Much of the focus of Informa Economics Chairman and CEO Bruce Scherr's presentation at the Farm Journal Forum focused on the sustainability of the current commodity price environment. And bottom line is that commodity futures have achieved and will maintain their current levels because they are justified by demand. Demand has grown globally as the population has not only expanded by more than a billion, but also, there has been a shift from sustenance to middle income among the global population.
To meet these needs, Scherr says "a new gig" is needed for expansion and economic strategy to meet these growing needs.
Scherr also spent some time talking about China. Though he made sure to emphasize this has not yet been manifested, he said that though much of Chinese corn buying has come from state entities, if the underlier proved to be consumer driven demand, the U.S. couldn't produce enough corn to meet their demand needs.
Finally, looking ahead for the global economic picture, Scherr expects to see slow growth led by emerging economies. Questioned about the political environment into an election year, Scherr's personal prediction is for President Obama to be re-elected and for the Republicans to take both the House and Senate. If this occurs, he is optimistic this could lead to a more "Clintonesque" structure where progress could be made thanks to compromise.
For ag, he says there will continue to be a need for "big crops year after year."
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