The unique futures sector and the grain futures sector might lead the following portion of the commodity bull market increased for a large number of causes:
o Espresso futures costs just lately hit a ten month excessive based mostly on the anticipation of a smaller world crop subsequent 12 months.
o Cocoa futures costs just lately hit a 5 month excessive based mostly on the continuing issues in Ghana and the Ivory Coast the place over 50 % of the world cocoa provides originate. Authorities turmoil, and swollen root virus (a virus that kills the cocoa timber) are 2 main issues which might be presently influencing cocoa futures costs increased.
o The current USDA report estimates that the Florida orange juice crop would be the lowest in 15 years. The Florida orange juice crops had been decimated during the last 3 years by hurricanes, citrus canker illness and citrus greening illness.
o The latest USDA report estimates that corn ending shares are 935 million bushels (an 11 12 months low). Corn futures costs have corrected from 10 12 months highs however growing ethanol demand and excessive poultry, cattle and hog feed demand are might restrict costs on the draw back. Go to http://www.tkfutures.com/corn.htm to be taught extra about corn futures and choices buying and selling.
o Wheat futures costs have just lately declined from 10 12 months value highs however the newest USDA report estimates that world ending shares are at 121 million tons. This might be a 21% shares to utilization ratio which is the tightest in 11 years. Demand has outstripped wheat manufacturing for five of the final 6 years.
o Soybean futures costs have risen by $1 a bushel based mostly on bio diesel demand, soybean rust issues and the anticipated smaller planted acreage due to increased corn plantings subsequent 12 months. Go to http://www.tkfutures.com/soybeans.htm to be taught extra about soybean futures and choices buying and selling.
o Any investor pondering grain commodity buying and selling must also take into account the El Nino climate sample predictions for above common temperatures and under common precipitation for the grain belt subsequent spring and summer time. Climate might trigger extra issues to an already precarious grain scenario.
o The US Greenback can be weakening versus different foreign currency echange, which reinforces overseas shopping for energy which must also stimulate extra demand for US grains and agricultural merchandise.
In case you are a commodity buying and selling novice, go to http://www.tkfutures.com/basics.htm to be taught the mechanics of commodity buying and selling.
To be taught extra concerning the varied future buying and selling and choice buying and selling methods go to http://www.tkfutures.com/methods.htm [http://www.tkfutures.com/strategies.htm%20]
Commodity future and choice buying and selling could be very dangerous and solely threat capital needs to be used. Go to http://www.tkfutures.com/risk_disclosure.htm to raised perceive the dangers of commodity buying and selling earlier than investing in commodity futures or choices. There are not any assured good trades.