Futures For You by Carley Garner
LOOKING FOR SUMMER PATTERNS
What are some seasonal patterns we should be looking at for summer commodity trading?
Seasonal patterns are evident in commodity markets throughout the entire year, but some of the best opportunities occur in summer. That said, the seasonal tendency of a market is just that — an inclination to behave in a certain way, but it is not a guarantee. For seasonal traders, it is important not to become complacent in a speculation simply because it happens most years. Counterseasonal moves can be fierce and have been known to cause severe monetary damage to those caught unawares.
The grain markets often see a significant amount of spring and summer volatility as the markets contemplate planted acreage, growing conditions, and other factors. Prices are susceptible to bouts of weather spikes as traders react to news of conditions that are inevitably “too wet” or “too dry.” However, even during the most trying of growing conditions, early summer rallies have failed to maintain themselves in the long run.