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, reports the Financial Post.
The high prices could last for two to four years, said Alex Sanfeliu, group leader of Cargill Inc.’s world trading group, told the FT Commodities Global Summit. 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.
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.
