Volatility to surge in agri-commodity markets amid trade tensions
If trade relations sour between China and US under Donald Trump, there may be notable risks to US food and agriculture exports, particularly soybeans
AGRI-COMMODITY markets are gearing up for a challenging 2025, with strong fundamentals, escalating trade tensions and shifting currency dynamics expected to drive significant volatility across the sector.
Tree crop commodities, such as crude palm oil (CPO), cocoa and coffee, are expected to sustain elevated prices, supported by strong fundamentals while a stronger US dollar threatens to pressure dollar-denominated softs (agricultural products).
In contrast, ringgit-denominated palm oil may see further gains.
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