馃攳
Fundamentals for Soft Commodities | how to trade agricultural commodities - YouTube
Channel: The Diary of a Trader
[8]
Hi.
[9]
And this video I'm taking a look at fundamentals
for soft commodities now soft commodities
[13]
are going to be grains livestock.
[15]
Just think agricultural products.
[18]
So for example if you are interested in trading
the wheat markets you would need to know what
[25]
the outlook is for the wheat crop worldwide.
[28]
But the largest mover without a doubt is going
to be the USDA the United States Department
[34]
of Agriculture.
[36]
And you can see here on the website that I'm
on USDA dot gov is their official address
[43]
and here you can pull down quite a bit of
information and it tells you all about the
[49]
USDA bid for traders.
[51]
They're really going to be interested in certain
reports.
[56]
So you click on agency reports tells you the
release dates of reports coming up which of
[63]
course is very important.
[65]
And in this particular case it's the coming
week and I'll tell you what's coming out.
[70]
So for example let's say that you decided
that you wanted to trade cattle.
[80]
There is a announcement on Friday and give
you an idea of what the cattle markets might
[87]
do.
[88]
There are obviously plenty of other markets
that you can get involved in and there are
[93]
some pretty obscure reports like sweet potatoes
and sugar beets which you're not going to
[98]
trade.
[99]
But nonetheless it is there you can go to
latest leases and some of these are going
[106]
to affect the market some of them are just
going to be the USDA business in general.
[110]
And that being said you can look for various
releases that may affect the markets and you
[120]
want to trade.
[123]
And as you can see there is a lot to glean
from these Web sites.
[130]
The most important ones of course are going
to be the ones that you go and you look and
[138]
you see in case you missed it and it gives
you the results.
[143]
This gives you the results in a PDA format
and of course news story.
[149]
It also will telling you how much there's
a podcast available.
[153]
How much was produced in wheat and corn etc.
and that is exactly what you're looking for
[160]
you're looking for things such as you know
how much is the wheat market going to be affected
[170]
by supply.
[171]
Is there an oversupply of wheat.
[173]
Are the wheat crops doing well.
[176]
If they're doing well and they're doing very
well then an oversupply should drive down
[181]
price.
[182]
On the other hand if there's been a drought
it's possible that we would have issues with
[188]
supply and that of course brings up the price
of such things as wheat corn whatever you
[198]
know.
[199]
So it is definitely a Web site that you need
to look at.
[204]
Not every week is going to have your particular
announcement.
[208]
You could be looking at wheat next week or
maybe it's three weeks down the road.
[215]
But nonetheless you do need to get an idea
of what's going on in the markets as far as
[224]
supply and demand.
[225]
And that gives you the opportunity to project
longer term trade production agriculture.
[231]
You know you can see what the production has
been you know and what the USDA is doing to
[237]
help expand that and get results sooner or
later you get the ability to get an idea of
[247]
where price should go if there's a lot of
pressure then obviously you want to own that
[252]
commodity.
[253]
On the other hand if it seems like there's
more than enough obviously it might be something
[258]
you want to short.
Most Recent Videos:
You can go back to the homepage right here: Homepage