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USDA 10 YEAR WORLD VIEW
USDA's Foreign Agricultural Service has sketched a 10 year view of factors which may impact global agricultural markets. Emerging markets are expected to be the engine for growth, such as the increasing size of middle class populations in both China and India. Other factors include the value of the U.S. dollar, worldwide biofuels production, trade liberalization, policy errors by governments (tariffs, embargoes etc), energy prices, biotech developments and additional crop land that might be brought into production. MARKETS
China continues to dominate world commodity markets. The Government of China has been making attempts to curb inflation by increasing interest rates and threatening commodity speculators. The government has also taken commodities such as vegetable oil out of its reserve in an effort to reign in domestic prices. These actions have affected world futures markets with funds and other investors taking profits and heading for the sidelines. This has added a great deal of volatility to the markets in general, in particular, the oilseed and product markets. In the meantime, oilseed supply/demand tables are positive and price supporting. The moisture situation in Argentina is of interest.
USDA's Foreign Agricultural Service has sketched a 10 year view of factors which may impact global agricultural markets. Emerging markets are expected to be the engine for growth, such as the increasing size of middle class populations in both China and India. Other factors include the value of the U.S. dollar, worldwide biofuels production, trade liberalization, policy errors by governments (tariffs, embargoes etc), energy prices, biotech developments and additional crop land that might be brought into production. MARKETS
China continues to dominate world commodity markets. The Government of China has been making attempts to curb inflation by increasing interest rates and threatening commodity speculators. The government has also taken commodities such as vegetable oil out of its reserve in an effort to reign in domestic prices. These actions have affected world futures markets with funds and other investors taking profits and heading for the sidelines. This has added a great deal of volatility to the markets in general, in particular, the oilseed and product markets. In the meantime, oilseed supply/demand tables are positive and price supporting. The moisture situation in Argentina is of interest.
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