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Citigroup and Morgan Stanley warn that the rand's outperformance this quarter is likely to end because of South Africa's recession, junk ratings and political problems. Foreign bond outflows in June are cited as an early sign of a reversal.
A weaker rand would raise the local cost of imported feed inputs and could push South African feed buyers toward higher domestic prices. The note is an outlook rather than a supply or demand shock.
moneyweb.co.zaRobert Brand, BloombergJun 30, 2017Not enough comparable past events yet for a historical read.
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.
