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Peru's economy is feeling the effects of China's slowdown through lower copper prices, with copper about 10% below year-earlier levels in early February. The sol weakened against the dollar over February, moving from 3.31 to 3.46 per US dollar.
Goldman Sachs estimates a 10% copper price drop would cut Peru's growth by about one percentage point.
Weaker Chinese demand for metals and agricultural commodities reduces export receipts across Latin America, which can pressure local currencies and feed-input import costs. For feed buyers, softer Chinese demand for Argentine and Brazilian agricultural exports is a bearish signal for soy complex prices.
perusupportgroup.org.ukFeb 29, 2020Not enough comparable past events yet for a historical read.
After 117 past bearish macro events, Soybean Meal moved a median -0.6% over 5 sessions (41% higher; middle half -2.5% to +1.7%), and +0.5% 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.
