Top crop traders see ‘mini-supercycle’ on china and biofuels, BNN bloomberg.
[BNN Bloomerg] Two of the world’s top agricultural traders said crop markets are in a “mini-supercycle” that could last half a decade, driven by increased demand for biofuels and continued grains buying from China.Alex Sanfeliu, group leader of Cargill Inc.’s world trading group, told the FT Commodities Global Summit.
Yes we are in a supercycle.
“Let’s call it a mini-supercycle.”
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The high prices could last for two to four years, said Sanfeliu. Rising demand for biofuels will drive a massive jump in vegetable oil and waste feed stock demand of 15 million to 16 million tons over the next five years.
“It’s like adding another India,” Sanfeliu said.
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A rebound in the world’s largest economies as Covid-19 vaccines are rolled out is stoking demand for metals, food and energy when supplies are still constrained. The Bloomberg Grains Spot Index rose to an eight-year high in May.
After spiking in 2020 and 2021, growth in China’s corn demand will likely slow to 1% to 2% a year, the Cargill executive said.
David Mattiske, chief executive officer of Viterra, Glencore Plc’s food-trading arm, agreed agricultural markets are in a mini-supercycle, with strong demand for plant-based fuels and grains lasting four to five years.
“We are in a higher-priced environment for a few years yet,” he said.
Top Crop Traders See ‘Mini-Supercycle’ on China and Biofuels, June 16, 2021
