Well here we are discussing the commodities - We have discovered that apart from the Hard commodities there are also soft commodities. The soft commodities according to the Wikipedia are commodities that are Grown or produced in farming activities.
Corn, Wheat, Soybeans, Sunflowers, Rice, Coffee, Sugar, Cocoa, fruits are just to name a few. These commodities also has probably the biggest effect on peoples standard of living - as they are often the core ingredient(s) of the food even the poorest people would consume.
The issue with soft commodities are often that they have a limited life and as such limited value. Unlike gold or the other hard commodities it almost always means that the transactions are limited by time and usability.
The other interesting fact is that the soft commodities almost always lead to people discovering alternative use for the grain or product to support the price in times of low demand.
JD
No comments:
Post a Comment