Now and again, I verify in and show gadgets which can be circulating in Wall Avenue circles and blogs.
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Lengthy-term market and financial traits.
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Further particulars about what you assume is undervalued or overvalued.
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Hyperlinks to nice explainers of ideas.
**All as of December 14, 2023
What’s “mushy”? commodity futures contract Quite than being mined or drilled to supply, it’s traded the place the underlying product (the “actual”) is grown. Objects similar to rice, livestock, cotton, and different agricultural merchandise fall below the mushy class.
Software program is commonly forgotten by the monetary media, however it’s a few of the most enjoyable and quirky merchandise to commerce. Delicate He’s distinctive for 2 causes.
Three items of software program specifically have been within the information just lately for his or her distinctive value components. Let’s test it out.
Let’s examine if we are able to do that with out making trade joke.
Frozen concentrated orange juice turned in style within the Fifties and Sixties after scientists invented a option to ship OJ to World Struggle II troopers abroad. Earlier than the Tang Dynasty was the Tang Dynasty.
One FCOJ contract is value £15,000. So, if the present market value is 90 cents per pound, the contract is value $13,500 ($0.90 x 15,000 kilos = $13,500). If he buys an FCOJ contract when the market is at 90 cents and sells it for 0.95 cents, he could make a revenue of $750 on FCOJ’s 5 cent transfer.
Because the 2020 lows, FCOJ’s value has quadrupled. price increase to all-time high There may be little hope that it’s going to cease earlier than that. year end which one. Dangerous climate (a hurricane worn out about 10% of Florida’s orange bushes final yr) and a bacterial illness referred to as “greening” have diminished yields in fields in Mexico, the US and Brazil.
In Buying and selling Locations, Murphy and Aykroyd use faux harvest experiences to rip-off the market. Wall Avenue ultimately made it unlawful to commerce on inside info obtained from the federal government. A law called the “Eddie Murphy Rule”
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cocoa It is actually cocoa beans for chocolate. It’s traded on the NYMEX trade, and there appears to be a big every day CFD buying and selling quantity on the ICE trade plus. It trades in {dollars} per metric ton, and one contract is for 10 metric tons.minimal motion, or tick-tock Sizes are $1 or $10 per contract.
The cocoa bull market is being pushed by persevering with provide considerations in West Africa. Ivory Coast’s cocoa harvest is predicted to be diminished by one-third to one-fourth of final yr’s quantity as a result of unusually heavy rains related to the El Niño phenomenon.
The sugar commerce is surprisingly advanced. There are three totally different contract sorts
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Sugar No. 11
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Sugar No. 16
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white sugar futures
Sugar No. 11 That is 112,000 kilos of sugar per contract. It is usually essentially the most liquid and well-known contract that may be traded. It trades in cents per pound. The minimal value change for sugar is $0.0001, or $11.20 per contract.
sugar was on the way The El Niño issue has pushed sugar costs in the direction of reproducing the FCOJ-cocoa sample. below last week’s level Information that India’s Ministry of Meals has directed native sugar mills to cease utilizing sugarcane juice and syrup for ethanol manufacturing within the 2023/24 provide yr.
As soon as this information broke, sugar costs would reverse sharply and would want to discover a new equilibrium after the information shock.
1 bushel ear cone = 2.5 cubic ft
1 twine (wooden) = 128 cubic ft
51.2 bushel ear cones on one wooden twine. Of course.
What are your ideas? Have a query? Remark?
Attain out!Possibly I am going to do a full put up on this matter or put up it as a Q&A
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