![\"map](\"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/05\/007_1_Global-Trade-1100x732.jpg\")
<\/figure>\n\n\n\nAs we\u2019ve illustrated, agricultural commodities play an immensely important role\u2014not only in the global food supply, but also in broader, global economic dynamics, and major events and catalysts can completely upend ecosystems and create dramatic conditions for all involved.<\/p>\n\n\n\n
COVID-19 (2020)<\/strong><\/h3>\n\n\n\nThe Coronavirus (COVID-19) pandemic posed a major impact on agricultural commodities \u2013 most critically in the supply chain shortages of staples such as livestock and dairy products.<\/p>\n\n\n\n
In response to these shortages, prices surged, creating inflationary pressures on food prices. The FAO Food Price Index<\/a>, for example, saw massive spikes from 2020, across all categories, including meat, dairy and sugar.<\/p>\n\n\n\nAccording to the USDA<\/a>, the pandemic also led to significant changes in U.S. consumers\u2019 food spending patterns in early 2020 before returning to more typical, pre-pandemic levels in April the following year. In March 2020, for example, efforts to limit the spread of COVID-19 included stay-at-home orders that prompted these changes, where people generally bought more food products for at-home consumption, leading to increased demand for certain agricultural products, such as grains and canned goods.<\/p>\n\n\n\n![\"\"](\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\")
<\/figure>\n\n\n\nIn turn, the financial markets reacted by adjusting commodity prices based on supply and demand shifts, and some agricultural commodities experienced increased speculative activity.<\/p>\n\n\n\n
Trade Tariffs (2018)<\/strong><\/h3>\n\n\n\nMeanwhile, changes to certain federal government policies can effectively shift entire global trading practices. Take trade tariffs, for example, which can exert a very strong influence in agricultural commodity markets.<\/p>\n\n\n\n<\/figure>\n\n\n\nConsider the U.S.-China trade war that started in 2018, where China, the world\u2019s largest importer of soybeans, levied heavy tariffs on U.S. agricultural exports, including those soybeans. This action basically compelled U.S. farmers to seek alternative markets, which ultimately spurred volatility in the prices of soybean futures.<\/p>\n\n\n\n
Indeed, the tariffs directly affected the U.S. farming economy, leading to lower revenue for soybean farmers and shifting global trade flows. This illustrates a great example of how political decisions, such as trade tariffs, can create major price fluctuations, affecting both commodity producers and investors alike.<\/p>\n\n\n\n
U.S. Drought (2012)<\/strong><\/h3>\n\n\n\nIn terms of extreme weather risks, the U.S. drought of 2012 affected commodities such as corn, <\/strong>soybean, and wheat production, which is a considerable impact on the markets as the U.S. is the world\u2019s largest producer of these crops.<\/p>\n\n\n\nIn fact, this was the worst drought to hit the U.S. in 50 years, drastically reducing crop yields. Among other consequences, prices of corn futures spiked by 40% in the span of just a few months, affecting everything from animal feed to ethanol production.<\/p>\n\n\n\n<\/figure>\n\n\n\nThe drought also had an impact on global trade, as other countries like Brazil and Argentina took advantage of the U.S. supply shortfall by increasing exports to try and fill product needs globally.<\/p>\n\n\n\n
For the financial markets, the drought generally led to increased commodity speculation and increased commodity-related ETFs, with investors seeking to capitalize on the weather-driven volatility.<\/p>\n\n\n\n
Global Food Crisis (2007-2008)<\/strong><\/h3>\n\n\n\nFurther back in history, the Global Food Crisis of 2007\u20132008is another prime example of how agricultural commodities can trigger a chain reaction in economies.<\/p>\n\n\n\n
This dire situation was borne out of a combination of bad weather, higher oil prices, and increased biofuel demand \u2013 all of which sent agricultural commodity prices soaring.<\/p>\n\n\n\n<\/figure>\n\n\n\nPrices of basic food staples like rice, wheat, and corn, for example, shot higher, creating food shortages in many developing nations. This, in turn, spurred social unrest in countries like Egypt, Haiti, and Bangladesh, where food became unaffordable for millions of people. The spike in agricultural commodity prices also impacted global financial markets, especially in the energy sector, as biofuels became more prominent in the energy mix.<\/p>\n\n\n\n
These are just a few examples. In fact, there are numerous scenarios that can illustrate how agricultural commodities are intricately tied to global financial markets, economies, and international trade.<\/p>\n\n\n\n
You can also learn more from information across our Campus \u2013 for example, by listening to IBKR Podcasts \u2013 where we house a treasure trove of current and historical discussions about agricultural commodities with industry experts. There, you can also learn more about specific agricultural commodity futures contracts, risks faced by market participants, as well as food manufacturers, and other events that can weigh on supply-demand dynamics, which can help you further your understanding of agricultural commodities trading and investing.<\/p>\n\n\n\n
Learn More<\/strong><\/h2>\n\n\n\nIn the News:<\/strong><\/h3>\n\n\n\nUSDA Closes Mexican Border to Protect U.S. Livestock from New World Screwworm<\/a><\/p>\n\n\n\nIBKR Podcasts<\/strong><\/h3>\n\n\n\nWhen Trade Wars Hit the Farm\u2026 Who Gets Plowed Under?<\/a><\/p>\n\n\n\nLean Hog Futures \u2013 Is Anyone Bringing Home the Bacon?<\/a><\/p>\n\n\n\nLive Cattle Futures \u2013 Herd Around the World<\/a><\/p>\n\n\n\nSugar Futures \u2013 Talk About a Cereal Killer<\/a><\/p>\n\n\n\n\u2018Cuckoo\u2019 for Cocoa Futures?<\/a><\/p>\n\n\n\nEyepopping Corn Prices \u2013 Fueling Food Inflation<\/a><\/p>\n\n\n\nThe War on Wheat \u2013 How Much Bread Is on The Table?<\/a><\/p>\n\n\n\nTime for a Coffee Break?<\/a><\/p>\n\n\n\nTraders\u2019 Academy<\/strong><\/p>\n\n\n\nIntroduction to Grains and Oilseeds<\/a><\/p>\n\n\n\nUnderstanding South American Soybean Futures<\/a><\/p>\n\n\n\nHedging with Grain and Oilseed Futures and Options<\/a><\/p>\n\n\n\nTraders\u2019 Insight<\/strong><\/p>\n\n\n\nCorn Sustainability in the United States<\/a><\/p>\n\n\n\nNavigating the U.S. Planting Season with Enhanced Risk Management<\/a><\/p>\n\n\n\nA Brewing Storm for Arabica Coffee<\/a><\/p>\n\n\n\nHow Commodity Prices Impact Inflation<\/a><\/p>\n\n\n\nEconomics<\/strong><\/h2>\n\n\n\nU.S. Bureau of Labor Statistics (BLS) \/ Federal Reserve Bank of St. Louis (FRED)<\/strong><\/h3>\n\n\n\nProducer Price Index (PPI): Food Manufacturing<\/a><\/p>\n\n\n\nConsumer Price Index (CPI): Food in U.S. Average City<\/a><\/p>\n\n\n\nConsumer Price Index (CPI)<\/a><\/p>\n\n\n\nCPI Data Archives<\/a><\/strong><\/p>\n\n\n\nReports & Data<\/strong><\/h2>\n\n\n\nU.S. Department of Agriculture (USDA)<\/strong><\/h3>\n\n\n\nWASDE Report<\/a><\/p>\n\n\n\nGrain Stocks Reports<\/a><\/p>\n\n\n\nCrop Production Reports<\/a><\/p>\n\n\n\nProspective Plantings Reports<\/a><\/p>\n\n\n\nAgricultural Weather Reports<\/a><\/p>\n\n\n\nCrop Progress Reports<\/a><\/p>\n\n\n\nLivestock and Poultry: World Markets and Trade<\/a><\/p>\n\n\n\nWorld Agricultural Outlook Board (WAOB)<\/a><\/p>\n\n\n\nNational Agricultural Statistics Service (NASS)<\/a><\/p>\n\n\n\nCommodity Futures Trading Commission (CFTC)<\/strong><\/h3>\n\n\n\nCommitments of Traders Report (COT)<\/a><\/p>\n\n\n\nCotton On-Call Report<\/a><\/p>\n\n\n\nNational Oceanic and Atmospheric Administration (NOAA)<\/strong><\/h3>\n\n\n\nNOAA Weather<\/a><\/p>\n\n\n\nHurricane Center<\/a><\/p>\n\n\n\nU.S. Drought Monitor<\/strong><\/h3>\n\n\n\nData & Maps<\/a><\/p>\n\n\n\nCurrent Conditions & Outlook<\/a><\/p>\n\n\n\nGlobal Reports<\/strong><\/h2>\n\n\n\nFood and Agriculture Organization (FAO) of the United Nations<\/strong><\/h3>\n\n\n\nWorld Food Situation \/ FAO Food Price Index<\/a><\/strong><\/p>\n\n\n\nEurope<\/strong><\/h3>\n\n\n\nEuropean Centre for Medium-Range Weather Forecasts (ECMWF)<\/p>\n\n\n\n
Forecast Charts & Data<\/a><\/p>\n\n\n\nEuropean Commission<\/p>\n\n\n\n
Agri-food Data Portal<\/a><\/p>\n\n\n\nSouth America<\/strong><\/h3>\n\n\n\nNational Supply Company (CONAB) \u2013 Brazil<\/p>\n\n\n\n
Agricultural Information Portal<\/a><\/p>\n\n\n\nMinistry of Economy – Argentina<\/p>\n\n\n\n
Agriculture Sector<\/a><\/p>\n\n\n\nAustralia<\/strong><\/h3>\n\n\n\nAustralian Bureau of Agricultural and Resource Economics and Sciences (ABARES)<\/a><\/p>\n\n\n\nAustralian Crop Report<\/a><\/p>\n\n\n\nAgricultural Commodities & Trade Data<\/a><\/p>\n\n\n\nIndia<\/strong><\/h3>\n\n\n\nMinistry of Agriculture & Farmers Welfare<\/a><\/p>\n\n\n\nProduct Codes & Exchanges<\/strong><\/h2>\n\n\n\nCME Group<\/strong><\/a> \/ <\/strong>CBOT<\/strong><\/a><\/strong><\/p>\n\n\n\n\n- Corn (ZC)<\/a><\/li>\n\n\n\n
- Chicago SRW Wheat (ZW)<\/a><\/li>\n\n\n\n
- Soybean (ZS)<\/a><\/li>\n\n\n\n
- Live Cattle (LE)<\/a><\/li>\n\n\n\n
- Lean Hog (HE)<\/a>\u2026<\/li>\n<\/ul>\n\n\n\n
According to the USDA<\/a>, the pandemic also led to significant changes in U.S. consumers\u2019 food spending patterns in early 2020 before returning to more typical, pre-pandemic levels in April the following year. In March 2020, for example, efforts to limit the spread of COVID-19 included stay-at-home orders that prompted these changes, where people generally bought more food products for at-home consumption, leading to increased demand for certain agricultural products, such as grains and canned goods.<\/p>\n\n\n\n In turn, the financial markets reacted by adjusting commodity prices based on supply and demand shifts, and some agricultural commodities experienced increased speculative activity.<\/p>\n\n\n\n Meanwhile, changes to certain federal government policies can effectively shift entire global trading practices. Take trade tariffs, for example, which can exert a very strong influence in agricultural commodity markets.<\/p>\n\n\n\n Consider the U.S.-China trade war that started in 2018, where China, the world\u2019s largest importer of soybeans, levied heavy tariffs on U.S. agricultural exports, including those soybeans. This action basically compelled U.S. farmers to seek alternative markets, which ultimately spurred volatility in the prices of soybean futures.<\/p>\n\n\n\n Indeed, the tariffs directly affected the U.S. farming economy, leading to lower revenue for soybean farmers and shifting global trade flows. This illustrates a great example of how political decisions, such as trade tariffs, can create major price fluctuations, affecting both commodity producers and investors alike.<\/p>\n\n\n\n In terms of extreme weather risks, the U.S. drought of 2012 affected commodities such as corn, <\/strong>soybean, and wheat production, which is a considerable impact on the markets as the U.S. is the world\u2019s largest producer of these crops.<\/p>\n\n\n\n In fact, this was the worst drought to hit the U.S. in 50 years, drastically reducing crop yields. Among other consequences, prices of corn futures spiked by 40% in the span of just a few months, affecting everything from animal feed to ethanol production.<\/p>\n\n\n\n The drought also had an impact on global trade, as other countries like Brazil and Argentina took advantage of the U.S. supply shortfall by increasing exports to try and fill product needs globally.<\/p>\n\n\n\n For the financial markets, the drought generally led to increased commodity speculation and increased commodity-related ETFs, with investors seeking to capitalize on the weather-driven volatility.<\/p>\n\n\n\n Further back in history, the Global Food Crisis of 2007\u20132008is another prime example of how agricultural commodities can trigger a chain reaction in economies.<\/p>\n\n\n\n This dire situation was borne out of a combination of bad weather, higher oil prices, and increased biofuel demand \u2013 all of which sent agricultural commodity prices soaring.<\/p>\n\n\n\n Prices of basic food staples like rice, wheat, and corn, for example, shot higher, creating food shortages in many developing nations. This, in turn, spurred social unrest in countries like Egypt, Haiti, and Bangladesh, where food became unaffordable for millions of people. The spike in agricultural commodity prices also impacted global financial markets, especially in the energy sector, as biofuels became more prominent in the energy mix.<\/p>\n\n\n\n These are just a few examples. In fact, there are numerous scenarios that can illustrate how agricultural commodities are intricately tied to global financial markets, economies, and international trade.<\/p>\n\n\n\n You can also learn more from information across our Campus \u2013 for example, by listening to IBKR Podcasts \u2013 where we house a treasure trove of current and historical discussions about agricultural commodities with industry experts. There, you can also learn more about specific agricultural commodity futures contracts, risks faced by market participants, as well as food manufacturers, and other events that can weigh on supply-demand dynamics, which can help you further your understanding of agricultural commodities trading and investing.<\/p>\n\n\n\n USDA Closes Mexican Border to Protect U.S. Livestock from New World Screwworm<\/a><\/p>\n\n\n\n When Trade Wars Hit the Farm\u2026 Who Gets Plowed Under?<\/a><\/p>\n\n\n\n Lean Hog Futures \u2013 Is Anyone Bringing Home the Bacon?<\/a><\/p>\n\n\n\n Live Cattle Futures \u2013 Herd Around the World<\/a><\/p>\n\n\n\n Sugar Futures \u2013 Talk About a Cereal Killer<\/a><\/p>\n\n\n\n \u2018Cuckoo\u2019 for Cocoa Futures?<\/a><\/p>\n\n\n\n Eyepopping Corn Prices \u2013 Fueling Food Inflation<\/a><\/p>\n\n\n\n The War on Wheat \u2013 How Much Bread Is on The Table?<\/a><\/p>\n\n\n\n Time for a Coffee Break?<\/a><\/p>\n\n\n\n Traders\u2019 Academy<\/strong><\/p>\n\n\n\n Introduction to Grains and Oilseeds<\/a><\/p>\n\n\n\n Understanding South American Soybean Futures<\/a><\/p>\n\n\n\n Hedging with Grain and Oilseed Futures and Options<\/a><\/p>\n\n\n\n Traders\u2019 Insight<\/strong><\/p>\n\n\n\n Corn Sustainability in the United States<\/a><\/p>\n\n\n\n Navigating the U.S. Planting Season with Enhanced Risk Management<\/a><\/p>\n\n\n\n A Brewing Storm for Arabica Coffee<\/a><\/p>\n\n\n\n How Commodity Prices Impact Inflation<\/a><\/p>\n\n\n\n Producer Price Index (PPI): Food Manufacturing<\/a><\/p>\n\n\n\n Consumer Price Index (CPI): Food in U.S. Average City<\/a><\/p>\n\n\n\n Consumer Price Index (CPI)<\/a><\/p>\n\n\n\n CPI Data Archives<\/a><\/strong><\/p>\n\n\n\n WASDE Report<\/a><\/p>\n\n\n\n Grain Stocks Reports<\/a><\/p>\n\n\n\n Crop Production Reports<\/a><\/p>\n\n\n\n Prospective Plantings Reports<\/a><\/p>\n\n\n\n Agricultural Weather Reports<\/a><\/p>\n\n\n\n Crop Progress Reports<\/a><\/p>\n\n\n\n Livestock and Poultry: World Markets and Trade<\/a><\/p>\n\n\n\n World Agricultural Outlook Board (WAOB)<\/a><\/p>\n\n\n\n National Agricultural Statistics Service (NASS)<\/a><\/p>\n\n\n\n Commitments of Traders Report (COT)<\/a><\/p>\n\n\n\n Cotton On-Call Report<\/a><\/p>\n\n\n\n NOAA Weather<\/a><\/p>\n\n\n\n Hurricane Center<\/a><\/p>\n\n\n\n Data & Maps<\/a><\/p>\n\n\n\n Current Conditions & Outlook<\/a><\/p>\n\n\n\n World Food Situation \/ FAO Food Price Index<\/a><\/strong><\/p>\n\n\n\n European Centre for Medium-Range Weather Forecasts (ECMWF)<\/p>\n\n\n\n Forecast Charts & Data<\/a><\/p>\n\n\n\n European Commission<\/p>\n\n\n\n Agri-food Data Portal<\/a><\/p>\n\n\n\n National Supply Company (CONAB) \u2013 Brazil<\/p>\n\n\n\n Agricultural Information Portal<\/a><\/p>\n\n\n\n Ministry of Economy – Argentina<\/p>\n\n\n\n Agriculture Sector<\/a><\/p>\n\n\n\n Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES)<\/a><\/p>\n\n\n\n Australian Crop Report<\/a><\/p>\n\n\n\n Agricultural Commodities & Trade Data<\/a><\/p>\n\n\n\n Ministry of Agriculture & Farmers Welfare<\/a><\/p>\n\n\n\n CME Group<\/strong><\/a> \/ <\/strong>CBOT<\/strong><\/a><\/strong><\/p>\n\n\n\n![\"\"](\"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/05\/007_2_COVID-1100x733.jpg\")
<\/figure>\n\n\n\nTrade Tariffs (2018)<\/strong><\/h3>\n\n\n\n
![\"america](\"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/05\/007_3_Tariffs-1100x733.jpg\")
<\/figure>\n\n\n\nU.S. Drought (2012)<\/strong><\/h3>\n\n\n\n
![\"dried](\"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/05\/007_4_Drought_Corn-1100x733.jpg\")
<\/figure>\n\n\n\nGlobal Food Crisis (2007-2008)<\/strong><\/h3>\n\n\n\n
![\"wheat](\"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/05\/007_5_Global-Food-Crisis-1100x733.jpg\")
<\/figure>\n\n\n\nLearn More<\/strong><\/h2>\n\n\n\n
In the News:<\/strong><\/h3>\n\n\n\n
IBKR Podcasts<\/strong><\/h3>\n\n\n\n
Economics<\/strong><\/h2>\n\n\n\n
U.S. Bureau of Labor Statistics (BLS) \/ Federal Reserve Bank of St. Louis (FRED)<\/strong><\/h3>\n\n\n\n
Reports & Data<\/strong><\/h2>\n\n\n\n
U.S. Department of Agriculture (USDA)<\/strong><\/h3>\n\n\n\n
Commodity Futures Trading Commission (CFTC)<\/strong><\/h3>\n\n\n\n
National Oceanic and Atmospheric Administration (NOAA)<\/strong><\/h3>\n\n\n\n
U.S. Drought Monitor<\/strong><\/h3>\n\n\n\n
Global Reports<\/strong><\/h2>\n\n\n\n
Food and Agriculture Organization (FAO) of the United Nations<\/strong><\/h3>\n\n\n\n
Europe<\/strong><\/h3>\n\n\n\n
South America<\/strong><\/h3>\n\n\n\n
Australia<\/strong><\/h3>\n\n\n\n
India<\/strong><\/h3>\n\n\n\n
Product Codes & Exchanges<\/strong><\/h2>\n\n\n\n
\n