In today's trading environment the markets are global. Commodities and currencies are intertwined together and greatly affect today's price discovery on the exchanges. Whether you are a speculator, hedger, or investor you must understand the global market place and how certain events pertain to your trade. Remember that 95% of the world's population lies outside the United States! Bower Trading analyzes each market from a global perspective before implementing or adjusting trades. Below is some information on several key countries in the global market today as well as some important events that the market continually monitors around the clock for each country.
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This country is commodities. Investors, speculators, and hedgers cannot effectively be engaged in trading commodities without knowing Brazil. Brazil is closely monitored by soybean traders as they are the #2 producer in the world. The critical time frame for weather in soybeans production is January/February.
With a population of 1.4 billion people, China is the world's largest soybeans importer and the largest user of iron ore, copper, nickel, and zinc. A rule of thumb about information out of China: "Do what China does, not what they say!"
Second largest population in the world of 1.1 billion people and is set to overtake the Chinese population in the next 30 years. India is the 2nd largest cotton producer next to the United States.
Russia has been growing/expanding its hog herd internally. Due to the new reform you are seeing a "land rush" as 7% of the worlds arable land is either owned by the Russian state or by collective farms. 1/6 of all that land (some 35 million hectares) of cultivable land now lays "Fallow."
European Union is spread across 27 countries and is a major producer/contributor to the global wheat market. The fiscal policy of the ECB greatly affects the Euro currency which can have a ripple effect into commodities.
Once known for its monopoly on the cattle export market, Australia is still a large producer of wheat. The wheat market pays close attention to the weather patterns during the growing season at years end. Australia is a close trading partner with China.