The last few months have primarily focused on the tensions between Russia and Ukraine, and the violent conflict has escalated in recent weeks. Now, the U.S. and European Union are imposing various sanctions on Russia in an effort to get President Vladimir Putin to play ball. These actions have yet to affect the European nation. Instead, Putin has retaliated with sanctions of his own, creating something of a legislative battle, potentially creating major headwinds for certain commodities [for more commodity news and analysis subscribe to our free newsletter].
U.S. hurricane season kicked off over the weekend, as the time period between June 1st and November 30th of each year brings special attention to these storms. Aside from the devastation they can bring to the areas they hit, these storms can also have a big impact on the commodity world (albeit short-term). Few commodities feel the brunt of the blow more than fossil fuels [for more commodity news and analysis subscribe to our free newsletter].
Posted in Commodity ETFs, Energy, Gasoline, Natural Gas, WTI
Tagged DGAZ, DOIL, UGA, UGAZ, UNG, UOIL, USO
For the last few years, commodities have dragged behind surging equities, as it seemed that the commodity supercycle was beginning to cool off. 2014, however, has seen broad commodity indexes outpace equities. Beating gains of just over 2% in a little over four months isn’t anything to write home about, but hard assets are holding their own nonetheless. However, most commodity indexes are benefiting from one hard asset in particular, coffee [for more commodity news and analysis subscribe for our free newsletter].
Markets were tested this week as the Nasdaq suffered several punishing trading sessions. Meanwhile, commodities continued to hold their lead over equities, mostly thanks to coffee futures, which have surged this year. Gold continues to battle with the $1,300/oz. mark and lost its grip on Wednesday. Below, we outline the performance of the commodity industry this past week, helping our readers pick out the leaders and laggards in each sector [for more commodity news and analysis subscribe to our free newsletter]:
With four months complete, 2014 has been a mixed bag for commodity producing stocks. While broad equity markets are hovering at about breakeven for the year, many commodity intensive stocks have made big pushes in both directions. Below is a look at some of the sectors that are both leading and lagging through the first four months of 2014:
Backwardation is the process by which futures contracts decrease in price as they move further out in maturity. This can often be due to the expectation of future prices or trends in a certain hard asset, but it can also occur from supply boosts, among other things. Though it is not a phenomenon that should worry investors, keeping an eye on the futures curve can help you make more informed investment decisions [for more commodity news and analysis subscribe to our free newsletter].
After commodities had a rough go in 2013, taking the backseat to surging equities, it seems that this year has more favorable conditions in store for a number of hard assets. Though a number of commodities have gotten off to a white-hot start this year, none have even come close to the gains that coffee futures have notched, as that commodity has spiked more than 80% through the first 10 weeks of the year [for more commodity news and analysis subscribe to our free newsletter].
Posted in Agriculture, Coffee
Tagged DBA, JO