In the modern age things always seem to happen quickly.
A few weeks ago, I explained how the Russian invasion of the Ukraine and the associated sanctions could potentially lead to a shift in world order. It seems this is happening far more quickly than I expected.
We have now seen firm commitments from European countries to massively increase their defence spending. We've also seen tangible ... ››› more
You may not know this but two-thirds or 60% of the world's supply of cocoa beans come from West Africa each year.
This includes the Ivory Coast and Ghana (2nd biggest cocoa producer).
Just to put it into perspective, Ghana's cocoa sector employs over 800,000 rural families. It also produces around R33.58 billion in foreign exchange.
This year we've seen a major slump in cocoa prices.
... ››› more
Commodities are raw materials. They include soft commodities, like coffee and wheat. And hard commodities, like gold and platinum.
So if you want to trade the international commodities market, what are your options?
Let's take a closer look…
How to trade commodities
To trade commodities, you have two options if you don’t want to take your money offshore.
You can trade commodi... ››› more
You can trade a wide array of different assets. The most common include stocks, indices and forex.
But have you considered commodities?
So what are commodities? And how can you trade them?
Read on to find out…
What are commodities?
When it comes to international markets, commodities are raw materials or agricultural products.
Raw materials include crude oil, copper, platinum... ››› more
The last few weeks have seen some pretty volatile movements on stock markets across the world. Some markets suffering more than others.
Not just that, commodity prices are falling too. Oil is trading down at $85 a barrel.
Let's take a closer look at movements in the main stock markets and commodities…
The rollercoaster ride of the world’s stock markets
At the beginning of last m... ››› more
You might have heard the term agricultural commodities bandied around. What exactly is an agricultural commodity? How do investors trade them? And can you trade agricultural commodities in South Africa? Let's take a closer look at the ins and outs of agricultural commodities…
A definition of agricultural commodities
Let’s start with a quick look at what a commodity is. A commodity simply d... ››› more
When it comes to investing, you've probably heard the word ‘commodities' before. But do you know what commodities are? And where do commodities fit in in your investment portfolio? Read on to find out what you need to know about commodities…
What are commodities?
Commodities are ‘real’ assets. To put it another way, they are ‘real stuff’.
The most common commodity you’ll be fa... ››› more
Soft commodities prices are notoriously difficult to predict.
That's because, when it comes to agricultural crops like soy, wheat, maize and cocoa, there are just so many short term influencing factors. Whether its disease, drought, fire, hail or a host of other possible things, soft commodity prices can move fast.
But there is one soft commodity with a price you can be certain of where it's... ››› more
Buy ‘real' assets. This is an argument you'll often hear these days. With governments around the world printing money, there will be a lot more paper money than ‘stuff' in the world. So the ‘stuff' will only become more valuable. For investors, one very important category of ‘real stuff' is commodities. Read on to uncover the ins and out of commodities…
The big, big commodity that’s ... ››› more
Spread trading is one of the easiest ways to play short-term moves in commodities. You can trade on commodities ranging from oil to coffee to gold. Let's take a closer look at how you can trade commodities with spread trading…
When it comes to trading commodities, you can spread trade:
Hard commodities, such as oil and copper;
Soft commodities, such as coffee and grains; and
... ››› more
Not only can you invest in shares or an index with exchange traded funds (ETF), you can also use them to invest in commodities. These types of ETF are very useful, but they do have their drawbacks. Let's take a closer look at exchange traded commodities…
Exchange traded funds (ETFs) are a very useful type of passive fund. They give you cheap access to almost any market you can think of.
Som... ››› more
Investing in passive funds does have its advantages. But, there are a few things you need to watch out for. Read on to find out what you need to be aware of with passive funds…
Passive funds track the underlying market, Phil Oakley explains in MoneyWeek.
To invest in passive funds you can either invest through a tracker fund or an exchange traded fund (ETF).
Passive funds offer you a che... ››› more
Many investors have been put off investing in the mining sector and resources as a result of the constant threat of violence. After all, union unrest affects production and lower production means less profit for you at the end of the day. But you shouldn't let that put you off of investing in ALL commodities, especially with Illovo Sugar and Tongaat Hulett's impressive financial results!
... ››› more
Those who've made great fortunes will always tell you the same story: They were in the right place at the right time. Some call that good timing “luck”. But luck can't explain huge returns in a volatile market, when investments aren't safe from one minute to the next. The fact is, the richest investors in the world created their wealth by capitalising on the strongest trends pushing the market... ››› more
“While everyone's focusing on hard assets, a boom of epic proportions is currently under way in a ‘hidden' group of commodities: Soft commodities”, says investment expert Leon Kok in The South African Investor. Soft commodities refer to commodities like wheat, sugar and timber that are grown instead of mined. And there's one soft commodity in particular you should focus your investments on a... ››› more
There's always an opportunity to profit where there's a shortfall. And that's the case with soft commodities like wheat, sugar, and poultry right now. “Soft commodity output must increase and agricultural output must double by 2050 to keep up with global demand. That requires growth of at least 3.4% a year at least for the next ten years,” says The South African Investor. Read on to discover h... ››› more
You probably know that everyone's talking about resources and how the price of gold, oil, coal and many other resources are set to rocket as countries like China consume every resource in sight. But what most people don't realise is that there's an even bigger resource boom currently taking place and NO ONE is talking about it! Read on to discover three reasons why there's never been a better time... ››› more
It's called the weatherman strategy and it's a great way commodity traders can find their next big trade. And right now, all signs point to the fact that maize prices could go through the roof…
“Dry weather conditions have hit the main maize-growing areas in South Africa, wilting the crop and dashing prospects for better yields this year,” report Fin24.
This is worrying for food produ... ››› more
“Resource nationalism is having a direct effect on commodity prices, making them more volatile and threatening global security,” reports the Mail & Guardian. But that doesn't mean there isn't a way for investors to profit - you might just need to look at a ‘different' type of commodity: Soft commodities. “We all know the price of gold, oil, coal and many other resources are set to rocket a... ››› more
Disclaimer FSP Invest, a division of Fleet Street Publications (Pty) Ltd, is a research house and not a registered broker, financial advisor or financial service provider. Our editors and customer services teams also do not give personal investment advice. The advice in this website is general advice only and may not be appropriate to your particular investment objectives, financial situation or particular needs, so before investing or if in any doubt about your personal situation, you should seek professional advice from a stockbroker or independent financial adviser authorised by the Financial Services Board.
We research our recommendations and articles thoroughly, but disclaim all liability for any inaccuracies or omissions found on this website.
Remember: Never invest more than you can afford to spare and that the value of any investment, and the income derived from it, can go down as well as up. The past is not necessarily a guide to future performance.
Editors or contributors may have an interest in investments commented on in this website.