While hard commodities like gold and silver continue to capture market attention, the soft commodity sector is quietly building momentum, gradually moving into the spotlight.
Agricultural-related varieties such as grains, livestock, and dairy products have recently shown broad-based strength, which has also drawn attention to the entire agricultural industry chain.
Analysts point out that taking the VanEck Agribusiness ETF (MOO.US) as an example, this fund does not simply bet on spot agricultural prices but offers diversified exposure ranging from fertilizers and agricultural machinery to agricultural product processing and distribution.
The fund's components include industrially-oriented stocks like Deere & Company (DE.US), as well as companies in the animal health and safety sector such as Elanco Animal Health (ELAN.US) and Zoetis (ZTS.US), reflecting the broad-spectrum nature of the agricultural sector.
At the individual stock level, some agriculture-related stocks have already led the way higher and entered a phase of technical consolidation.
Nutrien (NTR.US), which rose nearly 20% over the preceding two weeks, is considered one of the strong performers.
Meanwhile, the market is beginning to turn its attention to varieties that still possess upside potential.
In the fertilizer and basic materials sector, CF Industries Holdings (CF.US) has gained over 18% year-to-date and recorded four consecutive weeks of gains, its longest winning streak since last year.
The stock has formed a significant "price memory zone" around the $90 level, with its 50-day moving average turning upward for the first time since last summer, and the technical pattern showing signs of a double-bottom breakout.
In contrast, peer company The Mosaic Company (MOS.US) has performed roughly flat for the year, highlighting CF's relative strength.
If it can maintain above $86, market expectations suggest it could challenge $123 in the second half of the year.
Within the agricultural product processing and trading sector, Archer Daniels Midland (ADM.US) has risen about 17% year-to-date, with a dividend yield close to 3%.
Its stock price is approaching a 52-week high, has completed an upward breakout of the key $65 level, and its weekly chart shows an "inverse head and shoulders" pattern.
Peer company Bunge Limited (BG.US) has risen about 25% over the same period, providing good peer validation.
If it can effectively stabilize above its 200-week moving average, further upside potential may open, with a yearly target seen at $90.
In the defensive food sector, Darling Ingredients Inc. (DAR.US) has accumulated gains of approximately 23% over the past three months, with five consecutive weeks of gains, and its 50-week moving average on the weekly chart has turned upward for the first time in years.
The stock recently broke through the key resistance level of $40; if it can hold above $37, it could target $55 in the medium term.
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