Commodities in current macroeconomic outlook ; A possible hedge against inflation [articol]

Abstract

The recent global economic recession pushed investment funds and other players in the investment world closer to tangible assets, luring them back to commodities and especially to metals and agricultural markets. As the present macro environment supports commodities investing – especially investments in agriculture, thanks to very low interest rates, weaker currencies, a commodity boom, and as a hedge against global inflation - the level of funds invested in commodities increased by over 220% in the 2006-2011 period when compared to the previous five years’ time (2000-2005). Meanwhile, estimates of an increasing global population, rather extreme weather patterns observed in recent years, decreasing crop yields and the extraordinary growth in global ethanol and biodiesel markets, focused the attention on cereals, sugar cane, rapeseed and soy, as concerns of a possible very tight supply situation might happen any time.