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Commodity Futures Trading
Commodity futures trading reacts to a broad range of factors. For example, crude oil has just fallen to a three week low. Today commodities traders are concerned that other nations will follow Indiafs example and raise interest rates. Higher interest rates tend to slow economic growth and the use of oil. Commodity futures trading in oil has dropped just over fifty cents for April delivery of benchmark light sweet crude whereas February 2012 delivery has dropped a dollar. Oil futures trading as far out as June 2016 is unchanged as traders still view the commodity as an inflation hedge.
Unlike oil, orange juice futures have gone up because of the frost in the worldfs second largest producing area, Florida. Now there has been a slight downward correction as the Department of Agriculture reports that the frost was not as bad as previously believed. In the case of oil the commodity market sees less use and is dropping the commodity price now and in future months. In the case of orange juice commodity futures are up because of decreased supply. To fully understand how commodity futures trading is affected by many divergent factors sign up for Commodity and Futures Training. Training will help you use both fundamental analysis and technical analysis with tools such as Candlestick charting to understand and predict the market in commodity futures trading.