Daily Investment Tips

All indications are we will continue to see higher food commodities prices in 2011.

The consensus from Global Commodities Forum 2011 in Geneva (a meeting of commodity traders and senior officials) is prices point north.

Five factors driving food commodities prices in 2011

Poor weather - Poor weather in form of la nina and el nino continue to affect parts of Latin America, Africa and Australia. This is constraining supply.

Speculation - This time it is not just traders who are speculating, countries and buying and hoarding.

Geopolitical risks - Political crisis in places such as Ivory Coast will continue to impact on supply.

Rise of China & Other emerging Markets – As this countries economies expand, they have become major buyers pushing demand high.

2011 Global Economic Growth -  Growth is good but it is a double edged sword. As global economic growth accelerates in 2011, demand for commodities will push prices higher still.

All indications are we will see new highs in Cocoa, Coffee, tea, wheat, soyabeans, rice & corn

written by Constantine Njeru \\ tags: Cocoa Coffee, Coffee Tea, Commodities Prices, Commodity Traders, Consensus, Double Edged Sword, Emerging Markets, Food Commodities, Geneva, Global Commodities, Global Economic Growth, Ivory Coast, La Nina, Latin America, New Highs, Political Crisis, Rise Of China, Senior Officials, Speculation, Wheat

Copper has soared to a record of $4.2705 per pound on Tuesday December 2010 in New York. Copper was up 28.3% in 2010.

The common knowledge is Copper prices and prices of all other metals have been driven up by the rising demand in China and India. But the truth is another hidden hand is at play here : Some commodity traders have successfully cornered the markets.

Fundamentals for Higher Copper Prices

The wallstreet journal is reporting a single trader has reported it owns 80%-90% of the copper sitting in London Metal Exchange warehouses, equal to about half of the world’s exchange-registered copper stockpile and worth about $3 billion.

If a single player has such a large control of the commodity you can only conclude this has created an artificial shortage.

Copper ETFs

Another hand is the power of ETF. This funds have increased the amount of money flowing into metal prices. They are buying up the metal pushing the prices higher and higher.

When you combine, the rising demand for the commodity in China, the dominant control by one player plus the power of the ETFs you can predict or forecast Copper prices will continue to remain high, atleast for now.

written by Constantine Njeru \\ tags: Amount Of Money, Atleast, China, Commodity Traders, Common Knowledge, Copper Prices, Dominant Control, Half Of The World, India, London Metal Exchange, Metals, Pound On, Single Player, Stockpile, Truth, Wallstreet Journal, Warehouses

The latest information on Soybeans is that demand continues to out pace supply. For commodity traders interested in Soybeans all indications are Soybeans price trend on a Soybeans price chart show an upswing.

Factors Driving the Rise in Soybeans Prices.

1. Demand remains strong, especially from China
2. concerns about the future Brazilian harvest, tighter supply.
3. Rise in price of corn. farmers are using more land for corn because its more profit. This will further reduce Soybeans supplies

Source businessweek article.

With these factors in mind it is easy to understand why many commodity analysts forecast / predict the price of Soybeans will rise.

written by Constantine Njeru \\ tags: Businessweek, China, Commodity Price, Commodity Traders, Corn Farmers, Pace, Price Trend, Soybeans, Upswing

For all those commodity traders and investors who follow Gold you might be interested to read the latest Gold price forecast by Joe foster of Van Eck associates.

Joe Foster has crunched the numbers and looked into the future and has now forecast the price of an ounce of gold could rise to as high of $2000 – $3000 within the next few years : Going to 2015, 2020.

Foster track Record on trading Gold

Foster manages the Falcon Gold Equity fund for Falcon Private Bank in Switzerland, which has shown a return of 438% over the last 10 years.

Reasons Why Gold Will Continue rising : Foster Gold analysis

According to Foster the following factors will drive the price of gold higher and higher in the coming years:

1. World economy is getting worse

2. Statistics indicate gold mining production is not keeping pace with demand.

written by Constantine Njeru \\ tags: 10 Years, Commodity Traders, Equity Fund, Falcon Gold, Gold Analysis, Gold Equity, Gold Fund, Gold Mining, Gold Production, Investors, Joe Foster, Keeping Pace, Latest Gold Price, Ounce Of Gold, Price Of An Ounce Of Gold, Price Of Gold, Private Bank, Trading Gold, Van Eck Associates, World Economy