AGRICULTURES AND SOFT COMMODITIES
Agriculture and soft commodities refer to commodities which are grown in comparison to mined or drilled commodities. Sugar, wheat, coffee, soy and rice are included in a large percentage of diets globally for majority of developing nations.
The Global population increases continually non stop, both its size and wealth; affecting the value of agriculture and soft commodities. Firstly, developing and expanding urban areas and mass migration necessarily suggest a reduction in workable land for farming, fewer agricultural workers and, hence, less soft commodities grown, meaning less supply entering the market. When world population increases, there are not only more mouths to feed, more demand for meat and less efficient use of agricultural lands occurs as nations continue to develop and as general wealth increases.
The energy market also affects the soft commodities since ethanol and bio fuels tend to become a viable and practical option in lieu of fuels derived from crude oil.
Long term investments remain bright in agriculture. Despite the occurrence of droughts in the UK, farm revenues are expected to post record peaks in 2019.