HOW LONG-TERM NATURAL CLIMATE CYCLES ARE CAUSING VOLATILITY FOR WEATHER AND AGRICULTURAL PRICES
Over the next 20 years, the sun cycles and highly correlated ocean and natural climate cycles will be going through a rare synchronized 200-year Grande Solar Cycle Minimum phase. The expansion of weather volatility, Ag price volatility and Ag production volatility are going to be beyond orders of magnitude beyond recent historical precedent.
When we overlay the historic cycles of pandemics, like the one we are currently experiencing, onto this tectonic shift to increased weather volatility, the “just in time inventory” Ag supply chain model the world has embraced over the past 20 years will quickly revert back to the tried and true “stockpiling strategy” seen throughout most of history.
This increased demand required to re-stock the world’s food reserve system will require higher Ag prices to encourage production at a time of challenging volatile weather patterns. Food security, accessibility, reliability and quality are about to take precedent over the prices paid.
In this presentation, Hackett explains various short, intermediate and longer-term cycles, why they happen, the historical data on production and price impacts. Emphasis will be placed on how growers and producers can navigate this dramatic change in our weather patterns to alter their growing, cash selling and hedging activities.
Where we grow our food, how we grow our food, how farmers market their crops and the manner with which we deliver it is going to change in miraculous ways and forever change our lives.
This presentation CAN be crafted to include specific Ag markets of interest and will include a discussion on how to use capital flows (our proprietary Smart Money Indicator Algorithm) in futures markets to help producers and end-users better time their cash/hedging activities.
Both the long term and short-term Ag price considerations will be discussed in detail based upon these capital flows and natural weather cycle trends to provide a framework for proper preparation and execution for producer plans and budgets.