Commodity News Reports

Commodity News Reports

By
www.CandlestickForums.com

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.


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.


Commodity News Reports

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