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What are Agriculture Commodities?
Agricultural commodities are products which are raised on farms or plantations. The majority of agriculture such as grains, livestocks and dairy are a source of food for people and animals.
However, some agricultural commodities are used just for industrial reasons. For example, the building and furniture industries use different parts of trees to produce their final products.
Also, the clothing industry uses agriculture like wool from sheep. Lanolin is used in the production of skin and hair care products. Some agricultural commodities are used both for food and industrial purposes.
MAIN AGRICULTURE COMMODITIES
Since wheat, as many other commodities, is priced in US dollars, the performance of this currency plays a crucial role in the wheat price. Wheat has many advantages when it comes to growing, it doesn’t require much water or labor. So, it is grown in developing countries also.
Coffee is a soft commodity and it is considered as the most sold commodity in the world. There are two main types of coffee: Arabica and Robusta. All the parties included in the chain of coffee growing, roasting, packing and manufacturing are influenced by the supply and demand for coffee. The outside factors which influence coffee supply are: geopolitics factors, climate changes, transportation fees or restrictions, oil prices and health issues. Top 6 coffee producing countries are:
• Brazil – 2,595,000 Metric Tons per Year
• Vietnam – 1,650,000 Metric Tons per Year
• Colombia – 810,000Metric Tons per Year
• Indonesia – 660,000 Metric Tons per Year
• Ethiopia – 384,000 Metric Tons per Year
• Honduras – 348,000 Metric Tons per Year
Wheat is one of the most important food crops, grown on every continent except Antarctica. Depending on the location where the wheat is growing, it has different specifications, growing conditions and selling prices. Wheat’s price is highly correlated with corn price, because it is often used as a substitution of wheat. Supply and demand, US dollar stability, weather conditions, the production of its substitutes are the major factors which influence wheat price. Top 6 wheat producing countries are:
• China – 126 million Annual Production (tons)
• India – 95 million Annual Production (tons)
• Russia – 60 million Annual Production (tons)
• USA – 55 million Annual Production (tons)
• France – 39 million Annual Production (tons)
• Canada – 29 million Annual Production (tons)