Effectively erasing most of this year’s gains, commodity futures markets (as a whole) have fallen to a six-month low with energy & grains declining on signs of ample supplies and a slow-down in China – the world leader in consuming energy and industrial metals.
According to the highly regarded Bloomberg Commodity Index, cotton, grains, and oilseeds have been the worst performing commodities this year. Brent crude oil is currently heading for a second monthly decline, which is the longest losing streak since May of last year.
Nicholas Medina, a futures and options specialist for Capital Trading Group in Chicago, shared his insight regarding the current commodity futures situation by stating, “Most major commodity sectors (energies/grains) have continued to feel selling pressure due to robust supplies in the face of declining demand. Discounting unpredictable weather or world events, expect markets to continue to seek out demand inspired lows.”
Most of our agricultural commodity futures markets we trade are in established downtrends and we have been taking advantage of these down moves the best we can. The only commodity futures markets in uptrends now are: mini-gold and coffee. When these down-trending markets turn around, watch out!
ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION.