Are Investors Sleeping On Commodities?

We know pulling people’s attention away from stocks is tough, especially when they’re rallying. But as we close out the week, we wanted to point out that many of this week’s top-performing assets were commodities.

The chart below from Finviz shows that nine of the top ten performers this week were commodity futures, with Natural Gas topping the list at +16.19%. 🤩

That’s in stark contrast to the last year, where many of these same commodities fell aggressively as supply chains improved and the Fed worked to bring down demand. But now that many in the market believe that inflation has been tamed and the U.S. economy remains intact, could there be a potential for a rebound? 🤔

It’s a question a select group of investors are considering. Very often, the risk that matters is the one that people have forgotten about. And right now, little attention is being paid to commodity prices as they begin to move up again.

Time will tell if this trend continues to develop. Nonetheless, we thought putting on everyone’s radars as we head into the second half of the year was worthwhile. 👀

Learn More About...

Grains Lose Their Gains

Grain commodities were the talk of the town for a bit during the pandemic, as soaring prices pushed up producer and consumer inflation. They’ve not gotten a lot of headlines lately, as a slow and steady decline is less interesting than a sharp increase. 😴

However, they were back in the news today after making a swift move lower. The USDA quarterly grain stocks report showed higher stocks and production than initially anticipated. Wheat was hit the hardest, though soybeans and corn were both down too. 📉

Read It

Copper Crumbles Amid Recession Fears

If you’ve been consuming financial market-related content for a while, you’ve probably heard the phrase “Dr. Copper” at some point. Well, the doctor was in today, so let’s hear what he had to say. 👂

For those of you confused, market participants often refer to copper futures as “Dr. Copper.” The reasoning is that copper is an industrial metal critical for most aspects of global economic growth. As a result, investors and traders will often use copper futures as a liquid market to express their views of the economy. And for those that don’t trade it directly, they look at it as a barometer for the overall market’s economic outlook. 🧭

Read It

The Move Hedgers Have Been “Wheating” For

Agricultural commodities like orange juice, lumber, sugar, soybean meal, and more have quietly been some of the best-performing assets year-to-date. 🤩

We recently discussed the rebound in lumber and orange juice squeezing to fresh all-time highs. Today we’re going to look at why wheat is getting major attention from traders.

Read It

Breakfast Is Getting More Expensive

Some say breakfast is the most important meal of the day. But unfortunately, the commodity markets are saying that prices to fill your bowls and cups each morning could be heading higher. 🥣

If we look at Finviz’s year-to-date performance chart for the major assets tracked by the futures markets, four of the top five gainers are agricultural commodities. Orange juice leads the pack, rising 84.53%, followed by sugar (+44.2%), Cocoa (+39.68%), and Oats (+30.10%). They’re only separated by the Nasdaq 100, which is up 36.91%.

Read It