Backwardation Report: Energy And Grains Face Falling Curves
Backwardation and contango are two phenomena that define the futures industry of the commodity world. Though the terms have come handcuffed with a negative connotation, those who understand how they work should not sweat their existence. Backwardation is the process by which near month futures are more expensive than those expiring further into the future, creating a downward sloping curve for future prices over time. Contango, simply, has the opposite impact [for more commodity news and analysis subscribe to our free newsletter].
The Best Agriculture ETFs of 2012
It was a pretty hectic year for agricultural commodities as the summer months wreaked havoc on prices. After the United States endured the hottest 12-month span on record and an abysmal drought, a number of these staple commodities experienced big movements in price and trading volume alike. But now that 2012 is nearing its close, we look back at these funds throughout the course of the year to see which funds outperformed the rest [for more agriculture news and analysis subscribe to our free newsletter].
The Surging Demographic Trends Behind Grain Investing
One of the driving forces behind commodity investing has been the exponential increase in the human population, as demand for these products continues to grow at an alarming rate. Among these commodities, grains are perhaps the most essential, as they are the staple of food products all over the world. Food commodities enjoy relatively inelastic demand; a demand that has been rapidly growing alongside the global population [for more grains news and analysis subscribe to our free newsletter].
All About the Soybean ETF (SOYB)
A legume native to Asia, soybeans trace their history far back, long before written records. Over time, the commodity’s applications have evolved tremendously from being considered sacred for its use in crop rotation, to becoming one of the main fixtures in our everyday diets. Today, the crop is best known for its use in the production of numerous foods, including soybean oil, soy meal, various meat and dairy substitutes, as well as animal feed. Soybean production is dominated by the U.S., as the commodity ranks the second most valuable agricultural export, trailing behind only corn [for more soybean news and analysis subscribe to our free newsletter].
Alert: 3 Key Commodities in Backwardation
When it comes to futures investing, contango and backwardation are two phenomenons that traders should always keep an eye on. Backwardation is simply the process whereby near month futures are more expensive than those expiring further into the future, creating a downward sloping curve for future prices over time [for more commodity futures news and analysis subscribe to our free newsletter].
Jim Rogers: This Sector Will Boom in the Coming Years
“It’s unavoidable” says Jim Rogers of a coming recession. He notes that roughly every four to six years has seen an economic slowdown in the U.S., and that 2013 and 2014 will be no exception to that rule. For months now, Rogers has been warning investors that our culminating debt issues and a sluggish economy will lead to a recession that is even worse than that of 2008. He has continually told investors to be very worried and to prepare themselves, but unlike most others who predict a doomsday-like scenario, Rogers has given advice on how to prepare yourself [for more economic news and analysis subscribe to our free newsletter].
Three Commodities To Watch in Q4
As we wrap up the third quarter of 2012, many look ahead to finalize their portfolios for the year. By most equity standards, 2012 has been a very successful year, but the same cannot be said for commodities. As always, the commodity industry has picked its darlings and singled out its laggards, making profits for some and drawing up big losses for others. With nine months of the year in the bag, it will be a good time to reassess your holdings to see if it may be the right time to reallocate or if there are more promising opportunities out there [for more commodity news and analysis subscribe to our free newsletter].
