GRAPH showing change in US wheat prices.
This week the biggest topic in the commodities market is the escalating price of wheat.BHP Billitons bid for potash has shown their agriculture related ambitions. Sounds as a foray into agriculture, but looks related to core business since some of the raw materials used in agro fertilizer is mined as well. The adjoining figure shows the fluctuations in the wheat prices. The commodities market is indeed a complex market with lots of data related to price volatility, fluctuations, long term and short contracts and the different expectations of sellers and buyers with respect to the prices of their produce.
Fortunately since I have been working on a project that analyses the agricultural marketing system in India, it has offered me insights into the pricing issues related to commodities. I will discuss more on this in coming days.
Nice read.. will wait for further updates..
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