Farming,Food, Commodity prices - effects by changing temperature, forecasting for commodities traders, Cacao, Coffee, Olives…..
Plants require sunlight, water and soil to grow. Temperature, sunlight intensity also play a big effect on their grow rate and quality, For example if lettuce would become bitter, would water Melon loses their flavor, would chili become less spicy, are all determined by the range of the temperature they grow in.
“Most gardeners will tell you that bitter lettuce is the result of summer heat; lettuce is known as a cool season vegetable. When temperatures rise, the plant snaps into maturation mode and bolts — sends out a stalk and flowers. It’s during this process that bitter lettuce is produced."https://www.gardeningknowhow.com/edible/vegetables/lettuce/bitter-lettuce.htm#:~:text=Lettuce%20needs%20to%20grow%20fast,result%20of%20too%20much%20nitrogen.
If the trend of temperature continue to rise and farmers does’t take into the consideration of these changes, their yield and quality might reduce, and in some cases even if they have taken into consideration there might not be much they could do to mitigate their risk.
“If there is no temperature relief or rains in the coming weeks, this year’s olive harvest could be notably lower than previous ones,”https://www.theguardian.com/business/2022/aug/02/spain-heatwave-olive-oil-production-italy-grain-ukraine-war-prices?CMP=fb_gu#Echobox=1659442647
Thus having a forecast and analysis ahead of time, could help farmers and even commodities trader to forecast cost, return and profits and reduce their risk and loses. As billions of dollars of commodities like Cacao, Coffee beans are traded on commodities markets daily around the world, to have the ability to gain more insight to forecast would give an edge to give the possibility to reduce their risk.
