Global Agricultural Weather Pattern Outlook – 2021

Published on: January 11th, 2021

Shawn Hackett, president of Hackett Financial Advisors, discusses a set-up for signifcant upside potential in most Ag markets over the next 12 to 18 months as the conditions for a rare weather cycle combination, pent-up feed demand from Asia, and burgeoning consumer demand after achieving herd immunity from COVID-19 collide. Hackett lays out the historical data for this upcoming weather cycle for late 2021 to early 2022 as well as the global weather outlooks in the coming months and how this extreme weather volatility would affect agricultural production. With Asia, particularly China, recovering from the African Swine Fever animal pandemic and global consumer demand and economic activity set to rebound after the COVID-19 pandemic subsides, he also explains where he sees some of the greatest opportunities in the Ag markets and how to play on these dynamics.

Comments

  • CD
    C D.
    14 January 2021 @ 02:38
    Thank you Shawn. Interesting piece for us as we access "Ag" through a recent tech play. God bless!
  • JC
    James C.
    13 January 2021 @ 19:10
    Great talk. Very informed, helpful.
  • MK
    Martin K.
    13 January 2021 @ 03:09
    Absolutely fascinating data and analysis. Does anyone have any thoughts on how the thesis presented will affect the price of phosphate rock and fertilizers over the next couple of years?
    • SH
      Shawn H. | Contributor
      13 January 2021 @ 10:58
      Typically fertilizer and phosphate see a surge in demand and prices as farmers look to increase yields through increased applications to take advantage of higher prices.
  • JA
    John A.
    12 January 2021 @ 20:14
    I understand so little of this beyond a superficial understanding, but it is fascinating. I didn't even know that this kind of weather research existed. It blows my mind that some of the concepts here aren't brought up more often as a counterpoint to the consensus view on global warming.
  • MW
    Max W. | Real Vision
    12 January 2021 @ 14:38
    Shawn Hackett will be appearing on Real Vision Live on Jan 13th at 12PM ET to discuss his short/medium term outlook on Ag prices.
    • NC
      Nicholas C.
      12 January 2021 @ 16:23
      Perfect timing with the grain report due out today
  • NC
    Nicholas C.
    12 January 2021 @ 16:22
    Excellent research. Would love to see this on a regular basis. Also Interested to see any more granular data you have specifically on the Sichaun and Yunnan Provinces as that is where the majority of the bitcoin hashrate is concentrated. That area saw terrible floods during monsoon season last year which typically is good for cheap hydro power. However it flooded so much some power generation dams had to be cut off to relieve pressure.