Commodity Traders Asked to Pay Attention to the Grain and Exotic Futures Sectors

The unique futures sector and the grain futures sector might lead the subsequent portion of the commodity bull market increased for a large number of causes:

o Coffee futures costs lately hit a 10 month excessive based mostly on the anticipation of a smaller world crop subsequent yr.

o Cocoa futures costs lately hit a 5 month excessive based mostly on the ongoing issues in Ghana and the Ivory Coast the place over 50 % of the world cocoa provides originate. Government turmoil, and swollen root virus (a virus that kills the cocoa timber) are 2 main issues which can be presently influencing cocoa futures costs increased.

o The latest USDA report estimates that the Florida orange juice crop shall be the lowest in 15 years. The Florida orange juice crops had been decimated over the final three years by hurricanes, citrus canker illness and citrus greening illness.

o The most up-to-date USDA report estimates that corn ending shares are 935 million bushels (an 11 yr low). Corn futures costs have corrected from 10 yr highs however growing ethanol demand and excessive poultry, cattle and hog feed demand are might restrict costs on the draw back. Visit to study extra about corn futures and choices buying and selling.

o Wheat futures costs have lately declined from 10 yr value highs however the most up-to-date USDA report estimates that world ending shares are at 121 million tons. This can be a 21% shares to utilization ratio which is the tightest in 11 years. Demand has outstripped wheat manufacturing for five of the final 6 years.

o Soybean futures costs have risen by $1 a bushel based mostly on bio diesel demand, soybean rust issues and the anticipated smaller planted acreage due to increased corn plantings subsequent yr. Visit to study extra about soybean futures and choices buying and selling.

o Any investor pondering grain commodity buying and selling also needs to contemplate the El Nino climate sample predictions for above common temperatures and under common precipitation for the grain belt subsequent spring and summer season. Weather might trigger extra issues to an already precarious grain scenario.

o The US Dollar can also be weakening versus different foreign currency echange, which reinforces international shopping for energy which also needs to stimulate extra demand for US grains and agricultural merchandise.

If you’re a commodity buying and selling novice, go to to study the mechanics of commodity buying and selling.

To study extra about the varied future buying and selling and possibility buying and selling methods go to []

Commodity future and possibility buying and selling may be very dangerous and solely danger capital must be used. Go to to higher perceive the dangers of commodity buying and selling earlier than investing in commodity futures or choices. There are not any assured good trades.

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Source by MK Smith

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