How Commodity Markets Work | WSJ
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- Опубликовано: 5 май 2024
- Florida-grown oranges, which were once used to make more than 90% of the U.S.'s orange juice, might be going extinct, sending frozen concentrate orange juice futures to record highs.
WSJ’s David Uberti explains how volatility in commodity markets impacts the price you pay for products like orange juice.
Graphic: Miki Katoni
00:00 Why Florida’s oranges might go extinct
00:36 How frozen concentrate orange juice became a commodity
02:08 How commodities are traded
03:11 How futures contracts benefit farmers, manufacturers and financial traders
04:02 How futures prices impact retail prices
WSJ Glossary
Markets and economics are complex. It's easy to be overwhelmed by a sea of wonky indicators and lose track of why they matter. This series breaks down the basic terms and ideas that move the markets.
#Orange #Commodity #WSJ
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I'm Brazilian and around here orange juice has also gone up. Precisely because it is more profitable to export.
What about coffee? For a decade now, we supposed to run out of coffee. Or was it chocolate? And bananas, they supposedly all dying. And vanilla too. Whole bunch of stuff are supposed to disappear.
@@TheBooban Brazilian coffee production suffered from some weather events last year. I think Brazil is no longer a major cocoa producer. Yes, chocolate and coffee are more expensive in Brazilian supermarkets. Inflation is a global problem.
That's why we need to invest strategically hard in industry and put this "the world's farm" notion to bed. Despising industry and its role on development will make Brazil lag at least 50 years behind its major trade partners (i.e. USA and China) forever
0:10 to record high and led to thousands of job cuts.
0:30 how commodity market works
2:10 Future contract: an agreement btw 2 parties for a delivery of a commodity at a future date.
3:00 Over the last couples of year, the U.S. dollar has been particularly strong.
3:10 imports from Mexico and Brazil have become effectively cheaper.
3:30 you're not going to bear the full brunt of those losses.
Very informative, thanks 👍
One of the best WSJ videos in a while, really impressive editing and conciseness
Thank you so much .I learnt something valuable today .
Crazy my grandmother got laid off from her orange production job up in Central Florida. This was around November last year.
Awesome video thank you :)
Trading Places, anyone????????????
Winthorpe!
Jokes on them, I grow my own oranges. Those Duke Brothers won't get my money! Lol
So speculation around the future price of an item gets to affect its actual, current market price. Sounds completely reasonable. 🙃
Well isn't it?
If you were a sanitizer salesman, and you believed a pandemic will break out next month, wouldn't you adjust your current prices to reflect that?
Imp no
Look
I will just say thank you.
Why did OJ concentrate?
Because shouting, “They had it coming!” In the courtroom was way different than privately with your lawyer.
😂
But his gloves didn’t fit.
@@thomashenshallhydraxis Ever watch the trial… wearing rubber gloves…. Folding his palm near thumb knuckle to pinky knuckle… places his finger tips inside.. looks up like he tried his best….
¯\_(ツ)_/¯
I’m hardly exaggerating…. Perhaps you’re just also being sarcastic.
It was great comedy.
This reminds me of the Amaranth hedge fund losing $3b on natural gas futures in 2006…. presumably producers did well with above market prices locked in which may have impacted drilling efforts. So crazy how futures trading at volume can impact the physical world.
Thank you, WSJ! After this video, now I'll be able to beat the Dukes before they corner the entire frozen orange juice market!
“WHAT ARE THEY DOING HERE?!”
“T H E Y R E S E L L L I N G M O R T I M O R”
Good job
thanks
90% of gold is not actually used to produce or manufacture anything therefore it’s not a commodity.
If Florida is not suitable to efficiently produce oranges just let Mexico and Brazil specialize in growing them since they have the proper conditions to meet demand. Protectionism is what causes these prices to skyrocket. A strong dollar should make imported oranges cheaper but it doesn’t help when the government places a large tariffs on these cheaply imported commodities to compete with local producers who are not efficiently producing at all!
Jon - What industry do you work in? Can we outsource it to Brazil or Mexico so you lose your job?
I work in wealth management for a local trust firm that focusing on local institutional clients in Hawaii. Sure they can outsource my job to a third world country but my employer is smart enough to consider that third world countries are not familiar with the local culture and our clients specific expectations so outsourcing my job is a huge risk they cannot afford to take if it will tarnish the service and reputation of the company to these well established institutions. I don’t know why red neck trump supporters don’t just focus on specializing on what we are good at and just outsourcing the rest. It’s ironic to advocate for protectionism in industries that are inefficient and then complain why prices for the same goods and services from these inefficient industries are so expensive!
@@jon6309 as a Brazilian, Russia being 2 world and Brazil being 3 world makes no sense im my head in 2023
@@jon6309 True, but it is also worth noting that you want some sort of domestic industry for nearly everything in order to cushion during wars or global trade imbalances. Globalization is not as hot as it used to be since it's downsides have finally been realized.
@@VintageToiletsRock then we should be allocating our resources to produce something else we are more efficient with to offset leverage. The USA is very suitable for producing corn which Mexico and Brazil does not have the same capacity to produce but have a high preference for the crop. The USA does not use it as trade leverage but instead uses it for unnecessary domestic consumption for things like corn syrup when other substitutes are actually more better to consume!
Literally had to look this up. I didn’t know OJ trading was real.
Great products
USD strong?
Trading Spaces for real!
An underrated movie for sure!
I just wa t to say..simply orange juice and Florida's best is lacking..I think they may be watered down now..or their Ora gesture aren't all the way ripe or something..
Things in general are going up all the time. Has a lot to do with currency debasement, but the other part is scarcity. For example: the last few years we have hit peak oil availability. Meaning now we are on a decline in resource availability. Tie that into population growth. Goes for every commodity. It’s a natural resource and there only a fine amount left after a century + or two of industrial use. Basically, things will get a lot more expensive because the commodity pool is shrinking.
Well said 👍
We are nowhere near peak oil. Also, there isn't a finite quantity of oranges.
But higher prices will naturally bring more exploration and discovery online. Man has not even uncovered 0.001% of Earth's resources/commodities, let alone one specific kind.
What water and
I wanted to understand more of how you get profit.
Why do people still drink OJ anyway? I stopped after learning that it's basically a glass of sugar water. 🤷 You might as well be drinking a glass of non-diet soda.
Our system is so broken...
We import some oranges of USA, Pakistan and China. It need so long time, average a month the distance of USA and Indonesia and the prices is so expensive than the oranges of Pakistan and China. But the oranges of Pakistan is better than China and fresh, cheaper too.
Anyone else get very strong Lukas vibes from this guy?
This is only the start, soon water is next in other states.
Eagle ❌ ANIEL Larry Chester Thomas Charles Aneu I Been Around 3 Different Countries Legislate Armed Services Training Out Of High School CO ED Pay them
Thank You
For informatiòns
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Why is the farmer brown or black and the treader white 😮? It it unconscious bias about roles in the market
Within 12 days!
Orange Juice, everyone's favorite way to get diabetes!
0:27, black farmer with white hands. seems someone making the graphics made a mistake.
Its called being representative of struggling minorities. You monster. The black farmer could have vitiligo .
Lol, always surprised by eagle eyed commentators.
Gloves?
@@mirzaahmed6589 or wearing a black face mask
They look like gloves
Despite the fluctuations in market prices, I still make over 36k usd from all my weekly in vest ments on commodity.
Wow that’s awesome. I don’t make half of what you earn from all my inestments. I have lost so much already. I’ll really use some help.
@@nethanlukas2514 I work with a professional broker who provides entry and exit on securities I focus on, I suggest you work with him.
@@justinmichelle6087 How do I get to him.?
+17 19
94 13
how? tang
What do mean some people make/lose money just by betting on future asset pricing? No actual product or services or anything? Just simply calling a race and placing bets? That's just pure gambling like what idiots do in Vegas.
These people shouldn't be called investors or businessmen or the likes. I am shocked and surprised by this information. It's like what happened in the housing market crash with all those synthetic echo bets...
the whole economic system is gambling, what do you think stocks are
To a point everything is gambling. We lack the ability to see the future. Buying a house is gambling, there's no guarantee it'll appreciate with time.
JOB SECURITY, is as close to guaranteed as possible, even then it's primarily for gov jobs. Most investors that trade for a living do so because they want to live without a job.
It's mainly gambling for uneducated participants. It's investing for the educated.
The wisest thought that is in everyone's minds today is to invest in different income flows that do not depend on the government, especially with the current economic crisis around the world. This is still a good time to invest in gold, silver and digital currencies (BTC, ETH.... stock,silver and gold)
Scam coming up
This is a puff piece in which Rupert Murdoch's News Corp tacitly argues for laissez-faire capitalism. Shocking! /s (sarcasm).
they get to it at 2:13 the rest is useless
Great ...now people wont have to drink sugar water
Interesting.
“Rather than love, than money, than fame, give me corndogs”
Why is the farmer black and suit white 😂
Time to go short on oranges, like in that old movie..
🇮🇳🇮🇳🇮🇳👍👍🙏🙏
Within 74,500 views!
All future need to be banned, these are biggest reason why commodities are way over priced ,
Another Infividual this guy speaking a SellOut to the almighty american dollar
Futures contracts are not used to make profit. They are used to hedge against price volatility. Companies will buy and sell these based on risk mgmt. key word companies. It is very hard for individuals to invest in these due to the size of the contracts. Plus these contracts are used to pay for these goods or sell them at a future date.
One way you could invest in them would be an ETF but it would be a small share of a single contract