Commodities Wrap-Up – 2019.10.18
The Week In Grains, Metals, and Energy
US Dollar Index: -1.14%
Natural Gas: 6.17%
Crude Oil (WTI): -2.20%
On the A commodity is an economic good or service where the demand for it has no qualitative differentiation across a market (i.e. corn, petroleum, pork bellies, etc.) The market treats its instances as equivalent or nearly so with no regard to who produced them…. front, copper seems to be gaining some strength. Could be some opportunity here. Gold seems to be consolidating around the $1,500 level, but there is talk of another rate cut soon. This would normally drive gold higher, but fear looks like it’s falling off as the Equity is a stock or any other security representing an ownership interest. This may be in a private company (not publicly traded), in which case it is called private equity…. move higher and the trade war subsides. This ould keep things flat, which creates deep-out-of-the-money potential on both sides, for those who sell premium.
Nat Gas had a nice upside week. Hopefully this continues for a solid fall/winter price-spike, creating premium possibility on the call side.
Also, the grains have been rising steadily, with Soybeans and Wheat rising close to the yearly highs.