Stone X Group Chief Commodities Economist Arlan Suderman says previous bullish markets were caused by great commodity super cycles. This leaves some wondering if we are currently in another super cycle with wheat. “Great commodity super cycles come about every 30-to-35 years. The one in the 1970s was due to the great grain robbery from Russia. I remember going to the grain elevator asking how much wheat was up. We should be due for another cycle. Could this be another?” Suderman says this time, there’s an inflationary component and there are several fundamental stories at play. “Some of it is related to stimulus and increasing consumption. There’s a lot of people interested in protein. Milling quality wheat is tight and we don’t have margin for error there.” The strength in the wheat complex could be sustained longer, pending a black swan event.
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