Recently, coming from economies has been better at first. The economy has stabilized even in the worst-affected countries, and signs of revival are beginning to show.
While experts are still in dispute about the end of the crisis, a look at the financial markets offers a clear answer. Stocks and commodities are growing at an unprecedented rate.
The world’s major stock indices have added an average of 60 percent over the past year, and some commodities are doing better. Nickel, which contributes more than 130 percent to mezzanine, can sometimes be added to paldium. Among agricultural commodities, we would be looking for such a valued bag.
Development of food prices
In mid-2008, there was a sharp price bubble in commodity markets, which was most pronounced in energy and agricultural commodity prices. The plates of starvation in Southeast Asia at the time were the result of deadly food prices. Prices rose twice in a few months and he also gave food similar fingers. The crisis of high prices and growth was only slow last year.
This year’s development in the market for agricultural commodities is slightly surprising so far. Food does not follow other groups of commodities and, with a few few exceptions, ended the first quarter in a minor. The most commodity is those commodities that are an essential part of humanity. Sugar is a record holder with a dark loss since the end of the year. Follow pennies, corn, rice and cocoa with more than a tenth drop in world markets.
Reasons for the decline of food
Agricultural commodities are in many ways specific and differ from oil and copper in their low connection to the economic cycle. At the same time, they stand aside and, in terms of traders, there are currently commodity industries where consumption is rising sharply. On the contrary, it is needed in times of good and bad, and therefore the demand for food is stable.
This is the main reason for the current low price performance and the growing disparity between the movement of prices of water and other industrial commodities. The reason for the decline, which also applies to other commodities, is the appreciation of the US dollar.
At first, food is mostly traded on the global markets. The stronger US currency raises raw materials, which is why even despite the fall in dollar prices on stock exchanges, low prices in other currency areas may not be reflected.
Equally important is the fact that large food producers are hedging against price jumps on financial markets and buying contracts and options to ensure price stability for a long period of time. This strategy may not appear to be the best, as globally traded foods could become cheaper. On the other hand, hare stores have long protected food companies and consumers themselves from price fluctuations.
What does this mean for the end consumer?
So far, there is no indication that the situation should change in the near future. If the revival continues and the merger, then the performance of agricultural commodities should continue to lag behind.
Although stock market prices are associated with a very long spring with prices in shops, the prices of basic foodstuffs should not increase and, on the contrary, they should remain stable in the following months. Even by the end of the year, the situation does not look unfavorable and the amount of pensions spent on food would not have to increase as fast as in previous years.