Avoiding the pitfalls in an under-supplied and rising market

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The commodities world is experiencing its third price spike in five years. Countries all over the globe – from India, Australia and China to the United States and parts of Europe - have suffered poor rainfall and the resultant droughts have lowered crop yields and raised concerns about poor quality of the crops that have grown.

GAFTA reports on agricultural harvests so far show that both Ukrainian and Russian harvest yields are lower than last year. The drought in the United States, which grows approximately a third of the world’s corn and soybean, has devastated these crops and it is expected that many livestock farmers will turn to wheat as an alternative animal feed, increasing demand.

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Published In: Agriculture Updates, General Business Updates, Finance & Banking Updates, International Trade Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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