5th Commodity Super Cycle! Why Sugar prices doubled in last 18 months?
5th Commodity Super Cycle! Why Sugar prices doubled in last 18 months?
5th Commodity Super Cycle will be driven by Decarbonization, electrification, demand for metals like copper, nickel, cobalt, aluminum, etc. says Mr. Viren Verma, Managing Director (Sugar and Commodity Risk Management), Global Strategic Procurement, The Coca-Cola Company, Atlanta, USA. Viren is an alumnus of Indian Institute of Foreign Trade.
In conversation with Mr. SN Venkat, Adjunct Faculty, Singapore Management University.
We discussed:
1. Decarbonization, electrification, demand for metals, and commodity super cycle! (2:00 min)
2. We will have a 7 million tons deficit of copper, by 2030 (5:00min)
3. Commodities will be the next asset class that will attract investments (7:45min)
4. What’s driving this rally in sugar? (9:00min)
5. Is the volatility of the Brazilian Real reflected in the sugar price movements or Brazilian sugar exports? (9:55min)
6. Has demand for sugarcane from Brazil’s Ethanol industry impacted the supply to the sugar industry? (11:40 min)
7. India exported over 7 million tons of sugar in the season ending Sep 2021 despite cutting sugar export subsidies by 31%. Will India withdraw its export subsidy for sugar? (15:05 min)
8. Outlook for 2022-23 and next 5 years. In the long-term, current electrification drive can have a downward pressure on Sugar prices. (22:25min)
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Correction : The Russian Nordstream 2 gas pipeline will go through the south of Ukraine, the Black Sea, Austria, and Serbia before reaching Hungary. It will not go through Ukraine as mentioned in the interview.
