Investors Looking at the Agriculture Commodities Sector
In the first quarter, the analysts at BHA have noticed an increase in the number of investors interested in the agriculture commodities sector. So far, 48 hedge fund investors have told BHA that they are looking at this sector. This is an increase from the fourth quarter when 36 investors were researching these funds.
The reason for investor interest in agriculture commodities is high demand, which is expected to push prices up. Soybeans, for example, have been in high demand especially in China, which is why a large family office in Switzerland is seeking agriculture commodities funds focused on emerging markets.
Other investors expect the demand for sugar to rise because of the growing middle classes in countries such as China and India. A Belgium family office expressed its interest in niche hedge funds focused on all agriculture commodities but especially sugar.
If the demand for agriculture commodities continues to increase, BHA analysts anticipate that there will be a direct correlation to the number of investors seeking these funds. In fact, with a couple of weeks remaining in the quarter, analysts may even see an increase before the second quarter begins.