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Agricultural sales are starting at the “mini-supercycle” where prices are expected to rise for several years from China and biofuels, according to some of the world’s top retailers.
Officials from Cargill, Cofco, Viterra and Scoular say this week that markets for corn, soybeans and wheat will remain strong for the next two to four years.
Prices have returned from their old-fashioned prices over the past few weeks as the US dollar rises and rainfall is expected in the southwestern US, but prices are double compared to the previous year at $ 3.29 per bushel, soybeans at $ 14.31 and 65 per cent higher, and wheat is about one-third to $ 6.54.
“We’re really looking at a little bit,” said David Mattiske, Viterra’s senior, mostly Glencore,. FT International Conference. “We are in an area where we want more people, more wealth, more people to eat. And in addition, we also need more oil for plants.”
Rising prices will benefit farmers who have been experiencing economic hardships for several years over crop prices. However, it will mean rising food prices for heirs and oil-producing wheat, especially in poor countries struggling with the economic crisis of the epidemic and rising food prices.
Seeds and soybean markets were strongly encouraged in the second half of last year by governments and corporations he ran to the pile during the plague. China, which had low maize yields, was produced big purchase, importing a record 11.3m ton last year, more than a third of total US revenue.
According to Alex Sanfeliu, head of Cargill’s global trade group, two major annual yields of corn and soybeans – one in the US and one in Brazil – mean that the supercycle in rows and oilseeds tend to be shorter than other crops, but he predicted . beef market for the next two to four years. “High quality standards exist,” he said.
Last year’s maize exports to China, which has long sought to justify itself, have puzzled traders and experts and questioned whether this will “revive” the epidemic if it continues or if purchases continue.
Several leaders believe that diversity will continue, pushing the rising power to continue importing corn. Marcelo Martins, director of seed and oil at Cofco International, which sells to Chinese corporations, said there had been a dispute over the area due to low yields. “[The supply deficit] he has come here, ”he said.
So far, the demand for biofuel, which promotes soybean and soybean prices, has “never been higher,” according to Paul Maas, chief agricultural officer at US Scoular. While governments want to reduce fuel consumption, many are increasing the amount of fossil fuels. “More and more is real and we’re at the end of it to see how it plays out,” Maas said.
Despite being an activist, Gary McGuigan, global trade chief at Archer Daniels Midland, added a word of caution. “We’ve seen the price improvements in the last few weeks or so,” he said, adding that even the required power was “completely changing” it was too early to call for a small supercycle.
One of the biggest uncertainties was China. “Of all the most sought after destinations in the world, China is the most opaque and the most difficult to predict,” he said.
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