Spectacular Commodity Gains In February!

March 5, 2014 | By More

February has come to a close.  And that means it’s the perfect time to recap the biggest commodity gainers and decliners over the past month.

First, let’s start with some of the biggest gainers…

Coffee

As loyal readers know, I’ve talked a lot about this commodity lately.  Brazilian drought fears have investors pushing coffee into the stratosphere.  In fact, the delectable bean is trading near $1.90 a pound- the highest price since mid-2012. 

Coffee shot to an eye popping 57.5% gain for the month of February.

Sugar

Since Brazil is also the world’s largest sugar producer, investors are pushing this commodity higher on the same drought fears.   Over the past few weeks, sugar has jumped from $0.15 a pound up to $0.18. 

The recent rally put this commodity in second place for February with a gain of 22.2%.

Lean Hogs

Gains in the lean hog market are a result of higher prices in the beef market.  With beef prices soaring to all-time record highs in recent months, consumers are trading down to the next best thing… pork.  With demand for pork soaring, it should come as no surprise that prices are following. 

Lean hogs gained a solid 21% in February.

Oats

This normally quiet grain market has been hot since the start of the year.   Canadian oat farmers are contending with a two-month long shipping backlog, which is drastically slowing oat transports into the US.  As a result, a short-term supply shortage is developing in the US.

Railroad companies blame the slowdown on the bitter cold enveloping the Northern US and Canada.  However, oat producers are blaming railroad companies for their woes, saying they’d rather transport more lucrative crude oil out of the Bakken shale. 

Oats jumped 15.8% in February.

Soybeans

Strong Chinese export demand has soybeans on the run.  Ever since the commodity dropped below $13.00 a bushel in January, China has made massive buys.  Beans are currently trading at $14.17 a bushel, and up a solid 8% in February.

Silver

After spending January in a boring slumber, silver shot to a 7.5% gain in February.  In fact, the commodity had only two negative trading days last month.  Much of the recent increase points to rising inflation expectations in the US economy.  

And now for the losers…

Believe it or not, only two commodities lost ground in February- copper and natural gas.  Newfound worries over the strength of the Chinese economy sent copper to a 0.6% loss.

As far as natural gas goes…

The commodity spent the first part of the month surging to multi-year highs at $6.40 mmBtu.  But as I mentioned here, natural gas was set for a dramatic decline.  Jittery investors had pushed the commodity too high, too fast.  After rising 28% in the first half of the month, natural gas is ending February with a loss of 9%.

As you can see, it was a wild month of trading in the hard asset markets.  Stay tuned to Commodity Trading Research for continued insight and profit opportunities in commodity- based ETFs.

Until Next Time,

Justin Bennett

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Category: Commodities

About the Author ()

Justin Bennett is the editor of Commodity ETF Alert, an investment advisory focused on profiting from the ebb and flow of important commodities via ETFs. The commodity veteran and options specialist is also a regular contributor to the Dynamic Wealth Report. Every week, Justin shares his thoughts with our readers on a variety of commodity-related topics. Justin is also a frequent contributor to Commodity Trading Research’s free daily e-letter. And he’s the editor of another highly successful and popular investment advisory, the Options Profit Pipeline.

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