Showing posts with label commodities market. Show all posts
Showing posts with label commodities market. Show all posts

Saturday, October 15, 2011

The Coffee prices to swing this week.

The coffee price swings between optimism and concerns about the global economy. Prices have indeed fluctuated between a renewed optimism in financial markets and reinforcing concerns about the poor prospects of the global economy. The course was first boosted by optimism the trend observed in global stock markets, the weakening dollar also makes it more attractive purchases of raw materials denominated in currency USD. The fall in prices of the bean in August and September also allowed investors to purchase "cheap".
But the improvement has been only short-term courses then reducing their earnings, concerns about slowing global economy resurgent optimism. However, the International Coffee Organization (ICO) said Wednesday in its monthly report. that the tensions could be exacerbated further by "extremely low world stocks and consumption remain robust."
Harvest prospects of the 2011-2012 season, which began this month, will prove to be not encouraging. Note as well as Brazil, world's largest producer, production is expected to decline by 10.3% over one year, if we are to believe the ICO. The months of July and August were indeed affected by a severe drought in the Brazilian growing regions. In Vietnam, the second largest exporter, "the lack of rainfall and the higher cost of fertilizer could affect crops," says the Organization. Which expects a fall of 10% of the Vietnamese coffee, made up almost entirely of robusta.
A t the end of London Liffe, a tonne of Robusta for delivery in November 1995 dollars worth Friday at lunch break against 2025 dollars the previous Friday at mid-morning. On the NYBOT-ICE New York, a pound of Arabica for December delivery traded at 240.95 cents 234.40 cents against the previous week.

Monday, September 5, 2011

Fall in sugar prices in the International Market

sugar prices fell during the week just past, a decline that followed the publication of the International Sugar Organization (ISO) suggesting unfavorable prospects for a rise in prices. Already begun earlier this week, falling prices has gained momentum Friday after the publication of ISO.

The numbers speak for themselves: during the period from October 2011 to September 2012, surplus production is forecast at 4.2 million tonnes (mt). Recall that in March, the International Sugar Organization estimated that the campaign still going from October 2010 to September 2011, excess world production of sugar should be limited to 196,000 tonnes, against 1.2 million tonnes (Mt) previously expected.

It is true that Australia, the world's third largest exporter, saw its crop affected by heavy rains followed by floods, Cyclone Yasi destroying up to 10% of national production again affecting the country by more. Now, analysts believe that the next harvest from India, Thailand and Russia are expected to quickly compensate for the low volume of Brazilian production.

Investors also expect a revival production of sugar beets in the European Union. Also note that the stronger dollar has made sugar unattractive for exporters. In the end, knew the Liffe in London, a tonne of white sugar for October delivery was worth £ 752.30 early Friday afternoon against 780.60 Friday books about the same time. On the NYBOT-ICE U.S. per pound of raw sugar for October delivery was trading at 28.95 cents against 29.70 cents the previous week.

Copper prices on rise!!!

The price of copper rose on Wednesday at 9304 dollars a tonne, its highest level since early August.Prices remain supported by strong concerns over the production of Chile. The country's largest exporter worldwide, is greatly affected recently by strikes in the mining sector.

Analysts at MF Global, official figures this week reported a fall of 18% of Chile's copper supply in July.A context that would fuel tensions in the market, while new social movements may emerge in the giant Grasberg mine in Indonesia, which represents 4% of world production of copper.

Finally, early Friday afternoon, a tonne of copper for delivery in three months traded at the LME 9025 dollars, 9006 dollars per tonne against the previous Friday.

Monday, December 28, 2009

How should be your investment portfolio?

The short term trader is meant to the people you who trades in the Derivatives Market (Futures and Options Market) in Stock Markets or Commodities Market. A trader takes a position in the market in futures or options and holds it for few days. Normally, we can see one month, two month or three months contract in the derivatives market, but we have contracts ranging from months to years.
The trader holds the positions until he makes a profit or until he cuts his losses. Not all trades end up in profits. If the trade goes against his position then he has to close it before he makes a substantial loss. Anyway, he has to close the position with profit or loss or at cost. If he feels, the underlying security move as per his expectation for the next month also, then he can carry forward the contract to next month also. Likewise, he can carry forward the position to unlimited number of months.
So a person trading in this time frame is called a short term trader. In a futures positions, he has to pay a margin to hold a futures position (whether it is short or long). In case, if the position he holding is loss, then he needs to pay the extra margin to make up the loss and also to continue to hold the position. So, there is always a risk of holding these type of positions. Unlike, holding a delivery share, holding a futures position would anytime invite margin call. If we are not prepared for that, then we have to close the position in loss, if it goes our way in the near futures.

Trading for the short term is always risky. But the profits we make in the short term is substantial. You no need to hold it for a long time. Your money will not be blocked for a long time. You can quickly use your funds.
But in the long term investments, your money will be blocked for a long time. There may a time when your money would remain idle without appreciating for years. But it is less riskier than short term positions.
I prefer any investor to invest more than seventy percent of their investments in long term and trade only twenty five percent of your investments in short term trading.