Giancarlo Dall’Aglio, is a commodities trader and an Italian commodities trade Guru at www.commoditiestrading.it, Giancarlo is based in Naples, Italy.
How have agricultural commodities reacted to the recent events of oil prices drop, Russian ruble destabilization and Swiss franc jump?
What has influenced agricultural commodities prices more in my opinion was the strengthening of the dollar and that caused weakness in agricultural commodities. Tensions with Russia caused a temporary strengthening of Wheat, as Russia is one of the world’s largest producers, for a fear of possible failure in exports, then averted. Corn instead, from which we get the alternative fuel ethanol, followed only in a few moments the decline because of oil.
Which of the commodities have been affected the most?
There are many agricultural commodities that are going through a time of great weakness, but as I said before, in my opinion the main reason is to be found in the strength of the dollar and weak data from China. I expect a reaction for prices of cotton and sugar in the coming months.
What are the prices trends now?
For Soybeans, Wheat and Corn is the moment of the “war of prices”, expecting the most important USDA report of the year, the planting intentions report by the end of March. In my opinion we could see prices recovering in Wheat, Sugar, Cotton and perhaps Coffee during 2015.
Could you please tell us about yourself: how long have you been trading commodities and what commodities do you trade? What are your methods and trading techniques? What do you teach?
I’m a commodity trader from 2004 and I trade all major commodity sectors. I think that diversification is a good key for good balancing portfolios. I’m an option trader and spread trader based on fundamental, the point is that the fundamentals in the medium term are almost always gain in trading commodities.
In my trading courses I teach to many new traders option trading, spread trading and scale trading on commodities.
Do you trade on the openings hours, if not what are you preferred hours?
I live in Naples, in the morning I prefer the fundamental research and I start to play orders when USA desks are open and work.