This past week, though a bit rocky for equities, was strong for a number of major commodities. Cocoa futures continued about their winning ways with a healthy jump of over 10% in the trailing five day period while natural gas and crude oil also welcomed strong gains. Despite NG futures rising this week, the battered commodity is still down more than 12% for the year, leaving many investors with differing opinions as to where the fossil fuel is headed. On the other end of things, coffee and lumber futures headed south this week, as they were among the biggest losers. In an effort to keep our readers up to date with today’s commodity environment, we outline three of the best stories from around the web below [see also Doomsday Special: 7 Hard Asset Investments You Can Hold in Your Hand].
Crude Oil Report: Bullish Technicals Vs. Bearish Fundamentals at Hard Assets Investor:
Crude oil is one of the most widely traded commodities on the market as its impact on our economy is likely too significant to measure by any quantitative means. Prices for crude have been hovering around the $100/barrel levels for quite some time now, as it has failed to establish any major trend since hitting the triple digit mark a few months ago. This article, by Sumit Roy, details the fundamentals and technicals behind crude and explains why each are different and how it may effect your crude trading.
Reality Check: Who Is Still Buying Gold? at Emerging Money:
Similar to crude oil, gold has been stuck in something of a rut after it peaked out at $1,900/oz last year. The precious metal has fallen as low as the $1,500′s but is now aiming to keep a firm grip on the $1,700/oz. barrier. Still, with gold prices all across the board a number of individual investors and institutions have begun to change their tune as far as gold buying is concerned. Even heavy hitters like Warren Buffett have been publicly criticizing gold as an investment. This article by Richard Rittorno outlines some investors and nations who still believe in the precious metal and have proven it with their buying habits.
Five Commodity MLPs With Sky High Yields at CommodityHQ:
With the Fed holding rates near zero for the next two and a half to three years, investors will have to turn to more creative methods to find income for their portfolios. For many, finding a high yielding investment that fits into vital commodity exposure can be a chore, but there are a number of options out there for those who hold value in high esteem. This article outlines five commodity-focused Master Limited Partnerships (MLPs) that pay massive dividend yields.
Disclosure: No positions at time of writing.