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 commodity is just one example; excelling in all other disciplines and functions requires a multidisciplinary approach.  Learning humanities isn't a waste of time and efforts as long as one is able to establish connections! 









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