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Commodities Briefing - Category | Index more

Hedge funds achieve outstanding performance as most indices are in positive territory

Posted on 25 March 2015 by VRS  |  Email |Print

Hedge funds achieved an outstanding performance during last week and were up 1.3%. More than 75% of the funds as well as most hedge funds indices are in positive territory, according to Lyxor Asset Management’s Weekly Briefing. The report said that hedge funds have continued to deliver solid returns in 2015 with the Lyxor HFI up 3.4% year-to-date. The first quarter of 2015 is on track to be the best quarter for hedge funds since Q2-2007 when the Lyxor HFI was up 3.7%.
“CTAs and event driven managers outperformed, both last week and year to date, as a result of the peculiar market environment which continues to see equities and bonds delivering positive returns. Financial markets find themselves in a sweet spot, where economic recovery is supporting consumer confidence but not at such a point that would lead central banks to tighten their monetary policy,” said Philippe Ferreira, Lyxor AM’s head of research, managed account platform………………………………………..Full Article: Source

Taiwan’s commodity price bulletin board to go online soon

Posted on 25 March 2015 by VRS  |  Email |Print

As part of efforts to promote the transparency of data on commodity prices, Taiwan’s Executive Yuan or Cabinet is establishing a commodity price bulletin board that will be put online by the end of the month, Vice Premier Chang San-cheng said Monday.
The planned “Commodity Price Bulletin Platform” will offer viewers information on prices of 60 kinds of vital products and will also have a special page where people can express their opinions and proposals, increasing the opportunities for citizen participation, Chang said during a meeting of the Executive Yuan’s price stabilization panel………………………………………..Full Article: Source

LBMA Gold Price successfully launched

Posted on 23 March 2015 by VRS  |  Email |Print

The LBMA Gold Price has replaced the historic London Gold Fix. The first LBMA Gold Price settled at $1,171.75. ICE Benchmark Administration (IBA) administers the “LBMA Gold Price”. They provide the auction platform, methodology as well as overall independent administration and governance for the LBMA Gold Price. The LBMA holds the intellectual property rights.
The London Gold Fix pricing mechanism has been replaced by a new electronic LBMA price-discovery process from Friday, 20th March 2015. The price continues to be set twice daily (at 10:30 and 15:00 London GMT). The new LBMA Gold Price is operated and administered by an independent third party provider, ICE Benchmark Administration (IBA), who were chosen following consultation with market participants………………………………………..Full Article: Source

Europe’s quantitative easing pushes hedge funds up 2.25% in February

Posted on 19 March 2015 by VRS  |  Email |Print

The European Central Bank’s extension of aid to Greece and its new EUR 1.1tln stimulus package rallied European equity markets, that helped pushed hedge funds to gain 2.2% last month, said data provider BarclayHedge. It added that the quantitative easing also calmed down deflation fears on rising prices for oil and other commodities.
The Barclay Hedge Fund Index was up 2.14% year-to-date. “Risk factors were largely out of the limelight in February,” says Sol Waksman, founder and president of BarclayHedge. All but one of Barclay’s 18 hedge fund indices had gains in February. The Healthcare & Biotechnology Index jumped 4.49%, equity long bias was up 4.02%, the Event Driven Index gained 3.57%, Pacific Rim Equities rose 2.81%, Distressed Securities added 2.18%, and European equities were up 2.09%………………………………………..Full Article: Source

5 Commodities Leading The Price Plunge

Posted on 10 March 2015 by VRS  |  Email |Print

The Bloomberg Commodity Index, which tracks the price of 22 different commodity investments, recently traded at its lowest level since 2002. Stocks of commodity-exposed companies have suffered over the past year, but investors with direct stakes in the commodities themselves have been hit hardest.
Here’s a look at five commodities that have lined the downward-spiral path over the past year. 1. Silver - Silver prices have plummeted as investors anticipate money flowing out of precious metals when the Federal Reserve begins raising interest rates. The iShares Silver Trust (ETF) SLV, -0.59% is down nearly 25 percent in the past year………………………………………..Full Article: Source

Stronger panamaxes drive up Baltic sea freight index

Posted on 06 March 2015 by VRS  |  Email |Print

The Baltic Exchange’s main sea freight index, which tracks rates for ships carrying dry bulk commodities, made minor gains on Thursday on higher rates for the panamax and smaller vessel segments. The overall index, which factors in average daily earnings of capesize, panamax, supramax and handysize vessels, rose two points, or 0.36 percent, to 561 points.
The panamax index was up seven points, or 1.22 percent, at 583 points. Average daily earnings for panamaxes, which usually carry coal or grain cargoes of 60,000 to 70,000 tonnes, were up $54 at $4,669………………………………………..Full Article: Source

Scotiabank Commodity Price Index Hits 8-Year Low

Posted on 24 February 2015 by VRS  |  Email |Print

Scotiabank’s monthly index of commodity prices has plunged to its lowest since January 2007. The bank says global economic conditions are better than during the 2008-09 global downturn, but an extended period of sub-par growth has increased competition and pushed down commodity prices.
Scotiabank says a recent spike in the U.S. dollar against most currencies has also contributed to the decline. The bank’s broadest commodity price index fell to 100.9 points in January, down 8.6 per cent from December and down 27.9 per cent from January 2013………………………………………..Full Article: Source

Intercontinental Exchange to launch new LBMA Gold Price in March

Posted on 20 February 2015 by VRS  |  Email |Print

Intercontinental Exchange, the network of exchanges and clearing houses, has announced that ICE Benchmark Administration (IBA) expects to launch the new LBMA Gold Price, which replaces the long established London Gold Fix, on 20 March 2015.
Finbarr Hutcheson, president, ICE Benchmark Administration said: “Under the administration of IBA, the new LBMA Gold Price will benefit from increased transparency, and the robustness of the data used to calculate the benchmark will give a better representation of the market price. We would like to thank the London Bullion Market Association and the precious metals industry for their work and support in the transition of this globally important benchmark.”……………………………………….Full Article: Source

Bullion Index gains membership of physical-delivery exchange Bullion Capital

Posted on 19 February 2015 by VRS  |  Email |Print

Australian physical bullion firm Bullion Index has been granted a membership with compatriot company Bullion Capital, which operates a membership-based global physical bullion exchange. It also enables Bullion Index to offer the proprietary DMA exchange platform, MetalDesk, to its clients. Bullion Index now gives clients the ability to trade Physical Gold, Silver and Platinum via an intuitive trading platform with access to 18 bullion products over 14 global trading hubs.
Exchange participants are able to trade on live prices for physical precious metal in multiple global locations. Orders are streamed by Bullion Capital’s liquidity providers directly to a displayed central limit order book. All participants have equal access to immediately executable levels and associated sizes, ensuring transparency and fairness………………………………………..Full Article: Source

Baltic Dry Index fall is mainly due to oil, commodity price slump

Posted on 12 February 2015 by VRS  |  Email |Print

The costs of shipping bulk commodities have fallen to a near three-decade low, raising concerns about global economic growth. However, there are a number of elements at play and analysts have warned about reading too much into the slump.
The Baltic Dry Index, a measure of a number of shipping routes and the prices for transporting major bulk commodities, has fallen 29.2 per cent in 2015 to 554 points – the lowest level since 1986. Over the past 12 months it has dropped close to 50 per cent. The World Bank recently downgraded global growth by 20 basis points to 3 per cent for 2015. So it would appear that a drop in the BDI would match the faltering growth narrative in the World Bank’s forecasts………………………………………..Full Article: Source

Baltic Dry Freight Index Plummets Amid Commodities Slump

Posted on 06 February 2015 by VRS  |  Email |Print

The Baltic Dry Index, which tracks freight rates for ships carrying raw materials, has slumped to its lowest point in 29 years, hit by a shipping glut, falling commodity prices and declining import demand from China.
This week, the BDI fell to 577, its lowest level since July 1986, and a far cry from its peak of 11,793 in 2008. The world’s fleet of dry-bulk ships far exceeds demand for the vessels that carry commodities such as iron ore and coal, with capacity estimated around 20% above demand over the past few years………………………………………..Full Article: Source

Commodity prices collapse to lowest in 12 years

Posted on 30 January 2015 by VRS  |  Email |Print

The Bloomberg Commodity index, which tracks the global prices of 22 different commodities such as gold and oil, collapses to lowest level since August 2002. The world’s leading index of commodity prices has slumped to its lowest level in more than 12 years as China slows and America hints at tightening monetary policy.
The Bloomberg Commodity index, which tracks the prices of 22 different commodity prices such as gold, natural gas and oil, fell 0.3pc to 99.84 in early trading, the lowest point since August 2002………………………………………..Full Article: Source

Commodity Shipping Measure Falls to 28-Year Low on China Demand

Posted on 30 January 2015 by VRS  |  Email |Print

A measure of global shipping costs for commodities fell to a 28-year low as slowing growth in China’s demand for cargoes compounds the effect a fleet glut. The Baltic Dry Index plunged 5.1 percent to 632 points, the lowest since Aug. 22, 1986, according to data from the Baltic Exchange in London on Thursday. Freight rates for all the vessel types within the measure declined.
China, the world’s biggest buyer of of coal and iron ore, will increase imports of the two commodities by 6 percent this year, down from a growth rate of 8.7 percent in 2014, according to estimates from Clarkson Plc, the world’s largest shipbroker. The nation’s economic expansion this year will be the slowest since 1990, the average of 67 economists’ forecasts compiled by Bloomberg shows………………………………………..Full Article: Source

Long/short funds top 2014 Lipper commodity league table

Posted on 19 January 2015 by VRS  |  Email |Print

Below are tables of the best and worst performers in the fourth quarter of 2014 and for last year as a whole, among the actively managed commodity funds in the Lipper Global database.
The return performance is calculated in the fund’s local currency. The tables use the latest available data provided to Lipper and strip out enhanced index funds that use a very simple rules-based system of rebalancing, as well as funds that are wholly focused on natural resource equities………………………………………..Full Article: Source

How to Track Gold Price Trends with the Kitco Gold Index

Posted on 13 January 2015 by VRS  |  Email |Print

While gold price trends mostly stem from changes in supply and demand, that’s not the full story. Sometimes the value of the U.S. dollar changes the gold price – and this can cause a misleading view of the true value of gold…
You see, most of us track gold priced in U.S. dollars. As the dollar gains strength, it takes fewer of them to buy the same quantity of gold. The opposite is true when the dollar weakens. Part of the reason gold prices move up or down is they reflect this change in U.S. dollar value. So higher gold prices do not always mean higher demand………………………………………..Full Article: Source

Why Conventional Commodity Indexes Will Likely Disappoint

Posted on 12 December 2014 by VRS  |  Email |Print

I hate to pile on commodities funds, already beaten down by years of underperformance and outflows, but most are terribly flawed in both construction and premise. The static, long-only commodity futures indexes do not capture the biggest sources of profits that accrue to investors in commodity futures.
In fact, unlike with stocks and bonds, a long-only position in commodity futures is not always expected to provide an excess return above the risk-free rate. To understand why, it helps to think of the commodities futures market as an insurance market, where hedgers and speculators trade risks………………………………………..Full Article: Source

ETFs compared: Broad Commodity Index

Posted on 02 December 2014 by VRS  |  Email |Print

In recent years, the function of diversification and inflation protection has always been attributed to raw materials has been questioned. From 2005 onwards, in fact, the correlation between commodities and traditional asset classes is gradually increased, reaching its peak in 2008. We’ll see if in the coming years will come down to the historical averages, or if the “new normal” (the new normal) has also touched this area.
Meanwhile, the outlook for 2015 remains fairly weak. In general, according to the outlook of the World Bank, next year prices are expected to moderate descent, especially as regards the commodity energentiche and oil in particular. An important element, since the raw materials are energentiche those weighing more generic benchmarks. (Translated)……………………………………….Full Article: Source

Index Funds And ETFs: 5 Ways To Shop Smart

Posted on 18 November 2014 by VRS  |  Email |Print

From 2007 through 2013, domestic equity index mutual funds and ETFs received $795 billion in cumulative net new cash and reinvested dividends, as many investors were drawn to passive investment strategies.
A big part of the allure of passive investments is their relatively low cost. Rather than attempting to beat the market through active stock picking, these passive strategies try to match the performance of the market or a part of it, based on an index, for instance the S&P. These investments may not offer the potential of outperformance, but they typically offer lower costs…………………………………Full Article: Source

Commodities slide continues in October: RBA

Posted on 04 November 2014 by VRS  |  Email |Print

After another fall in October, commodity prices would now have to rise by 61 per cent to get back to their mid-2011 peak. The RBA’s index of export commodity prices, measured against a basket of foreign currencies, fell by 1.4 per cent in October.
Falls in the prices of iron ore and oil lay behind the latest fall, the RBA said, although the data released by the central bank on Monday showed base metals prices also headed down, losing 1.8 per cent in the month………………………………………..Full Article: Source

Pain looms for commodity index investors as oil contango nears

Posted on 28 October 2014 by VRS  |  Email |Print

After a months-long battering from tumbling crude prices, commodity index investors may soon have another reason to consider leaving the oil market: contango.
For the first time since January, the U.S. West Texas Intermediate (WTI) crude oil futures market is poised to flip into contango, a structure in which prompt prices are below longer-dated contracts, typically signaling a weaker market. Outright oil prices have already tumbled about 25 percent since summer………………………………………..Full Article: Source

Scotiabank’s commodity index falls sharply in August

Posted on 30 September 2014 by VRS  |  Email |Print

Scotiabank’s monthly commodity price index lost ground in August, dropping 5.4 per cent from July in a broad-based decline. Four of Scotiabank’s commodity subindexes fell, with the biggest declines in the oil and gas sector as well as in agriculture.
Forestry was the only subindex to show an increase between July and August while mining and metals was down slightly. Scotiabank says international oil prices have been pulling back since June because of less concern about the risks to oil supplies from Iraq and Libya………………………………………..Full Article: Source

Panic as commodity index plunges

Posted on 23 September 2014 by VRS  |  Email |Print

“An unbiased, major barometer of commodity prices,” is how Thomson Reuters describes its CRB Continuous Commodity Index. And that’s why it’s so important. But the equally-weighted index is falling fast and last week plunged through major support levels.
Just weeks before, the 57 year-old index confirmed what is referred to by technical analysts as a “death cross” - it’s when the 50-day moving average crosses under the 200-day moving average, and is often taken to indicate a bear market………………………………………..Full Article: Source

Commodities index tumbles to five-year low

Posted on 15 September 2014 by VRS  |  Email |Print

One of the world’s leading indices for commodities has dropped to its lowest level in five years, casting doubt over renewed investor interest in the sector. After a record year of net withdrawals in 2013, sentiment towards commodities has started to improve this year helped by strong returns and declining correlations with other assets classes.
The Bloomberg Commodity Index, which reflects the prices of 20 commodities and is tracked by billions of dollars of investor assets, delivered total returns of 7.1 per cent in the six months to June, outpacing US equities and high yield corporate bonds………………………………………..Full Article: Source

Commodities Fall to 5-Year Low With Plenty of Supplies

Posted on 12 September 2014 by VRS  |  Email |Print

Commodities fell to a five-year low on speculation abundant supplies and slowing economic growth outside of the U.S. will curb demand for raw materials. The Bloomberg Commodity Index declined to the lowest since July 2009. Brent oil traded at the cheapest since 2012, wheat, corn and soybeans retreated to four-year lows, and gold slumped to a seven-month low.
Weak economic growth in Europe and Japan is leading to lower energy prices and interest rates in the U.S. at a time when the U.S. corn crop is a record high and U.S. oil production is poised to be the most in 45 years………………………………………..Full Article: Source

Commodity prices slip on waning global appetite

Posted on 12 September 2014 by VRS  |  Email |Print

Commodity prices are falling, the second time around in 2014. In the current quarter, till date, the Thomson Reuters CRB Commodity Index, a broad indicator, has declined by 7.7%. A similar indicator, the S&P GSCI Index, has fallen by 10.4%. What has contributed to this fall? Food prices are a reason. On Thursday, the UN’s Food and Agriculture Organization said its food price index fell to 196.6 points in August, a level last seen in September 2010.
The index fell by 3.6% over July. Surplus conditions in commodities such as cereals (except rice), dairy products, sugar and oils have contributed to this decline. Crude prices have seen a sharp decline in recent months, with Brent crude prices down by 12.7% in a three-month period. The Dow Jones Commodity Index–Energy has declined by 12.3% in this period. Coal prices also continue to decline, though the degree is lower as they have been falling for a much longer period………………………………………..Full Article: Source

Commodities Drop to Lowest Since January as Dollar Climbs

Posted on 10 September 2014 by VRS  |  Email |Print

Commodities declined to the lowest in almost eight months as the dollar advanced on speculation that the Federal Reserve will increase interest rates next year, curbing demand for raw materials. The Bloomberg Commodity Index (BCOM) that tracks 22 futures lost as much as 0.7% to 123.4334, the lowest since Jan. 10 and settled at 123.4755 in New York. Nickel tumbled the most since May, corn traded at a four-year low and Brent crude dropped to the lowest in 17 months.
The dollar, as measured by the Bloomberg spot index that tracks the greenback against 10 peers, climbed to a 14-month high before U.S. data this week forecast to show jobless claims fell and retail sales improved. Fed policy makers will meet on Sept. 16-17. Advances in the greenback make dollar-priced commodities more expensive in terms of other currencies………………………………………..Full Article: Source

Commodity Prices Inch Down in July: Scotiabank

Posted on 28 August 2014 by VRS  |  Email |Print

Scotiabank’s Commodity Price Index edged down by 0.3% month-over-month (m/m) in July, as oil prices lost momentum, partly due to an easing of concern over geopolitical supply risks in Libya and Iraq. “On a more positive note, a cyclical recovery in base metal prices is getting underway, with dramatically higher zinc and nickel prices expected in 2015,” said Patricia Mohr, Scotiabank’s Vice President of Economics and Commodity Market Specialist.
“Zinc led a strong rally in base metals in July, climbing from US$0.96 per pound to almost US$1.05 — an increase of 17% since late 2013. Commodity funds and investors have bid up zinc prices, anticipating tightening supplies over the next three to four years — with mine supplies not keeping pace with demand growth. In our view, zinc prices will climb to US$1.25 in 2015 and a very lucrative US$1.60-1.70 in 2016………………………………………..Full Article: Source

Commodities Rally Is Half-Baked

Posted on 26 August 2014 by VRS  |  Email |Print

It all started so well: a surprise drop in Treasury yields, expectations of accelerating economic recovery, and more than a dash of geopolitical turmoil. Yes, 2014 was shaping up to be a good year for commodities. And indeed, the first half was more than acceptable. At 7.1%, the recently renamed Bloomberg Commodity Index (formerly the Dow Jones- UBS index) had its best six-month period since the latter half of 2010 and its best first half since that of 2008, when the supercycle’s ascent seemed unstoppable.
Fast forward all of eight weeks and the good times are over. Commodities as a whole are now in negative territory for the year. Their lead over the S&P 500 has flipped to an 8.5 percentage point disadvantage. And while August may traditionally be a month of thin trading, there is good reason to think summer will set the tone for the rest of the year………………………………………..Full Article: Source

Commodity Index Turns Negative On The Year As S&P 500 Breaks 2,000

Posted on 26 August 2014 by VRS  |  Email |Print

One of the main commodity indexes, the Bloomberg Commodity Index is in the red for the first time year-to-date as equity markets post record highs, analysts said.
The Bloomberg Commodity index, formerly known as the DJ-UBS commodity index, is down only about 0.25% year-to-date, but this comes “after commodities outperformed all other global asset markets during the first half of 2014 for their strongest start to a calendar year since 2008,” said analysts at Citi Research………………………………………..Full Article: Source

Commodities: Time To Catch A Falling Knife?

Posted on 19 August 2014 by VRS  |  Email |Print

The PowerShares DB Commodity Index has been a little soft over the past seven weeks, losing around 7% in price (-2% YTD) while the S&P 500 has been flat. The top chart is the TR Continuous Index, which finds itself testing dual support — one of which is a 14-year rising support line.
This index has been soft for the past four years while the stock market has continued to rally. In the big picture, what happens here could be very important for commodities’ overall direction in the months to come………………………………………..Full Article: Source

NZ commodity prices fall for fifth straight month, led by milk powder

Posted on 04 August 2014 by VRS  |  Email |Print

New Zealand commodity prices fell for a fifth straight month in July, led by whole milk powder, reflecting a build-up of inventory in China and a strong milk production season for dairy farmers. The ANZ Commodity Price Index declined 2.4 last month and is now 9.8 percent below its February peak, while milk powder tumbled 12 percent and dairy product prices fell more broadly.
The slide in global dairy prices this year prompted Fonterra Cooperative Group to slash its forecast farmgate milk payout for 2015 to $6 a kilogram of milk solids, from an initial estimate of $7/kgMS. It also attributed the decline in dairy prices to a build-up of inventory in China but expressed some confidence that prices would recover at some stage. Westland Milk Products cut its forecast payout two days later………………………………………..Full Article: Source

Commodities Cap Biggest Monthly Decline Since May 2012

Posted on 01 August 2014 by VRS  |  Email |Print

Commodities had the worst monthly performance in more than two years, led by losses for crops including soybeans and wheat on signs of bigger supplies. The Bloomberg Commodity Index of 22 raw materials fell 5 percent in July to 127.91, the biggest loss since May 2012. Corn had the largest drop since 2011, and cotton posted for the longest losing streak in three years.
The U.S. Department of Agriculture raised its estimates on global stockpiles for cotton, corn, soybeans last month, signaling a growing glut. Bigger crops are helping to keep world food inflation in check, with the United Nations reporting a third monthly drop for prices in June………………………………………..Full Article: Source

Commodity Prices Edge Down in June: Scotiabank

Posted on 30 July 2014 by VRS  |  Email |Print

Scotiabank’s Commodity Price Index inched down by 0.7% month-over-month (m/m) in June, but has climbed 8.9% from last December’s low — led by stronger oil and gas prices. “The Metal and Mineral sub-Index retreated in June, but will rally sharply in July amid a spurt in base metal prices and steadier gold prices,” said Patricia Mohr, Scotiabank’s Vice President of Economics and Commodity Market Specialist.
“Exuberance over a moderate pick-up in China’s economy in the second quarter partly accounts for the recent surge in investor interest in base metals, as does a second year of record global auto production, with strength in China (+9.7% YTD), North America (+4.3%) as well as Germany and Spain (+7.9% — the two biggest auto manufacturers in Western Europe).” (Press Release)

S&P Dow Jones goes equal weight on commodity index

Posted on 08 July 2014 by VRS  |  Email |Print

S&PDJI moves DJ-UBS commodity index to equal weighting; Nasdaq partners with ETRE Financial for Reit indexes; Six launches new sustainability index; Stoxx licenses minimum variance to Japan’s Resona Bank.
S&P Dow Jones Indices has launched a broad-based commodity index, the Dow Jones Commodity Index (DJCI), hot on the heels of the expiration of its licensing agreement for the DJ-UBS Commodity Index (DJ-UBS). The DJCI includes 23 of the commodities included in the world production-weighted S&P GSCI, but it weights each of the three major sectors - energy, metals, agriculture and livestock - equally. Individual commodities are weighted by relative liquidity based on the five-year average total dollar value traded……………………………………..Full Article: Source

RBA commodity price index at 4 year low

Posted on 02 July 2014 by VRS  |  Email |Print

The prices of Australia’s export commodities headed lower in June for the sixth month in a row. That left the RBA’s commodity price index, in foreign currency terms, at its lowest level since March 2010, and 32 per cent below its July 2011 peak.
The biggest contributor to the 1.8 per cent fall in June, a repeat of the decline in May, was a drop in the price of iron ore, the RBA said. Rural commodity prices also fell, but the price of base metals rose………………………………………..Full Article: Source

RBA commodity price index at 4 year low

Posted on 01 July 2014 by VRS  |  Email |Print

The prices of Australia’s export commodities headed lower in June for the sixth month in a row. That left the RBA’s commodity price index, in foreign currency terms, at its lowest level since March 2010, and 32 per cent below its July 2011 peak.
The biggest contributor to the 1.8 per cent fall in June, a repeat of the decline in May, was a drop in the price of iron ore, the RBA said. Rural commodity prices also fell, but the price of base metals rose. The RBA’s price index is based on preliminary estimates of prices received for bulk commodities in recent months………………………………………..Full Article: Source

Expansion into the commodities world: Bloomberg

Posted on 25 June 2014 by VRS  |  Email |Print

From lean hogs to gold, the world of commodities is as vast as the world around us. On July 1, Bloomberg will take control of UBS’s leading commodity index, a diversified index that provides investors with exposure to the most widely followed commodities in the world. The index will be renamed from the “Dow Jones-UBS Commodity Index” to the “Bloomberg Commodity Index”.
With Bloomberg assuming management of the index, investors can now have broad commodity exposure with an index that is governed, calculated, distributed and licensed by the world’s leading provider of financial data………………………………………..Full Article: Source

Commodities Are Finally Rebounding — Here’s How To Profit

Posted on 20 June 2014 by VRS  |  Email |Print

Those who loaded up on gold, oil and other commodities a few years ago in anticipation of raging inflation related to quantitative easing are likely very disappointed. As most investors probably know, commodities have trailed stocks pitifully in recent years. The Dow Jones-UBS Commodity Index (DJ-UBSCI), which tracks a group of 20 commodities, fell 6.5% a year for the past three years, while the S&P 500 gained 17.6% annually during the same period.
But one of the nice things about investing is just about everyone gets a chance to be right if they wait long enough… and commodities investors may finally be having their day………………………………………..Full Article: Source

S&P DJ Plans New Commodities Index

Posted on 19 June 2014 by VRS  |  Email |Print

S&P Dow Jones is planning to launch a new commodities index now that its licensing deal with UBS for the Dow Jones-UBS Commodity Index and its family of subindexes will be history at the end of the month.
The new index will offer investors an alternative to the broadly used UBS-linked benchmark, currently underlying strategies like the $1.6 billion iPath Dow Jones-UBS Commodity Total Return ETN. The planned Dow Jones Commodities Index will be an equal-weighted, broadly diversified commodity index, an S&P Dow Jones official told ETF.com. More specific details such as methodology and an actual launch date weren’t disclosed…………………………………..Full Article: Source

Commodities lose status as world’s best performing asset class in 2014: Deutsche Bank

Posted on 13 June 2014 by VRS  |  Email |Print

Commodities have lost their status as the world’s best performing asset class as gains in the livestock, agriculture and precious metals sector have been surrendered during the second quarter.
Deutsche Bank said in an update on commodity indices that the performance of Dow Jones UBSC Index (DJUBSCI) was affected by losses in agricultural and livestock sectors while gains in energy complex helped Standard & Poors GSCI to post positive returns………………………………………..Full Article: Source

Commodity prices fall for third month, led by dairy products

Posted on 04 June 2014 by VRS  |  Email |Print

New Zealand commodity prices fell for a third month in May, led by dairy products in the wake of a slide in world prices this year. The ANZ Commodity Price Index dropped 2.2 percent to 317.7 last month for an annual decline of 3.1 percent. In New Zealand dollar terms, prices fell 2.1 percent in the latest month and 6 percent in the year.
The commodity index comes after dairy product prices fell 4.2 percent in the latest GlobalDairyTrade auction overnight, the eighth straight decline, to a 16-month low. Economists say the drop in dairy prices mean the terms of trade, which reached a new 40-year high in the first quarter, is unlikely to push on to a record high any time soon………………………………………..Full Article: Source

SocGen launches new commodity index

Posted on 04 June 2014 by VRS  |  Email |Print

Riding on increased investment interest in commodities, Societe Generale has launched a new commodity index that changes its mix of products monthly based on seasonal factors. The Societe Generale Seasonal Factor Commodity Index, which the bank started introducing to clients a month ago, has been very well received, the bank said.
“Seasonality is one of the most powerful drivers of commodity returns,” said Mark Keenan, head of commodities research in Asia at Societe Generale. These can range from weather seasons which can increase demand for energy, to the start of Indian festivals that boost demand for gold………………………………………..Full Article: Source

Global ETP inflows hit $33.5bn in April, says BlackRock

Posted on 29 May 2014 by VRS  |  Email |Print

Year-to-date inflows in Europe bigger than those for the whole of 2013; Lyxor lists first ETF to track Euronext CAC PME index; commodity ETPs helped by precious metals and agriculture; ETFs tracking the healthcare sector see assets pass $1 billion.
Global exchange-traded product (ETP) inflows surged to a six-month high of $33.5 billion in April, representing the best April on record for the industry, according to figures from BlackRock. Europe-listed ETPs have attracted more assets in the first four months of 2014 than 2013 as a whole, resulting in $20.6 billion in inflows year to date………………………………………..Full Article: Source

Commodity Prices Slip Again in April: Scotiabank

Posted on 29 May 2014 by VRS  |  Email |Print

After a strong start to 2014, Scotiabank’s Commodity Price Index fell by 3.2% month-over-month (m/m) in April, the second consecutive monthly decline. The All Items Index is currently 1.3% below a year earlier.
“In the first half of 2014, the improvement in oil prices for Western Canada’s oil patch has been bolstered by a narrowing of the two price discounts which hurt earnings last year,” said Patricia Mohr, Scotiabank’s Vice President of Economics and Commodity Market Specialist. “Firstly, the Western Canadian Select (WCS) heavy crude oil discount off WTI oil declined to about US$21.57 per barrel (still high, but a US$4 improvement over a year ago). Secondly, the discount on WTI oil off Brent — the international benchmark — has also dropped to US$8 year-to-date (YTD). The net result, the S&P TSX Oil & Gas Exploration and Production Index has climbed by almost 16% YTD.” (Press Release)

Commodity Price Index At Lowest Since 2010

Posted on 06 May 2014 by VRS  |  Email |Print

‘The Reserve Bank can comfortably keep interest rates at exceptionally low levels over the near term. Whichever way you cut it, inflation is well and truly in check.’ -Savanth Sebastian, an economist at a unit of Commonwealth Bank of Australia
Australia is often called as a resource-rich economy, as huge part of the overall exports represents shipments of commodities, like ore, coal, petroleum, gas or non-monetary gold. The economy has benefited in the recent months from a commodity boom and strong investment into the mining sector. The most rapid pace of growth of commodity exports was registered between 1983 and 1992, when the exports climbed 7.0%………………………………………..Full Article: Source

Commodities comeback on the horizon

Posted on 05 May 2014 by VRS  |  Email |Print

Twelve months is a long time in investment. “2013 was a year when many investors may have questioned the role of certain asset classes, especially commodities,” says Nick Spencer, director of consulting at Russell Investments, after a year in which the Dow Jones-UBS commodity index lost 9.5 per cent but the Russell 3000 US equity index jumped 33 per cent.
So far this year the Dow Jones index has rebounded 9 per cent, and Hermes Fund Managers has declared the outlook for commodities to be its most propitious for a decade………………………………………..Full Article: Source

RBA commodity price index at 4-yr low

Posted on 02 May 2014 by VRS  |  Email |Print

The price of Australia’s export commodities fell to a new four-year low in April. The Reserve Bank of Australia’s index of commodity prices was 1.3 per cent lower in foreign currency terms in the month. Prices for base metals and rural commodities rose in the month, but these rises were outweighed by falls for iron ore, coking coal and gold.
The April level of the index was 28 per cent below the July 2011 all-time high in July 2011, and as low as it has been since March 2010. There is some prospect of more stable prices recently………………………………………..Full Article: Source

Gold Miners Index plays greater role in metals markets

Posted on 14 April 2014 by VRS  |  Email |Print

The American GDX Gold Miners ETF is slowly becoming the de-facto standard for measuring gold-stock performance. Nearing its eighth birthday, GDX has even usurped the venerable HUI gold-stock index as this sector’s metric of choice in many circles.
While GDX has advantages and disadvantages compared to the traditional HUI, it is an excellent gold-stock benchmark. But it still falls far short of individual stock picking………………………………………..Full Article: Source

Bloomberg takes over UBS commodities indices

Posted on 14 April 2014 by VRS  |  Email |Print

Bloomberg has negotiated a strategic partnership with UBS to allow its index business responsibility for governance, calculation, distribution and licensing of the bank’s commodity indexes. From 1 July, the indexes will be renamed from the Dow Jones-UBS Commodity Index Family to the Bloomberg Commodity Index Family.
“Benchmarks are at the heart of the financial system, and benchmark independence is key to the transparency and efficiency of global financial markets,” Bloomberg chief executive and president Dan Doctoroff said………………………………………..Full Article: Source

Commodities ETPs ride first quarter turmoil to post 7pct gains

Posted on 11 April 2014 by VRS  |  Email |Print

The DJ-UBS Commodity Index has risen 7 per cent in the first three months of 2014. During the volatile start to the year, commodity ETPs reversed a year of consecutive quarterly outflows, ETF Securities says. Globally, commodity ETPs took in $300m (£179m) of net inflows in the first quarter, taking the total invested in the space to $122.4bn.
Precious metals, particularly silver, saw the most money, receiving $354m net purchases, continuing strong inflows from 2013. Agricultural materials were the second most popular, attracting $217m, whilst industrial metals brought in $162m………………………………………..Full Article: Source

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