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Interest rate futures have sharply increased bets on global central bank rate hikes. Britain has seen some of the largest moves, with about 19 basis points of tightening now priced for the Bank of England by end-2021, versus 2 basis points a month earlier.
Rising rate expectations strengthen the dollar and raise financing costs for feed businesses and farmers, which can weigh on commodity prices. The move is driven by inflation expectations rather than a change in supply.
reuters.comSaikat Chatterjee, Dhara RanasingheOct 12, 2021After 2,356 past bullish macro events, US Dollar (Broad) moved a median +0.2% over 5 sessions (60% higher; middle half -0.3% to +0.7%), and +0.4% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
