Page 2 - MEX Express - Vol 5 Issue 4

www.mexnepal.com FACTS AND FIGURES Volume: 5 • Issue: 4 • Year: 2013 A.D

Market Capitalization - Futures Contracts Know Your Commodities
From OCT 2013 - DEC 2013 (in %)
Corn

Introduction

Market Capitalization of all the future contracts listed in the Corn, also called as maize, is one of Fundamental Facts an alternative fossil fuel due to the hike in the
MEX terminal. Gold continues to have the maximum capital- the most important agricultural crops in energy prices; this has led to the increase in
ization followed by Micro Gold and Mini Gold the world. In the late 15th and early 16th • Weather is an important factor for demand for the ethanol. Thus, ups and downs
centuries, when Americans were in contact the production of corn. Any fluctuation in of the fuel prices also affect the corn prices.
Market Capitalization - Spot Contracts with the Europeans, explorers and traders weather conditions like rainfall, temperature,
From OCT 2013 - DEC 2013 (in %) carried corn back to Europe and introduced soil moisture, etc. affects the corn supply. Major Producers
it to the other countries. Maize spread to Likewise, natural calamities like floods,
Market Capitalization of all the spot contracts listed in the MEX the rest of the world because of its ability to drought, earthquake, etc. affects its production The top producers of corn in the world
terminal. Nano Gold continues to have the maximum capitaliza- grow in diverse climates. which ultimately affects the corn prices. are United States of America, China, Brazil,
tion followed by Nano Silver and Gold. Argentina and Mexico as per the records of
Sugar-rich varieties called sweet corn are • Any main event in major corn producing, 2012.
usually grown for human consumption, while consuming, importing, and exporting
field corn varieties are used for animal feed countries affects the prices of corn. Major Consumers
and as chemical feed stocks. It is believed
that, it was first cultivated in highlands of • Price fluctuation of substitute’s products The top Consumer of corn in the world is
Mexico thousand years ago. increases the demand volatility of corn which United States of America, Brazil and China.
ultimately affects its price.
There are various varieties of corn like
– yellow, black kernels, red, pink and blue • Any major technological change CORN Contract
which are often spotted, stripped or banded. or fungus & diseases during production, Specification
Corn is the most widely grown grain crop harvesting or distribution may increase or
throughout the Americas, with 332 million decrease corn productivity and supply which Contract size 10,000 Kg
metric tons grown annually in the United reduces the prices of corn.
States alone. And of that, approximately 40% Price Quoted NPR per Kg
of the crop — 130 million tons — is used for
corn ethanol. It is mainly used to prepare • The seasonal cycle of crop also affects Unit Kilogram
variety of foods (breads, muffins, cereal, its prices. For example, the price of corn tends Initial Margin
popcorn, meal, corn oil, etc.). The usage of to be lower during its harvesting seasons and Trading Session 7,500 NPR
corn also expands to its use as sweeteners, higher at the time of sowing due to its tight
alcoholic beverages, ethanol, etc. supply. 00:00 - 01:00, 06:45 –
19:30, 20:15 – 00:00

• Corn is extensively used for the ethanol Contract Months March, May, July, Sept,
production; therefore demand of corn for the & Dec
ethanol production also influences the price
rise of corn. Ethanol has expanded its use as

Major Market Movers for Corn and Gold (1st October-31st December 2013)

CORN GOLD

14.40 36000
14.20 35000
14.00 34000
13.80 33000
13.60 32000
13.40 31000
13.20 30000
13.00 29000
12.80 28000

10/1/2013
10/7/2013
10/16/2013
10/29/2013
11/2/2013
11/14/2013
11/26/2013
12/26/2013
12/31/2013
10/1/2013
10/7/2013
10/28/2013
11/8/2013
11/20/2013
11/25/2013
12/10/2013
12/19/2013
12/27/2013
12/31/2013

Note: News Note: News
Opening Price as of 1st October 2013 Opening Price as of 1st October 2013
Date Prices fall as lack of data from USDA Date Golf prices fall after FED decides of an early cut to the Federal Reserve’s stimulus program.
10/1/2013 Due to ethanol production up by 30%, corn price was down by 1%. 10/1/2013 US dollar strengthens suppressing gold and silver prices
10/7/2013 The adaptation done by the farmers and general public made the price move up. 10/7/2013 Dollar strengthened after the Federal Reserve subdued tapering concerns about its billion-
10/16/2013 Prices showed up with sufficient volatility after the increment in the Canadian pulse. 10/28/2013 friendly stimulus program Dollar strengthened after the Federal Reserve subdued tapering
10/29/2013 Harvest in full swing in the US, producers offering discounts push down prices 11/8/2013 concerns about its billion friendly stimulus program
11/2/2013 Due to the unimpressive National Feedstuffs Market Review, the interest of the traders got Fed announcement that the central bank should continue its stimulus measures to support the
11/14/2013 diverted and the prices fell to lowest. 11/20/2013 growth of its ailing economy.
11/26/2013 Due to Memphis Daily Grain Report and two other impressive Daily Grain Elevator bids, 11/25/2013 Silver prices stabilizes as Euro Banks are downgraded by S&P attracts investors
Kentucky and Nebraska, the prices increased to highest. 12/10/2013 Gold heading up as markets react to the statements from the US as well as lowered demands from
12/26/2013 Closing Prices as of 31st December 2013 12/19/2013 China and India.
12/27/2013 Fed tapering its stimulus measures during the mid of the month.
12/31/2013 12/31/2013 Demand from the Chinese and the Indian markets for the day ebbed on the downside
Closing Prices as of 31st December 2013

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