Five Factors in a Constructive Strategy for Investing in Commodities

Investing in commodities is something that needs to be done within a constructive strategy to understands risks and opportunity. There are many factors to consider individually depending on one’s access, location and financial position. Five factors to consider are monitoring the market, monitoring supply and demand dynamics, diversification, long-term focus and dollar cost averaging. Constructive Strategy Investing in Commodities Could Include: 1. Monitoring the market: Stay up to date on the latest market developments and adjust your investment strategy as … Continue reading “Five Factors in a Constructive Strategy for Investing in Commodities”

Commodity Traders Weekly Outlook: Lumber Rebound and Natural Gas Slide Continues

Trends continued to play out this week, partially short squeeze induced, partly resurgent speculation with a significant loosening of financial conditions continues to feed the reversal in risk. The VIX fell another 3% Friday to the lowest since last January. One commodity not benefiting is natural gas futures, down another 7% or 10% depending on what month you are unfortunate to be long in. Notably the rest of the energy complex was down this week also. Copper had been a … Continue reading “Commodity Traders Weekly Outlook: Lumber Rebound and Natural Gas Slide Continues”

Baltic Exchange’s Dry Bulk Sea Freight Index Plunge Continues on Subdued Demand

The Baltic Exchange’s dry bulk sea freight index fell on Friday for the ninth straight session, down 11.4% for the week, notching its fifth consecutive weekly decline. The three bulker smaller than capesizes; panamaxes, supramaxes and handysizes all fell again. A seasonal slowdown of cargo movement ahead of the Chinese New Year continues to subdue demand. Ocean freight rates are under pressure to start 2023, with the Baltic Dry Index (BDI) dipping to its lowest level since June 2020 as … Continue reading “Baltic Exchange’s Dry Bulk Sea Freight Index Plunge Continues on Subdued Demand”

Commodity Traders Weekly Outlook: Heating Oil Soars, Natural Gas Falls (Reprise)

This week we saw a complete reversal in risk, from the VIX melting a softer US CPI report last week it was the top performer this week as indices floundered, though correcting much of that Friday with options expiration. Like a scratched record, natural gas futures were down again, losing another 8.34% while it’s energy brethren Gasoline, WTI, Brent Oil and Heating oil were all higher. Copper and gold continued higher but at a lesser pace. Copper had been a … Continue reading “Commodity Traders Weekly Outlook: Heating Oil Soars, Natural Gas Falls (Reprise)”

Baltic Exchange’s Dry Bulk Sea Freight Index Plunges to Two- and Half-Year Lows

The Baltic Exchange’s dry bulk sea freight index fell on Friday for the fourth straight session, down about 4.7% to an over 2-1/2-year low of 764 points. The BDI index lost 19.3%, its fourth consecutive weekly fall. The three bulker smaller than capesizes; panamaxes, supramaxes and handysizes all fell again after plunging last week to levels that have not be seen in two and a half years. The supramax index saw the 21st consecutive day of decreases. A seasonal slowdown … Continue reading “Baltic Exchange’s Dry Bulk Sea Freight Index Plunges to Two- and Half-Year Lows”

Alcoa Reports Another Quarterly Loss with Falling Aluminum Prices and Pressured Margins

The largest US Aluminum producer Alcoa reported a second consecutive quarterly loss as expected for the fourth quarter on Wednesday but missed on revenue. The company has been squeezed by higher energy and raw material costs and restructuring charges putting pressure on margins. $AA projects 2023 total alumina shipments of 12.7-12.9 million metric tons and aluminum shipments between 2.5-2.6 million metric tons. $AA traded down 5.5% after the release. Aluminum is down roughly 40% from a record high of approximately $4,000 … Continue reading “Alcoa Reports Another Quarterly Loss with Falling Aluminum Prices and Pressured Margins”

Commodity Traders Weekly Outlook: Copper Leads Risk on in Commodities as VIX Deflates

Commodities in the second trading week of the year were led by a meltdown of the VIX around a softer US CPI report and many in the throes of a major short squeeze. The US dollar throw kindling on much of that. One thing didn’t change, natural gas futures were down again, losing another 6% while it’s energy brethren Gasoline, WTI, Brent Oil and Heating oil were all higher. Copper accelerated it’s break higher, surging 7.8% (up 11% YTD).  Copper … Continue reading “Commodity Traders Weekly Outlook: Copper Leads Risk on in Commodities as VIX Deflates”

Panamaxes, Supramaxes and Handysizes Bulker Shipping Indices Plunge to Two- and Half-Year Lows

The Baltic Exchange’s dry bulk sea freight index fell 16.3% this week, its third consecutive weekly fall after being down 25.4% in the first week of January, its worst in more than a year. The BDI settled at 946 points on Friday, marking its lowest level in two-and-a-half years, having traded above 3,000 points as recently as May 2022. The three bulker smaller than capesizes; panamaxes, supramaxes and handysizes all plunged this week to levels that have not be seen … Continue reading “Panamaxes, Supramaxes and Handysizes Bulker Shipping Indices Plunge to Two- and Half-Year Lows”

Molecular Farming Potential to Be Disruptive in the Alternative Protein Landscape

Molecular farming, also known as plant-made pharmaceuticals (PMPs) or pharming, is a technology that involves using plants to produce pharmaceuticals, industrial products, and other substances. This approach has the potential to be a more sustainable and cost-effective alternative to traditional methods of producing these products, which often rely on chemical synthesis or animal-based production. In molecular farming, plants are genetically modified to produce a desired protein or other substance. These plants can then be harvested, and the desired product can … Continue reading “Molecular Farming Potential to Be Disruptive in the Alternative Protein Landscape”

Commodity Traders Weekly Outlook: Energy and Grain Futures Sell off in New Year

Commodities in the first trading week of the year saw a lot of continued trends, namely natural gas futures got wrecked again, losing another 16% after losing 11% for the week, and down 33% for December. Gasoline, WTI, Brent Oil and Heating oil were all lower. Wheat, Corn, Wheat and Oats all dropped between 6 and 2%. for the week. The common denominator with natural gas was milder weather. Copper, gold and cotton were the best performer for the week. … Continue reading “Commodity Traders Weekly Outlook: Energy and Grain Futures Sell off in New Year”