Commodity Fundamentals

Praise for Commodity Fundamentals

"Commodity Fundamentals is THE book for investors looking to enter the commodity markets. This informative guide is a welcome addition on the subject and is a must-read for commodity investors."
-Jim Atkinson, President, Guinness Atkinson Funds

"Ronald Spurga's Commodity Fundamentals is an illuminating and very useful guide for the subject. A welcome addition to any business library."
-Robert F. Himmelberg, PhD, Dean, Fordham's Graduate School of Business Administration

"A straightforward introduction crafted for the individual on the mechanics of commodity trading. The author efficiently negotiates the often confusing yet very topical commodity trading world for the individual."
-Terence A. Mullervy, Finance Director, Glencore UK Ltd.

Commodity Fundamentals provides you with the in-depth insights needed to make commodities trading a profitable, integral component of your overall trading activities. Written by Ronald Spurga, a Vice President of ABN AMRO Bank and longtime veteran of the investment banking wars, this straightforward guide arms you with the information you need to succeed in the highly profitable commodity marketplace-whether you are a trading veteran, a relative newcomer, or anywhere in between.

Part One Should You Speculate?

Chapter 1 Guidelines for Commodity Speculation 3

Chapter 2 The Speculator and the Commodity Exchanges 5

Chapter 3 The Mechanics of Trading 11

Part Two Techniques for Trading Physical

Commodities

Chapter 4 Technical Analysis 25

Chapter 5 The Risks of Speculation 29

Part Three Speculating in Metals

Chapter 6 Gold 33

Chapter 7 Silver 41

Chapter 8 Platinum 47

Chapter 9 Copper 55

Chapter 10 Palladium 59

Part Four Speculating in Energy

Chapter 11 Crude Oil 67

Chapter 12 Gasoline 73

Chapter 13 Heating Oil 77

Chapter 14 Natural Gas 81

Part Five Speculating in Tropical Commodities

Chapter 15 Cocoa 91

Chapter 16 Coffee 99

Chapter 17 Sugar 107

Chapter 18 Cotton 113

Chapter 19 Orange Juice 121

Part Six Speculating in Agricultural

Commodities and Meats

Chapter 20 Grain 129

Chapter 21 Cattle 147

Chapter 22 Hogs 153

Chapter 23 A Word about Forecasting Supply and Demand in Meats 159

Part Seven Final Considerations

Chapter 24 Commodity Funds 167

Chapter 25 Sources of Market Information 169

Glossary of Common Commodity Trading Terms 175

Index 181

RONALD C. SPURGA is a Certified Financial Planner and a Vice President of ABN AMRO Bank. He has also worked as an investment banker and financial analyst on Wall Street. Spurga graduated from the Graduate School of Credit and Financial Management of the Amos Tuck School of Business Administration at Dartmouth College. He has an MBA in finance and has taught finance courses at Rutgers University, Fordham University, and New York University. In his spare time, Spurga writes poetry, which has appeared in Penumbra, the literary magazine of California State University, and in Cimarron Review, the literary magazine of Oklahoma State University. Profitable commodities trading is now within reach of virtually every market-savvy investor. Why the recent change?

Erratic supplies of oil and other essential commodities, coupled with skyrocketing demand from China, India, and other rapidly developing countries and economies, have laid the groundwork for a long-term uptrend in the global commodities market. At the same time, the collapse of historic trading barriers has made it more possible than ever for traders of every size and style to reap regular profits from the accessible and untapped commodity trading market.

Commodity Fundamentals provides you with the knowledge and information you need to make consistent commodities trading a profitable, integral component of your overall trading activities. Written by Ronald Spurga, a Vice President of ABN AMRO Bank, bestselling finance author, and longtime veteran of the investment banking wars, this straightforward, step-by-step guidebook features:

• Supply/demand information for nearly two-dozen physical commodities in the precious metals, energy, grains, meats, and tropical commodity markets
• Detailed overviews and trading strategies for everything from gold and palladium to crude oil, natural gas, coffee, cattle, and other trader favorites
• Trading techniques that have proven uniquely powerful when applied to the commodities markets, including spread trades, cash and carry trades, and others
• In-depth chapters that describe the diversification, risks, and rewards possible through increasingly popular commodity funds
• Addresses, release dates, costs (where applicable), and more for updated and essential reports covering every important commodity

What is a futures contract? What are the major commodity exchanges, and where are they located? What are the differences between hedging and speculating? Commodity Fundamentals answers these questions and dozens more, all in a concise, no-nonsense style that is short on fluff and long on the actionable advice you need to compete and win in the global commodities marketplace.

Do you have what it takes to become a risk-conscious yet aggressive commodity speculator? As equities markets flounder and fixed income markets struggle to outpace inflation, the profit potential available in trading precious metals, energy, grains, and tropical commodities is becoming impossible to ignore. Let Commodity Fundamentals arm you with the up-to-the-minute information you need to trade in the historically profitable commodity marketplace—whether you are a trading veteran, a relative newcomer, or anywhere in between.

Praise for Commodity Fundamentals

"Commodity Fundamentals is THE book for investors looking to enter the commodity markets. This informative guide is a welcome addition on the subject and is a must-read for commodity investors."
—Jim Atkinson, President, Guinness Atkinson Funds

"Ronald Spurga's Commodity Fundamentals is an illuminating and very useful guide for the subject. A welcome addition to any business library."
—Robert F. Himmelberg, PhD, Dean, Fordham's Graduate School of Business Administration

"A straightforward introduction crafted for the individual on the mechanics of commodity trading. The author efficiently negotiates the often confusing yet very topical commodity trading world for the individual."
—Terence A. Mullervy, Finance Director, Glencore UK Ltd.

Commodity Fundamentals provides you with the in-depth insights needed to make commodities trading a profitable, integral component of your overall trading activities. Written by Ronald Spurga, a Vice President of ABN AMRO Bank and longtime veteran of the investment banking wars, this straightforward guide arms you with the information you need to succeed in the highly profitable commodity marketplace—whether you are a trading veteran, a relative newcomer, or anywhere in between.