S3 7.5

Question 1

Can Cocoa contracts be traded out-of -pit?

Answer 1

Nope

Question 2

What is a “Crush Spread”?

Answer 2

Buy soybean futures
Sell soybean oil futures
Sell soybean meal

Question 3

What for of transportation do eggs use?

Answer 3

Truck

Question 4

What type of heating oil is used to heat up homes in winter?

Answer 4

Heating Oil No. 2

Question 5

Which exchange is Hearting Oil traded in?

Answer 5

NYMEX (NY Mercantile Exchange)

Question 6

What is an Iced Broiler

Answer 6

Frozen chickens

Question 7

Why is the price oif Iced Broilers not affected by the price of oats?

Answer 7

Cause chickens do not eat oats

Question 8

What is required for the delivery of chickens?

Answer 8

a Demand Certificate

Question 9

Why are the prices of pork and bee correlated?

Answer 9

Both are red meats

Question 10

How long is a “Crop Year” and when does it begin and end?

Answer 10

1 full year, begins July 1st, ends June 30

Question 11

What 3 types of animals are considered “Cattle”?

Answer 11

Heifers -female cows
Bulls - full bulls
Steers - castrated bulls

Question 12

Which 4 factors affect the price of commodities?

Answer 12

1) Transportation
2) Wages
3) Short term interest rates
4) insurance

Question 13

What is necessary to make a commodities market viable?

Answer 13

definable quality and standards
demand is broadly based
production is broadly based

Question 14

What is another term for “Feedlot operator”?

Answer 14

Fat farmer

Question 15

What does it mean when we say “Fat farmer” or “Feedlot operator”?

Answer 15

Cattle is ready for slaughter