Soft commodities such as soy and corn should be used by investors to protect against inflation in the same way as gold, according to the founding partner of GAIA Capital, John Coast Sullenger.
Soft commodities such as soy and corn should be used by investors to protect against inflationin the same way as gold , according to the founding partner of GAIA Capital, John Coast Sullenger.
Sullenger, whose company launched the first global farming index, the GAIA Farming Index, told CNBC that population growth and changing consumption habits are driving up prices of agricultural commodities .
“These trends are well established,” he told " Worldwide Exchange ". “The FAO (Food Agriculture Organization) is saying we have to increase food production to meet demand by 50 percent by the year 2030, and by 80 percent by the year 2050. So that growth is there.”
He conceded that short-term trends in soft commodities were reliant on weather and warned against economically sensitive commodities like cotton , but added that investors should be “somewhat visionary” with their perspective and can gain exposure with physicals, futuresand stocks.
Tom Vosa, Head of Market Economics Europe at National Australia Bank, questioned whether prices would see such a long-term increase as Sullenger expected.Page 1 of 2 | Next Page