Commodity Brief – Agricultural Commodities

hi I'm Richard watts founder of HR maritime welcome to commodities brief the show all about commodity trading in partnership with Dukas copy TV today we're going to be having a look at the different types of commodities and so commodities can be split up into various different segments we can either split them down into soft hard oils or we can look at angry metals liquid and so every depends how we're looking at it so for this we're going to look at agricultural goods then we're going to have a look in the next episode at metals or and minerals and then we're going to look at liquid commodities and oil so as far as agricultural commodities are concerned what we're really talking you hear about is commodities that have been grown and farmed so these are some of the oldest trades that exist and they've been around for many many many years and effectively what we're doing is we are taking goods from from fertile areas and we are transporting them over to in fertile areas we're also talking about moving Goods out of season so being able to provide markets in Europe with the goods that we would not usually be able to get if we had to grow them locally it's a wide range of commodities talking about dairy goods we're talking about grains and feed stuffs we're talking about soft commodities such as rice and coffee we're looking also at farm animals livestock and so it's a very very very broad area of the commodity section and there are very very specific areas involved in it so if we're looking at the agricultural business then look at the different methods of transportation of these goods so we have banked commodities and so goods that are transported as bagged commodities these often need to be handled physically by laborers so they'll be going into vessels and physically loading these bags into cranes and taking them out it's very very laborious and we tend to see it in areas which are less developed these bags will use about 50 kilos then we also have bulk commodities so when we're looking at the bulk transportation of commodities here we're normally talking about larger quantities we're talking about areas which are much much better developed and so we usually have cranes on the shore which can handle the movement of the commodities and we're usually talking about a large amount of homogeneous goods then we also have commodities which are transported by container and so these are commodities which are maybe more fragile where there's more chance of them being damaged where we are transporting them in smaller Lots and we'll get into a little bit later but we're seeing a rapid movement of commodities from bulk or bagged to being transported in containers so the type of vessels that we use for dry for soft commodities for agricultural commodities we have a whole range in sizes from the very very small barges all the way up to massive Panamax vessels of 80,000 tons of cargo which are the largest size that can fit through the Panama Canal terms of agricultural commodities we also have a number of risks the two major risks are probably going to be mold and infestation by insects and so it's important to be aware of the water content of the commodities and also to fumigate those commodities on a regular basis that's all we have time for in this episode of commodity brief I'm Richard watts I hope you've enjoyed it it's been in partnership with Dukas coffee TV please click back soon

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