The commodity world has been plagued by lawsuits and cries of foul play for what seems like decades now. For as long as there have been exchanges for physical commodities, there have been accusations of price manipulation along with some very compelling evidence. From the Hunt Brothers’ silver game to the recently accused Goldman Sachs, market manipulation for hard assets has been a continued theme [for more commodity news and analysis subscribe to our free newsletter].
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].
The world of fertilizer stocks took a major tumble yesterday as the commodity segment dominated the headlines. Major fertilizer firms like Potash (POT) and Mosaic (MOS) watched their stocks tumble as much as 20% throughout the day, accompanied by trading volumes far above average. The hit came after a major development involving a Russian company and the potash cartels that have long controlled the price for the potassium-based fertilizer product [for more commodity news and analysis subscribe to our free newsletter].
By now, you have probably noticed that prices at the pump have been anything but kind. Gasoline prices have been steadily rising in the U.S. as the summer months continue to heat up. While it is true that gasoline prices are typically higher during the warmer months as demand also rises, the current spike is also due to some behind the scenes issues that many consumers may not be aware of [for more gasoline news and analysis subscribe to our free newsletter].
Déjà vu all over again. It was about this time last year that much of the U.S. was engulfed in a crushing heatwave that injected a fair amount of volatility into the commodity world; namely in the agriculture markets. With the U.S. dominating the production of a number of big name crops, the recent heatwave has caught the attention of a number investors looking to cash in on the trend [for more agricultural commodity news and analysis subscribe to our free newsletter].