DMCC and Richcomm Global Services Explore the Future of Commodities at Third Global Commodity Outlook Conference in Dubai
Dubai, UAE; 7 February 2016 – Commodities industry experts from across the world gathered in Dubai today for the Third Global Commodity Outlook Conference (GCOC), hosted by Richcomm Global Services and DMCC in association with DGCX and Thomson Reuters.
The conference saw keynote speakers General Bheki Cele, Deputy Minister of Agriculture, Forestry and Fisheries, the Republic of South Africa; Omar Khan, Director - International Offices, Dubai Chamber of Commerce and Industry; H.E. Anurag Bhushan, Consul General of India; Hind Al Youha, Director – Foreign Trade Policies, Ministry of Economy, UAE; Gautam Sashittal, CEO, DMCC; Paresh Kotecha, Chairman & Managing Director, Richcomm Global Services DMCC, and over 400 delegates identify and debate key challenges as well as strategic opportunities for the year ahead.
In his welcome address, Gautam Sashittal, Chief Executive Officer of DMCC, spoke of the ‘commodities super cycle’, questioning whether or not it is a myth as well as addressing the need to continuously adapt in the commodities marketplace where demand, although at a modest increase, will always rise in line with the growth of the world’s population.
Speaking on what the future holds in terms of supply, demand and technology, he said:
“Global trade is still forecast to increase 3% in 2016 and although the requirement for commodities is set to continue, the delivery mechanisms are changing and evolving. Advancements in the digital sphere, which the World Economic Forum is calling the 4th Industrial Revolution, mean today’s market structures will need to adapt to the trading environment of tomorrow.”
This year’s GCOC addressed five key themes and topics: Macroeconomic trends, energy, agricultural, base and precious metals. Panel sessions saw delegates’ debate and exchange views and opinions on risk, market trends and the upside market potential.
In the session dedicated to the energy sector outlook, Eli Mashmoor, Head of Futures Execution Trading, MJD Partnership/Mercuria mapped out their predictions for Brent and WTI price levels for 2016, and discussed whether or not the sector has potential for price appreciation this year.
Agricultural panel experts Rohit Mahabir of Louis Dreyfus Commodities and Thomas Morley of the World Food Program highlighted how the El Niño weather phenomena will affect crop yields, and if 2016 is expected to be a turnaround year for major agricultural commodities.
The conference concluded with an exchange of ideas on precious metals, assessing how any further interest rate hikes by the U.S. Federal Reserve may influence price volatility. Tawhid Abdullah, Chairman of the Dubai Gold & Jewelry Group, along with Junaid Anwar Khan of the National Bank of Fujairah and Rajab Hamed of Sabayik Al Kuwait Company, stressed that gold typically gains value whenever there is pressure on high-yield markets or a continued slowdown in major economics.
“Hosted by Richcomm Global Services and DMCC the GCOC has undoubtedly grown in stature since its inception three years ago to become a firm date in the annual global events calendar. We see the forum as an essential vehicle for the global commodities industry to come together to identify how to lead and respond to current market trends as well as gearing up for a sustainable future. Next years’ event will be no exception and we already look forward to welcoming everyone to Dubai once again in 2017,” concluded Paresh L. Kotecha of Richcomm Global Services.