In markets that trade natural products, such as agricultural, fishery, energy, and commodities markets, oversupply or at least excess supply causes problems. When supply is high, prices plummet, causing significant damage to producers; conversely, when supply is low, prices rise, and consumer sentiment diminishes. As a result, both suppliers and consumers suffer. The challenge is that it is difficult to intentionally set the level of production. Because of this, a futures market develops in situations where we have to accept what nature provides. Futures trading is a method in which a producer and a distributor agree in advance to trade the price of an item to be produced in the future, without knowing the exact quantity yet. In other words, in futures trading, the focus is on price rather than quantity. Since it is challenging to stock items that require freshness, futures trading offers advantages by allowing transactions to be made in advance. However, if supply fluctuates too much,...
The reason pencils can be writing instruments is due to pencil lead. The material used for pencil lead is graphite. The graphite element is carbon (C), and four carbon atoms are combined. One carbon atom can have four bonds and can combine with another element. Diamond is similar to graphite, with four carbon atoms. However, diamonds have four carbon bonds that create a strong covalent bond with other carbon atoms, while graphite has only one weak bond. We can write or draw with a pencil because of this loose combination. When you apply pressure to the pencil with your finger, this weak bond in graphite breaks, leaving some of the crystals damaged. Don’t view it merely as a pencil; it’s a diamond’s cousin. The degree of consanguinity is very, very close. - Joseph’s “just my thoughts”