Obtaining high quality data on the seasonality of commodity futures is difficult. This service makes it easy. Oats, cocoa, and sugar have been the worst. Oats, cotton, and FCOJ currently exhibit the highest degree of backwardation. Corn, natural gas, and wheat are in steep contango, making it expensive to hold long exposure.

I am happy to present to the Seeking Alpha community my third new and completely free service: I started this project because it's tough for traders without access to a Bloomberg terminal to get info on the historical seasonality of commodity futures.

My service uses clean back-adjusted data to display the 5-year, year, and year seasonal averages.

FXStreet - The Foreign Exchange Market

In addition, I also produce graphs that show the amount of contango or backwardation and month price momentum for each contract. Like with my other services, Seeking Alpha will be the sole location of my weekly recap articles.

All of the below data and graphs come from the Commodity Seasonality web site. The easiest way to understand all of this is to dive into some data. So let's get started! We're right in the middle of a historically strong period for WTI crude oil NYSEARCA: The commodity typically bottoms in January and peaks in early July. The below chart is one of my three different chart types.

Here's another type of chart. It's a quick way to look at the average monthly performance over the past twenty years.

For WTI, in the past April has been the best performing month and November has been the worst. Here's the final chart type. It shows the historical price, term structure, and momentum over the past ten years.

Commodity Seasonality: A Brand New Service | Seeking Alpha

As you can see, contango in WTI has sharply decreased from last year. Here's a view of seasonality in natural gas NYSEARCA: Natural gas has had a horrible start to the year.

In the past, the commodity has typically been strong in the March to June period. Average year monthly seasonality in heating oil NYSEARCA: UHN futures is very similar to WTI.

SPY has typically had a strong spring and lackluster summer period. Agricultural commodities have been some of the best performing commodities in In the past, forex seasonality charts NYSEARCA: WEAT hasn't exhibited that much seasonality. The steady downward slope in the below seasonal averages is mainly a function of wheat being in a persistent state of contango. Extreme contango makes long exposure to commodities very expensive in the long run.

The graph below shows the historical degree of contango or backwardation in wheat futures. 100 pips forex system in the wheat market has steadily increased over the past few months.

If you're long gold NYSEARCA: GLDbe mindful of the below chart. The precious metal has typically underperformed in the March to July period. Seasonality in silver NYSEARCA: SLV futures is quite similar to gold. The February to March period has historically been very strong for copper NYSEARCA: NIB is the worst performing commodity over the past twelve months. Here's a look at its term pharmaceutical companies wanting to make more money despite unsafe products and deeply negative momentum.

Be aware of the typically weak April to September period. Over the past twenty years, March has been the worst performing woolworths trading hours australia day brisbane for sugar NYSEARCA: That wraps up the coverage of individual contracts.

I'll close with two of my most important charts: First, here are the average year monthly performance numbers for March. The best performing contracts have been RBOB gasoline NYSEARCA: The worst performers have historically been oats, cocoaand sugar.

BALand orange juice exhibit the most backwardation while wheatnatural gasand corn NYSEARCA: CORN are in steep contango. A high degree of contango makes it expensive to be long, as traders constantly have to roll to higher priced contracts. I hope you like this new service. It's meant to cut down on your research time and save you some money. I plan on posting weekly recap articles to Seeking Alpha, so be sure to follow me so you're always updated with the latest seasonality info.

Seasonal Trends In The Forex Market

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it other than from Seeking Alpha. I have no business relationship with any company whose stock is mentioned in this article.

Commodity Seasonality should not be construed by any consumer as personalized investment advice over the internet. Commodity Seasonality does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked in this article or incorporated herein.

This article and information are provided for guidance and information purposes only. Investments involve risk are not guaranteed.

All information provided in this article should not be reproduced, copied, redistributed, transferred, or sold without the prior written consent of the site owner.

A Brand New Service Mar. Summary Obtaining high quality data on the seasonality of commodity futures is difficult. Energies We're right in the middle of a historically strong period for WTI crude oil NYSEARCA: Macro ViewCommodities. Want to share your opinion on this article?

Disagree with this article? To report a factual error in this article, click here. Follow Movement Capital and get email alerts.