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VRS - who has written 40685 posts on Opalesque Commodities Briefing.


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Gold Trading ‘Anemic’ After ‘Rejecting $1232′

Posted on 22 May 2015

Gold Trading in London saw Dollar prices slip to 1-week lows at $1202 on Thursday, as US stock markets rose and European shares eked out a small gain following better than expected manufacturing activity data.

Chinese Gold Standard Would Need a Rate 50 Times Bullion Price

Posted on 22 May 2015

A move to a gold standard in China would require an exchange rate of as much as $64,000 an ounce, 50 times bullion’s price now, according to Bloomberg Intelligence. A traditional gold standard, in which the precious metal backs the currency, is basically impossible at current prices due to the amount of metal needed and there’s no evidence the sixth-biggest bullion holder will adopt one, Bloomberg Intelligence said in reports published Wednesday.

Gold steady above $1,200 as June rate hike prospects dim

Posted on 22 May 2015

Gold was little changed above $1,200 an ounce on Thursday, as minutes from the Federal Reserve’s policy meet showed the U.S. central bank was unlikely to hike interest rates in June, in line with market expectations.

Gold Forecast: Likely Going Higher

Posted on 22 May 2015

The action in the gold futures market (June 15) suggest that the metal will more than likely rise from here. During the session on Wednesday, we had the FOMC meeting minutes released, and they suggested that a June interest rate hike is very unlikely out of the Federal Reserve. This of course will build a bit of a case for owning gold, as the US dollar will more than likely struggle.

Aluminum financing to continue in non-registered LME warehouses: Macquarie

Posted on 22 May 2015

The financing of aluminum will continue in non-registered London Metal Exchange warehouses, Colin Hamilton, head of global commodity research at Australian investment bank Macquarie said Thursday. “Essentially given where the contango is, it makes more sense, if you’re sitting with material in those off market warehouses, especially with the contango we’ve seen in recent weeks, we’ll certainly see financing coming back,” Hamilton said at presentation at the bank’s offices in London to launch its commodities outlook.

Turkish ferrous scrap import prices slide on lower indications

Posted on 22 May 2015

Platts’ daily assessment of Turkish ferrous premium heavy melting scrap I/II (80:20) imports slipped $2/mt to $286.50/mt CFR Thursday on lower indications and a cheaper deal. A US East Coast-origin cargo was heard sold Wednesday comprising 25,000 mt of HMS I/II (80:20) at $285/mt CFR and 15,000 mt of shred at $290/mt CFR.

ETFs continue to storm the global market with growth

Posted on 22 May 2015

Fixed-income exchange traded funds are continuing to grow in the global market with unparalleled growth acheived so far this year, according to Brett Pybus, a member of the product strategy team within BlackRock’s Fixed Income Portfolio Management Group.

Commodities ETFs Pullback on Strong USD, Overseas Weakness

Posted on 22 May 2015

The rebounding U.S. dollar and concerns about China, the second largest world economy, are dragging down commodities prices and related exchange traded funds. Since the Monday close, the PowerShares DB Commodity Index Tracking Fund dipped 2.2%, iPath Dow Jones-UBS Commodity Index Total Return ETN fell 2.3% and iShares GSCI Commodity-Indexed Trust declined 1.8%.

Inverse ETFs to Hedge Against Hurdles Ahead

Posted on 22 May 2015

Various markets are chugging along after the recent hiccup. If we continue to experience some short-term volatility ahead, investors can utilize short or inverse exchange traded funds to hedge their positions.

Here’s how China’s renminbi becomes a new international reserve currency

Posted on 22 May 2015

By the end of this year, the International Monetary Fund will decide whether the Chinese renminbi will join the euro, the Japanese yen, the British pound, and the US dollar in the basket of currencies that determines the value of its international reserve asset, the Special Drawing Right (SDR). China is pushing hard for the renminbi’s inclusion. Should it be admitted?

Rich world should help emerging countries cut pollution: Glencore chairman

Posted on 22 May 2015

Rich countries should help developing countries like India limit their carbon emissions by supporting the building of more expensive but cleaner energy plants, Glencore chairman Tony Hayward said on Thursday. Hayward said that India, where hundreds of millions of people have no access to electricity, is about to build 200 gigawatts of coal-fired power plants, all using conventional technology instead of the less polluting but more expensive supercritical coal-fired plants.

EEM buys European operations of the Carbon Trade Exchange Group

Posted on 22 May 2015

European Environmental Markets plc (“EEM”), the environmental commodities exchange operator, has today signed an agreement outlining the terms of the strategic acquisition of Carbon Trade Exchange Ltd (“CTX EU”), the European operations of the Carbon Trade Exchange Group (“CTX Group”), which operates the only global electronic exchange platform in the voluntary carbon markets.

Major banks’ commodities revenue down 28 pct in Q1 -report

Posted on 21 May 2015

Commodities revenue at the top 10 investment banks slid by 28 percent in the first quarter after power and gas activity returned to normal levels after last year’s jump, a consultancy said on Wednesday.

Oil market buoyed by product demand

Posted on 21 May 2015

The oil market is coping with storage capacity limits because demand for products such as petrol has been unexpectedly strong, says a senior executive at the world’s biggest independent oil trader. Demand growth was “back up to 1.4-1.5m barrels a day” because of “strong pockets” in the US, Europe, the Gulf region and Asia, said Chris Bake, executive director at Vitol.

Oil prices gain on ‘bullish’ US petroleum report

Posted on 21 May 2015

Oil prices rose on Wednesday after data showed a drop in US petroleum supplies and production. US benchmark West Texas Intermediate for delivery in July rose 99 cents to finish at US$58.98 a barrel on the New York Mercantile Exchange.

Crude Oil Market Outlook

Posted on 21 May 2015

The North Sea crude oil market showed mixed signals May 15, with Dated Brent versus second-month cash up $0.21/barrel at minus $0.94/b, even as Forties came off a touch. A late May cargo traded at Dated Brent minus $1.00/b, Gunvor to Unipec.

Where Are Oil Prices and the Ruble Going Next?

Posted on 21 May 2015

The strong rally in the oil price over the past four months has confounded most forecasters. Instead of continuing the late 2014 slide to test the 2009 low of $42 per barrel, the price of Brent came close to $45 on Jan. 13 before starting a steady climb, which brought it close to $68 late last week.

Saudi Arabia, OPEC partners turn down Chinese requests for extra oil

Posted on 21 May 2015

Saudi Arabia and its main Middle East OPEC partners are turning down Chinese requests for extra oil as they hold back fuel for their own refineries just as demand from the world’s biggest crude importer hits new records.

Is US Shale Becoming The Global Swing Producer?

Posted on 21 May 2015

Many industry experts predicted that US shale oil companies would quickly go bankrupt when oil prices started to decline in the last quarter of 2014. Jobs would be forever lost, financing would dry up and OPEC would remain the world’s oil cartel.

Gold Rises as Fed Minutes Boost Bets Rates Won’t Rise in June

Posted on 21 May 2015

Gold prices advanced after minutes from the Federal Reserve’s last meeting showed that officials last month didn’t expect to raise rates at their next gathering in June. Many policy makers thought economic data available in June wouldn’t be robust enough to warrant tightening, according to the minutes released Wednesday of the April 28-29 session.

Chinese Gold Standard Would Need a Rate 50 Times Bullion’s Price

Posted on 21 May 2015

A move to a gold standard in China would require an exchange rate of as much as $64,000 an ounce, 50 times bullion’s price now, according to Bloomberg Intelligence. A traditional gold standard, in which the precious metal backs the currency, is basically impossible at current prices due to the amount of metal needed and there’s no evidence the sixth-biggest bullion holder will adopt one, Bloomberg Intelligence said in reports published Wednesday.

India: Gold monetisation scheme to help bring idle gold into market

Posted on 21 May 2015

The government on Tuesday proposed a new scheme offering tax-free interest on depositing the yellow metal with banks. The idea is to mobilise idle gold worth up to Rs 60 lakh crore held by households and institutions.

HSBC bullish over gold

Posted on 21 May 2015

The U.S. economy hasn’t completely recovered from its last recession – what some have called the biggest since the Great Depression – but another one could be just around the corner, according to one economist.

A Rush to Gold ETF Options

Posted on 21 May 2015

After stumbling through much of the first quarter, gold and bullion-related exchange traded funds have regained some lost luster, which has prompted increased options activity on ETFs such as the SPDR Gold Shares.

Industry sees no appeal in gold monetisation plan, says concerns remain

Posted on 21 May 2015

A proposal in India to attract thousands of tonnes of gold owned by households into a bank deposit scheme will likely fail in its current form as it does not address some key concerns for banks and consumers.

Iron ore price sheds 2.4 per cent as Vale shakes up supply

Posted on 21 May 2015

Iron ore delivered to the Port of Qingdao has shed another 2.4 per cent as the world surveys the repercussions of Vale’s $US4 billion deal with China to pump up supply. The price of the commodity sipped $US1.41 to $US57.12 on Wednesday as it continued to give up recent gains.

Do ETFs pose a ’systemic risk?’

Posted on 21 May 2015

Do ETFs pose a risk to the marketplace in times of high volatility? Possibly, according to a government watchdog report, but there are no specific accusations. The report I’m referring to comes from the Financial Stability and Oversight Council (FSOC), which is the governmental organization created by the Dodd-Frank Act in 2010.

5 Tips For Trading ETFs

Posted on 21 May 2015

Some investors gloss over the “ET” in ETF, failing to understand or appreciate what these two letters stand for and the implications of investing in a fund that trades like a stock. The exchange-traded nature of these funds is increasingly taken for granted as many of the largest ETFs trade at tight spreads in very narrow bands around their net asset values through most market conditions.

7 Unique, Boutique ETFs

Posted on 21 May 2015

Exchange-traded funds have exploded into public consciousness with a popularity to match mutual funds, so it’s easy to think that a cursory look makes you a near expert. There isn’t much to the basics: These securities track a commodity, asset group (such as an index fund) or index (such as the Standard & Poor’s 500), and trade like stocks.

Chinese commodity hedge funds cultivate ties with Western investors

Posted on 21 May 2015

Chinese hedge funds, blamed for several routs in the metal markets in the past 18 months, are developing relations with Western investors as they stretch out beyond their home turf, an executive at London Metal Exchange broker Sucden said.

LME’s Owner Seeks Commodities Trade Link to Mainland China

Posted on 21 May 2015

Hong Kong Exchanges & Clearing Ltd. is in the early stage of creating a commodities trading connection with mainland China. HKEx, owner of the London Metal Exchange, the world’s biggest metals bourse, aims to make international benchmark commodity futures available to traders in China while offering mainland contracts to overseas traders, Chief Executive Officer Charles Li said Wednesday.

China’s GF Securities to expand global commodities biz - chairman

Posted on 21 May 2015

China’s GF Securities , the parent of GF Financial Markets, plans to expand in the global commodities markets using its London-based unit, the company’s chairman Sun Shuming said on Wednesday.

Here’s how ‘the cartel’ rigged the currency market

Posted on 21 May 2015

Regulators around the globe fined banks nearly $6 billion on Wednesday for rigging in the currency market. In one particular chat room, referred to as the “cartel,” traders from Citigroup, J.P. Morgan, UBS, RBS and Barclays who specialized in trading the euro tried to game the market. But what, exactly, did they do?

Compromise floated on currency rules in U.S. Senate

Posted on 21 May 2015

Senior U.S. senators on Wednesday urged colleagues to support a compromise on boosting rules against currency manipulation in trade legislation key to a Pacific trade pact. Republican Orrin Hatch and Democrat Ron Wyden, the senior members of the Senate Committee on Finance, offered a joint amendment to legislation creating a fast track for trade deals through Congress. The Senate is expected to vote on the bill this week.

Expansion for Carbon Trade Exchange Global Voluntary Carbon Market

Posted on 21 May 2015

Carbon Trade Exchange (CTX), a global leader in carbon and environmental commodity markets, continues to expand its team and operations announcing the appointment of Rene Velasquez as Global Head of the Voluntary Carbon Market, effective immediately.

Deutsche Bank says German prosecutor won’t probe CO2 emails

Posted on 21 May 2015

German prosecutors have given senior executives at Deutsche Bank an all-clear signal concerning one aspect of an ongoing carbon trading probe, saying it had no reason to open a new investigation into confidential emails, the bank said on Wednesday.

Commodities Rally Hit by Stronger Dollar

Posted on 20 May 2015

Commodity prices tumbled on Tuesday, as a resurgent dollar and concerns about weakness in China’s economy pushed investors out of everything from crude oil to copper and corn. The S&P GSCI index, which tracks prices of 24 commodities, recorded its biggest one-day drop in more than a month and ended at its lowest since April 28.

Oil Prices: Where Next? Here Are the Forecasts

Posted on 20 May 2015

What’s next for oil prices? After rallying by about 40% since their lows earlier this year, forecasts now by major banks paint a mixed picture but one that increasingly looks like a W-shaped recovery. The average forecast in a MoneyBeat survey of 10 banks is for Brent, the global benchmark, to fall to an average of $63.35 a barrel in the third quarter of this year, down from around $66 on Tuesday.

This innovation will help U.S. win oil price war

Posted on 20 May 2015

Although some US oil companies are struggling with low oil prices, a new wave of innovation is hitting the oil patch, allowing for a significant reduction in drilling costs. A variety of different improvements in production are starting to show up at all levels across the industry from small firms to oil majors. Statoil for example recently noted that it is experimenting with different types of sand and chemicals to improve production.

Shell still optimistic about oil price: chairman

Posted on 20 May 2015

Royal Dutch Shell PLC (RDSA) remains optimistic about the future of the oil price, despite its dramatic slump in recent months, Chairman Jorma Ollila told investors at the company’s annual general meeting Tuesday. “Volatility is a fact of life in our industry. It is what it is and we have to manage through it. Short-term movements in oil prices can be driven by perception and prices tend to overreact,” Ollila said, adding that “we have not changed our long-term planning assumptions.”

Moody’s Predicts Big Jump in Oil and Gas Defaults

Posted on 20 May 2015

So far oil and gas companies have largely weathered the sharp drop in oil prices with minimal carnage. But that carnage is coming, according to a new report from Moody’s Investors Service. Analysts at Moody’s predicts that the default rate for oil and gas companies with lower credit ratings — B2 or lower — could increase to 7.4% by March 2016 from 2.7%.

Oil to rebound further this year: Opec’s Kuwait official

Posted on 20 May 2015

Oil prices could continue to rebound in the second half of 2015 following signs of growth in demand and a drop in high-cost production, an Opec official said yesterday. “It is expected that a kind of a balance will exist in the oil market in the second half of 2015 which will support prices,” Kuwait’s governor at Opec Nawal Al Fuzai told reporters. “Prices are improving, growth in supplies from outside Opec - especially shale oil - is lower than before and demand is recovering.”

Libya’s NOC chief sees higher oil prices, not relying on OPEC

Posted on 20 May 2015

The head of Libya’s National Oil Corp (NOC) sees higher oil prices and said the company is working to boost output and regain market share taken by other producers. Speaking on a visit to London, NOC Chairman Mustafa Sanallah said he saw signs of oil demand increasing across the globe and a fall in the supply of shale oil in the United States.

Gold Price Trend Forecast

Posted on 20 May 2015

Now that Gold has pushed to a three month high, it’s clear that my bullish read of the Gold tape is at least partially correct. In the face of recent negative price action, I had managed to remain cautiously bullish given Gold’s position in a new Investor Cycle - it was far too early for Gold to be rolling over, even if it remained locked in an extreme bear market.

History Shows A Gold Bull Market Is Fast Approaching

Posted on 20 May 2015

Yearning for sunnier skies for your gold investments? How’s this sound…Gold in a decisive bull market, with the price steadily rising. Silver soaring and outpacing gold’s gains. Gold stocks rocking, erasing underwater positions and racking up the profits.

Survey: Will the Gold Price Hit $5,000?

Posted on 20 May 2015

Despite a ho-hum performance year to date for gold, Peter Schiff, chief executive officer at Euro Pacific Capital, is still betting on gold’s eventual climb to $5,000 an ounce. Schiff’s persistent call is more than 300% higher than Thursday’s settlement at $1,225.20 an ounce on Comex, which marked the highest close for the yellow metal since mid-February.

India moves closer to tapping 20,000-ton gold hoard

Posted on 20 May 2015

India will allow citizens to deposit gold with banks to earn interest as the world’s second-biggest consumer seeks to cut reliance on imports by tapping idle bullion lying with households. Individuals and institutions can deposit a minimum of 30 grams in the form of bullion or jewelry under a so-called gold monetization scheme, according to a draft document released by the government on Tuesday.

Palladium Gains From Environmental Rules

Posted on 20 May 2015

Among precious metals, palladium has rarely shone brightest for investors. Yet in recent weeks, the metal, used mostly in catalytic converters for cars, has been commanding more attention than gold, silver and platinum, its more glamorous counterparts.

Société Genéralé: Nickel Is the Best Commodity During El Niño

Posted on 20 May 2015

Commodity markets are bracing themselves for the El Niño phenomenon, a cyclical meteorological occurrence associated with above average water temperatures in the central and eastern Pacific region, like Southeast Asia and Australia.

China steel price slumps to 12-year low

Posted on 20 May 2015

Chinese prices of steel used mostly to build homes and offices fell to a 12-year low as peak construction season begins to ebb in the world’s biggest consumer. The average spot price of steel reinforcement bar, or rebar, dropped for a 10th day to 2,458 yuan ($396) a metric ton, the lowest level since January 2003, according to data from Beijing Antaike Information Development Co.

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