New Super Cycle in Agricultural Commodities? One Bank Thinks So

We’re not in biblical times, but analysts at Rabobank think we could be at the start of an agricultural commodity supercycle of biblical proportions. 

In a recent analysis, the bank covers seven key areas:

  1. Exporters stocks have fallen rapidly to 7-year lows
  2. China is importing on a vast scale
  3. It’s hard to increase supply rapidly
  4. Adverse weather conditions
  5. Countries are engaging in food protectionism
  6. Logistical costs are rising, notably in freight
  7. Speculators are holding more commodities futures.

The analysts point out that this could lead to a huge rally in prices for soft commodities, it also acknowledges the dark side of such a cycle, growing food insecurity across poor sections of the world.

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  1. Kenneth Leslie
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    China might also be stock piling for war.

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