World Grain - May 2016 - (Page 40)

FEATURE Time for government intervention? T he world's grains markets are in a position that only action by governments, in the form of setaside, can cure, said Dan Basse, president of AgResource Company, during a speech at the Cereals Europe Conference in April in Geneva, Switzerland. Production growth is outstripping demand growth as population shrinks and ages in much of the Northern Hemisphere. "Somewhere along the line governments have to get involved," he said. "We still have this overproduction which we all remember going back to the 1960s and 1970s. We believe we are in this constant world of oversupply, unless there is Mother Nature to take over and give us rallies. Even if there are rallies, they will only last three to six-months because of hemispheric harvests." There is still money to be made, he said. "There are still opportunities to be had. At least at the moment, unlike the bullish years of the past, we don't have the demand drivers that will take it ever higher. It's not the story Dan Basse, president of AgResource Company, gave the keynote speech at the Cereals Europe Conference in Geneva, Switzerland. Photos by Chris Lyddon. 40 by Chris Lyddon Speaker at Cereals Europe Conference says set aside may be needed as production growth outstrips demand growth I would like to tell, but we just follow the numbers," he said. "Central banks have now poured out $27 trillion over nine years and they haven't done very much. We have 24% of the world having negative interest rates. We have another 80% of the world that has interest rates near zero or 1%. Never has the world seen this before." The U.S. dollar still remains in a bullish phase, he said. "We had a big rally last year. We are now going sideways, maybe a little lower, but we don't see enough of a dollar decline to cause a sizeable seeding shift either in the Black May 2016 / World Grain /

Table of Contents for the Digital Edition of World Grain - May 2016

World Grain - May 2016
Table of Contents
From the Editor-in-chief - Keys to poorer nations’ prosperity
Calendar of Events
AGIC 2016 is July 25-27 in Australia
News Review - Olam breaks ground on Nigerian feed, poultry complex
Nidera appoints new CEO
Scoular searches for new CEO
CHS’ earnings down on reduced commodity prices
ADM begins expansion at Brazilian port
E.U.-28 grain production forecast to meet five-year record
NCSP’s cargo turnover increases in first three months
Gavilon seeks expansion in the U.S.
VICTAM appoints new GM
Cargill profit rises in face of difficult market conditions
Olam secures financing for flour, food processing facilities in Nigeria, India
General Mills to upgrade New York facility
Dangote making changes to flour mill business
CBH’s New Albany site close to completion
Glencore sells 40% stake in agricultural unit
Per capita U.S. flour use dips to lowest level in 18 years
Brazil’s 2016-17 corn production forecast to be a record
Grain Market Review - Coarse grains
Country Focus - Kazakhstan
TECHNICAL PROFILE - Flat bread in Kazakhstan
FEATURE - Realizing innovation’s Opportunities
FEATURE - Time for government intervention?
FEATURE - 2016 IAOM Conference & Expo
CIGI CEO says milling industry must better promote its products
FEATURE - Reforms boost Argentine grain industry
FEATURE - Mid-latitude drying in 2016-17
FEATURE - European supplier profiles
TECHNICAL PROFILE - Durum wheat debranding study

World Grain - May 2016