Trading commodities: multi disciplinary approach!
Commodities trading had over time become technical and scientific in nature; manufacturers specifications, identity and source preservation, safety, environmental impact is the key. Commodities cannot be traded in isolation either as a host of multidisciplinary factors matters when it comes to demand and supply and pricing commodities. In order to trade commodities, an understanding of various factors matters to optimize profits: Geography Agricultural practices, land ownership and usage Weather Culture - habits and consumer preferences Chemistry and composition Biology and health Economics, demand supply, storage capacities and strategic reserves Government policies and subsidies Water Logistics and transportation Complimentary and substitutes Diversified usage Environmental impact and constraints Conflicts Technology and distruptive technology; biotech Management practices including compensation policies Financing and arbitrages Trading commod...