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published in Blogs
Nov 06, 2023

Commodities Industry Stocks($ADM, $ICE, $CME...) Shine with a Stellar 22.6% Weekly Gain

In a recent turn of events, the commodities sector has demonstrated a robust performance with stocks averaging a gain of 22.6% over the last week. This figure not only represents a significant weekly uptick but also aligns with the positive monthly and quarterly growth trends observed within the industry.

🌐Tickers in Industry  - $ADM, $ICE, $CME, $GPRE, $PATI

Defining the Commodities Theme

Within the stock market, the 'commodities' category encompasses a range of companies that either handle the financial aspects of commodity trading or deal directly with the physical commodities themselves. The theme brings together a diverse group of tickers, each contributing to the fabric of the commodities trading landscape.

Industry Titans and Market Dynamics

In this vibrant sector, two of the most eminent companies include CME Group (NASDAQ:CME), known for its robust trading infrastructure for futures and commodities, and Archer Daniels Midland Company (NYSE:ADM), a key player in the processing and sales of a vast array of agricultural products. The average market capitalization of this theme stands at an impressive $35.5B, highlighting the substantial financial heft that these companies carry within the market.

Highs and Lows in Trading

Despite the general upward trend, the individual stock performances have varied. PATI took the lead with a striking price growth of 103.64%, while CME Group experienced a slight dip of -0.2%. Noteworthy movements also include Green Plains (GPRE), which saw a significant weekly rise, suggesting a potential uptrend in its trajectory.

Volume Growth - A Sign of Market Enthusiasm

Trading volumes provide insight into the market's interest and the liquidity of stocks. For the commodities sector, the average weekly volume growth stood at 14.61%. This uptick in volume is further underscored by the monthly and quarterly volume growth rates, which show even more pronounced increases. A remarkable instance was Archer Daniels Midland's stock volume surge, which shattered records by achieving a 253% growth against the 65-Day Volume Moving Average on a single day.

The Commodities Cohort: A Force in the Market

As the commodities market continues its vibrant course, the range of companies within its purview—from giants like CME Group to other key players—demonstrates the dynamic and vital role commodities play in the financial ecosystem. With substantial market caps and active trading volumes, these stocks are not just surviving but thriving, indicating a keen investor interest in the fundamental aspects of the global economy represented by the commodities market.

ADM : Archer Daniels Midland (ADM) exhibited a potential turnaround signal on November 1, 2023, as its Stochastic Oscillator climbed out of the oversold zone, often interpreted as a bullish indicator for the stock. Historical data from Tickeron's A.I.dvisor, after reviewing 58 similar instances, suggests that ADM's stock has a propensity to escalate post such signals, with a 66% likelihood of an uptick based on 38 precedents where gains followed. This emerging pattern could capture the attention of traders contemplating stock purchases or call option strategies.

ICE : Intercontinental Exchange (ICE) showcases a promising trajectory as it rebounds from breaching its lower Bollinger Band on October 27, 2023. Historical trends indicate a 67% chance of price progression towards the middle Bollinger Band, post such breakouts. This pattern, observed in 30 out of 45 similar occurrences, suggests a bullish signal for ICE. Traders might view this as an opportune moment for stock purchases or call option consideration, anticipating a continued upward price movement in the coming month.

CME : CME Group's stock is showing bullish momentum as its 10-day Moving Average decisively crossed above its 50-day counterpart on October 09, 2023. This technical crossover typically signifies a shift in momentum to the upside, presenting a potential buying opportunity. Historical analysis reveals that in 9 out of 12 instances of such crossovers, CME's stock has seen a continued increase in price over the subsequent month, translating to a robust 75% probability of sustaining the uptrend. This pattern suggests a favorable short-term outlook for traders and investors considering CME's shares.

Related Ticker: ADM, ICE, CME, GPRE, PATI

Momentum Indicator for ADM turns positive, indicating new upward trend

ADM saw its Momentum Indicator move above the 0 level on February 20, 2025. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 89 similar instances where the indicator turned positive. In of the 89 cases, the stock moved higher in the following days. The odds of a move higher are at .

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where ADM's RSI Oscillator exited the oversold zone, of 34 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .

The Moving Average Convergence Divergence (MACD) for ADM just turned positive on February 21, 2025. Looking at past instances where ADM's MACD turned positive, the stock continued to rise in of 45 cases over the following month. The odds of a continued upward trend are .

Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where ADM advanced for three days, in of 348 cases, the price rose further within the following month. The odds of a continued upward trend are .

ADM may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.

Bearish Trend Analysis

The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.

ADM moved below its 50-day moving average on January 31, 2025 date and that indicates a change from an upward trend to a downward trend.

Following a 3-day decline, the stock is projected to fall further. Considering past instances where ADM declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .

The Aroon Indicator for ADM entered a downward trend on February 19, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.

The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. ADM’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. ADM’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 85, placing this stock better than average.

The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.317) is normal, around the industry mean (15.316). P/E Ratio (9.697) is within average values for comparable stocks, (25.824). Projected Growth (PEG Ratio) (14.849) is also within normal values, averaging (18.004). Dividend Yield (0.030) settles around the average of (0.045) among similar stocks. P/S Ratio (0.360) is also within normal values, averaging (7.681).

Notable companies

The most notable companies in this group are Archer Daniels Midland Company (NYSE:ADM), Tyson Foods (NYSE:TSN), Cal-Maine Foods (NASDAQ:CALM).

Industry description

The Agricultural Commodities/Milling industry includes companies that are involved in farming activities, such as crop production, livestock management and animal feed, for commercial purposes. The industry includes a wide range of operations from growing corn, to grain and oilseed processing to the operation of flour mills. Changes in consumer tastes is one of the critical factors influencing what products are grown and raised in this industry. Potential risks to the business include climate change and fluctuations in global prices of agricultural products. Archer-Daniels-Midland Company, Elanco Animal Health, Inc., Bunge Limited and Canopy Growth Corporation are some of the biggest U.S. companies operating in this industry.

Market Cap

The average market capitalization across the Agricultural Commodities/Milling Industry is 2.65B. The market cap for tickers in the group ranges from 459 to 34.75B. HPTYD holds the highest valuation in this group at 34.75B. The lowest valued company is KALRQ at 459.

High and low price notable news

The average weekly price growth across all stocks in the Agricultural Commodities/Milling Industry was -0%. For the same Industry, the average monthly price growth was -2%, and the average quarterly price growth was -8%. SDOT experienced the highest price growth at 17%, while GCEH experienced the biggest fall at -20%.

Volume

The average weekly volume growth across all stocks in the Agricultural Commodities/Milling Industry was -36%. For the same stocks of the Industry, the average monthly volume growth was 38% and the average quarterly volume growth was 133%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 51
P/E Growth Rating: 51
Price Growth Rating: 61
SMR Rating: 74
Profit Risk Rating: 85
Seasonality Score: -22 (-100 ... +100)
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an operator of online global electronic marketplace for trading in futures and over-the-counter commodities

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