RSS
Twitter
Linked In
News In
News
Linked In
RSS
https://twitter.com/Agrimoney
http://www.newsnow.co.uk/h/Industry+Sectors/Agriculture

You are viewing your 1 complimentary article.

Register now to receive full access.

Already registered?

Login | Join us now

Crop prices 'poised for gains', says Monsanto, flagging need for yield growth

Twitter Linkedin eCard

Crop prices are poised for gains, Monsanto's Mac Marshall said, flagging that even after a series of bumper world harvests, inventories are closer to food crisis levels than to the gluts which pressed values to turn-of-the-century lows.

Mr Marshall, lead in strategic planning and communication at Monsanto, told Agrimoney LIVE that he was "long-term bullish on prices" of crops such as corn, soybeans and wheat.

"We will start to see some appreciation on the price side."

The forecast – which echoed a forecast on Wednesday to the conference from BlackRock commodities expert Skye Macpherson - reflected a pace of stockbuilding which appeared relatively weak, given that the world had enjoyed four successive strong harvests.

'Closer to crisis than glut'

Global inventories of storable commodities, such as grains, meat and oilseeds have recovered to the equivalent of 73-74 days' supply, well above the low of 58 days seen in 2008 which drove a spike in food prices.

Even so "we are a lot closer to the lows we saw when we had the food crisis that the real surplus we had at the turn of the century", when inventories rose to the equivalent to 93 days' consumption.

Food prices as measured by the United Nations Food and Agriculture Organisation (FAO) hit their record low in May 2002, on data going back to 1990.

The inventory rebuild is "more a temporary factor than a structural change. It is not a sea change", Mr Marshall told the conference, in London.

Need for investment

While "we have seen prices come down very significantly", higher values would prove beneficial for farming, in providing an incentive for measures to promote output needed to meet long-term demand growth.

"High prices are a good incentive for investment in agtech," Mr Marshall said.

Yield growth was paramount given that the area of global farmland will remain "restricted", and indeed decline to the equivalent of one-third of an acre person in 2050, from around one-half of an acre now, and 1 acre in 1961.

"We have to deliver more efficiency in each acre we farm."

By Agrimoney.com

Twitter Linkedin eCard
Related Stories

Evening markets: Soybean futures gain, cotton prices jump on US data

Initial USDA forecasts for crop supply and demand for 2018-19 lift soy and cotton prices, but are not so well received in the cotton market

US soy exports to rebound to record top in 2018-19 - but corn, wheat volumes to fall

The USDA, in much-anticipated forecasts, sees a boost to soybean trade from Argentina’s woes. But corn, wheat exports face strong competition

Demand for US soybeans, soymeal tumbles, as prices soar

US export sales of soymeal hit a 2017-18 low, and those of soybeans turn negative. But in cotton, buyers step in as prices fall

World wheat output to fall this year - but not barley, corn, rapeseed harvests

But corn stocks, like wheat inventories, look like declining over 2018-19, the IGC says, in its first forecast for the grain
Home | About | RSS | Commodities | Companies | Markets | Legal disclaimer | Privacy policy | Contact

Our Brands: Comtell | Feedinfo | FGInsight

© Agrimoney.com 2017

Agrimoney.com and Agrimoney are trademarks of Agrimoney Ltd
Agrimoney is part of AgriBriefing Ltd
Agrimoney Ltd is registered in England & Wales. Registered number: 09239069