NexusFi: Find Your Edge


Home Menu

 





Commodity fundamentals


Discussion in Commodities

Updated
      Top Posters
    1. looks_one myrrdin with 3 posts (7 thanks)
    2. looks_two SMCJB with 2 posts (4 thanks)
    3. looks_3 everton with 2 posts (0 thanks)
    4. looks_4 pihadave with 1 posts (1 thanks)
    1. trending_up 2,084 views
    2. thumb_up 12 thanks given
    3. group 5 followers
    1. forum 8 posts
    2. attach_file 0 attachments




 
Search this Thread

Commodity fundamentals

  #1 (permalink)
everton
Rio de JAneiro
 
Posts: 13 since Feb 2017
Thanks Given: 0
Thanks Received: 0

Hi, I am studying about Gold Futures and Crude Oil Futures. Is there a book or website that provides a basement(knowledge) on the fundamentals of these commodities? For example, what influences the price of crude oil and gold.

Thanks
Everton

Reply With Quote

Can you help answer these questions
from other members on NexusFi?
Are there any eval firms that allow you to sink to your …
Traders Hideout
Better Renko Gaps
The Elite Circle
Deepmoney LLM
Elite Quantitative GenAI/LLM
My NT8 Volume Profile Split by Asian/Euro/Open
NinjaTrader
Futures True Range Report
The Elite Circle
 
Best Threads (Most Thanked)
in the last 7 days on NexusFi
Get funded firms 2023/2024 - Any recommendations or word …
61 thanks
Funded Trader platforms
39 thanks
NexusFi site changelog and issues/problem reporting
26 thanks
The Program
18 thanks
GFIs1 1 DAX trade per day journal
18 thanks
  #3 (permalink)
 
SMCJB's Avatar
 SMCJB 
Houston TX
Legendary Market Wizard
 
Experience: Advanced
Platform: TT and Stellar
Broker: Advantage Futures
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,041 since Dec 2013
Thanks Given: 4,375
Thanks Received: 10,192


Re: Crude, not sure there's a single website I would recommend, especally since 'Crude Fundamentals' is a very wide category. Have you looked at the Crude Oil thread here

Reply With Quote
  #4 (permalink)
 myrrdin 
Linz Austria
 
Experience: Advanced
Platform: TWS
Broker: Interactive Brokers
Trading: Commodities
Posts: 1,938 since Nov 2014
Thanks Given: 3,686
Thanks Received: 2,651


everton View Post
Hi, I am studying about Gold Futures and Crude Oil Futures. Is there a book or website that provides a basement(knowledge) on the fundamentals of these commodities? For example, what influences the price of crude oil and gold.

Thanks
Everton

For me as a trader of fundamentals Gold is very difficult to trade. There are numerous influences on the Gold price, and I doubt that it does make sense to trade Gold as a fundamental and retail trader. There are easier commodities in my opinion. (Sorry - I do not know a reliable source for fundamentals of Gold.)

Best regards, Myrrdin

Reply With Quote
  #5 (permalink)
everton
Rio de JAneiro
 
Posts: 13 since Feb 2017
Thanks Given: 0
Thanks Received: 0


myrrdin View Post
For me as a trader of fundamentals Gold is very difficult to trade. There are numerous influences on the Gold price, and I doubt that it does make sense to trade Gold as a fundamental and retail trader. There are easier commodities in my opinion. (Sorry - I do not know a reliable source for fundamentals of Gold.)
Best regards, Myrrdin

Hi Myrrdin, thnaks by reply. What are the easiest commodities to trade?

Thanks
Everton

Reply With Quote
  #6 (permalink)
 myrrdin 
Linz Austria
 
Experience: Advanced
Platform: TWS
Broker: Interactive Brokers
Trading: Commodities
Posts: 1,938 since Nov 2014
Thanks Given: 3,686
Thanks Received: 2,651


everton View Post
Hi Myrrdin, thnaks by reply. What are the easiest commodities to trade?

Thanks
Everton

The first thing is that you have to be interested in this commodity. You will spend a lot of time with them. For me the most interesting commodities are agricultures - but this is a personal matter.

You could also have a look at your profession and at the country you live in. You live in Brazil, and a lot of soybeans, corn and coffee is grown in your country. This might give you an edge.

Generally, there is a lot of information regarding corn, wheat and soybeans around. Supply & Demand, seasonals, and COT data are easy to obtain. Volume is large, thus you will get good fills on Futures and Options. They grow in many countries, and this makes them less prone to sudden large moves.

The same is probably true regarding crude oil, but there can be large moves in case of terrorist attacks etc.

Natural gas still is a rather local US market, although it is now transported around the world for some years. NG price mainly depends on temperatures in the US.

Best regards, Myrrdin

Reply With Quote
Thanked by:
  #7 (permalink)
pihadave
Auckland, New Zealand
 
Posts: 37 since Feb 2017
Thanks Given: 0
Thanks Received: 19


myrrdin View Post
The first thing is that you have to be interested in this commodity. You will spend a lot of time with them. For me the most interesting commodities are agricultures - but this is a personal matter.

You could also have a look at your profession and at the country you live in. You live in Brazil, and a lot of soybeans, corn and coffee is grown in your country. This might give you an edge.

Generally, there is a lot of information regarding corn, wheat and soybeans around. Supply & Demand, seasonals, and COT data are easy to obtain. Volume is large, thus you will get good fills on Futures and Options. They grow in many countries, and this makes them less prone to sudden large moves.

The same is probably true regarding crude oil, but there can be large moves in case of terrorist attacks etc.

Natural gas still is a rather local US market, although it is now transported around the world for some years. NG price mainly depends on temperatures in the US.

Best regards, Myrrdin

This just made so many things clear for me.. I'm switching from FX to commodities as I find them more interesting and I'm also finding FX too.. 'messy'.

What I'm struggling with though is where to find solid and legitimate sources of information. Bloomberg? Reuters? For example, I was looking into Crude and found almost a 50/50 split of bullish/bearish information..

I found gold easiest in terms of market hours (I'm in New Zealand), but I agree that there's many factors that influence it. Too many times I've been stopped out from random swings. Trading gold almost feels like trading FX.

I want to focus on other metals (copper/platinum/palladium) and also Agri's (cocoa, coffee, sugar, orange juice).

Would love any info you could give on where to start, or at least where to find legitimate non-bs information?

Reply With Quote
  #8 (permalink)
 myrrdin 
Linz Austria
 
Experience: Advanced
Platform: TWS
Broker: Interactive Brokers
Trading: Commodities
Posts: 1,938 since Nov 2014
Thanks Given: 3,686
Thanks Received: 2,651


pihadave View Post
This just made so many things clear for me.. I'm switching from FX to commodities as I find them more interesting and I'm also finding FX too.. 'messy'.

What I'm struggling with though is where to find solid and legitimate sources of information. Bloomberg? Reuters? For example, I was looking into Crude and found almost a 50/50 split of bullish/bearish information..

I found gold easiest in terms of market hours (I'm in New Zealand), but I agree that there's many factors that influence it. Too many times I've been stopped out from random swings. Trading gold almost feels like trading FX.

I want to focus on other metals (copper/platinum/palladium) and also Agri's (cocoa, coffee, sugar, orange juice).

Would love any info you could give on where to start, or at least where to find legitimate non-bs information?

You will find some free monthly information on softs from the ICE: https://www.ice.com/publicdocs/futures_us/ICE_Monthly_Softs_Fast_Facts.pdf?sp...pReportId=OTQwNzY1NjI0S0
I think the author also sells more frequent and more detailed information of softs, but you have to check for details.

I do not know a good source for the "other" metals. But I doubt you will find a lot. For Palladium it is probably best to have a good contact to Mr. Putin - Russia supplies most of Palladium world-wide. I think most of Platinum is from South Africa and Russia - not easy to get reliable information from these countries as a retail trader.

Where you should start ? If you ask me: I would not start with these commodities.

Best regards, Myrrdin

Reply With Quote
Thanked by:
  #9 (permalink)
 
SMCJB's Avatar
 SMCJB 
Houston TX
Legendary Market Wizard
 
Experience: Advanced
Platform: TT and Stellar
Broker: Advantage Futures
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,041 since Dec 2013
Thanks Given: 4,375
Thanks Received: 10,192


myrrdin View Post
Where you should start ? If you ask me: I would not start with these commodities.

Hey @myrrdin, as always I think you give some great advice here.
If your going to to trade and hold positions for longer periods of time, I agree understanding the fundamentals is desirable.

I'm primarily an energy trader, and a statistical rather fundamental one at that. Earlier in my career though I did work and trade on desks that were extremely fundamental driven in nature. As a rule, the better your information is, the easier a commodity is to trade, but the type information you need, is difficult to come by as a retail trader. Apart from that I have found that natural gas is easier to trade than oil or electricity as it's a domestic market, less effected by outside influences/would politics and it isn't overly dominated by a few players. As such the fundamental's tend to rule in the long run. The one problem with NG is that it can move so fast and violently on weather changes, which may not ideal for the newer trader.

Reply With Quote
Thanked by:




Last Updated on February 28, 2017


© 2024 NexusFi™, s.a., All Rights Reserved.
Av Ricardo J. Alfaro, Century Tower, Panama City, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada)
All information is for educational use only and is not investment advice. There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
About Us - Contact Us - Site Rules, Acceptable Use, and Terms and Conditions - Privacy Policy - Downloads - Top
no new posts