Commodities Business News Feed

The commodities markets are influenced by many factors. Of course, on a long term trading basis fundamentals are important. The demand and supply balance of a commodity will ultimately determine prices.

However, on either a short term or long term basis the news of the day , week, or month, can have a major price impact.

For example let’s say there is a severe drought in a major US corn growing region. News of a rain producing weather front moving in come have an immediate impact on corn futures prices.

News of continued drought and damage to the corn crop will have a bullish impact.

Another example of how news could immediately effect a market would be news of a terrorist attack against a key Saudi Arabian oil production facility. News of this magnitude could easily cause a $1.00 to $2.00 a barrel surge in crude oil prices.

When you trade commodities you must closely follow the news.

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