Commodity Futures Trading

Commodity Futures Trading

Bywww.CandlestickForums.com

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Commodity futures trading reacts to a broad range of factors. For example,

crude oil has just fallen to a three week low.

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Today commodities traders are concerned that other nations will follow Indiafs example and raise interest rates. �



Higher interest rates tend to slow economic growth and the use of oil.



Commodity futures trading in oil has dropped just over fifty cents for April

delivery of benchmark light sweet crude whereas February 2012 delivery has

dropped a dollar.



Oil futures trading as far out as June 2016 is unchanged as traders still view the commodity as an inflation hedge.



Unlike oil, orange juice futures have gone up because of the frost in the

worldfs second largest producing area, �Florida.



Now there has been a slight downward correction as the Department of

Agriculture reports that the frost was not as bad as previously believed.



In the case of oil the commodity market sees less use and is dropping the

commodity price now and in future months.



In the case of orange juice commodity futures are up because of decreased

supply.



To fully understand how commodity futures trading is affected by many

divergent factors sign up for Commodity and Futures Training.



Training will help you use both fundamental analysis and technical

analysis with tools such as Candlestick charting to understand and predict the market in commodity futures trading.



Commodity futures trading in an organized fashion dates back at least

300 years to trading Tulip bulbs in Holland and rice trading in Japan.



Candlestick basics, the basis of todayfs �Candlestick analysis, came into being in early commodity trading as rice traders recognized recurring trading patterns.



Traders said that they learned to let the market tell them what the market was

going to do.



Todayfs technical analysis with �Candlesticks as well as other technical

analysis tools in use today evolved from early, formal commodity futures trading.



Todayfs ability of the commodity trader �to foresee commodity prices in oil

futures or orange juice dates back to the actions of very thoughtful traders in the

distant past.



Today analysts are saying that the fundamentals of the oil market do not justify prices above $80. The market

already knows that!



Many smart traders buy when they believe the price of a commodity future

is cheap and sell when they think it is overpriced.



The sum of these trades creates a market consensus smarter than any one

individualfs market analysis. �



The extent to which commodity trading software is successful is the extent to

which it follows tools such as Candlestick charting techniques which date back

hundreds of years.



A computer may be able to do the calculations faster but the computer did

not have the wisdom to develop a system that can so accurately predict the

future in commodity futures trading.



So, as you are drinking your watered down orange juice (Tropicana is planning on putting only 59 ounces of juice in its

64 ounce containers.)



and practicing the use of Candlestick chart analysis donft forget to thank �

those early rice traders for envisioning a system that so accurately predicts where

commodity investing is going next.



Commodity Futures Trading

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Transcript of Commodity Futures Trading