Next boom in commodities could be in agri products

The next commodities boom could be in the agriculture sector with middle class incomes boosting the demand for food items such as meat, dairy, sugar and edible oils, an HSBC report said. This could present investment opportunities in agriculture, it added. "It may, in fact, be the case that food prices have the potential to outperform relative to metals and energy prices in the coming years, as growing middle class incomes continue to boost demand," according to the latest HSBC Global Research report. Agriculture product prices have risen by far less than metals and energy prices over the past decade, but could be the next big story, it said. As incomes rise and the middle classes expand in the emerging economies, populations are expected to demand more and better quality food, it added. Stating that there is likely to be a continued shift in the type of food that is in demand, the report said: "Our estimates suggest that an additional 1.3 billion people are expected to attain at least middle-income levels by 2030 - a number that is equivalent to four times the current population of the US. Another 2.6 billion people are expected to obtain middle income status by 2050."