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].
Profit From Backwardation: Corn, Crude Oil, Soybeans
Backwardation and contango are as inevitable as death and taxes when it comes to commodity investing. No matter what is going on the world, there will almost always be an asset in contango and the same can be said for backwardation. As a quick reminder, backwardation is the phenomenon in which near month futures are more expensive than those expiring further into the future, creating a downward sloping curve for future prices over time [for commodity news and analysis subscribe to our free newsletter].
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].
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:
