2 ,10 0 2 , 3 0 0 2 , 2 0 0 2 ,15 0 2 , 3 5 0 2 , 4 0 0 2 , 4 5 0 2 , 2 5 0 J A N -17 F E B -17 M A R -17 A P R -17 M AY-17 J U N -17 J U L-17 A U G -17 S E P -17 O C T-17 N O V -17 D E C -17 INOKS CAPITAL SA   © 2018 15 2017 COMMODIT Y VALUE CHAIN CHALLENGES INOKS CAPITAL 2017 IMPACT REPORT COMMODITY CHALLENGES IN 2017 2017 COMMODITY PRICE RETROSPECTIVE Commodity prices were a mixed bag in 2017: while the Rogers index’s upward trend from July to December 2017 was largely driven by a steady increase in mineral, ore and metal prices, food and agricultural raw material prices decreased by 6.2% and 8.7% respectively throughout the year, signalling the end of their price recovery which began in 2016. Strong production levels (notably record wheat and maize output in 2017), excess supply and higher stock levels were the main underlying factors to the drop in prices. PERSISTENT EXOGENOUS MARKET RISKS Another hindrance to commodity prices was the anticipated deceleration of China’s growth and the fear of a resulting drop in demand (as China is the world’s largest commodity consumer). We also kept a close eye on USD liquidity levels as the Fed tightened its monetary policy, which increased inflation in other developed markets and caused monetary tightening to accelerate. Finally, we suffered from indicators of an unexpected global growth slowdown, and of US Dollar appreciation, both historical impediments to Emerging Market growth. GACO - Ghana: locally produced rice is bagged for local distribution Figure 1: Rogers International Commodities Index Total Return - 2017 Price Chart (USD)