Fundamentals and Commodities

[Fran8]

What are the fundamentals that affect commodity prices and where can I find them?

Please dont just reply supply and demand

Thanks

 

[rawrschach]

in the sky

 

[rawrschach]

im not even kidding

 

[rawrschach]

woo, triple post

 

[Fran8]

I know you mean the reports and everything but can you be a bit more specific

 

[rawrschach]

get a trial sub to the gartman letter

if you're up for spending money then kingsman is good for sugar and bio fuels/ethanol fundamoontals

 

[Fran8]

can you recommend a book

 

[LiveTradingZone]

Most professional traders of commodities and futures are technical traders. Not too many fundamentalists around. Check out the USDA website for information on press releases related to fundamental factors. Weather plays a huge role in most of them.

 

[Fran8]

Most professional traders of commodities and futures are technical traders. Not too many fundamentalists around. Check out the USDA website for information on press releases related to fundamental factors. Weather plays a huge role in most of them.

Thanks for the website recommended, Is very good I can look at all reports etc there

 

[stopdownlimitup]

Thanks for the website recommended, Is very good I can look at all reports etc there

This was a good read that ranked what they saw as the top 30 economic reports by impact on the futures markets... worth checking out https://www.cannontrading.com/man-v...-economic-announcements-financial-markets.php

 

[quad4pod]

Fran8,

This is something I too am interested in. S and D is final outcome that answers everything, but it is understanding the fundamentals of what affects these S and D in the first place that I am interested in. What have you been able to find out??

 

[Fran8]

Fran8,

This is something I too am interested in. S and D is final outcome that answers everything, but it is understanding the fundamentals of what affects these S and D in the first place that I am interested in. What have you been able to find out??

Not much, everyone says to look at the report numbers of whichever commodity I want to trade since they tell you if there is too much production (supply) or little (demand), but I have realized that prices in the commodity markets move a lot earlier.

 

[quad4pod]

Thanks,

I'm following the natural resources sector- I find that the "movers" of the markets are often analysts at VC or investment banks. THEN, I find out that these analysts are either directly or (via company collegues) indirectly involved in underwriting a particular firm related to a specific commodity (metal resource).

BTW, for some commodities, I find (in addition to the weather as previously indicated), political factors- such as an anticipated change in government, civil unrest, etc.) can offer some insight. Clearly, as you know- especially if you are following the green legislation- duel-use products like corn, is subject to the winds of politics, etc.

 

[isatrader]

What are the fundamentals that affect commodity prices and where can I find them?

I find Kitco - Base Metals - Industrial metals - Copper, Aluminum, Nickel, Zinc, Lead - Charts, Prices, Graphs, Quotes, Cu, Ni, Zn, Al, Pb good for looking at the London Metal Exchange Warehouse Stocks of the base metals. For example if you look at the historical charts of say copper you'll see that it has the charts for the amounts of copper at the LME for the last 5 years. This is one fundamental way to look at base metals as the supplies rising or falling often precede a price move. For example on the copper 1 year charts attached below you can see that supplies started to be drawdown in October and are still falling now. During this time the price based and has now started rising.

So this actually shows supply and demand of the base metals at the LME, which can add extra weight to the technical argument you see in the charts.