Download - Commodity News Reports

Commodity News Reports

Bywww.CandlestickForums.com

http://www.candlestickforums.com/

To successfully trade commodities, traders learn the basics of commodity

trading with classes like Commodity and Futures Training.

www.CandlestickForums.com


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.



The timing of fundamental information about commodities from commodity

news reports is important.



To the extent that a trader gets the news first he can trade the news.



For example, news of strikes in gold mines in South Africa will affect gold

futures.



Those who catch the news first will typically be able to successfully trade a

jump in the price of gold futures.



Even those who don't get in on the news early and can't trade the initial price

jump will need to know what made the market change in order to successfully read subsequent gold commodity price

movement and commodity price reversals.



Even though successful technical traders know that eventually all fundamental

information is factored into commodity prices the more they understand what is driving the market the more successfully

they can trade.



Rice traders in ancient Japan knew about the factors that influenced the

price of rice.



It was the addition of Candlestick analysis and Candlestick trading tactics on top of a fundamental understanding

of the market that led to profits



It is important for a commodity trader to understand commodity news reports,

both what is written and what is left out.



To the extent that a commodity broker is trying to gain customers there may be a

slant to their reports.



The ability of a trader to do their own fundamental and technical analysis will

be protection against bad trading advice.



Traders who follow the news, learn how to recognize a Candlestick pattern and follow Candlestick pattern formations

will typically prosper more so than others because of their critical thinking

and diligent attention to detail.

