1. How many types of commodities are available for trading in Chicago Mercantile exchange? 2. How...

1. How many types of commodities are available for trading in Chicago Mercantile exchange?

2. How far into the future can you trade on the prices of these commodities?

3. Which types of commodities are expected to have increased (decreasing) prices in the future?

Solutions

Expert Solution

1. Chicago mercantile Exchange deals in the agricultural commodities like Grains, Soyabean, Oilseeds, Live cattle, Lean Hogs,Feeder Cattle, Class 4 Milk, Class 3 Milk, Non Fat Dry Milk powder, Dry Whey, Cheese, Butter,and Random length Lumber.

It also deals in gold, silver , tresury bonds and energy. Bitcoins are also traded.

2. We may trade on the price of these commodities till existence of humans. Ironically, food is necessary for living, so till the human exist production , buying and selling of these commodities will continue. So, there will be a large scope of investment in these commodities in future.

3. i think the future prospects of agriculture products will increase due to the increase in population and also by seeing towrds the current situation of coronavirus pendemic. The value for food will increase and will have more demand. Luxury items like gold and silver will have less demand due to the crisis faced by individual and their families. Also, unemployement will rise, salaries will drop as the economic condition of every country drops.

Thus prices of agriculture items will rise and luxury items will have a contanst price or drop in price

jeff jeffy answered 1 year ago

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