While some commodities rebounded nicely in 2018, the grain markets have continued to stagnate and even decline into Q1 of 2019. Trade wars, a strong dollar, and unrelenting world supply have continued to pressure corn, soybeans, and wheat prices across the globe. Further evidence of stress levels in the grains sector can be seen below in Bloomberg’s ag sub index.
Source: Bloomberg
As you can see, inflation-adjusted agriculture prices are at levels not seen since the late 1960s. This begs the question: is now a buying opportunity or will the grain sector be in decline