Shawn Hackett, president and CEO of Hackett Financial Advisors Inc., discusses the significance of price action cycles, particularly the Benner Cycle, and their impact on agricultural commodity prices.
By combining the Benner Cycle with the Fibonacci sequence, Hackett predicts major price peaks for commodities and grains between 2027 and 2029. He emphasizes the importance of recognizing price cycles to make informed decisions in the agricultural sector.
Hackett also discusses how weather volatility and the strength of the U.S. dollar impacts grain prices. A stronger dollar depresses prices, while a weaker dollar boosts them. The European crisis led to currency accords that devalued the U.S. dollar. Hackett suggests a new accord with China could devalue the U.S. dollar, boosting Chinese consumer purchasing power.
He anticipates higher grain prices due to weather volatility in North America and advises understanding these factors to make strategic decisions. He also explores the potential for a natural gas supply crisis due to increased demand and a cold winter. This would impact nitrogen-based fertilizer and grain prices.
Hackett underscores the significance of multiple cycle alignments, such as the Jupiter-Saturn Synodic Cycle and the Gleissberg Cycle, which historically indicate drought conditions. He predicts a heightened risk of severe drought in the Midwest in 2025, similar to the Dust Bowl of the 1930s.
Understanding these cycles and trends is crucial for anticipating significant weather disruptions, making it essential for farmers and stakeholders to prepare for potential impacts on agriculture and commodity prices.
