Climate change is likely to drive sharp increases for prices of food and commodities because of weather pattern changes, according to the report about a study commissioned by an international charity.
How farming and agriculture have been impacted by long-term temperature shifts and changes in rainfall have overwhelmed the impact that climate change has had and will have on food prices because of climate change, according to the Oxfam International study cited by Bloomberg. Dirk Willenbockel with the Institute of Development Studies in the U.K. performed the study that serves as the basis of the report.
Harsh weather in one year is capable of drawing spikes in prices that would be equivalent to 20-years-worth of price increases, according to the report.
The study stated the prospect of drought in North America would drive up corn futures 140 percent and wheat futures 33 percent. India and Southeast Asia having less-than-stellar rice harvests could drive up the average of worldwide export prices for rice by 25 percent. Corn prices following a drought in East and West Africa could drive up prices 50 percent.
Oxfam International consists of 17 organizations that help confront the perils of poverty in 90 countries throughout the globe, according to the organization's website.
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.