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Adam Seldis

BBC News - Who what why: Why is there more oilseed rape being grown? - 31 views

www.bbc.co.uk/...magazine-18249840

Demand & Supply

shared by Adam Seldis on 30 May 12 - No Cached
Adam Seldis liked it
  • Why is there more oilseed rape being grown?
    • Adam Seldis
      Adam Seldis on 30 May 12
       
      This looks like it might a supply issue - so microeconomics supply and demand
  • more than ever before
    • Adam Seldis
      Adam Seldis on 30 May 12
       
      So there has been a shift outwards in supply. I can show this on a diagram. However I need to explain why it has shifted.
  • rocketing prices as it becomes more desirable for food
    • Adam Seldis
      Adam Seldis on 30 May 12
       
      So the only way this can be explained is that demand has increased more than the increase in supply, therefore leading to a 'rocketing' in prices. Again, would be good if I could explain why.
  • ...9 more annotations...
  • £388 per tonne, which compares to £240 in 2010
    • Adam Seldis
      Adam Seldis on 30 May 12
       
      I can use these numbers on my diagram. 240GBP was the original equilibrium price, 388GBP the new equilibrium.
  • 698,000 hectares in England and Wales and around 37,000 hectares in Scotland have been sown with oilseed rape this year, up about 6% on last year
    • Adam Seldis
      Adam Seldis on 30 May 12
       
      Again, I can use these figures in my diagram on the Quantity axis.
  • rapeseed oil is actually one of the highest quality vegetable oils, and it has gained a certain culinary respectability over recent years.
    • Adam Seldis
      Adam Seldis on 30 May 12
       
      This explains the shift in demand
  • "It's being used as mayonnaise, in margarine, salads, anywhere vegetables are used. It has a good health profile, has low saturated fat, is high in omega-3, and some claim it is better than sunflower oil," he say
    • Adam Seldis
      Adam Seldis on 30 May 12
       
      As does this.
  • The UK's "consistently high yields" of rapeseed have made the crop a success, according to Gagen.
    • Adam Seldis
      Adam Seldis on 30 May 12
       
      This partly explains the shift in supply
  • Other places like Germany, Poland and Ukraine have had a dreadful winter, the crops were exposed to severe cold temperatures, I suspect the French suffered as well.
    • Adam Seldis
      Adam Seldis on 30 May 12
       
      I can bring in here the concept of substitute goods - that German etc rape crops are a substitute good. That their fall in supply will have lead to an increase in the price for them, leading to a fall in demand. This will have lead to an increase in demand for UK rape crops. Could show this diagrammatically if needed.
  • and they are 45% oil - and the other 55% is high protein animal feed - they are an amazing piece of nature," he says. Burnett says oilseed rape is also being used for biodiesel, while a very small amount has specialist industrial uses, for instance as lubricants.
    • Adam Seldis
      Adam Seldis on 30 May 12
       
      Again, this explains the surge in demand. It has a number of different uses. (Called composite demand).
  • Burnett says oilseed rape has probably been more visible this year because it has flowered for almost twice its normal length of time - eight weeks, instead of four - as a cold and wet April and May stopped flowers developing and dying at their normal rate.
    • Adam Seldis
      Adam Seldis on 30 May 12
       
      We could start to use this as some kind of evaluation - the fact that there might not have been a shift in supply at all.
    • Adam Seldis
      Adam Seldis on 30 May 12
       
      So, overall, I could write a commentary about how a small shift in supply and a large shift in demand has led to an increase in the price for rape seed. I can easily show this with a diagram and explain the factors behind each movement. I would need to show the shift in supply being less than the shift in demand. For evaluation I could start to look at the impacts of PED and PES. Might they be inelastic or elastic and how might this impact the price mechanism. I could also speculate a little about what might happen in the future, based on the information in the article, and its impact on the price of rape seed in the UK
  • Adam Seldis on 30 May 12
     
    This is the article I would like you to read first. You may not use this one in the future.
Nayana Devadas

Oil Gains a Third Day on Demand Outlook as Supplies Drop - Bloomberg - 2 views

www.bloomberg.com/...-crude-stockpiles-decline.html

shared by Nayana Devadas on 07 Jun 12 - No Cached
    • Nayana Devadas
      Nayana Devadas on 07 Jun 12
       
      demand- micro
  • Crude inventories
    • Nayana Devadas
      Nayana Devadas on 07 Jun 12
       
      inventory- supply- storage 
  • ...10 more annotations...
  • crude
  • Futures
  • 75 cents to $85.04
  • Brent oil for July settlement gained 26 cents, or 0.3 percent, to $99.10 a barrel on the London-based ICE Futures Europe exchange.
  • New York crude is set to rebound based on a technical indicator that shows a decline of more than 20 percent fro
  • bear market conditions
  • Futures
  • Futures
  • “The inventory decline doesn’t change the overall outlook much, but at least it’s headed in the right direction,”
  • The relative strength index, or RSI, has been below 30 since May 11, signaling that oil is poised to climb, said Richard Ross, a technical analyst at brokerage Auerbach Grayson & Co. in New York. The 14-day RSI, which identifies possible turning points in markets, dropped to 16.3 on June 1, the lowest level since February 1986.
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