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Animal Spirits Podcast

Talk Your Book: Supply and Demand Always Wins

Jun 3, 2024
Sal Gilbertie, CEO of Teucrium, discusses the cost of production and commodities, inflation's impact, investors' use of Teucrium products, cocoa trends, and more. Topics include cyclical agricultural markets, weather events, synthetic meat, and commodity vulnerability to price spikes.
32:41

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

  • Weather patterns significantly impact agricultural commodity prices, as seen in the case of cocoa production in West Africa.
  • Producers in agricultural markets should sell during price spikes to secure margins, but shipping costs can lead to crop discounting.

Deep dives

Impact of Weather on Agricultural Commodities

Weather plays a significant role in the volatility of agricultural commodities. For instance, the concentration of cocoa production in West Africa led to a doubling of prices due to adverse weather conditions in that region. This concentration makes cocoa susceptible to price spikes when weather events occur. The centralized production of certain commodities like cocoa highlights the risk associated with weather patterns affecting global supply and demand.

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