October 9, 2013
We consider the need for food yet, the ingredients that support our soils is the platform and foundation of healthy crop generation. The role of potash in the crop scheme is vital ingredient to sustainable soil development. The vitality of soil in “Agribusiness ETFs Slump on Deteriorating Fundamentals” is news to focus. The nexuses is considering the connectivity of soil, crops, climate and agribusiness.
The importance of Potash “stiffens cereal straws, increases oil content of oil-bearing seeds and has an important role in plant protein formation. Plants which store starches and sugars in tubers or corms, such as dahlias and potatoes, quickly show injury or decline when they are suffering potash deficiency. Other types of plants do not readily show signs of potash shortages. If soil is only slightly deficient in potash, plants tend to remain smaller in all parts, yet they flower, fruit and reach full maturity. It is only when potash-deficient plants are compared directly with those fed liberally with potash that the difference can be seen.”
This need for fertile soil is vital to crop fulfillment coupled with climate and drought. EFT Trends offers, Agribusiness exchange traded funds found their footing after potash prices plummeted on low demand and growing supplies overseas.”
“The Market Vectors Agribusiness ETF (NYSEArca: MOO) increased 5.2% over the past month and the PowerShares Global Agriculture Portfolio (Nasdaq GIDS: PAGG) rose 5.6%. However, MOO is down 1.0% year-to-date while PAGG is off 4.7%.”
“Soft commodities prices have dipped this year on a larger planting season after the worst drought in half a century decimated crops last year. With low crop yields resulting from the drought last year, relatively few nutrients have been drawn out of the soil in 2012,” according to Morningstar analyst Alex Bryan. As a result, farmers may reduce their application of potash and phosphate fertilizers this year.”
The implication to the consumer is increased prices for foods at lower quantities impacting economic spending at the bottom line. Further, soil replenishment can take its toll and slowly make crop yields less effective hurting the small farmers more directly.
In considering our global economy and the increase in wealth distribution across the world the shift in appetites is changing. These changes are reflected in the cultural economy and how access and socioeconomics is reflected on buying patterns.
“As emerging-markets populations become wealthier, they are projected to increase their consumption of meat, which will have a disproportionate impact on the demand for grain because corn and soy are common ingredients in livestock feeds,” Bryan added. “It requires an estimated 4.5-6 pounds of grain, such as corn, to raise a pound of beef.”
Agricultural Related articles
- Potash miner makes billion dollar bet prices won’t fall below $400 (mining.com)
- Water Soluble Fertilizers Market (Nitrogenous, Phosphatic, Potassic,… (prweb.com)
- Potash market: India to gain from global shake-up (thehindu.com)