Understanding Oats Contracts

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Category: Commodity

Although oats are one of the earliest domesticated grains, they have not at all times enjoyed a good reception. In Greece, for instance, oats were thought of a deformed type of wheat, and in England they had been thought of barely palatable even for livestock.

Interestingly, Scotland is the only area wherein oats have been traditionally revered, and consequently they play a standard position in Scottish cuisine. The truth is, Scottish oats rank among the many finest worldwide, and command a premium in the market.

Most individuals know oats as oatmeal (89% of oat is eaten this way), or as rolled oat products. Oats are also a preferred food selection for horses, cattle and hen, and could be found in some manufacturers of dog food.

1. 20 cents per bushel ($1,000/contract) above or under the day prior to this's settlement price.

2. No limit within the spot month (limits are lifted starting on First Position Day).

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Understanding Oats Contracts

Like every commodity, oats has its personal ticker image, contract value and margin requirements. To successfully commerce a commodity, you should pay attention to these key parts and perceive the best way to use them to calculate your potential revenue and loss.

Oats Exchanges

The futures contract for oats is traded in an open outcry format and electronically through the Chicago Mercantile Trade (CME) group (CME, electronic Chicago Board of Trade (eCBOT).

FCOJ's

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Category: Commodity

Until 1962, Florida dominated the orange juice export market. However, due to severe freezes and hurricanes all through the years, it has been overtaken by Brazil, the world's main FCOJ exporter in 2009. In the last 30 years, Brazil's dominance in the international market has become so full that it represents 80% of all global exports. Brazil even supplies the U.S. with 30-50% of its orange juice.

FCOJ's dependence on only two geographical regions has resulted in an excessive sensitivity to weather. When hurricane Katrina hit Florida in 2005, it ruined orange groves and drove the price of frozen concentrated orange juice from ninety cents per poundto $1.ninety eight per pound. This occurred on the heels of orange juice reaching an all-time low of 60 cents per pound.

            1. Movable 10 cents above or below previous day's settlement for first and second listed month.

2. As soon as the contract with the highest open curiosity hits this limit, a suspension is triggered.

3. New limit is 10 cents above or below the value at which the suspension was triggered.

Understanding FCOJ Contracts

Like every commodity, FCOJ has its own ticker image, contract value and margin requirements. To efficiently commerce a commodity, you have to pay attention to these key parts and perceive methods to use them to calculate your potential profits and loss.

Oranges are juiced and shipped world wide in frozen form. The Brix system of measurement ensures uniformity in the high quality of FCOJ that's traded between suppliers and buyers. Brix is defined as a measurement that quantifies the mass ratio of dissolvedsugar to water in a liquid.

Platinum

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Category: Commodity

Platinum was a part of Native American tradition earlier than Columbus arrived within the New World. In 1557, Julius Caesar Scaliger writes about the metal, referencing the platinum mines of Panama and Mexico and the problem of melting the metallic based mostly on the know-how of the times. Europeans realized early on that platinum was extra valuable than gold. King Louis XV of France acknowledged platinum's rarity and declared it the only metallic fit for a king.

Through the nineteenth century, platinum was very tough to metalsmith. It was often mixed with iridium with a purpose to mildew it into jewelry. Across the flip of the 20th century, Russia made a number of significant platinum deposit discoveries and started to supply ninety% of the world's platinum. On the similar time, advances in metalsmithing made using pure platinum extra common.

Platinum's metallic properties make it highly attractive in quite a lot of business and industrial applications. It has a high resistance to temperature and doesn't oxidize in air, though it is corroded by halogens, cyanides, sulfur and caustic alkalis. What's more, it's also non-reactive to chemical assault and has excellent electrical properties.

1. Futures: $25 per troy ounce ($1,250 per contract)

2. There isn't any maximum each day commodity buying and selling restrict in the course of the present supply month and the three enterprise days previous it.

3. If the settlement value reaches the maximum day by day limit for 2 consecutive days in any of the outer months, the expanded each day restrict schedule will go into effect.

4. The utmost expanded daily limit is $50 per troy ounce ($2,500 per contract)

Components That Influence Oat Costs

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Category: Commodity

Info About Production

Oats are typically planted in the spring and early summer. Nonetheless, owing to their tolerance to cold temperatures, oats are nonetheless capable of yielding a very good harvest even in cooler weather.

Within the U.S., oat manufacturing has seen a steady decline, largely because of the automobile. As vehicles changed horses as the primary mode of transportation, the need for oats for horse feed diminished. As of 2008, the most recent 12 months that oatsreported a document crop was in 1945, with 42 million acres yielding 1.5 billion bushels of oats. Sixty years later, lower than 5 million acres were allotted for oats, barely 10% of the dimensions of 1945's banner crop.

About 50% of harvested oats are used for hay, and the opposite half is used for grains. U.S. oat manufacturing is centralized in the Midwest, with the Dakotas, Wisconsin, Minnesota and Iowa featuring as key players. Each acre of land yields about 100 bushels of oats.

Components That Influence Oat Costs

The worth of oats is influenced by the following components:

Oats are hearty and will be present in various climates around the world. There are profitable crops in Iceland in addition to Northwest Europe. Oats are thought of capable of tolerating cool, wet summers and tend to lie dormant underneath excessive heat.

The Meals and Drug Administration (FDA) has developed requirements for oat portions in products. A sure minimal amount have to be in a product before that product might be declared capable of lowering the risk of heart disease. The product is required to have a minimal of .seventy five grams of soluble fiber in every serving. These guidelines spurred a health-conscious fad in the late Nineties that mirrored a similar oat fad in the 1980s.

Worth of FCOJ is driven by weather

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Category: Commodity

In the case of FCOJ, the Brix content or sugar content is required to be 62.5% of the actual product and the water content material should be no higher than 37.5% of the product. The FCOJ contract measurement is measured as 15,000 pounds. The tick motion relies on a per pound basis. Every single tick transfer in FCOJ relies on five ten-thousandths of a cent ($0.0005). Every $0.0005 movement is the equivalent of $7.50 per contract.

FCOJ Exchanges

The Intercontinental Alternate (ICE) acquired the New York Board of Commerce (NYBOT) in 2007 and now provides contracts in "Frozen Concentrated Orange Juice" and "Not From Focus Orange Juice."

Information About Manufacturing

The worth of FCOJ is driven by weather. Brazil's drought season happens from July through November, whereas Florida experiences its freeze from December via March. Harvest is subsequently a 12 months-round affair, so crop and climate studies should be monitored usually, particularly at the start of each country's inclement season.

The business has ridden a curler coaster in provide and demand numbers over the previous 30 years. Drastic freezes within the 1980s lowered manufacturing numbers, yielding a mere 652 million gallons produced for the 1989-ninety season. The 1990s saw a gentle improve in manufacturing, more than doubling to 1.55 billion gallons. Within the 1997-ninety eight season, domestic consumption was pegged at 5.seventy three gallons per capita, with futures prices reaching a modest $1.28. The latest decline might be partly attributed to competition with juices not from concentrate and different fruits.

Understanding Platinum Contracts

Details

Category: Commodity

Like every commodity, platinum has its personal ticker symbol, contract value and margin requirements. To efficiently trade a commodity, you should be aware of these key components and understand the best way to use them to calculate your potential profitsand loss.

Platinum Exchanges

The futures contract for platinum is traded at the New York Mercantile Exchange (NYMEX) through its Commodity Alternate (COMEX) division through open-outcry. It is usually traded electronically by way of the Chicago Board of Trade (eCBOT) and Tokyo Commodity Change (TOCOM).

Information About Manufacturing

Platinum is without doubt one of the most valuable metals in the world. Massive deposits of platinum will be found on the moon and in meteorites, but finding it on earth is more difficult. Of all the platinum that has been found on earth, 80% has been positioned in South Africa, 11% in Russia and 6% in North America. Thirty occasions extra rare than gold, platinum has an annual production of roughly 5 million troy ounces a yr in comparison with gold's 82 million troy ounces per 12 months and silver's 547 million troy ounces per year.

Platinum's special properties put it in large demand in various industries. From jewellery to cars to health sciences and extra, this versatile steel plays a vital role in our on a regular basis lives. For instance, cars (which still operate with catalyticconverters), represent 29% of platinum's usage. The steadiness of platinum is used in jewellery, chemical refinement and in excessive-tech electronics.

FDA

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Category: Commodity

The Meals and Drug Administration (FDA) has developed requirements for oat portions in products. A sure minimal amount have to be in a product before that product might be declared capable of lowering the risk of heart disease. The product is required to have a minimal of .seventy five grams of soluble fiber in every serving. These guidelines spurred a health-conscious fad in the late Nineties that mirrored a similar oat fad in the 1980s.

Oats have untapped commercial potential. They are the only cereal with a protein profile much like soybeans. With a protein range of 12-24%, oats have been deemed by the World Health Organization (WHO) to be equal in quality to meat, milk and egg proteins.

Oats are a novel type of grain that supply significant health benefits. Nevertheless, with the rising popularity of soybeans and corn, particularly in ethanol production, oats are having a tough time finding their place in the market.

For four,000 years, oranges have grown in Southeast Asia and China. The orange made its technique to Europe during the Moorish occupation of Spain, eventually arriving within the New World. From these humble beginnings, a thriving orange industry has developed in both the U.S. and Brazil.

Prior to 1947, the standard form of consumption for orange juice was recent-squeezed; subsequently, the industrial orange juice business was continually contending with the extremely perishable nature of freshly squeezed oranges. Usually, supply shocks have been each quick and severe. The invention of frozen concentrated orange juice (FCOJ) in 1947 introduced a brand new standard to the orange juice industry, opening the gates to a world marketplace that was not readily available before.

Over 1 million hectares of citrus fruit

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Category: Commodity

An necessary merchandise to consider is that much of Brazil's FCOJ production has been hit with citrus variegated chlorosis (CVC), a kind of blight that would probably affect the 250 million orange bushes on which Brazil's third largest agriculture marketdepends.

Factors That Affect FCOJ's Value

The value of orange juice influenced by the following components:

The navel orange is the product of a single mutation that occurred in 1820. A monastery in Brazil found this seedless variety of orange and began to export cuttings to the U.S.

Navel orange bushes are a product of grafting and are subsequently vulnerable to numerous illnesses as a result of the crops are so genetically homogeneous.

The Valencia orange is used for juicing when navel oranges are out of season.

Low-carbohydrate diets and alternative juices succeeded in driving down the demand for frozen concentrated orange juice within the early 21st century.

Over 1 million hectares of citrus fruit resides in Brazil, with the concentration in Sao Paulo.

In the Fifties, the introduction of a micro organism referred to as Xanthomonas axonopodis pv. citri, the agent of citrus canker, became a problem. It took thirty years to eradicate and is still a very actual threat.

In the mid-Eighties, prepared-to-drink (RTD) began its ascent to prominence, capturing seventy five% of the market share from frozen concentrated orange juice.

Frozen concentrated orange juice has an extended and wealthy history within the Americas and across the world. Considering the significant health benefits that orange juice offers, this tasty drink will proceed to play a big role in the commodities panorama whatever the kind it takes. However, bearing in mind the level of sensitivity to weather and the homogeneous nature of orange trees, an epidemic could probably devastate the industry.