Friday May 20, 2022

Try to go for a meal – try to invest in corn and pennies

Corn is, in terms of quantities, the most natural crop, according to archaeologists, the wheat is the first cereal grown and traded by hunters. For not trying to invest in them first? It is enough to orientate yourself in the market of these crops.

The easiest way to invest in these commodities is through futures contracts or CFD contracts, in both cases it is possible to speculate on a drop in price – that is, to sell the contract without even owning it.

Futures contracts for money, corn and soybeans are traded on the Chicago Commodity Exchange (CBOT), CFD contracts are traded on over-the-counter markets and are contracts derived from futures contracts. The advantage of a CFD contract is that it is possible to trade in smaller quantities and there is no threat of the supply of several bulbs (let’s explain each other) of wheat and corn.

For futures contracts, we must be aware that if we are not interested in the physical delivery of the commodity, the broker must sell the contract before it is terminated.

nsko-americk vlda kukuice
The largest producer of corn in the history of the United States is the United States, thanks to three main supports and plenty of native land. An important producer is thus the one who will probably become the largest producer in the coming years. Other important producers are Argentina, Brazil, Mexico and France.

Corn in two different qualities
Commodity trading can be very lucrative, but also risks in the form of high price volatility. For example, the price of corn rose by 27% during June. At the moment, however, corn is being traded again from the June arrest, and we have seen not only a sharp increase in the last less than two months, but also a drop in the market price.

There are two longest qualities of maize – maize slo 2 with high quality and maize slo 3 – the so-called yellow maize. In the market, corn is traded in bulch, where one bul of corn represents 25.4 kg, but if we talk about consumption or production, it is tons.

Graph 1: Development of corn prices

Is it hodn o poas…
The price of corn, like other agricultural commodities, is greatly affected by the weather. For example, in the last few months, sowing took place in the main cuckoo dog in the USA, where at first there was only a child, which made sowing impossible. And then there were large children to go and the rafts that humiliated the family.

Penice from two times
Today, in terms of the volume of wheat, it is the second most cultivated agricultural commodity in the world, right after maize, and is followed by re. The price of the pen is affected by the significant time and expectations of production and consumption. The production of pennies is not dominated by the bottom of the country, the largest producers are India, followed by the United States, Russia, France, Canada and Australia. Like corn, pennies are traded for bulls, but one bale of pennies and oyster beans, unlike maize, are about 27.2 kg.

And the market reaction? The price of corn climbed to the end of May and above $ 6 per pound, so that at the end of June it broke this record due to drifting and thus reached and above $ 7.5 per pound. The favorable weather in recent weeks has shown two hopes that the genus will not be so bad this year, so the price of corn fell back to around $ 6 per bul.

The price of maize is thus significantly affected by the policy of the United States, which subsidizes the production of bioethanol from maize, which is added to biofuels. Record oil prices are being replaced by biofuels, and thus increase the price of corn, or demand for n is rising. The price of corn has risen by about 30% this year alone.

Graph 2: Development of penny prices

… But also about the expectation of consumption and gender
It is important that the American Agricultural Council publishes more about the expected family and future, as well as WASDE’s first view of the world’s demand for and demand for individual agricultural commodities. The publication of these is initially a significant event in the market for these commodities. The market price takes into account the expected event, and thus the expected demand and supply.

For example, due to the lack of this crop, the price of the crop has risen to a maximum of around $ 12.8 per pound due to the lack of this year, so that the price drops sharply in response to the first areas of the crop, not originally expected and therefore expected. Therefore, the price of the penny is currently below the same as at the end of the year, ie simply, the penny has become cheaper this year.

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