# COP drop, commodity price rally to the rescue? | Capital Economics

> Capital Economics says ongoing tax-hike protests in Colombia have raised fiscal risks, and it expects local markets and the peso to stay weak in coming quarters. It also says the recent broad rally in commodity prices gives Latin American producers a welcome boost, but that rally is unlikely to last long.

- Date: 2021-05-07 · published 2021-05-07T12:00:00.000Z
- Category: macro · region Colombia · magnitude low
- Page: https://feedsoft.ai/events/47399-cop-drop-commodity-price-rally-to-the-rescue-capital-economics
- Commodities: [Colombian Peso (COP per USD)](https://feedsoft.ai/c/USDCOP.md)

## Why it matters

A weaker peso raises the local cost of imported feed inputs. The commodity rally helps Latin American producers, but its expected fade limits the upside.

## Read by commodity

- USDCOP: bullish ▲

## Sources

- capitaleconomics.com: https://www.capitaleconomics.com/clients/publications/latin-america-economics/latin-america-economics-weekly/cop-drop-commodity-price-rally-to-the-rescue

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.