Commodity Investment

Introduction The soybean market has been making headlines recently, and for good reason. With a combination of factors ranging from strong export sales to favorable domestic conditions, soybean prices are on the rise. In this blog post, we’ll delve into the key drivers behind this surge in demand for soybeans and what it means for both investors and the agricultural industry. Export Sales and Soybean Meal Prices One of the primary catalysts behind the recent soybean price surge is the strong support from export sales and soybean meal prices. Soybean…

Introduction Coffee enthusiasts and commodity investors have been closely monitoring the coffee market over the past few months, as coffee prices have experienced a significant decline since June 2023. However, the recent market dynamics, including price consolidations and small rallies, have raised questions about whether coffee has reached a major low. In this blog post, we will analyze the current situation in the coffee market and explore the factors contributing to its recent volatility. Understanding the Recent Coffee Price Movement The coffee market has experienced a notable pattern in recent…

Introduction In the ever-evolving world of finance and investment, staying ahead of the curve is paramount. One of the tools that can assist investors in making informed decisions is the Relative Rotation Graphs (RRG). RRG is a dynamic way to visualize how various asset classes are changing relative to each other. In this blog post, we will delve into the RRG charts to identify trends, opportunities, and potential strategies for optimizing your investment portfolio. Asset Allocation RRG The first RRG we will explore is the Asset Allocation RRG, which evaluates…

Introduction: In the world of commodity investing, few stories are as compelling as the one currently unfolding in the cocoa market. Cocoa, the key ingredient in our beloved chocolate, has been facing a series of challenges, and the latest twist in the tale comes in the form of El Nino. In this blog post, we’ll explore why cocoa may have more upside potential ahead, driven by the looming El Nino event and its potential impact on global production. El Nino’s Return: El Nino, a climate phenomenon known for its disruptive…

Introduction In the ever-evolving world of commodities trading, staying informed about the latest developments is paramount for investors and traders alike. This week’s USDA supply and demand report brought some important insights into the soybean market, shedding light on the impact of late-season weather and changes in demand dynamics. In this blog post, we’ll delve into the key takeaways from the report and discuss the implications for soybeans and soybean oil. US Soybean Yield and Pod Counts The USDA’s 2023/24 soybean yield projection came in at 50.1 bushels per acre,…

In the chaotic theatre of global economics, energy and its pivotal player, oil, have always been front and center. The narrative of oil in 2022 was one of ascendancy. However, this year, that storyline seems to have taken a nuanced turn. As the energy stocks slow their pace, many are left wondering about the fate of oil prices and the overall energy sector. Energy Stocks: A Pause in the Momentum Let’s dive right in: energy stocks, after their spectacular performance in 2022, are taking a pit-stop this year. While the…

Stock markets have been surging, with an 18.7% uptick year-to-date, invigorating portfolios and 401(k)s. But here’s a shocking revelation: a mere ten S&P 500 companies have contributed to over 80% of these gains in 2023. The tech giant Apple alone has fueled a whopping 15.6% of the market’s growth. For many, this concentration might seem like a boom. But, as with any financial structure skewed heavily towards a handful of players, there lurk risks beneath the surface, posing potential threats to unsuspecting investors. S&P 500’s Concentration Dilemma A closer look…

The ebb and flow of the cattle industry is as fascinating as it is intricate. If you’ve been tracking the rise in Live Cattle and Feeder Cattle futures prices since mid-2020, you know that the industry is in a unique phase of its historical cattle cycle. Let’s delve deeper into understanding the dynamics and trends that continue to shape this crucial sector of agriculture. The Current Landscape: Prices and Droughts Recently, on August 4, 2023, front-month Feeder Cattle futures marked a record high of $249.525/cwt. This peak can be attributed…

Soybeans have long been an integral part of the global agricultural landscape, forming the foundation of countless products and a significant segment of global trade. As such, the health and yield of the soybean crop are of paramount importance to farmers, traders, and even everyday consumers. This year’s crop tour was met with heightened anticipation, especially given the early-season adversities and pronounced variability in crop growth. However, the recent findings and the unfolding climatic conditions suggest that the soybean crops might be headed for some severe challenges. Early Anticipation and…

As weather patterns continue to astonish the world, a term frequently thrown around in the meteorological arena is “El Niño.” With the recent announcement from the World Meteorological Organization (WMO) highlighting a 90% probability of El Niño continuing through the latter half of 2023, questions arise on its implications for commodities. Let’s dive into understanding the phenomenon and its consequential ripple effect on global commodities. Understanding El Niño The El Niño Southern Oscillation (ENSO) is a pivotal oceanic-atmospheric event rooted in the irregular variations of surface water temperatures in the…