Commodities & Energy

A comprehensive guide to agricultural commodity markets covering grains (corn, wheat, soybeans), soft commodities (coffee, sugar, cocoa, cotton), and livestock (cattle, hogs). Learn about seasonality, USDA crop reports, weather risk, and the soybean crush spread.

How industrial metals trade on the LME, warehouse dynamics, contango/backwardation, and portfolio applications.

Comprehensive guide to carbon emissions trading covering cap-and-trade mechanics, the EU ETS, US carbon markets (RGGI and California), allowance allocation, carbon price dynamics, offsets, and the link between carbon and energy prices.

Learn how weather derivatives use heating and cooling degree days to hedge energy demand risk from temperature variability.

Learn how to invest in precious metals including gold, silver, platinum, and palladium. Compare physical gold vs ETFs vs futures and understand the portfolio role of precious metals.

Swing contracts embed volume flexibility in energy markets. Learn about take-or-pay provisions, gas storage optionality, and valuation methods.

Complete guide to crude oil markets: WTI, Brent, and Dubai benchmarks, physical vs paper trading, OPEC dynamics, and price determinants.

Learn how peak vs off-peak power pricing works in wholesale electricity markets. Covers 5×16 and 7×24 contracts, locational marginal pricing (LMP), congestion charges, FTRs, and trading strategies.

Understand how natural gas markets work, from the Henry Hub benchmark to global LNG trade, storage dynamics, and the shale revolution that transformed US supply.

Crack spreads measure the difference between crude oil prices and refined product prices, serving as a proxy for refinery gross margins. Learn the 3-2-1, 5-3-2, and 2-1-1 formulas.

Electricity is the only non-storable commodity, creating unique market dynamics including real-time balancing, locational marginal pricing (LMP), and dramatic price spikes. Learn how wholesale power markets work across PJM, ERCOT, and CAISO.

The spark spread measures the gross margin for gas-fired power generation — the difference between electricity revenue and natural gas fuel cost. Learn the formula, see real examples, and understand how spark spreads drive dispatch decisions.