How to Invest in Commodities

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How to Invest in Corn Commodities

Corn, like other commodities such as crude oil and coffee, comes in different qualities. The most important types of corn you should be familiar with are [more…]

How to Invest in Wheat Commodities

Unlike other commodities that are dominated by single producers — Saudi Arabia and oil, the Ivory Coast and cocoa, Russia and palladium — no one country dominates wheat production. As a matter of fact, [more…]

How to Trade Soybean Commodity Futures

Soybeans are used for everything from poultry feedstock to the creation of vegetable oil. There are different soybean extracts you can trade on the commodities markets: soybeans themselves, soybean oil [more…]

Give Your Commodities Portfolio a Buzz by Investing in Coffee

As with a number of other commodities, coffee production is dominated by a handful of countries. Brazil has historically been the top producer of coffee in the world and has held this position for several [more…]

Coffee Commodity Futures Could Be Your Cup of Tea

The coffee commodity futures markets determine the future price of coffee and, more importantly, protect producers and purchasers of coffee from wild price swings. In addition to hedging opportunities, [more…]

Coffee Commodity Exposure without Futures

If you want to stay grounded while still getting exposure to coffee commodities in your portfolio, try investing in companies that specialize in running gourmet coffee shops. [more…]

Warm Up to Cocoa Futures on the Commodities Exchange

Like coffee, the cocoa commodities market is subject to seasonal and cyclical factors that have a large impact on price movements. Check out the price of the ICE cocoa futures contract in recent years. [more…]

Invest in Sugar Commodities: Such a Sweet Move!

Latin American countries dominate the sugar trade; Brazil is the largest sugar producer in the world. In 2009, the top ten sugar producers accounted for 74 percent of global production. [more…]

Orange Juice Commodities: Refreshingly Good for Your Bottom Line

Orange juice is one of the only actively traded contracts in the futures markets that’s based on a tropical fruit: oranges. Oranges are widely grown in the Western Hemisphere, particularly in Florida and [more…]

Commodities Market Indicators: Private Sector Sources of Market Data

One way to identify where the commodity markets are heading is by watching certain market indicators. These key metrics provide insight into what the markets are doing and help you design and calibrate [more…]

Commodity Investments: How Do You Measure Natural Gas?

Measuring natural gas can be confusing because multiple measurement methods exist for the commodity. These measurements basically boil down to how much physical natural gas there is and how much energy [more…]

Commodities and the Business Cycle

Commodities are cyclical in nature. Returns on commodity investments aren’t generated in a vacuum — they’re influenced by a number of economic forces. In other words, the performance of commodities, like [more…]

Are Commodities Only for the Brave?

Commodities have a reputation for being a risky asset. Many investors are simply scared of investing in this asset class. This fear is largely unfounded because, statistically, there’s no greater risk [more…]

The Pitfalls of Using Leverage with Commodities

In finance, leverage refers to the act of magnifying returns in the commodities markets through the use of borrowed capital. Leverage is a powerful tool that gives you the opportunity to control large [more…]

Effect of Government Financial Crises on Commodities and Stock Markets

In the era following the 2008 credit crisis, a more acute risk emerged for commodities: the sovereign government risk. This type of risk is more important than other types of risks because it involves [more…]

Commodities Market Indicators: U.S. Government Data

The commodity waters can be perilous at times, and knowing how to navigate them is crucial. Keeping your eye on where the markets are heading will help you develop a winning investment strategy. Data compiled [more…]

The Basics of Commodity ETFs

Exchange-Traded Funds, or ETFs, offer many advantages to commodities investors because they offer exposure to asset classes and specific investments that would otherwise be difficult for the average investor [more…]

How to Access Commodity Markets through ETFs

One of the downsides of investing in commodity Exchange-Traded Funds (ETFs) is that they can be fairly volatile because they track derivative instruments that trade in the futures markets. A downside of [more…]

Leveraged ETFs in the Commodities Market

A new breed of Exchange-Traded Funds (ETFs) is emerging and is having a major impact on the ETF and commodity landscapes: leveraged ETFs. As the name suggests, leveraged ETFs [more…]

Crude Oil Is the King of Commodity Investments

Crude oil is undoubtedly the king of commodities, in both its production value and its importance to the global economy. Crude oil is the most-traded nonfinancial commodity in the world today, and it supplies [more…]

Crude Oil: The Indispensable Commodity

The Arab Oil Embargo of 1973 underscored the importance of crude oil as a commodity in the global economy. During that year, the Arab members of the Organization of Petroleum Exporting Countries [more…]

Commodities Investing: Global Oil Reserve Estimates

As a commodities investor, knowing which countries have large crude oil deposits is an important part of your investment strategy. As demand for crude oil increases, countries that have large deposits [more…]

The Effect of Brazil Offshore Crude Oil on Commodities Markets

One of the most noteworthy events in the commodities sector over the last several years, gripping the petroleum industry, has been the prolific discoveries of oil in offshore Brazil. [more…]

Energy Commodities: Production Figures of Crude Oil

Identifying the countries with large crude oil reserves is important, but it’s only a starting point as you begin investing in commodities. To determine which countries are exploiting these reserves adequately [more…]

Energy Futures: Demand for Crude Oil

The United States tops the list of oil consumers and has been the single largest consumer of the commodity for the last 25 years. Although a lot of folks pay attention to the demand increase from China [more…]

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