While reading the article "Why food prices could tumble soon" in the Economic Times today I found some very interesting facts. They are:
- In Trading Places, a great American comedy, where Murphy makes a fortune in concentrated orange juice futures, gave birth to the famous "Eddie Murphy Rule". It reveals the secret of trading.
- Though Egypt is a small oil producer, it is an important gateway for oil (through Suez Canal and the 200-mile long Sumed pipeline, which connects Red Sea and the Mediterranean). The Protests in Egypt could affect and thus divert tankers around the southern tip of Africa, adding 6,000 miles to transit and thus shoot the oil price.
- Argentina is experiencing dry conditions due to La Niña, a coupled ocean-atmosphere phenomenon that is the counterpart of El Niño. And the neighbouring Brazil is affected by heavy rains. 2012 is near!!
- Brazil is a large producer of high-quality Arabica. Floods there have driven coffee's price to multi-year highs.
- Brazil's floods could also affect the sugar's price all over the world as it accounts for 60% of global sugar exports.
- Ivory Coast has banned exports of cocoa (40% of global exports) and cocoa has scaled a 33-year high.
- Australia is also hit by floods and they contribute to 2/3rd of seaborne supply of coking coal, a very important industrial input.
- Between 1965 and 1998, global population rose from 3.3 billion to 5.9 billion. A rise of 2.6 billion or almost double in just over a quarter century. Today we stand at around 7 billion and Indian contributes more than 17% to it.
These facts just tell that we still do not have control over this world even though we do have some many remote controlled devices all around us.