Fears about global growth weigh on industrials

It was another strong week for the prices of many agricultural commodities as the USDA’s latest report on planting and stocks stoked concerns about a deteriorating supply outlook. However, given high current stocks, we think these fears are overdone and expect prices to fall back. Meanwhile, the more industrial commodities, both metals and energy, remained hostage to the possible negative ramifications for global growth of the crisis talks between Greece and its creditors. So much so that a further loosening of monetary policy in China failed to have a positive impact on prices.