Well, that all depends on how quickly Black Sea and other undeveloped nation's infrastructure and technology keeps pace with the demand for grain. Most farmers will tell you pretty quickly how long the talking heads have been calling for a "new normal" and sky-high wheat prices; but the reality is, if wheat producing nations are increasing the efficiency of their supply chain and technology then there will be considerably more supply available to feed the increased demand. Which one has won the battle in the last decade? About even. And that's with a massive increase in the Chinese and Indian middle class, who demand more meat. At a technology and supply chain level, countries like Romania, Ukraine, Russia even, are starting from a very low base. It's the precise reason why Glencore are investing soheavily in the region. They see how much money will be made from owning the supply chain in these regions. Even back here in Oz, we have considerable scope to improve our farming practices and increase yields through technological advancement. The day will also come where highly drought tolerant seed is developed. Can you imagine howtl that might change the global S&D!?
