A Deeper Look At Brazil’s Commodity Industry

Due to better governance practices and a commodity boom, Brazil’s economy has enjoyed incredible growth over the past 20 years. Brazil is now the largest economy in Latin America and the sixth or seventh largest economy depending upon the metric used. On the other hand, while Brazil’s GDP per capita has improved, it still ranks at a relatively low 64th in the world – meaning that it is a large economy, but not an especially wealthy one yet (at least not uniformly so). While Brazil has made a concerted effort to build up its manufacturing sector (and reduce the risk of being trapped as a commodity-driven economy), minerals, energy and agriculture are still very significant to the Brazilian economy, as well as the larger global economy [for more commodity news and analysis subscribe to our free newsletter].

Posted in Academic Research, Agriculture, Aluminum, Biofuels, Coal, Coffee, Commodity ETFs, Commodity Futures, Commodity Producers, Copper, Corn, Energy, Gold, Industrial Metals, Natural Gas, Precious Metals, Soybeans, Steel, Sugar, Wheat | Tagged , , , , , , , , , , | 4 Comments

Bloomberg’s Most Influential People in Finance – Who’s Connected to Commodities

Many of the key figures in the financial industry have made their fortunes in businesses that are related to tangible commodities such as oil, steel, agriculture and precious metals. Some have invested directly in one or more of these while others have made their marks in related industries such as transportation. Each year, Bloomberg creates a list of its 50 Most Influential people, and many of these people are involved in commodities. We look at six influential finance figures and how they can influence the commodity markets [for more commodity news and analysis subscribe to our free newsletter].

Posted in Academic Research, Actionable Ideas, Agriculture, Asset Allocation, Brent Oil, Commodity Futures, Commodity Producers, Energy, Gold, Natural Gas, Precious Metals, WTI | Tagged , , | 2 Comments

Citi’s Energy Outlook For 2013

Considering this year’s rather volatile performance, one thing can be agreed upon by almost all investors – commodity investing is essentially a crap shoot. This year’s unprecedented summer drought and escalated geopolitical tensions in the Middle East have wreaked havoc on commodity markets, leaving some lucky investors with profitable returns and others with steep losses. Overall, however, commodities have been experiencing a steady uptrend for quite some time, as global demand has continuously inched higher despite the recent economic slowdown. In a recent statement, global head of commodities research at Citigroup Edward Morse warned that the “commodity super-cycle” is over and that “no longer will a pure long-only strategy bring the returns expected in 2002 to 2008, nor will conditions approximating those of the last decade return anytime soon” [for more commodity news and analysis subscribe to our free newsletter].

Posted in Academic Research, Brent Oil, Commodity Trading Outlook, Energy, Natural Gas, WTI | Tagged , , | 4 Comments

Breaking Down the Cost of a Gallon of Gas

The price of a gallon of gasoline ranged from $3.27 along the Gulf Coast, to $3.90 along the West Coast in November 2012; ever wonder how much of that goes to the government and how much goes to exploration and refining companies? Then there are the gas stations and oil traders looking to make a profit as well. Let’s look at the breakdown of who makes what, and also why prices vary across the country – sometimes drastically [for more gasoline news and analysis subscribe to our free newsletter].

Posted in Academic Research, Energy, Gasoline | Tagged , , , | 1 Comment

5 Legendary Commodity Investors

There was a time when commodities trading was only for the most sophisticated of investors. Whether it’s gold, oil, agricultural products or just a commodity index-based ETF, the world of raw materials trading has expanded tremendously in the past 10 years and is now accessible to the everyday trader. In fact, in September 2012, The Financial Times wrote about the popularity of commodities investing in pension funds of schools and municipal retirement associations [for more commodity news and analysis subscribe to our free newsletter].

Posted in Academic Research, Actionable Ideas, Asset Allocation, Commodity ETFs | Tagged , , , | 3 Comments

13 Ways Corn Is Used In Our Everyday Lives

Corn is most often thought of as a food. Perhaps if you’re an avid cook, you might even think of cornstarch or corn-based food additives, or perhaps those who follow the oil and gas news might think of ethanol. However, recent years have seen this dinner staple’s uses expand greatly. In fact, the bulk of corn that’s produced today does not go to food production. You’re probably using corn in ways that you don’t even realize as you go about your daily business. The countless uses of corn have prompted some interest in corn as an investable asset, and prices have surged in recent years as demand has increased [for more corn new and analysis subscribe to our free newsletter].

Posted in Academic Research, Agriculture, Corn | Tagged | 18 Comments

The Definitive Guide to Fracking

The $6 trillion global energy industry has undergone a lot of changes over its long history, from the first successful oil tanker developed by Sweden in 1878 to the first mobile steel barges for offshore drilling developed by the Texas Company in the early 1930s. But, in the modern era, hydraulic fracturing (“fracking”) stands out as the single most important innovation [for more fracking news and analysis subscribe to our free newsletter].

Posted in Academic Research, Actionable Ideas, Asset Allocation, Energy, Natural Gas, WTI | Tagged , , , , , | 9 Comments

A Deeper Look At Iran’s Commodity Industry

Iran is quite possibly one of the best-known and least-known countries in the world for American investors. Tense, if not outright hostile, relations between Iran and many Western countries have kept it in the news, but relatively few investors seem to appreciate Iran’s size, demographics (it’s a very young country), and economic prospects. In recent years sanctions have had a massive impact on Iran’s economy, but it remains a major player within OPEC and in the global energy market [for more commodity news and analysis subscribe to our free newsletter].

Posted in Academic Research, Actionable Ideas, Agriculture, Asset Allocation, Commodity Futures, Commodity Producers, Energy, Industrial Metals, Precious Metals | Tagged , , , , | 1 Comment

A Deeper Look At China’s Commodity Industry

Although the geographical size of China is perhaps not that difficult for North Americans to appreciate, their population is another matter. As China has become the second-largest economy in the world, it is without question transformed into an enormous force in the world’s commodity markets; so much so, in fact, that the recent commodity supercycle is now generally seen as a byproduct of China’s emergence [for more commodity news and analysis subscribe to our free newsletter].

Posted in Academic Research, Actionable Ideas, Agriculture, Asset Allocation, Commodity ETFs, Commodity Futures, Commodity Producers, Energy, Industrial Metals, Precious Metals | Tagged , , , , , , , , , , | 3 Comments

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].

Posted in Academic Research, Actionable Ideas, Agriculture, Asset Allocation, Commodity ETFs, Corn, Soybeans, Wheat | Tagged , , , , | 4 Comments
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