Animal Spirits Podcast Talk Your Book: The State of Commodities
Jul 11, 2022
Sal Gilbertie, CEO of Teucrium and expert in agricultural commodity ETFs, shares valuable insights on the current state of agricultural commodities. He discusses how the war in Ukraine is affecting wheat prices and global food security, emphasizing the critical balance of supply and demand. Sal also compares the hedging capabilities of agricultural commodities against traditional assets like gold and Bitcoin amid rising inflation. His perspective on investment trends and the implications for poorer nations creates an essential dialogue on the future of food markets.
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State of the Agricultural Commodity Market
- Agricultural commodity markets have calmed down after the initial price spikes following the Ukraine invasion.
- Investors are now considering maintaining or reallocating their agricultural commodity holdings.
Impact of Trend Followers
- Trend followers influence investment flows in agricultural commodities, but not prices.
- The market is too large for any single investor group to manipulate.
Farmers' Response to High Prices
- Farmers have responded to high prices by planting more crops.
- Record production is expected if weather conditions are favorable.