How Relevant Is Daily Commodity News?

Many investors in the commodities market keep up with the commodity news regularly. Many new investors may wonder whether doing so is important. Here are the basics of daily commodity news and whether you should pay attention to it. 

Weather Reports

When dealing with commodities such as wheat or corn, weather reports can have an impact on commodity pricing. For example, if a devastating storm is on the way, the value of these commodities might go down substantially because the crops could be destroyed.

Petroleum and Natural Gas Reports

Petroleum and natural gas reports will frequently be released in order to convey the market sentiment of these commodities. When this happens, the price of oil and natural gas can fluctuate greatly. Therefore, if you plan on buying or selling oil, be sure to avoid trading when these reports are released.

Periodic Reports

Virtually every commodity is subject to weekly and monthly news reports about its status. When these periodic reports are released, they can cause massive price swings in these commodities. Some traders base their trading strategies around these news reports, as doing so can provide them with substantial returns. However, when trying to benefit from news releases, you need to be aware that there is a substantial risk of loss as well.

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