Commodity Market

Issue

   The commodity market provides a means of trading raw materials and other products (e.g., oil, wheat, livestock) for its use in production and consumption by nations. The problem is that if a particular issue occurs in a specific region, it also affects the price of the commodity in other regions on a global scale.

Solution

   Improve the commodity market to be more segmented and regionally based so that any detrimental effects that may occur for a particular commodity would be restricted to that specific region.

   For example, if an issue occurs to a particular region such as a drought that affects a specific crop, the price for that commodity would only be affected from that particular region and not others that provide the same commodity.

   This applies not only for natural disasters but also for other situations as well (such as military conflicts). So, if an armed conflict occurs in the Middle East, it would only affect the price of oil from that region and not from the Americas (America, Brazil), Asia (Russia, Kazakhstan), or the Artic (Canada, Norway).

   The commodity market should be corrected in this manner so that detrimental effects are restricted to a particular region and not impact the global economy.