Corn prices are at a three-year low and wheat is falling on excess exports from Canada and Australia. One way to find investing opportunities from this is to consider, “Whose raw material prices will be dropping as a result of this?” Companies involved in the feeding of domesticated animals like chickens, pigs, and horses along with food companies using grain or even the sweetener, high-fructose corn syrup.
Thinking through scenarios like these is an important element of economic literacy. Understanding the macro-economic elements and how their movement ripples through the economy creating effects and side-effects. Perhaps the price of corn does not impact you in a notable way, however, learning how to think this way will put you ahead of your peers in the workplace, in your investing, and your planning in general.