What is a strategic commodity?
strategic commodity is a commodity that is considered to be most important for the economy of the nation, usually to the extent that if open trading in commodity is disturbed in some way, the economy will suffer strictly. Commodities are generally seen as raw materials or agricultural products that can be purchased and sold as investments and for continuing consumption. Commodities of this type are often widely used and active trading these products can support the economy of the nation. If a commodity that actually contributes to the economic stability of the nation is not available at once, the results may be far.
Determination of what is a strategic commodity is not always easy. Although there is a general agreement on some commodities that have strategic status, such as oil, corn and goldenes used in conjunction with gold. It is also important to realize that although some products can be very important for the economy of one nation, they may have a minimum impact on the economy in another nation.
Identification of any strategic commodity in a certain environment is how crucial it is open to trading in this commodity for the well -being of the economy. If the offer of this commodity was suddenly limited seriously, it could benefit several, but overall it could have disastrous results for most consumers who depend on the products produced by this commodity. At the same time, a sudden impact of the same commodity on the market may lead to lower prices of related goods, which consumers would enjoy, but not necessarily welcome investors who would significantly reduce their profit per unit.
Many nations follow the list of strategic commodity products that are traded on the border. Monitoring includes not only known what is now happening to these commodities, but also what will probably happen in the future in terms of availability. NapRating, if a strategic commodity of corn is currently traded at a fair level, but there is a great chance that the offer in the coming period will be reduced due to bad weather or natural disaster, governments can start taking steps to help minimize the impact of this reduction. If this would help minimize the impact of a decline on the economy, hopefully long enough to later be complemented by a strategic commodity later.