Commodities brokers once were United States focused. However, today’s trading environment is global. Commodities and currencies are intertwined and greatly affect today’s price discovery on the exchanges. Whether you’re a speculator, hedger or investor, you must understand the connectivity of the global marketplace and how events pertain to your trades. For example, England’s exit from the European Union is and will have significant impact on global markets and trades.
Bower Trading analyzes each market from a global perspective before implementing or adjusting trades. We also keep our fingers on the pulse of geopolitical events and potential market influence. Below is information on several key countries as well as some important events that the market continually monitors.
For more information, contact us at 1.800.533.8045.
Brazil is rich in commodities. Investors, speculators, and hedgers cannot effectively be engaged in trading commodities without knowing this country. Soybean traders closely monitor Brazil, as it is the second largest producer in the world. The critical time frame for weather in Brazil’s soybean production is January/February.
With a population of 1.4 billion people, China is the world’s largest soybean importer and the largest user of iron ore, copper, nickel, and zinc. Other areas worth noting is pork imports. China’s pork imports more than doubled in March 2016 over March 2015 as environmental regulations limited domestic production. A rule of thumb about information about China: “Do what China does, not what they say.”
India has the world’s second largest population with 1.1 billion people. At its current growth rate, it is set to overtake the Chinese population in the next 30 years. India is the second largest cotton producer next to the United States.
Russia has been growing/expanding its hog herd internally. Due to the new reform, we’re seeing a “land rush” as seven percent of the world’s arable land is either owned by the Russian state or by collective farms. One-sixth of that land (some 35 million hectares) of cultivable land now lays fallow (unused).
European Union is spread across 26 countries and is a major producer/contributor to the global wheat market. The fiscal policy of the European Union greatly affects the Euro currency, which can have a ripple effect into commodities. England’s exit (Brexit) in June 2016 has created uncertainty within the European Union, which Bower Trading is watching closely.
Once known for its monopoly on the cattle export market, Australia is also a large producer of wheat. The wheat market pays close attention to weather patterns during the growing season at years end. Australia is a close trading partner with China.
The Market Letter will give you an intimate knowledge of these current market conditions from an experienced professional that will allow you to view the market like never before.
As the investor decides the trades, Mr. Bower and account executives personally give advice to each of their clients as to the continuing changing market conditions in any given situation.
Our staff has decades of experience from both behind a desk and in the production aspect, thus allowing you to make the most informed decisions possible.