Week 7: 3. Cool Resources

1. http://www.brecorder.com/markets/commodities/america/89177-soybeans-drop-pull-corn-lower-while-wheat-steadies-.html

How will the price of wheat, corn and soy beans can affect each other? How will the bad weather in South America affect the whole world price? This article shows us all the information we need and we can learn how to analyze ourselves.

2. http://www.brecorder.com/markets/commodities/america/88774-speculators-cut-cbot-corn-longs-by-21-percent-cftc-.html

Large speculators made the biggest cut to their bullish bet on corn futures in nearly a year as anemic global demand for US supplies weighed on prices, regulatory data issued on Friday showed.

3. http://www.agweb.com/article/drought_makes_wheat_attractive_for_feed/

This article talks about Wheat Feeding Decision. The decision to use any grain, including wheat, in feeding livestock is a complex management decision. Energy and nutritional needs in a balanced feed ration are specific to both the animal species and the type of animal within a species. Moreover, changing the mix of wheat in a ration during a feeding cycle can materially reduce feeding efficiency. Hence, livestock feeders want to be relatively certain that not only is wheat a cheaper source of feed now but will remain so throughout the feeding cycle. In other words, the decision to feed wheat is more of a longer-term strategic decision than a short-term tactical decision. This may partially explain why the share of wheat that is fed is positively and statistically significantly correlated in adjoining years: +0.42. Thus, high wheat feeding in one year is likely to be followed by high wheat feeding next year.

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