It works as follows: producer and buyer enter into a contract with a price set today for the delivery and payment of the product at a predefined future date. Thus, even before the soybean has been harvested or the ox slaughtered, the producer already has a guarantee of contracted volume and price to receive.
These papers, to maturity, are assets that function as normal investments. Its price varies according to supply and demand. There is no need to deal with agriculture and livestock to make this type of investment, even investors who do not have the slightest interest in the final product invest in commodities because the final balance is the profit from negotiating these papers, not the product.
The price of commodities is determined by the world market as a consequence of supply and demand. These products are so relevant that they end up influencing the behavior of particular economic sectors or even the economy as a whole.
As they are worldwide consumer products, they are a good investment option, since they are essential products for people all over the world and therefore their demand is continuous. Can you see how advantageous it is? The whole word is a market. This means that there will always be demand and trade flow.
Soy is a high protein grain, grown as food for both humans and animals, being used today predominantly as animal feed.
Brazil is the world's second largest producer of soybeans and is expected to become the first in the near future. The crop occupies an approximate area of twenty million hectares, totaling an average production of sixty million tons of soy.
Soy has an important share in Brazilian exports. About 15% of the total produced is destined for export. This number tends to increase, as world demand for meat has been increasing, especially in Asia, and soybeans are the key raw material for feeding these animals.
The economic importance of corn is characterized by grain versatility, which can be used for a variety of purposes, from food to high technology industry.
About 80% of Brazilian corn production is destined to feed the pig and poultry production chain, ensuring a growing demand, as the consumption of animal protein in the world is in a moment of growth, especially with the economic rise and market opening from various Asian countries.
Brazil is the third largest producer of corn in the world. Alongside soybeans, corn represents one of the pillars of national agricultural activity, and is the target of constant investments to improve grain quality. The corn commodity is one of the first placed among agricultural commodities in world production volume.
Coffee is produced from the roasted beans of the coffee tree. Of the more than one hundred species belonging to the genus, arabic coffee and robusta coffee are the most economically important, accounting for 70% and 30% of world production, respectively.
Brazil is the world's largest producer and exporter of coffee and the second largest consumer, just after the United States of America. Considering the two main coffee species, Brazil is the world's largest exporter of arabica coffee and the second largest of robust coffee.
In addition to its health benefits, coffee contributes significantly to the concentration and productivity of individuals in many countries, thanks to its stimulating properties. Whether it is for flavor or these properties, the world's demand for coffee has grown every year, consolidating coffee as the most consumed beverage in the world.
Sugar is a staple commodity and an essential commodity produced in many parts of the world. It can be made from sugar cane and beet, with sugarcane accounting for more than 70% of the world's total sugar production.
Sugar production around the world has doubled since the early 1970s. Sugar consumption is expected to continue to increase due to population growth, consumer purchasing power in various regions of the world, processed food consumption worldwide resulting from population migration from rural to urban areas, and consumption of low-calorie sugar-based sweeteners, such as sucralose.
Brazil is the largest sugar producer in the world. Today, it produces the equivalent of 21% of all world production. In contrast, the country is the fourth largest consumer of sugar in the world, this allows it to export freely, supplying the entire national demand.
The Black Pepper is one of the oldest known spices. It is a agricultural product of greater influence in historical events and can be traced in parallel with the importance of petroleum in modern times. Its grains, dried and ground, are widely used in cooking in several countries.
Although India is the world's largest producer of black pepper, it is also a voracious consumer, using 50% of the total produced, so there is not a large surplus to export. Brazil has an advantage: it consumes only 12% of the pepper it produces, achieving a large export margin.
The largest current importers of Brazilian pepper are the United States, the Netherlands, Argentina, Germany, Spain, Mexico and France. The tendency is that with the strong population growth of India consumes more and more of the spice, reducing its exports and opening more markets for Brazil.
The world's cotton crop is basically concentrated in seven countries: China, the United States, India, Pakistan, Uzbekistan, Brazil and Turkey, which together account for approximately 80% of world cotton production.
Despite being the world's largest producer, China does not export its cotton production, it uses this raw material primarily to supply its domestic market. Thanks to many investments in improving quality and technology, Brazilian cotton trade has grown markedly in recent years, placing Brazil among the five largest cotton exporters in the world.
These investments led to an increase in production, allowing the country to allocate a considerable share of the cotton to the foreign market, exporting in a large scale at the most favorable moment: the industrial development presented by some Asian countries, especially China and India, for this agricultural commodity. Among the major exporters, Brazil is the only country that can grow not only in productivity but also in planted area, and to assume an increasingly important role in the world cotton market.
Brazil has the largest commercial herd in the world and is the largest meat exporter in the world. Currently, the country accounts for at least a quarter of the world's total beef exports.
Beef consumption has been increasing because of economic and cultural issues in Asian countries (China and Japan), the United States and Mexico. In addition, we also have a natural increase in demand around the world as a consequence of population growth. In this scenario, Brazil has total conditions to maintain world hegemony in the export of beef.
The United States is the largest importer of beef with a large advantage over second place, Japan. Russia is the largest importer of Brazilian beef, both in terms of import volume and financial value.
Poultry farming is an increasingly important economic activity worldwide. According to the USDA, the United States Department of Agriculture (USDA), the world's leading chicken exporter, is Brazil.
Today, more than 150 markets are importers of Brazilian chicken meat. By the ports of the country, almost 4 million tons are shipped annually, almost a third of everything that is produced in Brazil.
In the Brazilian farms, the technological excellence in genetics, management and ambience guaranteed productive leaps that made the country the third largest producer of chicken meat, with more than 12 million tons per year of this product.
We have available for export bovine bilirubin in stones, also known as bovine biliary calculus or even bovine gall stone. Bilirubin is a yellowish substance found in bile, which remains in the blood plasma until it is eliminated in the urine. It is a bile pigment produced by heme breakage and reduction of biliverdin, which normally circulates in blood plasma. It is absorbed by liver cells and conjugated to form diglucuronide, a water-soluble pigment excreted in bile.
Bovine bilirubin has been used for centuries in Eastern medicine for the treatment of various diseases, especially in China. Research indicates that individuals with high concentrations of bilirubin may have health benefits, especially in the elderly. Other studies have shown a relationship between the higher concentration of bilirubin and the lower risk of heart disease.
Banana is a fruit worldwide appreciated for its practicality and nutritional values. It is grown in more than 130 countries and used as pure food or as raw material for the preparation of other foods (banana beer, sweets or snacks, etc.) or for the textile industry, which manufactures fabric from the fruit fiber. It is also used as a sports supplement, thanks to its high levels of potassium.
The main banana producer in the world is India, but, like most fruit producers, the country consumes all its production, which takes it away from the role of exporters. Brazil is among the 10 largest banana producers in the world and exports part of its production. The banana is the second fruit most produced and consumed in the country.
Currently, Brazil exports bananas to Mercosur and also to the European continent, in a significant increase. In the year 2018 the increase in exports of Brazilian bananas exceeded 140%. The trend is that the demand for bananas increases progressively, considering the world's concern with healthy eating and the quality of the nutritional value of the fruit.