FAQ

Why do commodities traders always check the LME website?

Why do traders regularly check the London Metal Exchange (www.lme.co.uk)? Response: The London Metals Exchange (LME) has been established for over 130 years and is the world’s foremost non-ferrous metals and plastics market. Traders can obtain accurate price data, forecasts, and analysis about the futures contracts that are offered by the exchange. The LME offers…

How can I profit from oil price fluctuations?

There’s a lot of talk about how the US Dollar is affecting the price of crude oil. To what extent is the US Dollar affecting the price of crude oil and how can I use warrants to profit from price movements? Response: Before I begin discussing the question it must be said that while the…

The impact of commodities prices on mining companies

I have been reading that iron ore and coal export prices are due to be negotiated in the near future? Can you tell me how the process works and where I can find the results of the negotiations and final pricing outcome? Also what short term impact does this have on mining company’s share price?…

What factors determine how much we pay for petrol at the pump?

Petroleum pricing has become a factor of concern to consumers, refiners and producers across the world, and price determination has come under the microscope, especially as crude oil prices were reaching record highs earlier in 2008 and prices at the bowser were sky-rocketing. There is a lot of discussion surrounding petroleum pricing, and the primary…

How to profit from trading frozen orange juice

Hurricanes affecting the South-west coastal region of the United States in 2008 brought significant consequences for several commodities that rely on production capacity to ensure steady supply. One such commodity where production and supply is tied in heavily to weather conditions, and therefore affects price, is Orange Juice. Orange Juice is traded on the Intercontinental…

How do I predict commodities prices?

Traders are generally of two breeds with each being at very opposite sides of the trading spectrum. The chartists employ technical analysis to study price and market action by using various charting instruments as a vehicle to price forecasting. Technical analysis considers only the actual price behaviour and assumes all relevant factors have been already…