Companies which trade or manufacture commodities face a huge number of challenges in today’s competitive climate.
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Basic commodities such as sugar, cocoa, cotton and coffee were among the first goods to be marketed commercially. Historically, almost every society developed its own marketplace where people could come to trade in basic commodities such as food or textiles. Slowly but surely, more and more parties came to this physical marketplace.
The increasingly long chain had a direct effect on the value of each individual commodity. All the parties in the chain added value to commodities, such as processing, transportation, storage, purification, manufacturing etc. This affected prices. A sudden change in supply or demand had a direct effect on everyone in the chain. This in turn affected prices or resulted in retention of commodities which had dropped in value.View
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