Commodities in Focus Amid Russia Sanction Battle

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].

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A Look at Commodities in the First Half of 2014

The first half of 2014 is in the books, and commodities have finally started to see something of a turn around. Commodities had a tough 2013, while equity markets made an unprecedented run higher, turning investor’s attention away from a floundering commodity space. But the first six months of this year saw hard assets move higher and hold pace with broad markets, injecting some much-needed life into the commodity world [for more commodity news and analysis subscribe to our free newsletter].

Posted in Agriculture, Coffee, Commodity Futures, Corn, Gold, Livestock, Palladium, Platinum, Precious Metals, Silver, Wheat | Leave a comment

The Best and Worst Performing Commodities of Q1 2014

With the first quarter of 2014 on the books, investors are still digesting a slew of mixed economic reports, as well as looming uncertainty over the crisis in Ukraine. Equity markets have struggled to find a definitive direction so far this year – a vastly different environment from the record-breaking rallies seen at the end of last year. The commodities market also saw a fair amount of activity in Q1, as geopolitical tensions, severe weather, and global economic uncertainty (particularly in China) came into focus. Below, we outline some of the best and worst performing futures from the first quarter of this year [for more commodity news and analysis subscribe to our free newsletter]:

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What Big Banks Are Saying About Commodities in 2014

As 2013 comes to a close, several analysts have already published their predictions for the coming year with most remaining cautiously optimistic about the global economy in 2014. So far this year, however, commodity markets have struggled to stay out of the red, with many analysts speculating that the epic commodity boom seen in recent years is finally over. Though on the equity side, commodity producers have benefited from this year’s bull run, with oil and gas companies in particular logging in double digit gains [for more commodity news and analysis subscribe to our free newsletter].

Posted in Actionable Ideas, Agriculture, Asset Allocation, Brent Oil, Commodity Futures, Commodity Trading Outlook, Commodity Trading Trends, Energy, Gasoline, Gold, Industrial Metals, Livestock, Natural Gas, Nickel, Precious Metals, WTI, Zinc | Leave a comment

How The Government Shutdown Could Disrupt Livestock And Agricultural Trading

Though taper talks have dominated the headlines in recent months, investors are once again turning their attention to Washington as Congress struggles to come to a bi-partisan budget agreement. On Tuesday, the U.S. federal government officially shut down after Democrats and Republicans failed to agree on a fiscal budget. And though the government has stressed that all “essential” operations would continue, investors are already feeling the impacts of the shutdown [for more commodity futures news and analysis subscribe to our free newsletter].

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How Ags Will React to Last Year’s Drought

The agricultural industry was hit hard by the most severe and extensive drought in at least 25 years in 2012, which had an impact on crops, livestock and food prices at all levels. While prices have already started to increase in the fourth quarter of 2012, the majority of the impact on retail food prices will likely be seen throughout 2013, according to a recent report by the United States Department of Agriculture (“USDA”) analyzing the drought [for more agricultural news and analysis subscribe to our free newsletter].

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For Day Traders: The Most Liquid ETF for Every Commodity

The introduction of commodity ETFs brought trading to a whole new level, as your average retail investor now has the opportunity to trade something like natural gas futures through a single ticker. As the years have gone on, a number of these products have grown to be some of the most widely-used financial instruments for their respective commodity. One advantage to ETFs, however, is that liquidity is not hindered by average volume due the the creation process. Instead, there will just be some funds that are more liquid and tradable than others [for more commodity ETF news and analysis subscribe to our free newsletter].

Posted in Academic Research, Actionable Ideas, Agriculture, Alternative Energy, Aluminum, Asset Allocation, Brent Oil, Cocoa, Coffee, Commodity ETF Analysis, Commodity ETFs, Copper, Corn, Cotton, Energy, Gasoline, Gold, Heating Oil, Industrial Metals, Lead, Livestock, Natural Gas, Nickel, Nuclear, Palladium, Platinum, Precious Metals, Silver, Solar, Soybeans, Sugar, Tin, Wheat, Wind | Tagged , , , , , , , , , , , , , , , , , , , , , , , , | 13 Comments

For Long Term Investors: The Cheapest ETF for Every Commodity

After gathering more than $1 trillion in total assets under management, ETFs have cemented their place in the financial world. Among the universe of nearly 1,500 products, commodity funds have garnered a lot of attention, as these products have democratized an asset class that was once difficult to reach by retail investors. Now, there are a number of exchange-traded options to help you gain exposure to your favorite hard assets, all at a low cost.

Posted in Academic Research, Actionable Ideas, Agriculture, Alternative Energy, Aluminum, Asset Allocation, Brent Oil, Cocoa, Coffee, Commodity ETF Analysis, Commodity ETFs, Commodity Futures, Copper, Corn, Cotton, Energy, Gasoline, Gold, Heating Oil, Industrial Metals, Lead, Livestock, Natural Gas, Nickel, Nuclear, Palladium, Platinum, Precious Metals, Silver, Solar, Soybeans, Steel, Sugar, Tin, Wheat, Wind, WTI | Tagged , , , , , , , , , , , , , , , , , | 5 Comments

When in Doubt Go to Cash

Energy:I do not like the action in Crude so I advised clients to cut their shorts in half. Do not misinterpret me; I am not getting long but rather lightening up on short trades. Though I do not agree with the acceleration of commodities that we are seeing, I refuse to fight it. Hedgers should also start to wade into longs in heating oil and RBOB to protect from upside spikes. My suggestion is a long future against a sale of out of the money calls 1:1. High to low natural gas moved 30 cents. Tighten up stops just below the 18 day MA which should ensure at least a small profit unless we gap down tomorrow. My take is if we break that level we may get a chance to get one more buy below the $2 level…stay tuned.

Posted in Agriculture, Commodity Futures, Copper, Corn, Energy, Exclusive, Gold, Industrial Metals, Livestock, Natural Gas, Precious Metals, Silver, Soybeans, WTI | Tagged , , , , , , , | Leave a comment

China, The 800 lb. Gorilla

A positive GDP number out of China influences commodities today. I think today was an overreaction, but a good sign medium and longer term. Crude picked up 1% today and has quickly pulled away from the very critical $100 mark with prices approaching $104/barrel. I maintain that if we stay below $104 on a settlement basis going into the weekend we will see a sub $100 trade next week. My target remains 97.50 in May futures. I believe, today, the case was the strength in the distillates lifted Crude.

Posted in Agriculture, Cocoa, Commodity Futures, Exclusive, Livestock, Orange Juice, Soybeans | Tagged , , | Leave a comment