The decline of honeybee colonies around the world is likely to negatively impact commodities and crops that are reliant on the bees' pollination, according to Rabobank.
Bloomberg reports one-third of the globe's output is somehow dependent on pollination and will suffer as a result of declining bee population, whose death rate rose as much as 35 percent in the four years through 2010, according to a report by analyst Ruben Verwijs. The normal loss per year is around 10 percent.
"A further decline in honeybee numbers could cause a pollination shortage," the report states. "In a more extreme scenario, farmers might not be able to grow some crops profitably."
Known as colony collapse disorder, the scourge impacts about 90 products including cocoa, coffee, apples, almonds and pears. Causes could be inbreeding, malnutrition and use of more potent pesticides and the phenomenon is rearing throughout the world.
"Although problems have been the worst in Europe and the U.S., inexplicable losses are also being witnessed in Asia, South America and the Middle East," according to Verwijs.
Risk Disclosure
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.