Part One: Futures Market Analysis The market that I was following was the corn futures market for July of 2017. All of my data in regards to futures prices by date can be found at barchart.com. For the purposes of this report, you can view the summarization of this market by viewing the graph titled “Futures Prices for July Corn 2017” attached here on the right. As you can see this market has truly been anything but stable since January 16, 2017. As you look at the graph over this two and a half month time span, you notice three general trends. The first being that from the beginning of this analysis, January 16, up until February 15 where the market, overall, was on an upward trend excluding the last week of January. From there, after it …show more content…
I’ve read many follow up articles on this issue, but none stood out like the one reporting the potential of this armyworm reaching the Mediterranean and Asia. This article from agweb.com, titled “Alien Armyworm Invading Africa May Reach Asia, Mediterranean,” reported signs of the armyworm spreading and potentially affecting more acres of corn. Combined these to article express the upward trend in the market during this time. However, we have yet to explain that brief plummet in this trend that happened during the last week of January. This plummet can be briefly explained by the likes of another article from agweb.com, titled “The 20% Problem.” This article touches on the scare of the taxes that Trump wants to put on trade with Mexico. It discusses how Americans are afraid that Mexico will no longer want to trade corn with us and thus leave us with a higher supply of corn. This is the exact opposite scenario that the armyworm presented, as higher supply with the same relative demand results in lower prices. Moving forward to our next big trend, which lasted from February 15th until March 27th, showed an overall decrease in prices for this market. This downward trend, is credited mostly to the Trump and Mexico trade talks that I previously discussed. However, much more about these talks began to surface during this time. While reading many articles about this issue, most of them tend to
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Main Point # 1 - Corn’s versatility, global demand, and profit margin has led the over grown grass to emerge as America’s number one crop. The USDA evaluated corn’s crop value to be $76.9 billion in 2011, making it a huge contributor to the American economic system (National Corn Growers Association, 2017). Research gathered by Duke University found that the U.S. produced 40% of the world’s supply, 10% of which comes from the small town of Constantine, Michigan while an additional 10% is produced from the surrounding areas (“U.S and Employment,” 2015; Motz, T., 2016). These spikes in corn’s global demand have created an opportunity for farmers and mid-western field workers to become involved in the growing and profitable industry.
The seller of the option will lose if the price of the stock is below $56.00 in June. (This ignores the time value of money.) The option will be exercised if the price of the stock is below $60.00 in June. The profit as a function of the stock price is shown in Figure S1.2.
Farmers in America were upset due to the prices of their products going down, increasing
The start of our corn epidemic started when Christopher Columbus was introduced to it by the Native Americans. He took the corn and spread it around and now corn is the number one most widely planted crop in the world. Pollan said, “One need look no further than the $190 billion farm bill President Bush signed last month to wonder whose interests
The final accelerated trend reviewed is the pattern of price instability. Over the past thirty years companies grew to expect an overall steady price environment. This is no longer the case. The article suggests that “rather than trying to accurately forecast inflation or deflation – an impossible task – companies should focus on how they might manage price instability” (Beinhocker et al., 2009 p. 60). They recommend reviewing contracts with suppliers, wage agreements, policies on pricing,
Interestingly, if you compare the number of prices reduces in February 2011 (80), to the number of current price reductions (0), it is evident that Apex is currently experiencing a seller’s market. Although homes remain on the market about a month longer, homeowners are not reducing their prices; therefore, higher-priced homes continue to sell in Apex.
Understanding the fact, that falling commodity prices and rising dollar cannot last indefinitely, and maybe even bottomed out for now, I see a lot of perspectives within these markets in one year period. Moreover, a lot of forecasters expect inflation to move toward two percent goal during this year, which will result in substantial rise in commodity prices. Although, it is a controversial issue according to the FED projections for the current and the next year, which have been lowered from previous numbers (Table#1).
This would create and elastic effect on the corn market because the huge demand for corn oil will remain the same but with the discovery corn for energy it has made it a hot commodity and very profitable amongst farmers therefore corn oil would take a back seat for now until other resources can be used to produce energy. These farmers are going to slow down their productions of corn for corn oil and increase the production of corn for energy because it is the more profitable thing to do and its makes perfect business sense. Now the demand for the corn oil remains the same, but the productions for it has slowed greatly if not stopped, this means that farmers and corn producers will need to raise the price of corn for corn products so they will be able to stay on the market longer and have a longer shelf life until another year or harvest comes around.
Conducting a comprehensive market analysis is essential in strategic planning processes for organizations to verify trends that are important to remain competitive in their marketplaces (Richards, Prybutok, & Ryan, 2012). For instance in the health care sector, trends related to quality, patient satisfaction, and costs are important issues for marketing officers to address in their market analysis (Lim & Ting, 2012). Thus, many marketing officers are promoting the use of technology to improve access to health services in their organizations (Stille, Jerant, Bell, Meltzer, & Elmore, 2005). For example, my primary care clinic recently implemented a secure emailing system to facilitate better accessibility to our health care providers. A secure emailing system allows patients to directly message their health care providers regarding health care questions, test results, and appointment requests (Stille et al., 2005). If I were marketing expansion of my primary care clinic’s services into a new marketplace, I would
a) In a perfect competitive market, the sole determinant of pricing is the market demand and the supply curves. A demand curve refers to the total amount that consumers will pay for their products. The supply curve is the total amount that the producers can actually make to supply to the company at the price they can afford or are willing to pay. Another factor in a perfect competitive market structure is the equilibrium price which is basically when the supply of the market meets the market demand of the consumers. Anther unique feature of a perfect competition market is that it is a price taker. In essence, this means that the company doesn’t have any influence on the price. Again, this can only be caused through a market that has a large number of firms with identical products. (Samuelson and Marks, 2010).