Toll Free 800.831.3587

The Exchange

Offering the latest news and leading insight.
Investment Outlook Conference Summary :: Charles McVean

Delta Trust & Bank hosted the 10th Annual Investment Outlook Conference on February 23rd. We were honored to have Charles McVean with McVean Trading & Investments LLC and Bob Turner with Union Pacific join us as this year’s speakers. Chris Harkins, Senior Vice President and Managing Director of Delta Trust Investments, attended this years conference and provided the following summary of Mr. McVean’s presentation. To watch Mr. McVean’s full presentation, click here.

 

Mr. McVean led off our guest speakers with a bang, stating that he felt it was dangerous to have such a high level of concentrated assets and wealth in the hands of so few. His presentation was titled The Long-Term Outlook for U.S. Agriculture, sub-titled “in a potential promising , yet increasingly complex and challenging, global Macroeconomic environment.” A mouthful, yes with charts to boot! He had several words of caution relating to the supply and demand aspects of commodities, especially soybeans and corn. He stressed his concern over the meat industry and likely shortage of supply due to the rising costs of corn and drought in Texas, placing extreme pressure on livestock and breeding. One blaring theme that Mr. McVean emphasized was the disjointed trade deficit with China, that has skyrocketed over the past three decades. The migration of manufacturing jobs over the past few decades, first to Mexico, then China is now moving down the pacific rim coast, country-to-country chasing the lowest cost provider. He feels that, in time, those jobs will come back towards Mexico and eventually the United States.

Back to soybeans; as a protein source, emerging markets already like it and the consumption outlook is significant, not only overseas, but here in the U.S. It far less expensive to “raise” soybeans than cattle and the cost/benefit comparison leans towards growing soybeans as populations and wealth grow throughout most of the world. Mr. McVean is also concerned over the comparison of the current U.S. weekly hours worked versus 10 years ago, which has plummeted since 2003. Could this be the result of productivity, which has skyrocketed in the last decade, reducing the numbers of hours needed to produce equal or greater output? Perhaps, yet I’ll leave that the number crunchers. My read on much of Mr. McVean comments stemmed from realizing that world is expanding, consumption and wealth creation is spreading, resources will continue to be in great demand, some more than others and that we must run towards more efficient and realistic goals for food consumption going forward. Regardless, he feels that costs will increase and we should prepare to pay up or seek out alternatives for protein, such as soybeans versus beef.

Chris Harkins
Senior Vice President & Managing Director
Delta Trust Investments, Inc.

Meet With Us

We are ready to discuss your financial needs. Scheduling a time to meet with us is simple, just click here.

©2014 Delta Trust & Bank | Privacy & Security

This blog does not necessarily reflect the opinion of Delta Trust & Bank or any subsidiaries. They are the opinion of the author.

For bank products or bank specific posts:

By operation of federal law, beginning January 1, 2013, funds deposited in a noninterest-bearing transaction account (including an Interest on Lawyer Trust Account) no longer will receive unlimited deposit insurance coverage by the Federal Deposit Insurance Corporation (FDIC). Beginning January 1, 2013, all of a depositor's accounts at an insured depository institution, including all noninterest-bearing transaction accounts, will be insured by the FDIC up to the standard maximum deposit insurance amount ($250,000), for each deposit insurance ownership category

For any posts or products related to Delta Trust Investments, Inc., Delta Trust Insurance or the trust department:

Not Insured by FDIC or any Federal Government Agency. May Lose Value. Not a Deposit of or Guaranteed by a Bank or any Bank Affiliate.

Any customer who should happen to be dissatisfied with the service provided by Delta Trust Investments, Inc., is invited to write to:

James Alger, President, Delta Trust Investments, Inc. | P.O. Box 17607 | Little Rock, AR 72222 | 501-907-2297 or 1-877-349-9333, or Email James Alger.

Delta Trust Investments Inc. is a member of FINRA* and SIPC*

*By clicking on 3rd party links you will be leaving the Delta Trust Investments Inc website.

Equal Housing Lender Member FDIC

You are leaving delta-trust.com.

Close

You are leaving the Delta Trust Website. Do you wish to continue?

Meet With Us

We are ready to discuss your financial needs. Fill out the form below and someone will be in touch with you.

NOTE: Please do not include sensitive information such as your social security number or account number in your message.

×

Contact Us

We are ready to discuss your financial needs. Fill out the form below and someone will be in touch with you.

NOTE: Please do not include sensitive information such as your social security number or account number in your message.

×