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Commodities

Spot and derivative markets for trading goods which are uniform in all aspects

845 Questions

Where can results of commodity flow surveys be obtained?

The Commodity Flow Survey (CFS) contains data on shipments by domestic establishments in manufacturing, wholesale, mining, and selected other industries. The U.S. Census Bureau, in partnership with the Bureau of Transportation Statistics of the U.S. Department of Transportation, conducts the CFS as part of the Economic Census. This information may be obtained from your LEPC.

What factors influence the price of a commodity?

Demand depends on a lot of factors. The price, income of consumer, price of other goods, the price of the complimentary goods, the seasonal factor (in certain cases), advertising, trends and fashion, tastes, population and much more.

Disadvantages of Commodity money?

There are two.

One is, there can never be more money than there are commodities to cover it. If you decide that one dollar is equal to one gram of gold, and there are only 1 million grams of gold in the world, there can only ever be 1 million dollars.

The other is, if you can find more of the commodity you can destabilize the financial system. Money gains worth through scarcity. If gold is 1 gram = $1, and you find a vein of gold with 1 million grams of gold in it, you have just made all the money in the world half as desirable as it was before.

What commodities are produced and in what quantities?

This question cannot be answered here, because in your homework assignment a specific case is described in detail to which this question relates. Since we do not know that case, we cannot help you.

How the price of a commodity is determined?

Commodity prices are quoted on either a spot or future basis on an electronic board each time they change. Future prices are quoted based on the date of delivery of the contracted commodities.

How did the AAA affect farm prices?

The Agricultural Adjustment Act was created to protect farmers crop prices. The reason the prices for farmed goods were so low is because there was too much goods being produced. The AAA payed farmers to not grow certain crops or raise certain livestock. Total farm income raised over 50 percent because of this action.

How does the price affect the supply of commodity?

Normally it's the other way 'round, the supply of a commodity determines the price. I assume if the price were out of line with the supply a lower price would decrease supply and a higher price would increase supply if increasing the supply were possible.

What is commodity or product approach?

Commodity = needs

Product = quality

In my POV, the commodity approach merely focuses on the consumers' demands whilst the product approach focuses on bringing consumer demand by creating a product that's of great quality.

What challenges do finance managers face?

There are so many challenges that finance managers face. They have to keep checking financial records so as to ensure that the true financial status of the organization is represented which can be quite tasking.

World's largest commodity exchange?

Normally any stock exchanges ranking is decided based on Market capitalization and total trade volume. However, in case of commodity exchanges its the total trade volume or total number of contracts traded can decide its ranking.

Also, many commodity exchange rank different based on different commodities.

For example MCX rank no. 1 in Silver trading in year 2011.

Here are top commodity exchange wise.

ExchangeCountry

CME GroupUSA

Tokyo Commodity ExchangeJapan

NYSE EuronextUSA

Dalian Commodity ExchangeChina

London Metal Exchange

UK

Multi Commodity ExchangeIndia

Intercontinental ExchangeUSA, Canada, China, UK

Africa Mercantile ExchangeKenya, Africa

Calculate change in working capital?

just take current assets - current liabilities to obtain working capital. change in working capital is (Year 1 CA - CL) - (Year 2 CA-CL)

Commodity brokers use forward and futures contracts for what reasons?

The seasonal nature of many commodities would lead to wide variation in supply and price without these contracts.

What is the disadvantages of integration?

The advantage of regional intergration is that it makes different regions to access the information from different parts

Do you need a license to sell commodities?

You need one to broker them - to arrange deals between sellers and buyers. Some commodities require their sellers to have licenses.

How much is 10 grams of 14k gold worth?

The current Price For Gold as of August 10, 2012 is as follows:

Per Gram

24 k - $52.07

21 k - $45.56

18 k - $39.05

14 k - $30.36

10 k - $21.71

What is the difference between commodities and stocks or the difference between commodities and futures?

Commodities are things - stores of value, like gold, wheat, soybeans, cocoa, cotton, oil, etc.

Futures are contracts for the future delivery of something - could be a commodity, stock index, foreign currency, bond, etc.

Why is oil a strategic commodity?

A strategic commodity is considered to be very important. This is a resource that is important to a country that a country will go to any extent to ensure its consistent supply. A good example is oil which is used in every industry that you can think of.

What is 5 grams of 14K gold worth in US dollars?

I'll give you a dollar for it.

about $131 melt value - December 2010

What was the most profitable commodity that the Viginian colonists were able to trade?

Yes most would think Tobacco was the primary commodity but tobacco has limited demand and was actually a luxury item.

Corn due to its versatility, low labor and durability of transport became a key commodity for colonists in the American colonies especially Virginia. Before the Silo the corn crib was a common site on colonial agriculture. Corn's labor was limited to planting, harvesting and storing. The corn dried made suitable for the long journey by boat as food preservation techniques were limited back then. It had durability dried against spoilage as the journey took weeks even months pending the time shipped.

Corn's versatility to process dried was cracked, milled and whole. These features made it viable as a food source for humans and livestock as well as processing into grain alcohol. Due to durability it become an important staple for winter foods source maintaining people, livestock when food availability was limited during non productive agricultural season. This made it a well demanded commodity not only for colonist survival in winter months but also to export and supplement foreign nations tied to Virgina.

The other feature as the kernels served as seed source therefore a vital replenishing resource - the most vital it's necessity it fore went any sanctions in trade restrictions via embargo's for weight and taxes to export. As the colonies resources were much vast then England in raw materials that if flooded England's market would destabilize the economy's stance on wealth. So this garnered more viable return verses other commodities of raw resources such as: timber, tobacco and other raw materials for production.

What are the role of commodity boards?

  • To take up various problems, points ,suggestions to the States / Central Government and semi-Government Bodies.

  • To take up issues with the Export Promotion Organization - EPCs ,Commodity Board ,FIEO , ITPO, Various Government Ministries and Departments for Making easy participation in the Fairs and Exhibitions organized in India and Overseas.

  • To make efforts for creation of transparency in the function of the EP Organization-EPCs ,Commodity Board ,FIEO etc.

  • To organize Seminars and Meetings at various places to discuss ways and means to overcome problems and difficulties of the member-exporters / exporting community.

  • To invite Government officials , officials of EP Organizations and Dignitaries at the meetings / Seminars for facilitation and resolving problems relating to exports of the member exporters / exporting community.

  • To publish brochures ,booklets containing useful information for member exporters ,foreign buyers/buying agents etc.

  • To distribute the brochures ,booklets ,directories etc. at the time of fair and other occasions for the benefits of member exporters.

  • To set up International Trade Centers and Flatted Factory Complex (Industrial Parks).

  • To unite exporters to take common cause / issues with the concerned Organization ,Foreign Embassies and Foreign Mission in India and Foreign Trade Offices in India and Indian embassies / High Commissions overseas etc.