Producers of metals and other raw materials fell as traders positioned themselves for a U.S. recession.
Traders are betting that the combination of supply-chain disruptions, rising interest rates and widespread inflation will tip the U.S. into its second recession since 2020.
The commodity industry has benefitted from a spike in the price of grains, metals and fertilizers that resulted from the Russian invasion of Ukraine. But the sharp trajectory of the gains has generated some "demand destruction," as farmers seek alternatives for feed and fertilizer, and consumers cut down on purchases of manufactured goods.
Agricultural futures are expected to remain elevated through the first half of the year defying expectations that futures would ease in the second quarter of the year, according to credit-ratings firm Fitch Solutions.
In another indication of slowing commodities demand, Deere & Co. cut its projection for global agriculture, forestry and road-building activities.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
05-20-22 1627ET
