Changing commodity markets
Movement is constant in the commodity market. Farmers react to previous years prices. Crops are used as feed. New market participants compete with and for the best quality. Prices are set to soar or plummet.
Wheather in constant change
In the future this up and down will intensify. Because of climatic changes central Europe is becoming warmer and dryer. Extreme weather arises more often. Price jumps of 40 Euro per t brewing barley for example can mean plus or minus millions of Euro in the shortest time.
Commodity trade is global
One acts globally through the world-wide net. Harvest losses in one region are compensated by surplus in other regions. Today the biggest are no longer the only winners. The informed, the quick and the innovative obtain advantages.
Being able to decide on when, where and how much to purchase is becoming a crucial success factor.
Key factors for success in the commodity market are therefore:
- Early and rapid world-wide information
- Use of computer technology
- Professional trading
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