World food production must rise 50% by 2030 to meet ever increasing demand; so says a U.N. summit grappling with hunger and civil unrest.
The desire for grainsis climbing at historic rates due in large part to the new demand created by ethanol and other bio-fuels. And with demand significantly outpacing supply … the price has skyrocketed, up 43% this year alone. That’s made staples (especially rice which was cheap a few years ago) all but unaffordable to some of the poorest nations.
I think the UN estimate could be on the low-side, says strategic investor Dennis Gartman. A lot more people will have much higher incomes and will want to eat better. However, I have confidence we can meet the demand.
How would you trade it?
Long-term I think the trend in commodities is from the lower left to the upper right, replies Gartman. I’m bullish on commodities.