Monday, 15 November 2010

Food and weather

Throughout history we have been highly dependent on the weather for our supply of food. Many civilizations has gone under due to drought, bad harvests and so forth; basically hungry people will revolt, move our at least demand answers from their leaders. This is still true, especially in developing countries. Technology has helped us decrease this dependence to some extent, but it still exists.

Today bad weather makes the prices for grain and rice increase drastically, forcing governments to sell subsidised rice and grains to the citizens to keep the stability. This fall the weather phenomenon La Nina is causing drought in South America and heavy rains in Southeast Asia. This has destroyed harvests and caused market prices for rubber, palm oil and corn, among others, to increase heavily. Perhaps this is a good time to speculate in bull certificates based on food related raw materials.

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