Commodity Blog

Archive for August, 2009

Latest commodity prices (ICE, NYMEX, CME) as of 16:45 GMT:

Oil (Brent) — $73.13
Gold — $946.83
Silver — $14.37
Palladium — $286.50
Platinum — $1,241.73
Copper — $6,315.00
Aluminum — $1,903.00
Nickel — $19,380.00
Zinc — $1,842.00
Cocoa — $2,998.00
Sugar — $22.13
Corn — $323.25
Soybean — $36.73

This video explains the basics of the two important concepts in commodity trading — futures contango and futures backwardation. The good part about the video is that it starts off with explaining the really basic terms and then it heads into describing the possible usage of the knowledge. The concepts of normal contango and normal backwardation are also presented. Contango is a state of the commodity market when the futures price is higher for the futures with a more distant date of expiration. Backwardation is a state of the commodity market when the futures price is lower for the futures with a more distant date of expiration.

Gold falls as the dollar gains, diminishing the metal’s attractiveness as a hedge against inflation. Considerable inconstancy in gold prices is driven by dollar as currency markets undecided between a dollar decline and a dollar rebound. Physical demand stays low. December futures for gold delivery dropped $2.10 (0.2 percent) to $952.60 per ounce by 11:51 on the Comex division of the New York Mercantile Exchange.

Copper gained to a one-week high because of expectations of a global economic recovery. Copper prices have doubled this year because of speculation that an economic recovery will increase demand for the metal used in cars, homes and appliances. Refined copper import in China, the world’s biggest metal user, doubled in the first half of this year, but shipments slid 23 percent in July. December futures for copper delivery rose $0.0335 (1.2 percent) to $2.9276 per pound as of 12:04 NYMEX.

Latest commodity prices (ICE, NYMEX, CME) as of 16:06 GMT:

Oil (Brent) — $74.33
Gold — $950.72
Silver — $14.36
Palladium — $281.50
Platinum — $1,256.11
Copper — $6,407.00
Aluminum — $1.925.00
Nickel — $19,600.00
Zinc — $1,856.00
Cocoa — $2,923.00
Sugar — $21.74
Corn — $324.50
Soybean — $37.13

This video takes a closer video at such popular and high-probability price chart patterns in the commodity markets as 1-2-3 pattern and bull flags. Both of them are quite easy to spot and analyze. Watch the video for more details on how to actually do it and how to trade when you see these price patterns.

Vietnam, the second-largest rice supplier, may export a record 6 million tons of rice this year. Vietnam’s rice exports are aided by a good harvest, low prices and large stockpiles. The price of Vietnam’s 5 percent broken-grain variety dropped to $398 per ton this month compared to $460 a ton in April, this is $163 a ton cheaper than price of rice in Thailand, greatest Vietnam’s rival. Global rice prices climbed to a record last year spurred by rising demand and cut in exports by some producers including Vietnam, which wanted to increase local supplies. Low prices for Vietnam’s rice may have not very great impact on global prices for rice considering decline in export’s from India because of drought.

Platinum gained because of concern that workers at Impala Platinum Holdings Ltd., the world’s second-largest producer of the metal, will strike in South Africa next week. Prices also rose as result of the dollar’s decline against the euro after German services and French manufacturing unexpectedly expanded in August boosting the attractiveness of the precious metals as a hedge against inflation. October futures for platinum delivery rose $13.10 (1.1 percent) to $1,255.10 per ounce by 12:25 on the New York Mercantile Exchange.

Latest commodity prices (ICE, NYMEX, CME) as of 17:01 GMT:

Oil (Brent) — $74.41
Gold — $954.28
Silver — $14.18
Palladium — $280.00
Platinum — $1,229.14
Copper — $6,328.00
Aluminum — $1.940.00
Nickel — $19,485.00
Zinc — $1,850.00
Cocoa — $2,944.00
Sugar — $21.72
Corn — $319.50
Soybean — $36.11

The commodity markets are influenced by many index funds that invest in the futures and affect the markets by giving or taking out a lot of liquidity especially near the expiration terms of the contracts. This video helps to understand how to calculate the weight of the biggest funds in the global commodity trading market. For commodity traders it’s important to know where the big players are investing now and where are they going to be tomorrow because during last few years commodity market is very speculative.

Copper prices tumbled in New York as a rebound in the dollar lowered demand for commodities as an alternative investment. Another reason for the prices decline is concern for economic recession which rose after the repot about increasing jobless rate. China, as the world’s biggest copper user, has a great impact on copper prices and there is speculation that slow economic recovery in China may cause prices for the metal to drop even further. December futures for copper delivery dropped $0.022 (0.8 percent) to $2.749 per pound as of 10:22 on NYMEX.

Pork supplies in the U.S. jumped to the record in the July as decreased exports and domestic demand forces buyers to stockpile excessive meat. Inventories of frozen meat rose up 8.7 percent from a previous year to 549.1 million pounds on July 31. U.S. pork exports dropped 20 percents in the first half of 2009 because of swine flu, while decline of domestic demand may be connected with unemployment rate (which was 9.4 in July). October futures for hogs went up 2.1 percent to $0.46725 per pound by 10:35 on the Chicago Mercantile Exchange.

Latest commodity prices (ICE, NYMEX, CME) as of 15:45 GMT:

Oil (Brent) — $73.84
Gold — $940.95
Silver — $13.88
Palladium — $271.82
Platinum — $1,238.51
Copper — $6,042.00
Aluminum — $1.910.00
Nickel — $18,850.00
Zinc — $1,793.80
Cocoa — $2,904.00
Sugar — $22.54
Corn — $318.25
Soybean — $35.80