Agricultural Commodities

Published: 12/23/2022

What are Agricultural Commodities?

Agricultural commodities are raw materials that are produced through farming and agriculture, such as grains, oilseeds, livestock, and other food products. These commodities are typically grown or raised on farms and then sold or traded on commodity markets.

Agricultural commodities are agricultural products that are grown to be sold.

Types of Agricultural Commodities

Agricultural commodities are any food or food product derived in whole or in part from plants or animals. Agricultural commodities can be raw, as in milk and some meat products, or processed, as in corn sweeteners and soybean oil.

  1. Soybeans

Soybeans are one of the most important agricultural commodities in the world. They are used in a wide variety of products, including food and beverages, industrial oils, animal feed and fiber.

Soybeans are also used to make biofuel and biodiesel. The United States is the top soybean producer in the world, followed by Brazil and Argentina.

  1. Wheat

Wheat is a cereal grain, originally from the Levant region of the Near East, but now cultivated worldwide. In 2016, world production of wheat was 749 million tonnes, with Russia and the United States as the top producers. Wheat is grown on more land area than any other commercial food. World trade in wheat is greater than for all other crops combined.

  1. Lumber

Lumber is a type of wood that has been processed into beams, planks, posts and other shapes for construction and furniture making.

Lumber is typically sold by the board foot, which is a unit of measurement equal to 1 square foot. Lumber may be either rough sawn or surfaced on one or more sides. It's used in the construction of buildings and other structures. It can also be used for firewood, molding and finish work such as panelling or plastering.

  1. Cheese

Cheese is a dairy product in which the natural milk fats have been separated. It is made by curdling milk with rennet or acid, and then draining off the whey. After a period of aging, certain cheeses can be eaten without further cooking, while others must be cooked or melted before eating.

  1. Palm Oil

The palm oil commodity is a natural product that is extracted from the fruit of the oil palm. This fruit is located on top of the palm tree and is harvested for its oil in many areas around the world, including Indonesia and Malaysia.

Palm oil comes from the fleshy part of the palm fruit that surrounds the kernel. The kernel is removed from this area and then pressed to extract its oil content. The kernel itself can be used as a food source as well, but it tends to be more popular among animals such as cows, goats and pigs.

Palm oil has been used for thousands of years by people in Africa and Asia as part of their diets. It has been incorporated into cooking oils, margarine products and other items for consumption by humans and animals alike. It was also used as an ingredient in soap products until more recent times when it was replaced by other ingredients with less health concerns attached to them.

  1. Milk

Milk is a dairy product produced from the mammary gland of mammals. It is the primary source of nutrition for young mammals before they are able to digest other types of food. Early-lactation milk contains colostrum, which carries the mother's antibodies to its young and can reduce the risk of many diseases in the baby mammal. As an agricultural product, milk is extracted from non-human mammals during or soon after pregnancy. Dairy farms produced about 730 million tonnes of milk in 2011, from 260 million dairy cows. India produced one quarter of the world's milk supply, followed by the European Union and China. The United States, India and Brazil were the world's largest exporters of milk and milk products in 2010.

  1. Rice

Rice is a staple food that provides more than 20 percent of daily calories for over half the world's population. The most widely consumed species is Oryza sativa, a tall grass that has been cultivated for more than 7,000 years. Rice cultivation is well-suited to climates with warm summers and cool winters, such as India and China. While annual production of rice exceeds 510 million metric tons (MT), it is estimated that humans consume only about 40 percent of this total.

  1. Rubber

Rubber is an agricultural commodity that is used to make tires and other rubber products.

The demand for rubber has been increasing in recent years. This is mainly due to the growing demand for automobiles and other vehicles in many countries around the world.

Rubber is a natural latex substance found in many plants including the rubber tree (Hevea brasiliensis), which is native to Central America but now grows throughout tropical regions such as India, Sri Lanka and Indonesia.

The global rubber market has grown substantially over the past decade with the rise of emerging markets such as China and Brazil. This growth has been fueled by increased demand from industries like automotive, construction and healthcare industries.

  1. Sugar

Sugar is a commodity that is traded on the commodities market. It is a sweet, crystalline food substance, mostly sucrose, extracted and purified from the juices of fruits and roots, and then refined and purified into white crystals. The most commonly used sugars are sucrose, glucose, fructose and lactose.

Sugar is available as white granules or a fine powder, which can be dissolved in hot water to make a tea-like drink. It is also used to sweeten other foods such as jam or desserts.

The main producers of sugar are Brazil, India and Thailand, which together account for around 40% of global production. Other major producers include China, Russia and Ukraine (all of whom produce over 1 million tonnes).

  1. Cocoa

Cocoa is grown on small farms, and the majority of cocoa farmers are small farmers. The average size of a cocoa farm is just over one hectare. However, there are also large farms that produce most of the world's cocoa crop.

  1. Coffee

Coffee is a tropical plant that grows best in hot, humid climates. It is cultivated in more than 70 countries around the world. Coffee is an agricultural commodity and is listed under the International Coffee Agreement (ICA) as an agricultural commodity.