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Commodities Briefing - Categorized | Agriculture, Commentaries more

Soft commodities languish after glut

Posted on 14 May 2013

Farmers responded to a big rise in prices in the past five years with a combination of increased planting, better husbandry and larger applications of fertiliser and pesticides. As a result, production rose, sending prices down.
The price weakness could last. Unlike agricultural commodities such as corn or wheat where seeds are set down every year, coffee bushes continue to produce beans and cocoa trees keep growing once planted. In short, it is a lot easier to increase production in response to rising prices than to cut it when prices fall………………………………………..Full Article: Source


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