The Best (and Worst) Commodity Investments of H1 2012

With the first half of the year officially in the books, investors have plenty of data and developments in the commodity world to talk about. With natural gas jolting back and forth and speculators calling tops and bottoms in crude oil and gold, it has certainly been a busy six months for commodity traders. One of the biggest sticking points for commodities was the speculation of QE3, which was eventually announced in the form of “Operation Twist”, which will likely shape prices for the latter half of the year. But when it comes to some of the best and worst performers from that time period, some of the results may surprise you. Below, we outline the three best and three worst commodity performances from the first half of 2012 [see also Jim Rogers Says: Buy Commodities Now, Or You’ll Hate Yourself Later].

Posted in Agriculture, Canola Oil, Coffee, Cotton, Soybeans | Tagged , , | 2 Comments

How to Trade Coffee Futures

When it comes time to add coffee exposure to your portfolio, investors may be left with questions as to the best ways to achieve that goal. Trading coffee can be a very lucrative opportunity, as these futures offer strong intraday liquidity that comes attached with enticing volatility. But be warned, trading soft commodities like coffee is not for the faint of heart. Positions can be devastated on a moment’s notice and can create a major headache for traders. Those looking to wade into these waters should always have a profit objective in mind as well as a disciplined entrance and exit strategy. For those looking to make a play on coffee contracts, we detail how to trade futures on this soft commodity [see also The Ten Commandments of Commodity Investing].

Posted in Agriculture, Coffee, Commodity ETFs, Commodity Futures | Tagged , | 2 Comments

Four Little Known Factors Driving the Price of Coffee

While most people think of coffee as their go-to beverage for the morning or a lazy afternoon, its prevalence as a financial instrument has soared in recent years. As a member of the softs family, coffee futures offer heavy volatility and strong liquidity (no pun intended) for those looking to make a trade. As a crop, coffee production is dominated by Brazil, followed by Vietnam, Colombia, and a slew of other emerging markets, though it is the developed markets who hog the consumption. As coffee’s popularity continues to grow, traders looking to make a play will need to keep an eye on a number of factors that drive the price of this hard asset [see also Warning: Ignore Bill Gross’ Hard Money Prediction At Your Own Risk].

Posted in Agriculture, Coffee, Commodity Futures | Tagged , | 2 Comments

Seven Coffee Traders Worth Following on Twitter

Keeping track of the movements of coffee futures can be a tall ordeal. As a soft commodity, coffee is well known for its volatility that sucks a number of traders in. While constantly monitoring blogs and market movements is a useful technique, utilizing the power of Twitter can also be powerful tool in your investing arsenal. Though its professional benefits are often overlooked, following the right people on Twitter can give you up to the minute information on how coffee is behaving and any trends the commodity is exhibiting. Below, we outline seven must-follow coffee Tweeple to ensure you have the best information at your fingertips [see also Warning: Ignore Bill Gross’ Hard Money Prediction At Your Own Risk].

Posted in Agriculture, Coffee, Commodity Futures | Tagged , | 1 Comment

Five Must-Read Blogs for Coffee Traders and Investors

When most people think about coffee, their morning caffeine fix comes to mind, but this commodity also has a large presence in the financial world. As a soft commodity, coffee is a popular trading instrument, as it features strong liquidity and volatile daily movements. The majority of the world’s coffee supply comes from Brazil, though other nations like Vietnam and Colombia also have a large output. From a consumption standpoint, the list is dominated by developed markets like Finland, Norway, and Iceland (on a per capita basis) with the U.S. not making an appearance until number 26 on the list. For those looking to stay up to date on coffee futures and the commodity’s overall environment, we outline five blogs to help give you a leg up on this hard asset [see also Invest Like Jim Rogers With These Three Agriculture Stocks].

Posted in Agriculture, Coffee | Tagged , | 2 Comments

50 Ways To Invest In Agriculture

The agriculture sector has long been a popular place for commodity trading. After all, it was with agricultural futures that commodity trading got its start. Farmers had originally used these contracts to help offset any losses in crop yields. Now, the agricultural space has blossomed into a market chock full of options for investors, but many investors are still unaware of the vast opportunities that this sector offers [see also Invest Like Jim Rogers With These Three Agriculture Stocks]. No matter what kind of investor you are, there is certainly an agriculture/agribusiness option that fits your investment style. Below, we outline 50 ways to invest in agriculture to help investors pick the correct security for their portfolio:

Posted in Academic Research, Agriculture, Cocoa, Coffee, Commodity ETFs, Commodity Futures, Commodity Producers, Corn, Cotton, Exclusive, Livestock, Lumber, Orange Juice, Soybeans, Sugar, Timber, Wheat | 30 Comments

Weekly Agriculture Roundup: Hot Cocoa

Like just about every other asset class, agricultural commodities have been on a wild ride over the last several trading sessions, fluctuating along with equity markets as investors have tried to evaluate the latest news out of Europe. The last week has generally been a strong stretch for agricultural and soft commodities, as a rally in stock markets and return to risky assets has created a wave of moderate optimism among investors. The following table shows the performance of several popular commodity exchange-traded products for the week ended November 8. It should be noted that each of the funds included below utilizes futures contracts to achieve its stated objectives; as such, returns may not be reflective of changes in spot prices:

Posted in Cocoa, Coffee, Corn, Cotton, Livestock, Soybeans, Sugar, Wheat | Tagged , , , , , , , , | Leave a comment

The Ultimate Guide To Coffee Investing

Coffee beans are in fact the seeds of the coffee tree, but are referred to as beans because of their striking resemblance. The coffee plant itself is actually a fruit, and its end product is one of the most widely consumed beverages in the world. In fact, the crop is so popular, that over 2.25 billion cups are consumed daily around the globe; that’s enough to give one cup to one third of the world’s population. The farming of coffee beans began nearly 3,000 years ago, and was first introduced to the Americas in the early 1700’s. The beans are typically handpicked once the fruit is ripe, and the processing and cultivation of this crop occurs all around the world. As an investment, coffee has become a popular go to source for investors to make a play on economic trends. With such a large global reach, news from any part … See the full story here

Posted in Agriculture, Coffee, Commodity ETFs, Commodity Futures, Exclusive | Tagged , , , | 2 Comments

Welcome to Commodity HQ

Welcome to CommodityHQ, a web-based resource designed for investors looking to learn more about the potential uses and risks associated with commodities as an asset class. Recognizing that commodities have the potential to add significant return enhancement and diversification benefits, while at the same time exhibiting significant risks and complexities, the team behind CommodityHQ launched this site to fill an educational void and deliver unbiased, timely, and well-researched analysis.

Posted in Agriculture, Alternative Energy, Aluminum, Biofuels, Coal, Cocoa, Coffee, commodityHQ.edu, Copper, Corn, Cotton, Energy, Exclusive, Gasoline, Gold, Heating Oil, Hydro, Industrial Metals, Lead, Livestock, Natural Gas, Nickel, Nuclear, Palladium, Platinum, Precious Metals, Rare Earth/Strategic Metals, Silver, Solar, Soybeans, Steel, Sugar, Timber, Tin, Wheat, Wind, WTI, Zinc | Leave a comment
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