Demand to outstrip grain supply, traders say

Though the United States Department of Agriculture released negative numbers Thursday for the grain and soybean markets, sparking a fourth consecutive lower opening, a long-term trend of increasing world consumption provides favourable support for farm markets, analysts say. In a CME Group press briefing, instead of focusing on a current 'breaking' pattern for the grain and soybean markets, the panel addressed the increasing food demand of the world.

In fact, Scott Shellady, XFA currency and grain trader, says that using a 2 percent growth rate, the world's population double in about 35 years. "Further, of all the people ever born in this world, 15 percent of them are alive today. That is incredibly significant. And as that number rises, it's hard not to be bullish and not buy this market. It's shaping up to be a demand that we could have a hard time supplying." Read more ...

This blog is written by Martin Little The Global Miller, published and supported by the GFMT Magazine from Perendale Publishers.