Seasonality in Commodities

Demand for, or the supply of some commodities follow seasonal patterns. Grains, cotton, and sugar form seasonal price lows during harvest, which is in summer. Wheat and Sugar in early summer, Cotton and Soybeans in late summer. Demand for Natural Gas picks up at the end of summer. Demand for copper and lumber picks up before construction season. Instead of worrying about sharp price declines during these periods, you can look for buying opportunities and hold on for about three to six months and get out. Below is a  seasonal chart of Natural Gas ( courtesy of David Stendahl) where average seasonal price patterns of the last 5, 10 and 15 years showed a tendency for prices to make a low point for the year in early September. Contact me to discuss ways of capturing these opportunities.

 NG_SeasonalityStudy