World Grain -- December 2015 - (Page 54)

FEATURE An end to the BEAR MARKET? W orld grains markets could be set to hit lows within months, according to David Hightower, president of The Hightower Report. He told delegates the Global Grain Conference in Geneva, Switzerland in November that the bearish market has dissipated. China is growing, supply is getting tighter and ethanol could be set to play more of a role after a period in the background, and the U.S. is leading the world out of recession. Any supply side shock could have a dramatic effect. "I think the markets as we sit here today are in the early throes of making what could be a historic low," he said, stressing that he was referring to modern history. "The economy has underperformed. Production was large, but not as large as was feared. The potential for a multi-year bear market has dissipated." He cited potential issues around the oil market, currencies and China's growth. Anyone of those particular items on any given day could be the primary driving force in the market, he said. "I am a classic fundament analyst at heart," Hightower said. "You have to look at how much is on the ground, how much is being consumed and you have to understand the patterns David Hightower, president of the Hightower Report, speaks at the annual Global Grain Conference in Geneva, Switzerland. Photos courtesy of Global Grain. 54 by Chris Lyddon Global Grain Conference speaker says rebound may occur sooner than most people believe that are unfolding. Supply dominates until supply no longer dominates. The markets will focus on that extra supply. "I would predict that low point and that fulcrum point to perhaps take place between now and the end of the year or maybe at the latest by the end of January. We are getting near the end of a correction in commodities. The bottoms are coming. If you look at January 2015 and January 2016, you DUHJRLQJWR¿QGDOLWWOHELWWLJKWHUVXSSO\´ NOT CONCERNED ABOUT CHINA He played down concerns over the Chinese economy. "If you are going to worry about something, you should worry about the U.S.," he said. "It has a huge debt. The top half of the consumers are doing very well in China." China's economy still relies on selling manufactured December 2015 / World Grain /

Table of Contents for the Digital Edition of World Grain -- December 2015

World Grain -- December 2015
Table of Contents
From the Editor-in-chief - Milling differs from Warren Buffett
Calendar of Events
Second Oilseed Congress scheduled for Feb. 9-10
News Review - Tiger pulls financial support from Dangote Flour Mills
European Parliament rejects national GMO bans
Olam 3Q operational earnings up
Wilmar’s oilseed, grain segment earnings surge
Ardent Mills stake to stay with ConAgra Brands
Noble Agri reports loss in quarter
The Andersons reports loss on Grain Group decline
IGP Institute names interim associate director
Cargill’s new South Korean feed mill is its largest in the world
ADM opens two plants in China
GSFMO privatizes its flour mills
GrainCorp 2015 earnings down
Tiger Brands year-end earnings offset by international operations
Cargill makes executive leadership changes
Glencore agricultural production up
Grain Market Review - Oilseeds
Country Focus - Spain
Feature - Going from margin to mainstream
Feature - Record Turnout in Dubai
Feature - IAOM takes show to Indonesia
Feature - Indonesia's milling giant may expand
Indonesia in numbers
Feature - An end to the bear market?
Feature - Big turnout expected for IPPE 2016
Feature - Shaping the global feed industry
Feed Operations - Bucket elevator selection and installation tips
Supplier News
Product Showcase
World Grain Archive
Ad Index/Reader Information Form International Faxback Program

World Grain -- December 2015