Every day, traders exchange currencies worth more than $5.3 trillion. This makes the currencies market the largest in the world. Another important market is the commodities market. For example, every day, more than 92 million barrels of crude oil are sold. At the current Brent price, this crude is worth almost $7 billion. This makes the commodities market a very important one to traders. In this article, I will highlight some of the best resources you can use to be a better natural resources trader.
Energy Information Administration (EIA)
The EIA is the main energy statistics office in the Department of Energy. The agency conducts research and disseminates information to the market. For example, every Wednesday, it releases the inventory numbers for crude stocks. It also releases the stocks for gasoline, natural gas, and heating oil among others. This data is usually market-moving, which means that it tends to affect the price of crude oil. Therefore, you may follow this data, and other reports published by the EIA.
America Petroleum Institute (API)
The API is the biggest trade union for the oil and gas sector with more than 10 million members. The organization advocates for the sector in government. It also publishes reports on inventory. The data is released every Tuesday and is very important for traders. Higher inventories may mean lower prices while fewer inventories may mean higher prices.
Organization of the Petroleum Exporting Countries (OPEC)
OPEC is the biggest oil association in the world. Its members produce the most crude oil. The organization also publishes important statistics that move the markets. For example, every month, it publishes the Monthly Oil Market Report, which highlights all the major issues in the sector. This data is very important because it gives traders information on the supply and demand for oil.
For agricultural traders, the World Agricultural Supply and Demand Estimates (WASDE) is very important. This is a monthly report published by the Department of Agriculture. The report highlights the demand and supply of the major crops such as corn, soybeans, cotton and wheat. It also features animal commodities like live cattle.
International Cocoa Organization
If you are interested in the cocoa markets, the international cocoa organization is ideal for you. The organization represents all the major cocoa growing companies. Every month, the organization provides data on demand and supply that is very important for traders.
International Cotton Association
The International Cotton Association is the biggest organization for the cotton market. It has more insights on the cotton industry than any other organization in the world. Every month and quarter, the organization publishes reports that can give you insights into the cotton industry.
Commodities Futures Trading Commission (CFTC)
The CFTC is a regulatory organization in the United States. As a commodities trader, the CFTC is important because every week, it publishes the Commitment of Traders (COT) report. This report shows the dynamics of the market, which are based on the data from reporting firms. Reporting firms include brokers and clearing houses. It usually shows the way large traders have positioned their trades on various commodities. This data can help you understand how the market thinks about commodities.
There are other organizations that you should follow. They include the World Gold Council and the International Sugar Association.