Soft commodities boom to continue

Wheat prices double in 12 months on back of production/supply failures

The boom in agriculture, which has seen wheat prices almost double in less than 12 months, will continue for several years, according to multi-managers and commodities investors. Soft-commodity prices are booming as a result of supply failures, with causes ranging from erratic global weather and government projects that have forced farmers to divert some crops to biofuel programmes. Another cause is an explosion of demand for higher-quality crops and resource-intensive meat products within increasingly affluent, highly populated developing countries such as China. Wheat prices boom Whea...