This website uses cookies to collect usage information in order to offer a better browsing experience. By browsing this site or by clicking on the "ACCEPT COOKIES" button you accept our Cookie Policy.

Commodity Movers and Shakers

The third quarter of 2019 has been impacted by the latest developments in US/China trade talks, political turbulence in Washington, and a flare-up of tensions in the Middle East. Somewhat surprisingly, the broad commodity indices have seen relatively small changes for the past few months. As of Thursday, the S&P GSCI index was down 2.4% for the quarter and up 10.8% for the year. The Thomson Reuters/Jefferies Core CRB Index was down 3.4% for the quarter and up 4.8% for the year.

There were several commodities that had extreme volatile price action over the past few months but will end the third quarter with relatively small net changes. Crude oil saw a price range of more than $13.00, but as of Friday it was down only 3.5% for the quarter. RBOB gasoline and lean hogs both had ranges of more than 22 cents, but they were down 3.0% and 0.9% for the quarter going into this weekend.

Despite a pullback in September, the metals markets have been the strongest sector in the third quarter, benefiting from the prospects of lower US rates and safe-haven inflows. Silver has led the way, with a 13% gain as it has played catch-up to the other metals. Platinum is up more than 10%, having received a boost from simmering South African labor tensions. Gold is up 5%, while palladium was nearly 7% higher late in this week’s trading.

Ag commodities have not fared well during the past few months. Kansas City Wheat is down than 15% off of burdensome near-term supplies. Corn is down nearly 14% after bearish surprises in USDA acreage and yield estimates. Coffee is down more than 10% as it deals with last year’s record Brazilian crop. Sugar is down 7% due to large production from Indian and Thailand this season. Cotton is down 9% as export demand is been damaged by US/China trade tensions.

Disclosure: The Hightower Report

This report includes information from sources believed to be reliable and accurate as of the date of this publication, but no independent verification has been made and we do not guarantee its accuracy or completeness. Opinions expressed are subject to change without notice. This report should not be construed as a request to engage in any transaction involving the purchase or sale of a futures contract and/or commodity option thereon. The risk of loss in trading futures contracts or commodity options can be substantial, and investors should carefully consider the inherent risks of such an investment in light of their financial condition.

Disclosure: Interactive Brokers

Information posted on IBKR Traders’ Insight that is provided by third-parties and not by Interactive Brokers does NOT constitute a recommendation by Interactive Brokers that you should contract for the services of that third party. Third-party participants who contribute to IBKR Traders’ Insight are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.

This material is from The Hightower Report and is being posted with permission from The Hightower Report. The views expressed in this material are solely those of the author and/or The Hightower Report and IBKR is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

Disclosure: Futures Trading

Futures are not suitable for all investors. The amount you may lose may be greater than your initial investment. Before trading futures, please read the CFTC Risk Disclosure. A copy and additional information are available at ibkr.com.

trading top