This Week In Commodities: November 4th Edition

This week featured heavy volatility that sent both equities and commodities on another roller coaster ride. Oil is on pace to finish out the week above $93/barrel while gold is gripping the $1,750/oz. mark. The two commodities had rough starts to the week, but the latter few trading sessions have helped them recover and then some. As the coming weeks unfold, commodity investors will have plenty to keep their eyes on; the Greek debt situation appears to be ping-ponging between good and bad news, making it extremely unpredictable. Also, note that the U.S. debt situation will be forced to come to a vote sooner rather than later, which may have a significant impact on commodity markets [see also Commodity Trading Trends: Natural Gas In Focus].

In an effort to help investors understand the past week in markets, we outline three of the best commodity stories from around the web over the past trading week:

Wheat Plunging as Decade-High Stockpiles Ease World Shortages at Bloomberg:

Wheat prices are headed for their biggest slump in nearly three years as stockpiles around the world are surging, helping to ease the massive shortage that was in effect. Prices plunged 20% to $6.375 per bushel thus far, but analysts see that figure dropping to $5.90 by the end of the year, a further decrease of 7.5%. With its supply surplus and its massive price decrease, wheat is one of the worst performing commodities on the year, and it still may have a ways to fall. This article, by Luzi Ann Javier and Jason Scott, details wheat’s recent performance, and what investors can expect in the coming weeks.

Peak Oil – Why We need to Plan Now at Oil Price:

Peak oil has been an issue that many analysts and experts in the field have been predicting for quite some time, though no one is positive as to when this will actually happen. The threat of peak oil has led to a number of alternative energy sources out there, but for the time being, fossil fuels remain the most popular option. This article, written by Tom Murphy, takes and in-depth look at the history of oil as well as all of the combining factors that will play into its future, and why we need to be thinking about this issue sooner rather than later.

MLPs: CEFs, ETPs, or Mutual Funds? at CommodityHQ:

In our current environment, with low interest rates and unstable equities, finding a solid yield can be hard to come by. Value investors are constantly on the lookout for high-yielding options to provide steady income streams for their portfolio, and MLPs may be the perfect fit. There are now a wealth of options available to investors to invest in this energy sector, but some options are better for certain portfolios than others. This article outlines CEFs, ETPs, and mutual funds dedicated to MLPs, and which ones may be right for you.

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Disclosure: No positions at time of writing.

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