“Ags are a really good diversifier because people eat no matter what.” – 01:06
Sal Gilbertie, CEO of Teucrium Trading, joins Remy Blaire at the New York Stock Exchange to discuss the current state of agricultural markets and the evolving landscape of cryptocurrency. The conversation takes place at the New York Stock Exchange, setting the stage for an insightful dialogue on these two significant sectors.
Remy begins by outlining the challenges faced by agricultural markets, including weather variability, geopolitical tensions, trade disruptions, and supply chain issues. He notes that prices for corn and soybeans are currently near production costs, suggesting limited downside potential and a favorable outlook for upside growth. Sal emphasizes the steady demand for agricultural products, stating that people will always need to eat, regardless of economic conditions. This consistent demand makes agricultural commodities a strong diversifier in investment portfolios, particularly during times of stock market volatility.
As the discussion progresses, Sal advises investors to monitor agricultural price charts. He suggests that when prices reach historically low points and begin to stabilize, it may be an opportune time to allocate funds, as the downside risk is limited. He uses corn prices as an example, explaining that they have historically doubled during periods of drought, highlighting the unique supply-demand fundamentals of agricultural products.
The conversation then shifts to the impact of geopolitics on agricultural commodities. Sal explains how trade disputes, particularly between the U.S. and China, can lead to temporary disruptions in pricing. However, he points out that these situations often create opportunities for investors, as the demand for commodities remains constant, even if the source of supply shifts.