With the agricultural commodities heavily impacting numerous industries, investing in the commodities market requires strategic investment tools and expert knowledge. The volatile exotics market is subject to a variety of worldwide conditions, which requires astute leverage and timing techniques to capitalize on the unpredictability.
The four most valued and traded agricultural products in the exotic commodities market include:
The vast importance of coffee in everyday life has transformed the product into the most sought-after commodity after crude oil. Combining worldwide demand and the coffee industry’s impact on farmers, roasters, marketers, restaurants, and equipment manufacturers have transformed coffee into an economy of its own. Global influences with the potential to disrupt the coffee industry include:
With the top five countries of coffee producers including Brazil and Vietnam having a history of political conflicts, the potential for turmoil and volatility is drastic.
Being sensitive to severe weather conditions around the world makes coffee crops susceptible to rainfall and drought conditions that can limit supply.
Thousands of civilizations have heavily relied on sugar as a food ingredient and its continued popularity has made it into one of the most valuable exotics in the world. In addition to its use in food, sugar has recently been used in the ethanol fuel market to help make it one of the most sought after and diverse commodities in the exotic commodifies market. More global influences on sugar include:
With sugar needing 12 to 18 months to harvest, the global output of sugar is the main driver of its price.
Sugar’s link to diabetes, obesity and other diseases has caused governments to consider restrictions and taxes on sugar-related items.
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One of the main drivers in the trade war between the U.S. and China stems from America’s control in soybean production around the world. As the largest provider of soybeans in the world, U.S. political tensions can directly impact one of the most influential exotic commodities. Other factors influencing the soy market include:
As China, India and other emerging countries increase soy imports due to population growth, demand for the agricultural product is also expected to grow.
Being the leading exporter of soybeans in the world also makes the U.S. economy and dollar a direct influencer of soybean prices and profits in the industry.
With corn’s reach extending beyond the food and farming industry including its use in fuel production, corn has a critical role in the exotic commodities market. Corn’s use in ethanol fuel production subjects the product to the volatility of energy production with crude oil prices directly impacting corn’s value. More global conditions impacting corn include:
As the world’s largest consumer of energy, China’s demand for cheaper biofuels can disrupt corn prices.
Corn crops are vulnerable to severe heat waves and weather patterns which limit supply and increase prices.
As global conflicts disrupt economic volatility across many financial markets, St. Vincent Holdings has unlimited trading expertise in the exotic commodities market to help traders limit investment risk while reaching untapped potential.