Commodities correction 'part of bull run'

Since 2003, grain and soft commodity prices have more than doubled while prices for corn and soya bean have risen by 15% and 30% respectively over January-July. However, more recently prices have weakened with the Dow Jones AIG agricultural index falling by a quarter since the end of June. Kona Haque, commodity strategist at Macquarie Bank, comments: “The recent sell-off of agricultural commodities is a short-term correction and is led by short-term factors such as the value of the dollar and crude oil price.” "We see the current dip as a natural response to seasonal pressures and u...