Equatorial regions, a profit mine for investors in commodity markets

Are you looking for an investment idea that has made major returns in the basic commodity markets over the past six months? Try bet in tropical areas. The crops of tropical regions are four of the best basic merchandise between the most important future contracts since early August. The price of coffee – Benhaiha, “arbika”, known for its strong scent and the most widespread “Robosta” – has increased by more than twice, and my colleague Javier Plus pointed out. The prices of rubber, cocoa and palm oil also rose by more than 20% during the same period. Even coconut oil, despite the limited circulation, was a remarkable increase as the immediate prices in Amsterdam rose by 27%. The dangers of climate changes this rise in prices are not a cause of celebration. The crops of the tropical regions, known for their severe affected weather, are an early indication of the effects of global warming. The profits made by traders in the commodity markets today correspond to losses worn by owners of domestic firefighters in the United States, which indicate the financial damage that climate change can cause worldwide during the coming decades. Although the production of these crops spans three continents, it is concentrated in a few countries. Only 6 countries produce – Brazil, Indonesia, Ivory Coast, Malaysia, Thailand and Vietnam – 87% of global palm oil, 71% of rubber, 59% of cocoa and 55% coffee. Read more: Forest fires threaten Mediterranean countries amid unprecedented temperatures that concentrate this production in specific markets that are vulnerable to significant disorders exposed to any of these areas to hard climatic conditions. In Brazil, this has hampered the worst drought wave that hit the country for 4 decades, as well as fires in the Amazon forests and sugarcane fields, as well as lower water levels in dams that provide two -thirds of the country’s electricity. In the areas of cocoa production in West Africa, rubber farms and palm oil in Southeast Asia, heavy floods led to similar effects as it dropped flowers and fruits on trees, and that farmers prevented them from reaching their farms to reap the crop. The disturbing climatic conditions of catastrophic climatic conditions in these three continents are connected, and it increases with the aggravation of global warming, leading to the overlap of regional climate systems. The “La Ninia” phenomenon, which has dominated most of the past five years, usually causes drought in southeastern Brazil, while it brings heavy rain to West Africa and Southeast Asia, because it pushes moisture in the southern and Indian Atlantic oceans to the East. Read more: The United Nations: The temperature drops with the anticipation of the advent of the “La Ninia” phenomenon of these climate fluctuations is a natural feature of agriculture in the tropics. Plants in moderate and semi -tropical regions enjoy a greater ability to withstand hard conditions because it has developed to withstand serious seasonal changes in temperature and precipitation, which are large enormous changes compared to what is seen in the rating of tropical forests near the equator. At the level of tropical plants that tend to be more vulnerable to damage, high temperatures can adversely affect Silzius to optical representation, contribute to the spread of pests and lead to a decrease in productivity. A 2020 study indicates that 41 species of 190 species have tropical plants analysis will be vulnerable to high temperatures by 2070 to some extent that the seeds are not germinated. Climate change also poses an ‘existential threat’ to produce tropical fruits such as bananas, mangoes and papaya, according to another study published last year. Read more: The hard weather around the world increases the risk of high food bills getting worse, because all the four basic merchandise currently witnesses prices is produced from sustainable trees. Soybeans in Brazil make a solution of decisions about the spaces they will grow annually, which can adapt to phenomena such as “El Nino” and “La Ninia” and alleviate the effects of again on the market. As far as the tree farms are concerned, these are projects that extend decades, which means that the possibility of adapting by adjusting the cultivated areas almost does not exist. On the contrary, the crops grown in moderate and semi -tropical areas, in addition to tropical areas (wheat, soybeans, tea and sugarcane), are less likely to affect the same way, and there are no noticeable price increases. The role of small farmers, the last element that complements the image, is the financial conditions of farmers who produce these goods. Young farmers dominate only a few hectares on production in these sectors, and they rely on these crops as a source of cash income that is barely enough to complete their modest requirements. Read more: Takaul assurance helps Pakistan farmers facing climate change, while the effects of global warming aggravate. ‘Adjustment to climate’ has become an important concept for farmers in rich countries as they invest in new types of seeds, improved nutrients and more advanced methods of water management, harvest and agricultural courses to relieve the damage caused by the weather. All this requires money, and yet there are no more resources suffering from resources. Young farmers are the largest percentage of 700 million people around the world living in extreme poverty, with less than $ 2.15 a day. Usually, high prices, as currently, encourage investment in agriculture, but farmers in tropical areas of small containers are difficult to take advantage of their supply chains, as most profits for manufacturing companies and traders and some international businesses that dominate the market apply. Read more: The Indian capital closes its doors while farmers protest over crop prices, which means the appearance of any outgoing breakthrough. If you are considering relieving the climate crisis by eating a bite, drinking a cup of latte or enjoying a piece of chocolate or even having a picnic, prepare to pay more for it.