A consolidation in Q4, but a rally in 2018
- Over the last three months the CRB index rose by around 3%.
- The impact of higher oil and metal prices was dampened by weakness in agricultural commodities (due to large inventories).
- For the remainder of 2017, we expect the CRB index to move sideways because of limited near-term upside potential in oil and metal prices and some weakness in agri prices.
- We expect large inventories to continue to result in lower grain prices in Q4 2017.
- Next year we expect the CRB index to rise by close to 10% because of our optimistic view on oil, gold and agri prices