Latin America: cocoa, coffee and hydrocarbons boosted the market in the first half
The cocoa and coffee items kept market dynamics high during the first half of 2024 in Latin America, along with oil and copper, as opposed to wheat and corn, which experienced declines
The increase in the prices of items such as cocoa and coffee, together with the hydrocarbon sector, has maintained a good rhythm of the markets in Latin America, despite declines in the value of wheat and corn.
According to the Bloomberg Commodities Spot Index, which analyzes future contracts for 24 items, including food and raw materials, as well as minerals and hydrocarbons, an increase of 5 % was experienced in the first half. The products that gave the greatest impetus to commodity trading and generated profits for investors were coffee, cocoa and oil.
Cocoa, although down from its peak in April, overall rose in value 84% from January to June. For its part, coffee, a key product in the region’s markets, reached a price increase of 22.3 %, leading Bloomberg’s list of the 24 products in the basket analyzed.
In contrast, wheat and corn futures contracts suffered losses in the first half (8.88% and 12.73 %, respectively). One of the main reasons for this decline in the price of corn is the effect of climate change in the United States; and in the case of wheat, as a consequence of the Russia-Ukraine conflict.
Oil and copper price increased from January to June
With respect to oil, this main source of energy and key in the economies of Latin America, the benchmark WTI crude oil experienced an increase between January and June of 16 %, and it is expected that together with Brent crude oil, prices will average in the second half barrel of $80 and $84, respectively.
The last step in the commodities section is occupied by copper, with gains that represent an increase of 15.4 %. Credicorp Capital’s projections suggest that demand for this mineral, with China as the main market (50 % of world production), will double by 2035.
M.Pino
With information from BloombegLínea
(Main reference image source: Elle inlom in Unsplash)
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