Commodity Market


Wheat Wave Analysis – 2 June, 2021
Wheat Wave Analysis – 2 June, 2021
Wheat continues to rise inside the intermediate wave (B) which started earlier from the pivotal support level 644.0 (former strong resistance level from March and April).
Sugar Wave Analysis – 1 June, 2021
Sugar Wave Analysis – 1 June, 2021
Sugar continues to rise inside the intermediate impulse wave which started earlier from the key support level  16.60 (former minor retracement low from April).
Corn Wave Analysis – 27 May, 2021
Corn Wave Analysis – 27 May, 2021
Corn recently reversed up from the support area lying between the round support level 600.00, lower daily Bollinger Band and the 38.2% Fibonacci correction of the upward impulse from...
Soy Wave Analysis – 26 May, 2021
Soy Wave Analysis – 26 May, 2021
Soy previously reversed up from the round support level 1500.00 (which stopped the previous correction 4 at the end of February) – intersecting with the lower daily Bollinger Band
Sugar Wave Analysis 13 May, 2021
Sugar Wave Analysis 13 May, 2021
Sugar recently reversed down from the resistance area lying between the resistance level 18.00 (top of the impulse wave (1) from April) and the upper daily Bollinger Band.
Soy Wave Analysis 12 May, 2021
Soy Wave Analysis 12 May, 2021
Soy recently broke the resistance area lying at the intersection of the round resistance level 1600.00 (low of the previous impulse wave (i)) and the resistance trendline of the dail...
Cotton Wave Analysis 25 March, 2021
Cotton Wave Analysis 25 March, 2021
Cotton falling sharply inside the intermediate impulse wave (C), which previously broke the support zone lying between support level 83.0 (low of wave (A)) and the daily up channel f...
Soy Wave Analysis 23 March, 2021
Soy Wave Analysis 23 March, 2021
Soy recently reversed up from the support zone set between the support level 1390.00 (former resistance from February – which stopped earlier waves 4, (ii) and A), standing clo...
Cotton Wave Analysis – 4 May, 2019
Cotton Wave Analysis – 4 May, 2019
Cotton recently reversed down from the resistance area lying between the resistance level 57.20 (which stopped the sharp downtrend in August of 2019), upper daily Bollinger Band and ...
Soy Wave Analysis – 23 April, 2019
Soy Wave Analysis – 23 April, 2019
Soy reverently reversed up sharply from the support area lying between the long-term support level 820.0 (which has been reversing the price from 2019), lower daily Bollinger Band an...

The influence of commodity analysis on Forex trade

How investor can realize a profit on the raw materials market, despite high capital requirements and other difficulties when dealing with commodities? The answer is simple - to make investments via the foreign exchange market. Like other financial markets, the Forex market has a direct communication to other types of investment assets. This communication could be the direct one (when both assets enhance), or reverse (when one assets grows in price, the other falls). Such relationships help investors to obtain admittance to other markets, and are of great help when analyzing trends on the world market.

Types of Basic Commodities

The basic commodities on the raw materials market are the class of assets that includes itself raw materials and resources supplied in an ordinary way and available for an exchange. These examples include:   

  • Metals, such as iron ore, aluminum, silver or gold
  • Foodstuffs, such as wheat, rice, sugar, salt, coffee beans and soya beans
  • Energy commodities, such as oil, coal, natural gas and electricity.

On the actual commodity market the bulk of transactions go to trade futures – the contracts, time of delivery of which occurs in a certain period in the future. The benefit of the raw materials market participants consists of the exchange gain between buying price and futures contract selling. This feature offers promising opportunities for income acquisition, making the commodity market instruments attractive to private traders. Commodity prices on the raw materials market are usually specified in U.S. dollars. If the U.S. dollar is not the currency of your trading account, you should be aware that exchange rates fluctuations will affect your results.

The basic commodities could be traded with many brokers by the instrumentality of contracts for difference (CFD). 

Commodity Market and the Exchange Rates

The economics of many countries are heavily dependent on basic commodities exports, for example, Australia, Brazil and Canada. Value of currency in these countries is often influenced by commodity prices.

For example, Australia is an important producer of gold. If the price of the gold increases, appears the need for more Australian dollars amount in order to purchase it, and thus, the price of the Australian dollar will increase.

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