Why Jim Rogers Still Loves Agricultural Commodities
Given all of the turmoil in markets this year, we have seen a number of investors change their positions on statements made in the past. Jim Rogers, for example, has now stated that he is looking into investing in Russia after snubbing the country for his entire investing life. But there is one thing that Rogers is still as bullish as ever on, agricultural commodities. It has been no secret that he has been a fan of these hard assets for quite some time, but a recent interview shows that he still loves these commodities and is as bullish as ever [for more agricultural 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].
Sugar Stuck in a Spiral
Sugar is one of the most highly coveted soft commodities in the world, as its consumption and production make up a large part of many emerging market economies. As an investment, sugar futures and related products have a high attraction among investors as they offer significant volatility and potentially strong gains (or, of course, losses). Though this sweet commodity followed its historical trend of spiking in early summer, the past few weeks have been mostly sour for sugar, as the commodity has racked up losses of nearly 17% [for more sugar news and analysis subscribe to our free newsletter].
Which Sugar ETF Is Right For You? SGG vs. SGAR vs. CANE
Over the years, sugar has grown to be one of the most widely used soft commodities in the world with its number of applications going well beyond simple food production. As with all agricultural investments, sugar is known to exhibit significant volatility, making the commodity a lucrative investment tool for those looking for a sweet return. Additionally, sugar has been shown to maintain a fairly low correlation to other asset classes, such as stocks, giving investors yet another option to add meaningful diversification to their portfolios [for more sugar news and analysis subscribe to our free newsletter].
The Five Minute Guide To Sugar ETFs
Sugar is another of the so-called breakfast commodities, along with coffee, cocoa and orange juice. Like the others, it also has a rich history. It is thought to have been first used by humans in Polynesia many centuries ago, but was not discovered by Europeans until the 11th century thanks to the Crusades. It was first brought to the Americas by Columbus in 1493 and soon thereafter it was found that the sugar cane plant grew extremely well in tropical environments [see also Jim Rogers Says: Buy Commodities Now, Or You’ll Hate Yourself Later].
The Insider’s Guide to Sugar Trading: Q&A With Sal Gilbertie of Teucrium
Recently, we had the opportunity to speak with Sal Gilbertie, President of Teucrium, to discuss sugar and the trends surrounding this soft commodity. Gilbertie was able to provide key insight for traders and long term investors alike as he shed light on the current sugar industry and some of the developments that may make this a sweet trade in the coming weeks [see also Warning: Ignore Bill Gross’ Hard Money Prediction At Your Own Risk].
How to Trade Sugar Futures
As far as soft commodities are concerned, sugar futures offer a compelling investment thesis, as their solid liquidity and high volatility make them ideal for active traders looking to make a profit. The commodity is also well-known for sticking to a relatively consistent seasonal pattern, allowing for its movements to be somewhat predictable depending which harvest season is upcoming. However, in the grand scheme of things, many traders may focus their efforts on the more popular commodities like natural gas and gold. For those looking to make a play on sugar contracts, we detail how to trade futures on this soft commodity [see also Beginner's Guide To Commodities].
Five Little Known Factors Driving the Price of Sugar
Many investors are already fully aware of the benefits that trading sugar futures can offer. These contracts feature a relatively strong liquidity and also come attached with an enticing volatility that allows for both big gains and big losses depending on how you play your cards. But for those who are interested in getting a better grip on the sugar industry and how to properly trade these futures, taking a look at the underlying price drivers of this soft commodity will provide key insight into making the most informed trades. Below, we outline five of the most important factors impacting sugar prices today [see also The Ten Commandments of Commodity Investing].
