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How Last Year's Weather Impacts Food Prices Today

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How much of a role does climate change play in the price of popular commodities? 

Sal Gilbertie, CEO of Teucrium, joined TheStreet's Katherine Ross and Action Alerts PLUS co-portfolio manager Chris Versace to discuss wheat prices, global warming, and the importance of commodities. 

In the video above, Gilbertie explained the impact weather volatility is having on wheat supply and pricing.


Katherine Ross: How is global warming impacting commodities directly?

Sal Gilbertie: It has it well, it is, impacting them directly because as you can see, the volatility and weather are causing a problem. So when you had too much rain in China two years ago, it literally caused such devastation that China imported a record amount of wheat last year.

That's why we're tight on wheat stocks because China took the top off as the industry professionals say, of the wheat inventories. Why? Because they had too much rain. Last year. We didn't have enough rain in Western Canada, they had virtually no wheat crop and no canola crop and the western United States had a really difficult time with their wheat crop.

 So the volatility of weather, which you can predict the drought now in southern Brazil, and in Argentina, basically took out their soybean crop. Powerglide is the world's fourth-largest exporter of soybeans. They're importing soybeans this year. They had such a devastating drought. 

There's no way to predict what's going to happen. The volatility of weather is causing volatility and AGS that doesn't appear that it will go away.

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