Price volatility in primary industries

Primary industries are industries that extract or harvest natural resources to produce goods and services such as agriculture, forestry, fishing, hunting, and mining. These industries rely heavily on the supply and demand of their commodities, which can result in greater price volatility due to factors such as climate change, disease, and political upheavals. Climate change can drastically affect the production of primary commodities, creating shortages and driving up the price. Diseases, such as floods in the agricultural sector, can harm production, resulting in higher prices. Political upheavals in countries can also cause disruptions in the global supply chain, leading to higher prices of commodities. All these factors can lead to greater price volatility in primary industries.