• ITVI.USA
    15,313.730
    14.490
    0.1%
  • OTRI.USA
    25.570
    0.060
    0.2%
  • OTVI.USA
    15,308.860
    14.530
    0.1%
  • TLT.USA
    2.690
    0.000
    0%
  • TSTOPVRPM.ATLPHL
    2.900
    -0.030
    -1%
  • TSTOPVRPM.CHIATL
    3.160
    -0.090
    -2.8%
  • TSTOPVRPM.DALLAX
    1.440
    0.000
    0%
  • TSTOPVRPM.LAXDAL
    2.820
    -0.010
    -0.4%
  • TSTOPVRPM.PHLCHI
    2.160
    -0.030
    -1.4%
  • TSTOPVRPM.LAXSEA
    3.400
    -0.020
    -0.6%
  • WAIT.USA
    125.000
    -1.000
    -0.8%
  • ITVI.USA
    15,313.730
    14.490
    0.1%
  • OTRI.USA
    25.570
    0.060
    0.2%
  • OTVI.USA
    15,308.860
    14.530
    0.1%
  • TLT.USA
    2.690
    0.000
    0%
  • TSTOPVRPM.ATLPHL
    2.900
    -0.030
    -1%
  • TSTOPVRPM.CHIATL
    3.160
    -0.090
    -2.8%
  • TSTOPVRPM.DALLAX
    1.440
    0.000
    0%
  • TSTOPVRPM.LAXDAL
    2.820
    -0.010
    -0.4%
  • TSTOPVRPM.PHLCHI
    2.160
    -0.030
    -1.4%
  • TSTOPVRPM.LAXSEA
    3.400
    -0.020
    -0.6%
  • WAIT.USA
    125.000
    -1.000
    -0.8%
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GSCW chat recap: Government intervention in agricultural markets

‘If you want these markets to operate, you need to have the price signals getting through and you need governments to stay away’

This fireside chat recap is from Day 3 of FreightWaves’ Global Supply Chain Week. Day 3 focuses on food and perishables and the consumer packaged goods supply chain.  

FIRESIDE CHAT TOPIC: Big shifts among grain traders and how it impacts agricultural supply chains

DETAILS: Jonathan Kingsman discusses several key trends that have impacted global supply chains in agriculture over the past 40-plus years. One is the evolution of the huge grain merchants that controlled so much of the flows back in the 1970s, who have either changed their way of doing business or disappeared altogether in mergers. The second is the growing efficiency of the supply chain in agriculture, which recently has come under pressure from revived government intervention.

SPEAKER and INTERVIEWER: Kingsman is the author of “Out of the Shadows: The New Merchants of Grain” and host of the podcast “Commodity Conversations.” He is interviewed by John Kingston, FreightWaves editor at large. 

BIO: Kingsman spent nearly 40 years in the commodity business as a trader, a broker, and finally, as an analyst. He also founded Kingsman SA, an analytics firm in the sugar market that was sold to what is now S&P Global in 2012. Kingsman, who  lives in Lausanne, Switzerland, also is the author of “The Sugar Casino”; “Commodity Conversations – An Introduction to Trading in Agricultural Commodities”; and Crop to Cup:. 

KEY QUOTES FROM KINGSMAN

On recent trade wars: “Governments were coming back into the business, not just in the U.S., which was impacting very seriously grain exports out of the U.S., but also in Russia, where the Russian government is sort of getting involved again in Russian grain exports.”

“Government intervention impacts these trade flows and makes it pretty difficult for markets to operate. If you want these markets to operate, you need to have the price signals getting through and you need governments to stay away from trying to do what they do when they set prices and fix export quotas.”

On the impact from recent trade wars: “Looking back now, it’s not that bad. Those supply chains still exist. The supply chains are working so we can see that the market is robust and those supply chains are robust.”

“Farmers are attacked for being big. But this increasing efficiency allowed for the amount of farmland to go down and allowed these areas to be reforested.”

John Kingston

John has an almost 40-year career covering commodities, most of the time at S&P Global Platts. He created the Dated Brent benchmark, now the world’s most important crude oil marker. He was Director of Oil, Director of News, the editor in chief of Platts Oilgram News and the “talking head” for Platts on numerous media outlets, including CNBC, Fox Business and Canada’s BNN. He covered metals before joining Platts and then spent a year running Platts’ metals business as well. He was awarded the International Association of Energy Economics Award for Excellence in Written Journalism in 2015. In 2010, he won two Corporate Achievement Awards from McGraw-Hill, an extremely rare accomplishment, one for steering coverage of the BP Deepwater Horizon disaster and the other for the launch of a public affairs television show, Platts Energy Week.