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Crude Oil at $106

Tue, 21 Feb 2012 14:57:33 +0000

Here we go again with crude oil. Prices above $100 a barrel appear to be the new norm. Gasoline prices are shooting higher and talk has already surfaced for $5 a gallon gas this year. We are by no means in a supply crunch, but crude oil traders love to look at the long term outlook.

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Fed Minutes Might Pressure Commodities

Wed, 15 Feb 2012 16:29:19 +0000

Commodities had a decent day, considering the stock market had a fairly poor afternoon. The market had high hopes well before the open as news that China would lend support to the Eurozone caused stock futures to surge. However, the market had a dismal opening on delays in Greece and news later in the day that the Fed probably doesn't favor a Q3 sent stocks reeling.

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Dollar Trying to Reverse Trend

Tue, 14 Feb 2012 11:56:08 +0000

The dollar index has begun moving higher throughout the last week and you have to wonder if the market will try to regain the trendline support. The crisis in Greece has accelerated in the past week and that has driven money back into the dollar. Whether this is temporary or a turn in trend is another question.

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Corn is Losing Support

Fri, 10 Feb 2012 14:56:50 +0000

The overall fundmanetal picture looks good for corn, but it looks like investors aren't taking chances at these prices. The corn market received some good news from the USDA this week, but it didn't translate into higher prices. Actually, the market moved higher and then ended the day lower, which isn't a good sign after a positive monthly crop report.

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Coffee Futures Perking Up

Mon, 06 Feb 2012 17:06:13 +0000

Coffee futures gained 3.65 cents on the March contract to close at $2.1965 a pound on Monday. Coffee prices have basically been under pressured since May 2011 when they peaked above $3. Recent price action looks like coffee could be forming at least a short term bottom.

When we look at the fundamental news, it doesn't look that great. In fact, the coffee market is well supplied in the near term, but there are a couple of factors that might make the picture look better.

The main news might be the fact that Vietnam could be holding a large amount of their supply off the market in an effort to wait for higher prices. Holding supply off the market can cause coffee prices to rise and Vietnam has successfully pulled this trick off in the past. Vietnam is a large coffee producer of lower quality beans, but they still carry a lot of weight. The higher quality beans are actually in short supply right now and that could also be influencing a bounce in the market.

I can't say it is time to run out and buy coffee, but the chart is flashing some buy signals right now. It looks like the coffee market is forming a double bottom with a nice spike reversal bar on Thursday after it broke support. Today, the market looked like it was going to make a break lower, but it reversed higher and that looks positive heading into Tuesday.

The Latest on the MF Global Meltdown

Fri, 03 Feb 2012 16:12:47 +0000

Investors are still missing money from the collpase of MF Global. Former CEO Jon Corzine still claims it wasn't his fault, but the evidence might point to the contrary. Kyle Sheehan at CommoditiesStreet.com wrote a good article today that explains the latest developments in the MF Global case - MF Global Made Sure It's Friends Wouldn't Be Left Empty-Handed. From the title of the article you might gather that the small investor is getting screwed and the big boys were taken care of. It sure smells like another case of government regulatory incompetence and the elite investment bankers carrying on unchecked.

Looking for the Next Move in Silver

Mon, 30 Jan 2012 18:30:58 +0000

When looking for research on commodities, you don't have to look much further than the finanical situation around the world when you analyze silver. The crisis in the Eurozone, namely Greece, has helped push prices of silver higher. Now, we have more guidance from the Fed that interest rates will remain near zero for a couple more years. The same factors that have propelled gold and silver over the years are still in effect - but to a higher degree.

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Commodities Outlook Post Fed

Thu, 26 Jan 2012 18:20:01 +0000

Commodities rocketed higher after the Fed announced on Wednesday that rates will remain near zero until late 2014. We saw follow through on Thursday in commodities, especially in the precious metals.

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A Bottom in Natural Gas?

Mon, 23 Jan 2012 18:52:03 +0000

The natural gas market came to life Monday as Chesapeake Energy announced plan to immediately curtail production of a good portion of their natural gas wells. They plan to devote more investment and effort toward oil production in the near future. This news sent natural gas prices soaring and many traders are wondering if the market hit a bottom.

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Natural Gas Futures Burn Out

Tue, 17 Jan 2012 16:32:46 +0000

Natural gas futures are spiraling into a black hole as they tacked on another 7 percent loss on Tuesday. The $3 level was recently a magical support level where the value players were scooping up natural gas for a long term buy. Now, the $2.50 has been penetrated as natural gas is currently trading at 2.4830.

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