Commodity News Reports

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http://www.candlestickforums.com/ Commodity News Reports To successfully trade commodities, traders learn the basics of commodity trading with classes like Commodity and Futures Training. As part of a successful trading strategy for commodities, traders follow commodity news reports. There are many places to find commodity news reports. These include print media such as the Wall Street Journal, the online business news media such as Bloomberg, Yahoo Finance, Google News, and the like, and propriety news media affiliated with commodity dealers and commodity brokers. Much of what comprises news about commodities comes from following trading on the NYMEX or official reports such as the US Department of Agriculture Daily National Grain Market Summary. Commodity news reports ideally contain hard data first of all and reasoned analysis second. The hard data of commodity news reports can be used for fundamental analysis of the commodity in question. Opinions of commodities analysts may be useful in directing the trader where to focus his or her technical analysis of commodities markets. The type of information in commodity news reports typically has to do with issues of commodity supply and demand. Useful analysis will be that which gives insight into supply and demand issues. For example, a drought in Europe and Asia is drastically reducing wheat production and driving up prices worldwide. The fact that the drought is continuing towards the fall tells us that the winter wheat crop to be planted this fall will also be affected. Thus, even if there is snow this winter in the Russian Steppes and good spring rains the wheat crop will still be poor next year. The next set of facts a trader will want to see is reports of how much wheat is planted in the Dakotas, Nebraska, Kansas, Manitoba, and so forth, this coming fall. Fundamental commodity analysis starts with commodity news reports.

Transcript of Commodity News Reports

  • 1. Commodity News ReportsBy www.CandlestickForums.com

2. To successfully trade commodities, traders learn the basics of commoditytrading with classes like Commodity andFutures Training.www.CandlestickForums.com 3. As part of a successful trading strategy for commodities, traders followcommodity news reports.www.CandlestickForums.com 4. There are many places to findcommodity news reports. These includeprint media such as the Wall Street Journal,www.CandlestickForums.com 5. the online business news media such asBloomberg, Yahoo Finance, Google News, and the like, and propriety newsmedia affiliated with commodity dealersand commodity brokers.www.CandlestickForums.com 6. Much of what comprises news about commodities comes from followingtrading on the NYMEX or official reports such as the US Department ofAgriculture Daily National Grain Market Summary.www.CandlestickForums.com 7. Commodity news reports ideally containhard data first of all and reasonedanalysis second.www.CandlestickForums.com 8. The hard data of commodity news reports can be used for fundamentalanalysis of the commodity in question.www.CandlestickForums.com 9. Opinions of commodities analysts maybe useful in directing the trader whereto focus his or her technical analysis ofcommodities markets.www.CandlestickForums.com 10. The type of information in commodity news reports typically has to do with issues of commodity supply and demand. www.CandlestickForums.com 11. Useful analysis will be that which givesinsight into supply and demand issues.www.CandlestickForums.com 12. For example, a drought in Europe andAsia is drastically reducing wheatproduction and driving up pricesworldwide. www.CandlestickForums.com 13. The fact that the drought is continuingtowards the fall tells us that the winter wheat crop to be planted this fall will also be affected.www.CandlestickForums.com 14. Thus, even if there is snow this winter in the Russian Steppes and good spring rains the wheat crop will still be poornext year. www.CandlestickForums.com 15. The next set of facts a trader will want tosee is reports of how much wheat is planted in the Dakotas, Nebraska,Kansas, Manitoba, and so forth, this coming fall. www.CandlestickForums.com 16. Fundamental commodity analysis startswith commodity news reports.www.CandlestickForums.com 17. The timing of fundamental information about commodities from commoditynews reports is important.www.CandlestickForums.com 18. To the extent that a trader gets the news first he can trade the news. www.CandlestickForums.com 19. For example, news of strikes in goldmines in South Africa will affect goldfutures. www.CandlestickForums.com 20. Those who catch the news first willtypically be able to successfully trade a jump in the price of gold futures.www.CandlestickForums.com 21. Even those who dont get in on the news early and cant trade the initial price jump will need to know what made themarket change in order to successfully read subsequent gold commodity pricemovement and commodity pricereversals. www.CandlestickForums.com 22. Even though successful technical traders know that eventually all fundamentalinformation is factored into commodityprices the more they understand what isdriving the market the more successfully they can trade. www.CandlestickForums.com 23. Rice traders in ancient Japan knew about the factors that influenced the price of rice. www.CandlestickForums.com 24. It was the addition of Candlestickanalysis and Candlestick trading tacticson top of a fundamental understandingof the market that led to profitswww.CandlestickForums.com 25. It is important for a commodity trader tounderstand commodity news reports,both what is written and what is left out. www.CandlestickForums.com 26. To the extent that a commodity broker istrying to gain customers there may be aslant to their reports. www.CandlestickForums.com 27. The ability of a trader to do their own fundamental and technical analysis willbe protection against bad trading advice. www.CandlestickForums.com 28. Traders who follow the news, learn how to recognize a Candlestick pattern and follow Candlestick pattern formations will typically prosper more so thanothers because of their critical thinking and diligent attention to detail. www.CandlestickForums.com