CID’s Post

My colleagues have recently written an article on the role of trading in commodity markets, and how current uncertainty is creating opportunities. The recent article, "The critical role of commodity trading in times of uncertainty," explores industry trends, and success factors including the need to invest in new capabilities

THE IMPACT OF FINANCIALIZATION ON THE EFFICIENCY OF COMMODITY FUTURES MARKETS We are happy to pre-release an article on "The Impact of Financialization on the Efficiency of Commodity Futures Markets" in the Commodity Insights Digest (CID, ISSN 2996-654X). This digest article is by CID Editorial Board Member, Dr. Yannick Le Pen, and the article summarizes the comprehensive (and innovative) paper of the same name by Martin Bohl, Scott H. Irwin, Alexander Pütz, and Christoph Sulewski. The digest article is available below. The comprehensive paper analyzes the impact of the financialization of commodity futures markets on informational efficiency.  Although the theoretical insights give no clear message about the impact of commodity index trading on informational efficiency, empirical evidence shows that it improved it.  These results are robust to the different measures of informational efficiency.  It appears also that even non-index commodities have benefited from this improvement. The authors explain this effect through the enhanced liquidity provided by commodity index traders and to the specific information they bring to the market. The Commodity Insights Digest is an academic publication, which is sponsored by Bayes Business School, City St. George's, University of London (U.K.), and which is published in association with Chicago-based Premia Research LLC. The CID’s co-editors are Professor Ana-Maria Fuertes (https://lnkd.in/dpSH_DBs) and Honorary Senior Visiting Fellow Hilary Till (https://lnkd.in/gc7ckwtP). Complimentary subscriptions for the CID are currently available at the following link: https://lnkd.in/gFdbk9Ze. #commodityfutures #financialization #informationefficiency #indexinvesting

This is a very nice summary of a recent article I wrote with three German economists on market efficiency and financialization in commodity futures markets. Thanks, CID and Editor Hilary Till!

As new trade policies under the #Trump Administration take shape, rising #tariffs and shifts in domestic production create challenges for global commodities. China’s muted fiscal measures have disappointed markets, but potential counter-stimulus might open attractive opportunities in industrial metals, cocoa, and tin. Despite weak oil demand growth, strategic exposures in the WisdomTree Enhanced Commodity Strategy Fund (GCC) could help investors navigate these uncertain times. Read the full article to learn more: 🔗https://lnkd.in/ejF-YKkd

A well written, high level, overview of what I do for investors and hedgers in the #corn market and are the returns I post to my page each month.

Discover 8 Reasons to Trade in Commodities: From diversification and protection against inflation to high potential returns and ease of trading, find out why commodity trading can be a smart move for investors aiming for long-term financial goals. https://lnkd.in/gyDdS65G #commodities #asiacommoditymarketplace

Precious Metals as a Safe Haven: Experts Forecast Surging Gold and Silver Prices Amidst Economic Turbulence As global economic volatility persists, savvy investors are increasingly turning to precious metals as a reliable means of safeguarding their wealth. The article of Hong Kong Economic Journal highlights the growing popularity of the Hong Kong Gold and Silver Exchange Center, where investors can diversify their portfolios with gold, silver, and other precious commodities. It emphasizes how these tangible assets have historically served as a hedge against inflation and market instability, providing a steady foundation for long-term financial security. It also emphasizes the importance of choosing the trusted precious metals experts, like the team at J. Rotbart & Co., to develop a tailored investment strategy aligned with one's unique goals and risk tolerance. Joshua Rotbart, the Managing Partner of J. Rotbart & Co., forecast a remarkable surge in gold and silver prices, with gold reaching $3,000 per ounce and silver hitting $40 by 2025. Rotbart's bullish forecast underscores the enduring value of tangible assets like gold and silver, which have historically served as reliable hedges against inflation and market volatility, regardless of the outcome of the next U.S. presidential election. In these uncertain times, diversifying into precious metals can be a prudent move to fortify your wealth and protect your financial future. Interested in finding out more? Read here: https://shorturl.at/MInWo +852 2104 9233    (Hong Kong) +65 6980 2968      (Singapore) +63 966 957 5118 (Philippines) #PreciousMetals #SilverInvesting #MarketAnalysis #InvestingNews #Gold #GoldPrice #GlobalMarkets #Silver #WealthManagement #JRotbartCo #HongKongGovernment

The critical role of commodity trading in times of uncertainty: As increased commodity trading value pools attract new competition, successful players will differentiate by managing illiquid risks and embracing data-driven trading models. https://lnkd.in/dtbrNbvJ

Our new publication: Commodity Market Downturn: Systemic Risk and Spillovers during Left Tail Events Journal of Commodity Markets, SSCI Q1, IF: 3.7 https://lnkd.in/dj27qsG3 Milson Veloso Corvinus - Institute of Finance

How do commodity markets respond to global market crashes within the framework of systemic risk? This question is explored in a newly published paper by Dr. Samet Gunay, Ph.D., Associate Professor at the Institute of Finance, in the Journal of Commodity Markets. Through Component Exponent Shortfall, Quantile-Vector Autoregression, Causality-in-Risk methods, Dr. Gunay and his co-authors, Dr. Dr. Destan Kirimhan (American University of Sharjah, United Arab Emirates) and Dr. Emrah İsmail Çevik (Tekirdag Namık Kemal University, Economics Department, Turkey), examine the effects of global events such as COVID-19, the Russia-Ukraine war, and the Israeli–Palestinian conflict on the interactions between key commodity groups, including energy, base metals, and precious metals. Their research highlights that energy commodities and precious metals are the most systemically risky groups in the commodity market. It emphasizes the need for portfolios including these commodities to prioritize diversification strategies to mitigate risks, particularly given the increasing significance of green energy alternatives. #Research #Finance #Commodity #Markets #Corvinus