Commodities

 

 

Oats are often called the tail that wags the dog in the grain complex. Primarily grown in Canada, oats are an outstanding feed for animals with a very high protein content and excellent for humans as well. Oats are a thinly traded market with much lighter volume than corn, wheat, or soybeans yet still represent an important market for food production

 

Soybean meal is an exciting market traded by people around the world. Bean Meal becomes tofu and is primarily exported to Asia as a food stuff high in protein and fiber. Soybean meal comes from the soybean crush that produces both soybean meal and soybean oil.

 

Soybean Oil or Bean Oil is a market with acceptable volatility for more modest accounts with reasonable liquidity. Soybean Oil is used for cooking and foodstuffs around the world coming from the soybean crush which also produces soybean meal.

 

Copper is an important market and used as an early economic indicator. Nothing starts in production until copper is used. Copper is a relatively thin market as all metals such as gold and silver. Copper is an important market to watch to get a glimpse as to what the economy around the world as well as here in America may be doing in the future.

 

Platinum known as one of the white metals is a very thin market enjoying some industrial and jewelry demand. Platinum is primarily mined in Russia and South Africa so production numbers are not always as accurate as one might like. Fortunately platinum is traded on regulated exchanges so accurate trading numbers and charting can be relied upon, although even data vendors can on a rare occasion experience a glitch.

 

Palladium, the other white metal enjoys a more industrial use such as catalytic converters. Palladium is expensive for an industrial metal used in virtually every automobile sold in America. Palladium also hails from Russia and South Africa. Very thin market.

 

Cocoa, an important cash crop in Ghana, Ivory Coast and Malaysia. Cocoa is a relatively thin market but moves within ranges that can be acceptable to more modest accounts. Cocoa is not a market hedge funds or ETFs would participate in as the volume of trading is so light their involvement would push the cocoa market artificially.

 

Sugar, this would be the #11 contract rather than world sugar. The difference is the subsidies provided by the US government to the handful of families who control the sugar growth and production in the US. Relatively thin market with nice volatility for modest accounts.

 

Cotton is an important market to southern America all the way to California. Cotton requires a great deal of water but provides us with clothing, linens, medical supplies, and animal feed. Cotton is also important to Pakistan and India and can be a very volatile market to trade. Large profits and losses have been attributed to cotton.

 

Coffee, an important global market. Easily traded through electronic platforms as is cocoa, sugar, orange juice in the form of frozen concentrated orange juice ( FCOJ ). Coffee is a market that often provides incredible bargains and can seem dormant for long periods of time before exploding in price and volatility.

 

 
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