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VRS - who has written 45711 posts on Opalesque Commodities Briefing.


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Junk investors scramble after commodities rally

Posted on 06 May 2016

The commodities rally has flummoxed junk-bond investors who bet on the sector staying soft this year, hurting returns at dozens of funds that did not foresee the rebound in energy and metals.

China’s commodities lose more froth as economic worries underpin curbs

Posted on 06 May 2016

Chinese steel and iron ore futures fell sharply for a third straight day and other commodities also slid on Thursday, giving up more froth after Chinese exchanges slapped curbs to quell speculation that spurred a buying frenzy last month.

Is China fueling a new commodities bubble?

Posted on 06 May 2016

Remember the massive plunge in commodity prices last year? For some investors in China, it already appears to be a distant memory. Steel and iron ore prices have buoyed in recent weeks. Other commodities — including cotton and even eggs — are also reported to have seen startling surges on Chinese futures exchanges. The moves have prompted some experts to worry that a new bubble is forming.

China’s commodities trading frenzy fades

Posted on 06 May 2016

The fever that’s gripped Chinese commodity markets is easing. Speculators who traded 1.7 trillion yuan ($336-billion) futures in a single day last month have retreated as fast as they advanced. Trading volumes across the country’s three biggest exchanges are more than half of what they were at their peak on April 22 and back to levels similar to a year ago, according to data compiled by Bloomberg.

Rio Tinto CEO a non-believer in commodities rebound

Posted on 06 May 2016

Mining giant Rio Tinto is not counting on an upturn in commodities markets anytime soon despite recent gains in prices of iron ore, its main source of revenue, as much of the world’s economies continue to underperform.

Don’t Underestimate the Power of an Oil Market Rally

Posted on 06 May 2016

A big move in oil prices still goes a long way in the markets these days. Crude is up more than 3% Thursday, pushing prices back over $45 a barrel. That’s setting up a risk-on day, with the S&P 500 index climbing 0.3%. It’s overshadowing recent mixed U.S. economic readings and weaker China services data.

Oil Market at Crossroads as Big Rally Masks Risks Lurking Ahead

Posted on 06 May 2016

If the oil market needed a theme song for now, it might turn to the one where Taylor Swift nervously sings: “Are we out of the woods yet?” A slump in U.S. production, unexpected cuts in output from Nigeria to Colombia and rising gasoline demand have helped drive a major rally since mid-February. As investors boost their bullish bets, analysts from UBS Group AG to Morgan Stanley and Goldman Sachs Group Inc. see pitfalls ahead.

Oil Pulls Back After Approaching 2016 Highs

Posted on 06 May 2016

U.S. oil briefly reached some of its highest prices of the year Thursday as Canadian wildfires threatened a major oil producer, but the rally faded throughout the day with traders still confident of heavy stockpiles.

Oil And Gas: Change And Prosper? A New Growth Scenario In A 2-Degree World

Posted on 06 May 2016

In a global business world facing unprecedented challenges, leadership often seems to come from unexpected quarters. Institutional investors have increasingly been making their views known, and their power felt at the AGM’s of publicly listed businesses. As environmental, social and governance (ESG) issues become mainstream, it becomes harder and harder for businesses to suffer from “willful blindness.”

Shift in Saudi oil thinking deepens OPEC split

Posted on 06 May 2016

As OPEC officials gathered this week to formulate a long-term strategy, few in the room expected the discussions would end without a clash. But even the most jaded delegates got more than they had bargained with.

Iran May Be Ready for Joint Action With Opec Within Months

Posted on 06 May 2016

Iran said it may be ready for joint action with members of the Organization of Petroleum Exporting Countries in as little as one or two months, once it regains the market share it had before sanctions were imposed.

China Is Laying The Foundation For The Next World Gold Standard System

Posted on 06 May 2016

On April 19, the Shanghai Gold Fix officially began. The pricing mechanism is intended to be a replacement for the London Gold Fix, the primary price-discovery mechanism for gold bullion today. The London “bullion” market is not a market in bullion.

Investors – and Donald Trump – are loving gold. How long will the rush last?

Posted on 06 May 2016

The gold price has soared alongside the fortunes of Donald Trump, a big fan of the precious metal. How long can the new gold rush last? Two phenomena that pundits said would almost certainly never happen have taken place this week: Donald Trump clinched the Republican presidential nomination, and the price of gold capped a 15-month rally by soaring above $1,300 an ounce.

Can gold’s spectacular 2016 run continue?

Posted on 06 May 2016

After a pretty miserable few years, it seems that gold’s long bear market is finally over. Gold enjoyed its best start to a year in more than three decades. In the first quarter of 2016, it gained just over 16%. So can it continue? And what’s the best way to profit from it if it does?

Shariah Gold Standard – $2 Trillion In Assets “Could Send Price Soaring”

Posted on 06 May 2016

The coming ‘shariah gold standard’ or shariah compliant gold could lead to a very significant source of new demand for physical gold coins and bars in the Islamic world. It is believed that this will contribute to much higher prices and gold “soaring” as some of the $2 trillion of assets held in Islamic financial institutions are allocated to the very small physical global gold market.

Doctor Copper Still Holds Sway as Fed Barometer

Posted on 06 May 2016

As copper goes, so goes the Federal Reserve. At least, that’s what the market thinks. Copper’s ebb and flow are thought to lend insight into global momentum (or a lack thereof) because it’s used in everything from household appliances to the wiring that powers them.

Iron ore sinks below $60 as Chinese frenzy cools

Posted on 06 May 2016

Iron ore suffered another day of losses with the steelmaking commodity sinking below $60 a tonne as a speculative frenzy in China cooled following pressure from local exchanges and regulators.

Investing in Gold Through ETFs (Video)

Posted on 06 May 2016

Greg King, chief executive officer at Rex Shares, discusses the price of gold, investing through ETFs and the outlook for the commodity. Last month REX launched the REX Gold Hedged S&P 500 ETF and the REX Gold Hedged FTSE Emerging Markets ETF . Both exchange-traded funds enable investors to diversify their portfolios by accessing exposure to the precious metal without reducing equity allocations.

Global Growth Worries Loom: ETFs to Play

Posted on 06 May 2016

It seems that the comfort level in the broader market has started to fade again in May and the woes of Q1 are back. Global growth worries once again flared up with the latest U.S. and China manufacturing data failing to pick up momentum (the numbers just expanded not accelerated) and a slew of downbeat releases from the U.S.

Commodity rebound pits Citigroup v Goldman

Posted on 06 May 2016

Commodity bulls, it might finally be time to exhale. There’s a growing chorus of voices and a surge of investor money signalling the worst of the commodity slump is over. Leading the pack is Citigroup, the bank that was ahead of the game back in 2012 when analysts declared the end of the super cycle of rising demand and prices.

New U.S. Currency Oversight May Still Leave Manipulators At Large

Posted on 06 May 2016

The U.S. Treasury Department’s latest currency report is supposed to ratchet up pressure on trade partners whose exchange-rate policies are giving exporters a leg up on American firms.

Yuan eases further after China devalues its currency to weakest in a month

Posted on 06 May 2016

The yuan eased for a third session against the US dollar in Shanghai on Thursday morning, after the People’s Bank of China (PBOC) set the currency’s guidance rate at its weakest level since late March.

Chinese banks face $1.26 trillion carbon risk

Posted on 06 May 2016

The natural capital cost of carbon emissions associated with Chinese commercial banks’ outstanding credit to 35 sectors of the economy in 2014 totalled $1.26 trillion, according to a report by environmental consultancy Trucost.

Exxon and FuelCell to study capturing carbon emissions

Posted on 06 May 2016

Exxon Mobil and FuelCell Energy say that they will jointly work on technology to reduce the cost of capturing carbon emissions from power plants. The companies will try to develop technology that uses carbonate fuel cells to generate power while capturing carbon dioxide, which scientists say is the most prevalent greenhouse gas responsible for climate change.

On Bull-Market Brink, Citi Sees Commodity Gains as Goldman Jeers

Posted on 05 May 2016

Commodity bulls, it might finally be time to exhale. There’s a growing chorus of voices and a surge of investor money signaling the worst of the commodity slump is over. Leading the pack is Citigroup Inc., the bank that was ahead of the game back in 2012 when analysts declared the end of the super cycle of rising demand and prices.

How to Invest in Bottoming Commodities

Posted on 05 May 2016

After falling to multi-year and in some cases, multi-decade lows, it appears that commodity markets might be bottoming. Barclays says the low the Bloomberg Commodity index put in during January’s selloff matched the all-time lows last hit in 1999, and since then the index has risen.

Investing after commodities super-cycle

Posted on 05 May 2016

According to conventional wisdom, the challenges of global commodities can be attributed to China’s slowdown. Advanced economies are not immune. In the US, just two commodity-related sectors — oil and gas, as well as metals and steel — accounted for more than half of the defaults in 2015.

Commodities boom “damaged” Australia

Posted on 05 May 2016

Australia’s unprecedented commodities boom caused “considerable damage” to its economic relationship with East Asia, according to a senior economist.

Is the bloom off the commodity rose already?

Posted on 05 May 2016

With both the S&P/TSX Composite index and the S&P/TSX Venture composite index both down over one per cent in the last two sessions, investors are wondering if the bloom has somehow come off the commodity rose already. The corrective forces are the outcome of negative economic data triggering profit-taking in a market that has soared by nearly 30 per cent since the beginning of 2016, and is no cause for alarm.

Commodities - Will The Rally Continue?

Posted on 05 May 2016

The recent rally in commodity prices has surprised many market participants and has greatly supported the stock market’s rebound. It has also made bulls out of a number of former stock market bears, as one of its side effects was to cause an improvement in market internals. But does the rally actually make sense?

World Bank Raises 2016 Oil Price Forecast

Posted on 05 May 2016

Oil prices seen rising as oversupply diminishes, Amid improving market sentiment and a weakening dollar, the World Bank is raising its 2016 forecast for crude oil prices to $41 per barrel from $37 per barrel in its latest Commodity Markets Outlook, as an oversupply in markets is expected to recede.

Why oil prices have nowhere left to go but down

Posted on 05 May 2016

Looking for a letup in the selling that has walloped markets over the past 24 hours? This morning at least, you’re about to be as disappointed as Ted Cruz. Economic worries drove investors into the dollar and out of commodities, with oil taking an additional hit on fresh fears of a supply glut. It stands to reason that investors are probably wondering if this is the start of a stock-market selloff — it’s May, GET OUT.

OPEC’s Iran Eyes Crude Oil Production at 3.8 Mil Bpd and No Signs of Slowing Down

Posted on 05 May 2016

It’s been less than half a year after the sanctions were lifted and Iran has already recovered its pre-sanction output volume of 3.8 million barrels per day. According to data out of the International Energy Agency (IEA), Iran produced 3.5-3.7 million bpd in 2011 and was the second largest producer within OPEC. Daily oil exports equaled 2.5 million barrels.

Iran’s return to the oil market turned out to be quicker than anticipated

Posted on 05 May 2016

Iran’s return to the global oil market turned out to be quicker than anticipated but it will not affect the market in 2017, Neil Atkinson, who is head of the International Energy Agency’s (IEA) Oil Industry & Markets Division, said Wednesday.

Record oil and gas companies in US file for bankruptcy

Posted on 05 May 2016

The rout in crude prices is snowballing into one of the biggest avalanches in the history of corporate America, with 59 oil and gas companies now bankrupt after this week’s filings for creditor protection by Midstates Petroleum and Ultra Petroleum.

OPEC to Head for June Talks Without Plan for Supply Limits

Posted on 05 May 2016

There are currently no proposals on the table for OPEC to revive limits on crude output at its June meeting after the failure of talks to freeze production last month, according to six delegates from the group.

Gold price to rise further, charts show, with a $1,340 upside target

Posted on 05 May 2016

There are three key features to look out for in this breakout in the gold price, which also happens to confirm our analysis back in February. The first and most important feature on this chart is the breakout from the fan trend line pattern.

Gold price at two-year high, demand to see new lows

Posted on 05 May 2016

Gold demand in India, the world’s second-biggest user, will probably shrink in the second quarter as a surge in local prices to the highest in two years deters buying for a festival next week and weddings this month.

Beware Of The Fake Rally In Gold

Posted on 05 May 2016

Everyone wants to see my head on a silver platter. Or make it a gold platter. Why? Because they think I’ve completely missed the gold rally and if I don’t tell them to get on board now, they will forever have lost their chance to get in as gold ultimately works its way to over $5,000 an ounce.

Gold Has Similar Pattern To 1999; Short-term Pressure Ahead Says Technician

Posted on 05 May 2016

In 1999, the gold market rallied at the start of the year before settling into a range, so is history repeating itself for the metal? According to Ari Wald, head of technical analysis for Oppenheimer & Co., it just might be. ‘For the longer term trend, it is indeed reversing higher here, but the message is, tactically, now is not the time to be playing for that,’ said Wald in an interview with Kitco News.

3 Factors That Could Propel Silver Prices 270%

Posted on 05 May 2016

Silver prices have soared roughly 27% since the start of 2016 on fears of a U.S. recession and weak global economic indicators. While most on Wall Street say fears of a recession are wildly overblown, the current price appreciation says investors are not so sure. And they are for good reason.

China statistics probe shrouds base-metal markets in darkness

Posted on 05 May 2016

In November, 2013, bosses from nine of China’s largest copper smelters sat down over a weekend to discuss the state of the local market. They did so because they had lost faith in the official copper production figures released by the National Bureau of Statistics (NBS). The NBS had just reported record output in the month of October, equivalent to an annualized run rate of 6.8 million tonnes.

Myths about investing in ETFs

Posted on 05 May 2016

Exchange Traded Funds (ETFs) are one of the top investment trends of the last few years. We are seeing a growing number of investors buying ETFs and incorporating them into their strategies. But as the popularity of these investments has grown, so have the misconceptions. Below are five of the most common ETF myths.

Slow-and-Steady ETFs for a Volatile Market

Posted on 05 May 2016

After enjoying a multi-year bull run, equities may be in for greater volatility ahead. Nevertheless, exchange traded fund (ETF) investors can still keep their toe in stock market but hedge against large drawdowns through a low-volatility strategy as a way to potentially generate steadier returns over the long run.

Dollar Declines Mean Go-Go Days for Commodities ETFs

Posted on 05 May 2016

The inverse relationship between the U.S. dollar and commodities is on full display this year for exchange traded fund (ETF) investors. For example, the PowerShares DB U.S. Dollar Index Bullish Fund, which tracks the price movement of the U.S. dollar against a basket of currencies, including the euro, Japanese yen, British pound, Canadian dollar, Swedish krona and Swiss franc, is off nearly 6%.

Global hedge funds recover in April on resurging energy commodities

Posted on 05 May 2016

Global hedge funds recovered in April with the HFRX Global Hedge Fund Index gaining +0.41% last month (-1.47% YTD), while the HFRX Market Directional Index gained +5.31% during the same period (-1.58% YTD) on resurgent energy and commodities.

World’s first diamond trading exchange going live from today

Posted on 05 May 2016

The Singapore Diamond Investment Exchange (SDiX), the world’s first and only commodity exchange trading in physically settled diamonds, is going live from Thursday. This could change the way diamonds are traded.

China curbs commodity futures speculation

Posted on 05 May 2016

Chinese regulators appear to have successfully popped a mini-bubble for now in steel and other commodity futures, scaring off speculators who piled in last month to drive steep gains in the prices of raw materials from coal to cotton.

Jim Rogers Says China Right to Cool Casino-Like Commodity Frenzy

Posted on 05 May 2016

Veteran investor Jim Rogers says that authorities in China are right to tackle the frenzy of speculative investing that’s broken out in the nation’s commodity futures markets, warning that a failure to act would have stored up problems.

World’s Top Currency Trader Sees Dollar Judgment Day With Jobs

Posted on 05 May 2016

A day of reckoning looms for the dollar, according to Citigroup Inc., the biggest trader in the $5.3 trillion-a-day currency market. The greenback gained a second day Wednesday, paring a recent selloff that saw the currency touch a one-year low.

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