There’s so little money in buying and selling wheat, corn and soybeans these days that some traders are turning to obscure markets in desert-grown tomatoes and chickpeas to turn a profit.
Margins for handling the big grain crops have sunk as farmers grew more than the world needs for four years. That’s led firms like Germany’s BayWa AG to seek out niches such as tomatoes and organic grains where returns are higher. Others turned to costlier processed food ingredients or gluten-free products.
“The general trading environment for agricultural commodities is rather difficult,” said Jean-Francois Lambert, the founder and managing partner of consultant Lambert Commodities. “It has been the case for two years and it looks like this year may be as challenging.”
The articles are for information purposes only and Precise Investors shall not be held responsible for any errors, omissions or inaccuracies within it. Any rules or regulations mentioned within the website are those relevant at the time of publication and may not be the most up-to-date.
Precise Investors does not endorse any of the products or services that appear on it or are linked to it and are not liable for any action that you may take as a result of the content of this website, or losses or damage you may incur doing so.
There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.
Please remember that investments of any type may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.