed’ appears to have never been truer.
The volatile rally in Bitcoin and other cryptocurrencies has perhaps distracted markets’ attention somewhat from the rather more critical issue of how central banks and regulators deal with the pandemic accelerated shift to digital payments and the challenges posed by ‘big tech’, with China offering an interesting perspective. Finally there is a look at how agriculture interacts with the world of cinema in the context of a new film.
Risk Warning: Investments in Equities, Contracts for Difference (CFDs) in any instrument, Futures, Options, Derivatives and Foreign Exchange can fluctuate in value. Investors should therefore be aware that they may not realise the initial amount invested and may incur additional liabilities. These investments may be subject to above average financial risk of loss. Investors should consider their financial circumstances, investment experience and if it is appropriate to invest. If necessary, seek independent financial advice.
ADM Investor Services International Limited, registered in England No. 2547805, is authorised and regulated by the Financial Conduct Authority [FRN 148474] and is a member of the London Stock Exchange. Registered office: 3rd Floor, The Minster Building, 21 Mincing Lane, London EC3R 7AG.
A subsidiary of Archer Daniels Midland Company.
© 2021 ADM Investor Services International Limited.
Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. The information and comments contained herein is provided by ADMIS and in no way should be construed to be information provided by ADM. The author of this report did not have a financial interest in any of the contracts discussed in this report at the time the report was prepared. The information provided is designed to assist in your analysis and evaluation of the futures and options markets. However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright ADM Investor Services, Inc.