{"id":529,"date":"2025-04-25T13:57:58","date_gmt":"2025-04-25T13:57:58","guid":{"rendered":"https:\/\/oneroyal.academy\/?p=529"},"modified":"2025-06-27T12:27:12","modified_gmt":"2025-06-27T12:27:12","slug":"fundamental-analysis-for-commodities","status":"publish","type":"post","link":"https:\/\/www.oneroyal.academy\/en\/learn-the-markets\/fundamental-analysis-for-commodities\/","title":{"rendered":"Fundamental Analysis for Commodities"},"content":{"rendered":"

The Two Most Important Words when it comes to trading commodities are:<\/p>\n

Supply and Demand!<\/strong><\/p>\n

That\u2019s what moves commodity prices plain and simple.<\/p>\n

Let\u2019s dive in…<\/p>\n

Types of Commodities<\/h2>\n

We can group commodities into three main categories:<\/p>\n

    \n
  1. Soft Commodities<\/strong>, are agricultural goods like:
    \nCotton, Coffee, Cocoa, Wheat, Soybeans<\/li>\n
  2. Metals<\/strong>, including:
    \nGold, Silver, Copper, Platinum<\/li>\n
  3. Energies<\/strong>, the big movers:
    \nWTI Oil, Brent Crude, Natural Gas<\/li>\n<\/ol>\n

    Soft Commodities (Agriculture)<\/h3>\n

    These are crops and crops depend on weather<\/strong>.<\/p>\n

      \n
    • Was it a good harvest? Droughts? Floods?
      \nYou can find updates from the U.S. Department of Agriculture (USDA)<\/strong>.<\/li>\n<\/ul>\n

      Also, which countries<\/strong> produce these commodities?
      \nTake coffee beans<\/strong>, major producers include:<\/p>\n

        \n
      • Brazil, Vietnam, Colombia, Indonesia<\/li>\n<\/ul>\n

        Ask yourself:<\/p>\n

          \n
        • Is there civil unrest?<\/li>\n
        • Are there export bans?<\/li>\n
        • What\u2019s the local economy like?<\/li>\n<\/ul>\n

          Example<\/em>: When the conflict in Ukraine<\/strong> (a major wheat producer) started, global wheat supply dropped and prices spiked.<\/p>\n

          Then look at demand<\/strong>:<\/p>\n

            \n
          • Is there rising global consumption?<\/li>\n
          • Any new uses for the commodity?<\/li>\n<\/ul>\n

            Metals<\/h3>\n

            Ask:<\/p>\n

              \n
            • What is this metal used for?<\/strong><\/li>\n
            • Is demand rising or falling?<\/li>\n<\/ul>\n

              There are two main roles metals play:<\/p>\n

              1. Safe-Haven Metals<\/strong><\/p>\n

                \n
              • Gold<\/strong> is the classic safe-haven.<\/li>\n
              • In times of war, recession, or uncertainty, investors flee to safety.<\/li>\n
              • Other safe-haven assets include: USD, JPY, CHF, and of course \u2014 gold.<\/li>\n<\/ul>\n

                \u201cWhen the world looks uncertain, gold tends to shine.\u201d<\/p>\n

                2. Industrial Metals<\/strong><\/p>\n

                  \n
                • Copper<\/strong> is a great example also known as \u201cDr. Copper\u201d because of its close ties to economic growth.<\/li>\n
                • It’s used in construction, electronics, and manufacturing.<\/li>\n<\/ul>\n

                  Check supply too:<\/p>\n

                    \n
                  • Who mines the metal?<\/li>\n
                  • Are there labour strikes, political issues, or regulatory crackdowns affecting supply?<\/li>\n<\/ul>\n

                    Energies (Oil & Gas)<\/h3>\n

                    These commodities drive the world<\/strong>, literally and economically.<\/p>\n

                    Ask:<\/p>\n

                      \n
                    • Who produces oil and gas?<\/li>\n
                    • What’s happening in those regions?<\/li>\n<\/ul>\n

                      Example:<\/p>\n

                        \n
                      • Middle East tensions<\/strong>? Markets react quickly.<\/li>\n
                      • Russia\u2019s gas exports<\/strong> were heavily impacted by sanctions during the Ukraine war.<\/li>\n<\/ul>\n

                        Then there\u2019s OPEC<\/strong>, the Organization of Petroleum Exporting Countries.<\/p>\n

                          \n
                        • They can increase or cut production, which moves oil prices significantly both at the pump and in the market.<\/li>\n<\/ul>\n

                          And finally, demand<\/strong>.<\/p>\n

                            \n
                          • Is the global economy growing?<\/li>\n
                          • Is industry active?<\/li>\n
                          • Are airlines flying more?<\/li>\n
                          • Are factories ramping up?<\/li>\n<\/ul>\n

                            In boom times, demand rises.
                            \nIn slowdowns, demand and prices drop.<\/p>\n

                            Final Thought:<\/h3>\n

                            When it comes to commodities, always come back to:<\/p>\n

                            Supply and Demand.<\/strong>
                            \nThat\u2019s what drives the price.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

                            The Two Most Important Words when it comes to trading commodities are: Supply and Demand! That\u2019s what moves commodity prices plain and simple. Let\u2019s dive in… Types of Commodities We can group commodities into three main categories: Soft Commodities, are agricultural goods like: Cotton, Coffee, Cocoa, Wheat, Soybeans Metals, including: Gold, Silver, Copper, Platinum Energies, […]<\/p>\n","protected":false},"author":5,"featured_media":1557,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[22],"tags":[],"class_list":["post-529","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-learn-the-markets"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.oneroyal.academy\/en\/wp-json\/wp\/v2\/posts\/529","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.oneroyal.academy\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.oneroyal.academy\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.oneroyal.academy\/en\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.oneroyal.academy\/en\/wp-json\/wp\/v2\/comments?post=529"}],"version-history":[{"count":1,"href":"https:\/\/www.oneroyal.academy\/en\/wp-json\/wp\/v2\/posts\/529\/revisions"}],"predecessor-version":[{"id":530,"href":"https:\/\/www.oneroyal.academy\/en\/wp-json\/wp\/v2\/posts\/529\/revisions\/530"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.oneroyal.academy\/en\/wp-json\/wp\/v2\/media\/1557"}],"wp:attachment":[{"href":"https:\/\/www.oneroyal.academy\/en\/wp-json\/wp\/v2\/media?parent=529"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.oneroyal.academy\/en\/wp-json\/wp\/v2\/categories?post=529"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.oneroyal.academy\/en\/wp-json\/wp\/v2\/tags?post=529"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}