Agricultural Commodity

What are Agricultural commodities?

Agricultural commodities are raw materials or primary products that are grown or raised on farms and are traded in markets. These commodities are essential for food production, animal feed, and industrial uses. They can be categorized into several groups:

1. Food Crops

  • Grains & Cereals: Wheat, corn (maize), rice, barley, oats, sorghum.

  • Oilseeds: Soybeans, canola (rapeseed), sunflower seeds, palm oil.

  • Pulses & Legumes: Lentils, chickpeas, beans, peas.

  • Tubers & Roots: Potatoes, cassava, sweet potatoes.

2. Cash Crops (Commercial Crops)

  • Beverages: Coffee, tea, cocoa.

  • Sugar: Sugarcane, sugar beets.

  • Fibers: Cotton, jute, hemp.

  • Tobacco.

3. Livestock & Animal Products

  • Live Animals: Cattle, pigs, poultry, sheep.

  • Meat: Beef, pork, chicken, lamb.

  • Dairy: Milk, cheese, butter.

  • Other Products: Eggs, wool, leather.

4. Other Agricultural Commodities

  • Fruits & Vegetables: Apples, oranges, bananas, tomatoes.

  • Nuts: Almonds, peanuts, walnuts.

  • Spices: Pepper, cinnamon, vanilla.

Factors Affecting Agricultural Commodity Prices

  • Weather & Climate Conditions (droughts, floods, frost).

  • Supply & Demand (global consumption trends).

  • Government Policies (subsidies, tariffs, export bans).

  • Currency Fluctuations (stronger USD makes commodities more expensive for importers).

  • Energy Prices (fuel, fertilizers, transportation costs).

  • Geopolitical Events (trade wars, conflicts).