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Home / MARKET / In 2021 the prices of agricultural products from fuel and metals have risen sharply, global demand for the commodity is expected to remain strong in 2022

In 2021 the prices of agricultural products from fuel and metals have risen sharply, global demand for the commodity is expected to remain strong in 2022

In 2021 the prices of agricultural products from fuel and metals have risen sharply, global demand for the commodity is expected to remain strong in 2022
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In 2021 the prices of agricultural products from fuel and metals have risen sharply, led to the gathering of electric fuels, driven by tight supply and a strong economic recovery because the COVID-19 vaccine has led to a massive lockdown.

Global demand for the commodity is expected to remain strong in 2022 and prices will decline as the global economy continues to recover, although similar price increases are unlikely, analysts and traders say.

“2021 has been characterised by a huge broad-based rally,” said Jeffrey Halley, a senior analyst at brokerage OANDA.

“Although I believe commodity prices will remain robust, I believe the rebound in 2020 and the rally of 2021 will be exceptional years and as such I am not anticipating the same level of gains in the year ahead.”

Energy and food prices rocketed higher this year, hammering utilities and consumers from Beijing to Brussels, raising inflationary pressures.

High prices are encouraging producers to ramp up output, but some analysts expect supplies for products such as oil and liquefied natural gas (LNG) to stay tight as these projects require years for production to come on line.

Chicago soybeans rose for a third year in a row, corn by 22% and wheat by more than 20%. Supply constraints due to adverse weather and strong demand generally boosted agricultural markets.

Both Malaysian palm oil and soybean oil added more than 30%, each rallying for a third year.

For beverages, arabica coffee added almost 80%, taking gains into a second year and robustas jumped 70%, recouping three years of losses, as supply chain issues increased appetite.

Raw sugar rose more than 20%, rallying for a third year and white sugar made similar gains as production fell in top producer Brazil because of a drought and frosts.

Precious metals prices may cool, dragged down by strong risk appetite in equities and other markets, analysts say.

Gold was largely unchanged after dropping last year and silver is set to end the year down after two strong years. Find more.

|Source: Online/SZK

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