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VRS - who has written 36151 posts on Opalesque Commodities Briefing.


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Chinese commodity financing scam dents copper’s prospects

Posted on 22 July 2014

Copper prices on the London Metal Exchange have dropped over five per cent since the beginning of the year to $6,987 (₹4.22 lakh) a tonne. A major reason for this fall is the drop in demand after a scandal over financing of commodities broke out in China. Data on Chinese copper imports show sharp drop in consumption.

Aluminum in Bull Market as Investors Lured by Shortage Outlook

Posted on 22 July 2014

Aluminum entered a bull market in London and traded near the highest in 16 months on speculation demand will exceed supply for the metal used in everything from cars to packaging. Stockpiles monitored by the London Metal Exchange slumped 9.4 percent this year to the lowest in 22 months.

Investors swap grains for metals as flows trickle to commodities

Posted on 22 July 2014

Investors are slowly being drawn back into commodities, attracted by stronger global economic growth and more volatility within sub-sectors, typified by current investment flows out of grains into industrial metals.

Long Natural Gas ETFs Burning Out

Posted on 22 July 2014

Natural gas prices have plunged to about an eight-month low as temperate weather conditions keep Americans from reaching for the A/C. Meanwhile, related exchange traded funds that take a bearish stance on the market are surging on the falling prices.

ETF Trends Q2 2014: Diversified ETFs gets second largest inflows, Agri weak

Posted on 22 July 2014

Diversified broad commodity ETFs received the largest inflows after platinum and palladium with total inflows of $172mn in the second quarter of 2014 with agri seeing outflows,according to a Global Commodity ETP Quarterly released by ETF Securities Ltd.

Scotland Currency Union? ‘It’s A Dead Parrot’

Posted on 22 July 2014

The idea Scotland would be able to hold on to the pound in the event of independence is a “dead parrot”, MPs have warned. The country’s first minister was told he urgently needed to come up with a plan B on how Scotland would proceed without a “currency union” if there was a “yes” vote in just two months’ time.

China and Switzerland sign bilateral currency swap line

Posted on 22 July 2014

The central banks of China and Switzerland have struck a bilateral currency swap agreement, a move that advances the international use of the renminbi and boosts Switzerland’s hopes of becoming a trading hub for the Chinese currency.

Investing in Water

Posted on 22 July 2014

Water scarcity is making headlines, particularly as a drought savages California, and heightened tensions about water supply and use won’t evaporate any time soon. Whether it is concern about climate change, global population growth or the need to revamp aging water infrastructure, investment advisers say the water sector offers long-term buying opportunities. However, they add, carefully review the type of investment since offerings are as vast as the ocean.

Carbon Capture market to witness 25.49 % CAGR during 2013-18

Posted on 22 July 2014

Global Carbon Capture and Sequestration market (CCS) will grow at a CAGR of 25.49 per cent over the period 2013-2018, according to a report by Sandler Research. The report says CCS technology will emerge as a clean technology to reduce GHG (Green House Gas) emissions. The integration of CCS with Integrated Gasification Combined Cycle (IGCC) will reduce costs and make CCS technology more economically viable.

Some Chinese carbon projects to exit UN offset market if allowed

Posted on 22 July 2014

Some developers of projects to cut carbon emissions in developing nations, particularly China, are likely to pull out of the U.N. offset scheme and move to markets with higher prices, if plans to allow them to exit are implemented.

World Bank sees ‘momentum’ behind global carbon price

Posted on 22 July 2014

Momentum is growing behind global efforts to develop a carbon price, despite Australia’s decision to scrap its tax on the country’s top polluters. That is the view of the World Bank’s top climate official Rachel Kyte, addressing delegates at an environmental conference in Pori, Finland.

Commodities: Water should be traded on financial markets to avoid global crisis

Posted on 21 July 2014

Markets can play an important role in providing future water security. Britain, as the rest of the world, is facing a water crisis, leading some experts to predict that by the end of the decade H2O will be traded on financial markets like other finite commodities such as crude oil, or iron ore.

World events prompt buying in commodities markets

Posted on 21 July 2014

Midday Thursday, a Malaysia Airlines flight crashed in Eastern Ukraine, killing all 298 people aboard. Initial fears that the plane had been shot down were supported by intelligence agencies, sparking concerns that the crash could signal a deepening of the conflict between Ukraine and pro-Russian separatists. As global investors processed the news, they sold off stocks and bought commodities that could be in short supply if sanctions or increased military conflict followed the plane crash.

Commodity markets rattled by Ukraine airplane disaster

Posted on 21 July 2014

Global commodity markets were gripped this week by the Malaysian air crash, which has dramatically raised tensions between Russia — a key producer of many raw materials — and the West. The doomed Malaysia Airlines MH17 flight, which crashed killing 298 people on Thursday, was “likely downed” by a surface-to-air missile fired from separatist-held eastern Ukraine, a US envoy said on Friday.

The Effect of Geopolitical Events on Commodities (Video)

Posted on 21 July 2014

Bloomberg’s Isaac Arnsdorf discusses the effect of events in Ukraine and Russia on commodity prices with Alix Steel on “Street Smart.”.

Morgan Stanley rebuilds in commodities trading

Posted on 21 July 2014

After more than a year of scaling back in commodities, Morgan Stanley is ready to expand. The Wall Street bank plans to hire about a dozen traders, sales staff and other professionals in the United States. It’s building up commodities trading and financing businesses that can profit despite tougher regulations, people familiar with the matter told Reuters.

Speculators Cutting Bullish Oil Bets Miss Ukraine Rally

Posted on 21 July 2014

The downed jetliner in Ukraine and Israel’s Gaza offensive blindsided speculators who had cut bullish crude bets on the assumption that risks to supply were diminishing.

Amid Global Turmoil, Oil Prices Surprisingly Stable

Posted on 21 July 2014

The world has entered a zone of maximum upheaval. From the Atlas Mountains of North Africa to the Hindu Kush, in Afghanistan, the Middle East is in flames. The destruction of a Malaysian airline over Ukraine, almost certainly shot down by Russian-backed separatist rebels, threatens war in the Black Sea region.

OPEC Says Oil Production, Market Share Fell in 2013

Posted on 21 July 2014

OPEC said Friday its crude production and market share fell last year as a boom in U.S. shale dents demand for its oil. In an annual statistical report, the Organization of the Petroleum Exporting Countries said its collective crude production was down 2.5% during 2013 on an annual basis.

Platts Survey: OPEC Missed its June Target of 30,000 barrels Per Day

Posted on 21 July 2014

Oil production from the Mideast-dominated Organization of the Petroleum Exporting Countries (OPEC) dipped by 30,000 barrels per day (b/d) in June to 29.94 million b/d, according to the latest Platts survey of OPEC plus industry officials and analysts. The survey showed Iraq’s output plunge of 160,000 b/d in some war-torn areas was largely offset by production increases from several other OPEC member countries.

Iran rejects selling oil to Greece, Sri Lanka, South Africa

Posted on 21 July 2014

Mohsen Qamsari, an official with the National Iranian Oil Company, said on July 20 rejected the claims that Iran is selling crude oil to Greece, Sri Lanka, and South Africa. “China with 400,000 barrels per day is the biggest costumer of Iranian crude oil,” he said, adding that Beijing’s imports account for 40 percent of Iran’s total oil export, Iran’s IRNA News Agency reported.

Hedge Funds Cut Bullish Gold Wagers as Rally Snaps: Commodities

Posted on 21 July 2014

Hedge funds cut bets on a gold rally for the first time in six weeks as prices snapped the longest stretch of gains since August 2011. Money managers trimmed their net-long position by 8.5 percent in the week through July 15, U.S. government data show. Prices dropped 2 percent last week, the first loss since May and helping to erase $1.38 billion from the value of exchange-traded products backed by the metal.

Gold to head north on geo-political tensions

Posted on 21 July 2014

In the international market, spot gold prices dropped two per cent to $1310.8 per troy ounce. The metal touched a high of $1324.7 on Friday but came off the peaks soon on profit booking. News of the shooting down of a Malaysian Airlines plane in Ukraine increased geopolitical tensions and helped gold — a classic haven — to edge up.

Is it time to take a look at the coal-mining businesses?

Posted on 21 July 2014

Heightened global tensions sent the spot price of gold up nearly US$20 overnight on Thursday to around US$1319 per ounce. On the local bourse gold mining stocks including Newcrest Mining Ltd and Northern Star Resources Ltd were both up around 3% on Friday in response to the tensions and higher gold price; in contrast the S&P/ASX 200 Index traded lower.

Global Steel Dynamics shifts due to Chinese Structural Changes

Posted on 21 July 2014

During a meeting with shareholder on Thursday, Tata group chairman Cyrus Mistry said that there would be a shift in demand-supply in the global steel industry due to the structural changes happened in china, the largest steel producer in the world. The steel sector anticipates a lower price level for raw materials.

HKEx’s takeover of LME is ‘risky bet’ that could yet pay off

Posted on 21 July 2014

While the Hong Kong Exchanges and Clearing has been busy getting into bed with former rival Shanghai to develop cross-trading of stocks, some brokers wonder whether the local bourse was wise to cut a big cheque to buy the London Metal Exchange.

Independent Scotland needs new currency – MPs

Posted on 21 July 2014

A stand-alone Scottish currency would be the best way forward for the country after independence, a report by MPs has suggested. The SNP government wants to share the pound with the UK in a currency union after independence, keeping the Bank of England safety net.

Indian rupee third on fake foreign currency list in Switzerland

Posted on 21 July 2014

As a debate continues on alleged black money of Indians in Swiss banks, the authorities in Switzerland have come across a significant quantum of fake Indian rupee notes in their country — the third highest for any foreign currency after Euro and the US dollar.

Is Bitcoin a bubble?

Posted on 21 July 2014

Bitcoin is still perceived by financial professionals as a possible bubble, a poll by Bloomberg has shown: Bitcoins, which lost 45% of their value after skyrocketing to more than $1,100 last year, are poised to tumble further, according to the latest Bloomberg Global Poll of financial professionals.

Agriculture is all about horticulture

Posted on 21 July 2014

In the Indian economy, where almost half of an average household’s expenditure goes toward food and where half of the labour force is engaged in agriculture, one cannot simply wish away the centrality of agriculture just because its contribution to GDP now hovers around 14 per cent.

Global carbon market hopes fade as Australia dumps CO2 trading

Posted on 21 July 2014

The goal of a global carbon market to tackle climate change, once touted to reach $2 trillion (Dh7.3 trillion) by 2020, received a major setback when Australia on Thursday scrapped its planned carbon trading scheme, which would have been the world’s third biggest.

Julia Gillard partly to blame for demise of carbon price, says Christine Milne

Posted on 21 July 2014

Julia Gillard was not across the details of climate change policy early in her prime ministership and should bear some responsibility for the demise of a price on carbon, Greens leader Christine Milne says. Ms Milne said the former prime minister made a “disastrous” political decision when she conceded her carbon pricing scheme constituted a carbon tax.

Commodities Face Back End Pressure

Posted on 18 July 2014

The Oil market backwardation has narrowed significantly over the past month and the forward discount on oil is now at the lowest level since 2012. Libya’s imminent return to the market as well as the insurgence in Iraq have been key forces stirring up the market. The move has been passed on to oil product curves as well as base metal curves.

Commodity prices will dip as super-cycle ends: Goldman Sachs

Posted on 18 July 2014

Commodities from iron ore to copper and Brent crude will drop over the next five years as global supplies climb, according to Goldman Sachs Group, which highlighted oil’s recent losses as a sign of increased output. There will be substantial declines in some metals, energy and bulk commodities, analysts including Chief Currency Strategist Robin Brooks wrote in a report.

How to Invest in the World’s Most Precious Commodity: Water

Posted on 18 July 2014

When asked what the world’s most precious commodity is, most people would rattle off guesses from a list of the usual suspects — things like gold, platinum, oil or diamonds. However, there is a commodity more precious than any of those, one that has the potential to rise in value dramatically over the next decade, and one that you can easily invest in.

Supply setbacks will push oil price higher

Posted on 18 July 2014

A possible resumption of oil exports from Libya, as yet unhindered production in Iraq, and hopes of a nuclear deal with Iran, have caught the oil market on the hop. It was only a month ago that Brent, the international crude oil marker, rose to more than $115 a barrel amid fears of a disruption to oil supplies as insurgents swept across northern Iraq. But these anxieties soon dissipated and oil has been in freefall.

Who Are The World’s Richest Oil Barons?

Posted on 18 July 2014

1. Charles and David Koch ($68 billion jointly): The bogeymen of the Democratic Party inherited their fortunes, along with the family business, from their father, Fred. But they’ve since shown a keen entrepreneurial spirit. Koch Industries’ claim to fame initially was a proprietary oil refining technique, but the brothers soon diversified the product portfolio to encompass refineries, pipelines, and the manufacturing of chemicals, polymers and fibers.

Oil and natural gas resource categories reflect varying degrees of certainty

Posted on 18 July 2014

The Energy Information Administration (EIA) has explained that crude oil and natural gas resources are the estimated oil and natural gas volumes that might be produced at some time in the future. The volumes of oil and natural gas that will ultimately be produced cannot be know ahead of time. Resource estimates change as extraction technologies improve, markets evolve and oil and natural gas are produced.

IEA Begs for “All of the Above” Strategy

Posted on 18 July 2014

While the President of the United States calls for an ‘all of the above’ energy policy, the Environmental Protection Agency’s rules appear to suggest that coal isn’t invited. However, International Energy Agency (IEA) chief Maria van der Hoeven says that every fuel option is important.

Gold spikes on Malaysia Airlines crash

Posted on 18 July 2014

The price of the safe haven metal surged amid market nervousness over the crash in Ukraine. Safe-haven gold spiked and stocks fell as investors took fright at the loss of a passenger jet in Ukraine near the border with Russia.

Gold edges above $1,300/oz as Russia sanctions hit equities

Posted on 18 July 2014

Gold rose on Thursday, extending the previous day’s recovery from four-week lows as investors took advantage of lower prices to buy and as a fresh round of U.S. sanctions on Russia weighed on stock markets. The sanctions, the toughest yet imposed by the United States, also helped send palladium to 13-1/2-year highs. The metal is chiefly sourced from Russia.

The Return of Gold Hedging

Posted on 18 July 2014

It’s baaack… That’s right, I’m talking about gold hedging, the gold stock investor’s bane. You see, gold miners “hedge” by agreeing to sell a portion of their future gold production at a fixed price. That way, if prices fall, they’re guaranteed a better profit.

Metals exchanges eye gold price fix mandate

Posted on 18 July 2014

Gold tender process follows silver fix mandate won by CME and Reuters.The world’s top commodities exchanges are already circling in the hope of securing a potentially lucrative new mandate to run the gold price fixing process.

Sticking around for $50-$100/oz silver - Rakhimov

Posted on 18 July 2014

Precious metals characteristically start going up after a prolonged decline, yet early in the reversal they rarely inspire any confidence because the last dozen or so similar moves fizzled after a 10–20% move. This could be one of those. Silver is at $21 per ounce ($21/oz) now, maybe next week it will test $18/oz again. It’s anybody’s guess but I believe that toward the end of the year we’ll probably see higher numbers—maybe substantially higher.

Global Zinc rally takes market by surprise

Posted on 18 July 2014

Zinc futures prices and open interest have climbed up in London Metal Exchange (LME), Shaghai Futures Exchange (SHFE) and India’s Multi Commodity Exchange (MCX) as global market for refined zince has fallen into deficit by 107 kt over the four months from January to April 2014. This scenario has emerged amidst weakness in copper market, Standard Bank said in a report.

Commodity ETFs in Rough Patch as World Bank Turns Bearish

Posted on 18 July 2014

Issuing a bad omen for commodity-related exchange traded funds, the World Bank believes precious metals, oil and soft commodity prices are set to drop. Broad commodity ETFs have underperformed the broader market this year, with the PowerShares DB Commodity Index Tracking Fund flat, the iPath Dow Jones-UBS Commodity Index Total Return ETN up 3.1% and the iShares GSCI Commodity-Indexed Trust 0.9% higher.

Best ETFs For Traders: Currency And Commodity

Posted on 18 July 2014

Our Best ETFs for Traders scorecard ranks the most cost-efficient exchange-traded funds for investors holding a position for three months. This portion of it displays the winners among funds holding foreign currencies and commodities.

Best ETFs for Traders and Speculators

Posted on 18 July 2014

Do you want to go in and out of the market with a short-swing trade? If you plan on staying put for three months, Vanguard has the most efficient exchange-traded fund. Its S&P 500 portfolio would cost you a bit more than $2 per $10,000 invested. It beats the much bigger SPDR S&P 500 fund (SPY) on that cost score.

Wall St. and commodity risk: Morgan Stanley’s VaR dips

Posted on 18 July 2014

The quarterly earnings of Wall Street’s biggest banks offer a glimpse into the scale of their commodity trading activity through a measure of trading risk called VaR.

New York first state to propose regulations for virtual currency

Posted on 18 July 2014

New York became the first U.S. state on Thursday proposed establishing rules for firms involved in receiving, transmitting and storing virtual currency. The proposal by the Department of Financial Services would establish a so-called BitLicense.

July 2014
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