Neal Kottke in CME Group Magazine features entitled "Harvesting Knowledge". In this feature, the Kottke Associates' founder and chairman shares his thoughts on how commodities markets have changed--and how they have not.
Here is an excerpt from the article:
Looking ahead, Kottke foresees continued price pressure on a number of commodities. Much of this demand is coming from emerging markets - especially in soybeans - a trend that is closely tied to swine and poultry production. Kottke notes China is having the greatest impact on this demand, but he has also seen significant growth in the Middle East, which he attributes to increased sophistication and industrialization of agriculture.
In spite of such price pressure, Kottke does not see bubbles developing in grain markets.
"You have to be careful about which commodities you're addressing when you talk," he points out. "It's true that we have had extremely high prices in grains, but the agricultural markets really reflect on a global basis a continued increase in real demand. The standard of living for a large number of people is increasing at a significant rate, and that's being manifested in greater consumption."
+ Read the Entire Interview in CME Group Magazine