Agricultural commodities to overcome previous lows

Both crop and livestock prices are taking hit in recent months, showing that even the agricultural commodity prices were not left unscathed. 

The crop markets should overcome their off-late losses, being amply supplied, after a third straight super crop year. This will keep a cap on the prices moving further.

The prices of livestock should see rebound due to the demand in Chinese economy, which remains a key meat consuming market. The overall demand picks up with this.

"That said, neither cattle nor hog prices are expected to reach last year's record highs, as hog herds are expanding and the cattle market faces competition from lower priced meat", says Danske bank in a research note.