Agricultural commodities consist of Grains (Corn, Soybeans, Wheat) and Livestock (Live Cattle, Feeder Cattle, Lean Hogs). Similarly to softs these are dependent on the available land and seasonal conditions. There is a positive correlation between Grain and Livestock, as the price of Grains increase, the underlying cost of food for Livestock increases and it follows that Livestock prices rise to factor in the this higher “production” cost. |