It also assumes that
agricultural commodity prices are a major driving force behind deforestation and that yields decline with expansion.
In the coming decades we will most likely be facing deteriorating global macro economic conditions, increasing climate - change induced weather disruptions (floods and droughts), and more volatility in
agricultural commodity prices and the price of energy used to produce and transport those commodities.
The fund, managed by AgCap chief executive Martin Newnham said that despite
agricultural commodity prices and weather conditions varying year - to - year and region - to - region, the fund's operating profit had been remarkably stable.
The relative strength of farmland values has provided support for farm finances despite the ongoing pressure of low
agricultural commodity prices on farm income.
The iShares MSCI Global Agriculture Producers Fund tracks a market - cap - weighted index of companies that are sensitive to
agricultural commodity prices.
Viable forecast information beyond the traditional 10 day window can extend the time horizon for
agricultural commodity price analysis and forecasting, and so support farmers» decisions about production, storage and marketing, as well as logistical decisions in dealing with regional shortfalls and excess product availability.
Not exact matches
This remains an
agricultural commodity, which will generally experience downward
price pressure as legal use grows.
Following a January rally, the global
commodities complex underwent declines in February before partially recovering in March; for the first quarter as a whole, the benchmark Thomson Reuters CoreCommodity CRB Index (CRB) gained 0.8 % on a
price - only basis.1 Among the 19 component
commodities tracked by the CRB, advancers had a slight edge over decliners, buoyed by growth in global economies and weakness in the trade - weighted US dollar, which retreated 2.1 %, according to the Federal Reserve's (Fed's) US Dollar Index.1 Aside from robust gains for a host of
agricultural products, oil and gold were also among the
commodity winners.
The company that owns CBOT, the Chicago Mercantile Exchange group (CME), also rejects the notion that the enormous rise in speculation in
agricultural commodities in recent years has caused food
price rises.
The
commodity selloff has been quite broad and includes industrial and previous metals, energy
prices, and
agriculturals.
Lying on the edge of the Amazon rainforest, the one - time backwater was transformed by an economic boom as the winding down of the conflict and a spike in
commodity prices drew oil companies and multinational
agricultural interests to areas that were previously off limits.
The moves show how Britain's dairy processors are trying to address a general trend towards branded and added value dairy products across the European Union, spurred on by
price cuts for
commodities in the bloc's Common
Agricultural Policy reform.
During March 2011 - February 2014, he was Chairman of the Commission for
Agricultural Costs and
Prices (CACP), a body responsible for recommending Minimum Support
Prices (MSPs) of 23 important agri -
commodities to the Government of India.
It was also boosted by rising global
prices for most
agricultural commodities.
Mr Kerr says
agricultural companies will always find it difficult to post sustainable earnings growth in the face of volatile
commodity prices and the difficulties of building reliable customer relationships in Asia.
From the outset, they had two purposes: to help dispose of surplus
agricultural commodities owned by the government as a result of
price - support agreement with farmers, and to help prevent nutritional deficiencies among low - income schoolchildren.»
Increasing climate variability and more frequent disruptions from extreme events are projected to increase
price volatility for
agricultural commodities, and reduce food quality.
The data sourced from the Krishi Vigyan Kendra (KVK) database will include such
agricultural information like
prices of grains, pulses, seeds and other
commodities in the local markets, latest weather updates or any other news from the agriculture sector that could be of benefit to the farmers.
Silver
prices are displaying even more exaggerated «log - periodic» behavior, as are some
agricultural commodities.
Historically,
commodities such as metals and
agricultural products have been a good hedge against inflation, though their
prices can be volatile.
That's because
prices for oil and many
agricultural commodities have fallen from their highs this spring.
For example, for
agricultural commodities, demand and supply are the most important factors, whereas, for
commodities like oil, inflation becomes a
price determinant.
One of the main reasons why
prices of many
agricultural commodities have risen is that consumers in developing countries are eating more and higher quality food.
The Commission of the European Communities, in a report on
agricultural commodity speculation, defined backwardation and contango in relation to spot
prices: «The futures
price may be either higher or lower than the spot
price.
The
agricultural districts have been really hammered and
commodity prices have gone through the roof.
This technical document stresses that
price volatility is likely to continue due to climate change and weather shocks, growing demand for biofuel, and the «financialization» of food and
agricultural commodities.
The report warned that increasing production of liquid biofuels, such as ethanol and biodiesel, could increase the
price of
agricultural commodities with negative economic and social impacts, especially for the world's poor who spend a large proportion of income on food.
Global
Commodities Boom Fuels New Assault on Amazon (6/20/2008) With soaring
prices for
agricultural goods and new demand for biofuels, the clearing of the world's largest rain forest has accelerated dramatically.
Looking forward, things to watch include: the impact of economic recovery on
commodity prices and
agricultural expansion for food and biofuels production; large - scale land acquisition by foreign nations and corporations in tropical countries; climate negotiations and the REDD mechanism, including controversies over land rights, «offsetting», forest definitions, and sustainable forest management; the emergence of payments for ecosystem services beyond REDD; the cap - and - trade versus carbon tax schemes; efforts to address the demand side of deforestation — notably consumption; emerging certification systems for
agricultural and forestry products (i.e. RSPO, Aliança da Terra, FSC, etc); and Brazil's progress in meeting its deforestation reduction targets.
Sharply higher
commodity prices, combined with resumption of
agricultural lending and recovery of the Amazon cattle herd, will challenge efforts to reduce deforestation next year.
If
agricultural croplands are drawn into the production of biofuel feedstocks,
commodity prices are expected to rise, triggering land conversions overseas, releasing carbon emissions, and offsetting the carbon reductions expected from bioenergy.
Whereas ConAgra, listed as a direct competitor to Kraft by Yahoo Finance, stated, «In the event that such climate change has a negative effect on
agricultural productivity, we may be subject to decreased availability or less favorable
pricing for certain
commodities that are necessary for our products, such as corn, wheat and potatoes.»
This analytical report proposes and estimates a default risk model for
agricultural lenders, which explicitly accounts for two risks that are endemic to
agricultural activities:
commodity price volatility and climate.
Buried beneath billions of dollars supporting future farm incomes,
commodity prices,
agricultural trade, rural development and other farming - related issues is a provision for renewable energy.
In effect, the
price of oil becomes a support
price for
agricultural commodities, and therefore food
prices.
Placing the 2006/08
Commodity Price Boom into Perspective, John Baffes & Tassos Haniotis www-wds.worldbank.org [4] http://www.bloomberg.com/news/2012-10-30/australian-wheat-exports-plunging-most-in-six-years-commodities.html [5] http://www.reuters.com/video/2012/08/21/russia-wheat-export-ban-fears-over-droug?videoId=237194913 [6] oryza.com/Rice-News/16857.html [7] «The total impact of the $ 7.62 billion
agricultural production loss is an estimated $ 12.5 billion to the Texas economy.»
Part of the challenge is that «the
agricultural industry doesn't set its own
commodity prices; that's done by traders and speculators,» says Kirk Goble, ALC, with The Bell 5 Land Co. in Greeley, Colo..
It says that «despite the current volatility in
commodity prices, the long - term prospects for the
agricultural industry continue to be bolstered by global realities, including population growth, an international grain shortage and decreased availability of quality farmland from a worldwide perspective.»