Top Crop Traders See ‘Mini-Supercycle’ on China and Biofuels

Top Crop Traders See ‘Mini-Supercycle’ on China and Biofuels

(Bloomberg) -- Two of the world's top agricultural traders said crop markets are in a “mini-supercycle” that could last half a decade, driven by increased demand for biofuels and continued grains buying from China.

“Yes we are in a supercycle,” Alex Sanfeliu, group leader of Cargill Inc.'s world trading group, told the FT Commodities Global Summit. “Let's call it a mini-supercycle.”

The high prices could last for two to four years, said Sanfeliu. Rising demand for biofuels will drive a massive jump in vegetable oil and waste feed stock demand of 15 million to 16 million tons over the next five years.