Protection against inflation
The agricultural sector of economy seems to foreign investors a quite good way of earning money. During too time there are certain risks and they should be considered.
If the investor understands the market, that is washed away to be put in this area, after all agroinvestments can be carried to a separate class of assets looking at a risk and profitability ratio as very big volatility is inherent in assets.
Forecasting of profitability of a portfolio is strongly complicated because of changeable correlation because it can be both positive, and negative.
Still advantage of investments is an insurance from inflation.
Sugar and cocoa because in pricing on these products play a role absolutely other factors, rather than in formation of cost of wheat or a soya have the smallest correlation of the environment of crops.
Forecasts for change of the prices in this sector it is connected more with heating of the market and involvement of investors. Recently the population increases, and the food becomes ever less because cultivated areas are reduced and the quantity of urban population which farmers to support unable grows.
The main thing not to come across on dodges of swindlers and speculators which artificially play the prices.