The big divergence over the past few months in the direction of the S&P 500 and copper, which historically trade in tandem, has one strategist questioning which market is getting it wrong.
David McAlvany, CEO, McAlvany Financial Group said it doesn’t make sense that S&P 500 should motor higher, while the sell-off in copper continues………………………………..Full Article: Source

The decline in Scotiabank’s Commodity Price Index in April was quite mild - down 0.2% month-over-month (m/m) - despite a sharp mid-month selloff in gold and talk of an end to the ‘Super-Cycle’ in commodity prices. “Financial market concern over the outlook for commodity markets was overblown mid-month,” said Patricia Mohr, Scotiabank’s Vice President of Economics and Commodity Market Specialist.
“While China’s Gross Domestic Product (GDP) slowed to 7.7% year-over-year (y/y) in 2013:Q1, from 7.9% in 2012:Q4, actual demand for raw materials was robust in China. The double-digit growth of China’s passenger car market, up 20% in Q1, reinforces its importance as a driver of growth in worldwide auto demand and related commodities such as copper.”……………………………………….Full Article: Source

Here’s something unexpected: commodity prices have actually been rising, at least according to Bank of Nova Scotia’s monthly commodity price index.The index rose in March by 1.6 per cent over February and inched up slightly in the first quarter as a whole.“Firmer overall prices in March – likely a surprise to financial markets – were led by the oil and gas index (+6.8 per cent month over month),” Scotiabank said.
In the plus column were Western Canadian heavy oil, natural gas export prices to the U.S., and propane prices, and for non-energy commodities, forest and agricultural products………………………………………..Full Article: Source

Scotiabank’s Commodity Price Index rose by 1.6% month over month (m/m) in March, after edging down in February, and inched up slightly in the first quarter of 2013 from the fourth-quarter average. However commodity markets remain skittish, with a sharp selloff in gold in mid-April and softer base metal prices, after the release of China’s slower-than-expected first-quarter GDP advance, 7.7% year over year (yr/yr), down from 7.9% in 2012:Q4.
“Firmer overall prices in March were likely a surprise to financial markets,” said Patricia Mohr, Scotiabank’s Vice President of Economics and Commodity Market Specialist. “The advance was led by the Oil and Gas Index (+6.8% m/m), with gains in Western Canadian Select (WCS) heavy oil, natural gas export prices from Canada to the U.S. and liquefied petroleum gas (LPG) prices in Edmonton and Sarnia.” (Press Release)

Commodity prices nudged up slightly in March just ahead of the steep sell-off in gold mid-April. Scotiabank’s Commodity Price Index rose 1.6 per cent month over month. Traders are bracing for more uncertainty following a reality check in China’s economic growth, which rose less than expected at 7.7 per cent in the first quarter of 2013.
Oil and gas was the strongest sub-category as prices rose 6.8 per cent from February. Natural gas reached its highest level since July 2011 as the winter dragged on in North America………………………………………..Full Article: Source

It would be logical to assume that the rise in China’s official Purchasing Managers’ Index to an 11-month high would signal stronger commodity demand, but this isn’t guaranteed.
What the increase in the PMI to 50.9 in March from February’s 50.1 does show is that the modest expansion in China’s economy remains on track. At these levels gross domestic product growth should easily achieve the government’s 7.5 percent target for 2013, and is more likely to be closer to 8 percent………………………………………..Full Article: Source

The ANZ Commodity Price Index rose 7.4% in March, led by whole milk powder, pelt, butter and skim milk powder prices, in its third strongest monthly rise ever. ANZ economist Steve Edwards said the index, at 296.1, was now just 6% below its all time high, which was recorded in April 2011.
The only two months when the index has risen by more are November 2009 and April 1986 when it posted 11.13% and 8.84% increases, respectively. “Underpinning the latest lift was a strong jump in dairy and pelt prices,” says Edwards………………………………………..Full Article: Source

The CRB Index, an excellent gauge of commodity prices per se, ended a few ticks in the red, nearly unchanged. There was some weakness with the pork complex, feeder cattle and a few soft or tropical markets but otherwise, the session was subdued with the Index appearing dead in the water. But keep in mind that Thursday and Friday of last week, the Index posted impressive, ‘back to back’ gains making yesterday, a day of rest.
Despite the CRB doing little, there were several interesting developments yesterday that I found compelling. For starters, there was front month March oat futures that that hit a high of $4.283/4 a bushel and settled at $4.23, up 183/4 cents. From the low last Thursday of $3.90 to yesterdays high the market has rallied nearly 10%, visiting a level not seen since June, 2011………………………………………..Full Article: Source

Prices for New Zealand’s main commodities rose for the seventh consecutive month in February, bolstered by some dairy and forestry products and meat, a survey showed on Monday. The ANZ Bank’s commodity price index gained 1 per cent on the previous month, following the rise after a 0.3 per cent rise in January.
The series has gained 9 per cent since its low point last July but is 13 per cent below its record high in April 2011. Ten of the 17 commodity groups rose in price, two were weaker, and five flat………………………………………..Full Article: Source

Commodity prices started the year on a stronger note, rising 3.8 per cent month-over-month in January after losing significant ground late in 2012, according to the Scotiabank commodity price index.
“Riskier assets such as commodities and equities were buoyed in January by the 2012 fourth-quarter improvement in China’s economy,” the bank’s commodity market specialist Patricia Mohr said in remarks accompanying the release of the index Wednesday. “However, market conditions remain skittish, with some industrial commodity prices and equity markets easing back again in late February.”……………………………………….Full Article: Source

Bovespa stock-index futures fell as commodities declined on concern Italy’s elections may reignite Europe’s debt crisis, curbing global growth and demand for Brazil’s exports.
State-controlled oil company Petroleo Brasileiro SA (PETR4) retreated in Frankfurt trading as oil reached a seven-week low in New York. Water utility Cia. de Saneamento de Minas Gerais may be active after reporting profit that beat estimates………………………………………..Full Article: Source

A downturn in China’s investment cycle could push down global prices for some commodities, such as iron ore, by up to 12%, according to new study by Standard & Poor’s Ratings Services (S&P).
In a study entitled “The Investment Overhang: If China’s Investments Dip, Commodity Prices May Slip” released on Feb 25, S&P found a strong correlation between movements in China’s investment-to-GDP ratio and prices for commodities such as iron ore and coal………………………………………..Full Article: Source

Bovespa stock-index futures fell, signaling the stock gauge may retreat for a seventh day, as commodities declined on concern China’s property curb and contraction in the euro region will sap global growth.
Iron-ore mining company Vale SA (VALE3) slid in Frankfurt trading. Steelmaker Gerdau SA (GGBR4) may be active after reporting profit in the fourth quarter missed analysts’ estimate…………………………………….Full Article: Source

Yesterday, I watched the stock market fall because some members of the Federal Reserve wanted to end its quantitative easing (QE) program before hitting its target of 6.5% unemployment. The reason some Federal Reserve members want to end QE early was the risks further QE could have on the economy and inflation.
If the Federal Reserve removes or slows down QE, I believe the market could be in for a correction. With the stock market sitting near a five-year high, I believe this would be a prudent time to think about the investment landscape and see what investment options make sense for the possible coming correction…………………………………….Full Article: Source

With India’s commodity trading volumes more than doubling through the past three years, many global commodity indices majors are now considering India one of the most promising markets for commodity indices trading.
S&P Dow Jones Indices (S&P DJI) feels the potential for commodities indices trading in the Indian market is immense. “India’s commodity market is growing big. More and more investors are now getting into commodities trading. We are looking at India and the entire Asia as a potential market for S&P indices,” said Daniel Ung, associate director (index research & design group), S&P DJI…………………………………….Full Article: Source

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Leading interdealer brokers in the European energy markets, ICAP, Marex Spectron, and Tullett Prebon, today launch ‘Tankard,’ a series of trade-backed natural gas indices for UK and European hubs. The Tankard indices will initially cover the four leading traded natural gas hubs in Europe – the UK National Balancing Point ( NBP), Dutch Title Transfer Facility (TTF), German NetConnect Germany (NCG) and GASPOOL.
Each Tankard index is calculated exclusively using transaction prices for contracts for physical delivery at their respective hub, executed via one of the three brokers that comprise Tankard. ICAP, Marex Spectron, and Tullett Prebon provide comprehensive coverage of the OTC natural gas market……………………………………….Full Article: Source

New Zealand commodity prices rose for a sixth straight month in January led by increasing pelt prices, though the strength of the kiwi dollar ate into the benefits for local producers.
The ANZ Commodity Price Index rose 0.3% last month to a 10-month high of 272.6. In local currency terms, the index fell 0.5% to 177.2, its second monthly decline. The price of pelts climbed 55 to a 12-month high, followed by a 3% gain in log prices and a 2% increase in skim milk powder prices……………………………………..Full Article: Source

The Scotiabank Commodity Price Index declined by 4.6% month-over-month (m/m) in December, reflecting a sharp drop in the Oil and Gas Index (-14.6% m/m).
“Western Canadian Select (WCS) heavy crude oil led the decline, plunging from US$72.47 to a mere US$57.84 per barrel in December,” said Patricia Mohr, Vice President, Economics and Commodity Market Specialist at Scotiabank. “While West Texas Intermediate (WTI) oil prices edged up to US$88.25 last month, the WCS discount off WTI ballooned to US$30.41 and will climb further to US$32.84 in January and US$36.94 in February.” (Press Release)

UBS plans to grow its commodities index business even as the firm winds down its fixed income unit, retaining what bank executives see as an important product for UBS’s wealth management clients.
Edmund Carroll, UBS’s global head of commodities trading, will be relocating from London to New York, bank executives told Reuters during an interview this week. He will report to Roger Naylor, global head of equity derivatives………………………………………..Full Article: Source

New Zealand commodity prices rose for a fifth straight month in December, led by a surge in pelt prices and gains for aluminium and beef, though a strong New Zealand dollar eroded the benefits to local producers.
The ANZ Commodity Price Index rose 1% in to be 7% up since July last year. The index is still 14% below its April 2011 peak. The NZD Commodity Price Index fell 0.1% “as the lift in the value of the kiwi dollar was greater than the rise in international commodity prices,” ANZ said………………………………………..Full Article: Source

The Tokyo Commodity Exchange, Inc. (TOCOM) and Nikkei Inc. announced today a name change of the Nikkei-TOCOM Commodity Index as of February 12, 2013. This change only applies to the Japanese language name. The two companies have been jointly calculating and publishing the index since 2009.
This coincides with TOCOM’s Japanese-language name, which is scheduled to be updated on February 12 with the launch of Agricultural Product and Sugar Market (pending regulatory approval). TOCOM’s corporate name and the names of the indexes in English will remain unchanged………………………………………..Full Article: Source

Global index company FTSE Group has launched a rules-based, long-short index, the FTSE Dynamic Commodity Index. Announcing the launch of the new product this week, the company said it was derived from Professor John M. Mulvey’s risk management and portfolio allocation approach – Dynamic Portfolio Tactics.
It said the new index would provide investors with transparent and efficient exposure to global commodity markets, via a proprietary regime-shifting approach, which seeks to capture discrete changes in economic data to guide positive or negative commodity weightings………………………………………..Full Article: Source

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Brazil’s IC-Br commodities index, published by the central bank to track prices for a basket of basic goods, edged higher in November from the previous month on a spike in energy prices.
The composite IC-Br rose from October to 135.41 points, the Brazilian Central Bank said Wednesday. The index is up 8.9% since the start of 2012 and 8.3% higher than in November 2011. The IC-Br’s subindex for energy commodities such as Brent crude, natural gas and coal rose 2.8% last month, to 101.83 points, its highest level in at least two years………………………………………..Full Article: Source

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Australia’s export commodity prices rose slightly in November but are still well below their mid-2011 peak, Reserve Bank of Australia (RBA) figures show. The RBA’s index of commodity prices in November was 1.7 per cent higher in foreign currency terms compared with October, when it hit a two-year low.
Despite the small bounce in November, the index was still down by 18.3 per cent from its peak in July last year. Even after the downward trend from mid-2011, the index is still up by 191 per cent from where it was in late 2003, before a global economic recovery and China’s rapid industrialisation supercharged demand for minerals………………………………………..Full Article: Source

After two months of strong gains, Scotiabank’s Commodity Price Index edged down in October by 0.2% month over month. Risk aversion returned mid-month, alongside another bout of concern over the outlook for global growth. The All Items Index currently stands 14.1% below the near-term peak in April 2011 - just prior to the advent of financial market concern over excessive Eurozone sovereign debt - and has fallen by 5.2% this year.
“Oil and gas prices rose across the board in October, with firmer natural gas and propane prices in Edmonton and Sarnia, as well as slight gains in light and heavy crude oil in Alberta,” said Patricia Mohr, Vice President, Economics and Commodity Market Specialist at Scotiabank………………………………………..Full Article: Source

Banks are struggling to devise new commodity index products as once-fat returns fizzle out in a business worth $140 billion, putting pressure on bank commodity businesses already hit by tighter regulations.
Up until this year, the banks had managed to come up with fresh ways of perking up returns for the index products and retain uneasy investors, who still see commodities as a bet against inflation. As a flood of money into the sector has diluted returns, however, now even many of the complex products spiced up with computer algorithms are underperforming, and some investors are questioning their commitments to the sector………………………………………..Full Article: Source

An index of currency-focused hedge-fund performance declined in October, as investors struggled to keep up with shifting market sentiment in the face of rising political uncertainty.
Parker Global, an investment firm that tracks the performance of funds in which it invests, said its currency-managers index fell 0.73% in October from the previous month. The CMI is nearly flat so far this year, gaining just 0.14% since Jan. 1. Compared with last October, the index is up 4.3%, according to an emailed statement from Parker Global………………………………………..Full Article: Source

The world’s leading financial index group sowed hours of confusion in global oil markets late on Monday when it accidentally reversed the new crude oil weightings of the top commodity index, the S&P GSCI.
S&P Dow Jones Indices, owned by McGraw Hill unit Standard & Poor’s, said on Tuesday that it had inadvertently mislabeled a table showing how investors should allocate an estimated $80 billion of funds that track the index for 2013. The new weights were listed under a “2012″ heading, while this year’s were listed as new figures for “2013.”……………………………………….Full Article: Source

The S&P GSCI index, one of two leading commodity indices for investors, will boost the share of U.S. WTI crude oil futures by 6.25 percentage points next year while cutting European benchmark Brent by 4 percentage points, owner S&P Dow Jones Indices said on Monday.
The changes in crude oil weights, the only significant adjustments in this year’s rebalancing of the 24 components, is a reversal of last year’s trends, when many indices added Brent or boosted its share. But production of Brent-type crudes is diminishing, while U.S. oil output is growing swiftly………………………………………..Full Article: Source

Australia’s export commodity prices fell to a two-year low in October according to Reserve Bank of Australia (RBA) figures. The RBA’s index of commodity prices in October was 3.5 per cent lower in foreign currency terms compared with September, and down by 19.5 per cent from its peak in July last year.
The October level was the lowest for the index since October 2010. The index is now less than one per cent above the high point seen in September 2008, just ahead of the descent of global financial markets into crisis and consequently the slump in commodity prices that bottomed out in May 2009………………………………………..Full Article: Source

The Baltic Exchange’s main sea freight index, which tracks rates for ships carrying dry commodities, fell on Thursday as capesize rates weakened for the third straight day.
The overall index, which reflects daily freight market prices for capesize, panamax, supramax and handysize dry bulk transport vessels, fell 2.53 percent to 1,000 points. The Baltic’s capesize index fell 2.65 percent to 2,355 points………………………………………..Full Article: Source

For years, issuers and investors alike have been trying to find unique ways to slice and dice the commodity market to find the best returns. Some prefer to buy into depressed assets, while others have employed strategies that focus in on a specific segment of the broad space.
But for every methodology out there, the volatility of the commodity world will, at some point, throw a wrench into even the best laid plans. It is not unusual to see some of these assets move by 3% or 4% in a single trading session, a double-edged sword for traders………………………………………..Full Article: Source

After a strong gain in August, Scotiabank’s Commodity Price Index continued to rally in September.
“Easier monetary policy and liquidity injections by the European Central Bank, the Fed and the Bank of Japan boosted investor and business confidence in September,” says Patricia Mohr, vice president, and economics and commodity market Specialist at Scotiabank………………………………………..Full Article: Source

Interest in commodity investments has boomed in recent years, and billions of dollars have poured into the space, most noticeably in the form of exchange-traded products. With so many choices out there, it’s well worth taking the time to highlight special cases that may offer investors unique opportunities; the United States Commodity Index Fund (USCI) is one such fund.
Launched in August of 2010, USCI takes a more active rules-based approach to commodity investing. The fund is designed to track the SummerHaven Dynamic Commodity Index Total Return, an index that selects 14 of a possible 27 commodities each month………………………………………..Full Article: Source

Commodities declined, erasing this year’s advance, on speculation that demand for energy, industrial metals and some agricultural products will slump because of the sluggish global economy.
The Standard & Poor’s GSCI Spot Index (MXWD) of 24 raw materials fell 1.4 percent to settle at 639.3 at 4 p.m. New York time. Earlier, the gauge touched 635.1, the lowest since Aug. 3. The measure also erased 2012 gains in May and July. The last annual drop was in 2008………………………………………..Full Article: Source

Active investment fund managers have been arguing that indexing is causing securities to move in tandem. We’ve seen that the story isn’t true for small-cap stocks, and today we turn our spotlight on the commodities markets. By examining the year-to-date returns of individual commodities, we’ll demonstrate that the same findings we saw in the stock market hold true across markets and asset classes.
To test whether indexing has affected commodities, we’ll look at the changes in prices for some of the commodities within the S&P GSCI Index………………………………………..Full Article: Source

The Reserve Bank of Australia’s (RBA) index of commodity prices fell 1.3 percent in September, from August, when measured in special drawing rights (SDR) terms.
The drop followed a revised 2.8 percent fall in August. The largest contributors to the fall in August were declines in the prices of iron ore, coal and oil. The prices of rural commodities also declined, while prices for aluminium and gold rose in the month………………………………………..Full Article: Source

Commodities are the necessary building blocks of the world. Glance around you. The world’s seven billion people need resources, and that’s why we recommend investors consistently allocate a portion of their portfolio to a natural resources investment.
Not every investment is the same, though. Even within the commodities space, when looking at measures such as correlation, performance and risk, two indexes can have very different effects on a portfolio‘s results………………………………………..Full Article: Source

New Zealand commodity prices rose for a second month in September, in the strongest monthly gain in a year-and-a-half, led by skim milk powder and aluminium. The ANZ commodity price index rose 3.5 per cent last month, about 14 per cent weaker than the same month a year ago. Excluding dairy prices the index rose 0.5 per cent.
The largest increase was shared by skim milk powder and aluminium, both up 11 per cent, followed by butter and whole milk powder up 8 per cent, wool and apple prices gaining 6 per cent, cheese climbing 5 per cent, venison up 2 per cent and logs and beef rising 0.5 per cent………………………………………..Full Article: Source

The Baltic Exchange’s main sea freight index, which tracks rates for ships carrying dry commodities, fell on Wednesday as rates for panamax and capesize vessels weakened.
The main index, which factors in the average daily earnings of capesize, panamax, supramax and handysize dry bulk transport vessels, fell 1 point or 0.15 percent to 661 points………………………………………..Full Article: Source

The US Dollar Index is an index (or measure) of the value of the United States dollar relative to a basket of foreign currencies. Generally dollar index goes up when US Dollar gains against other currencies. It a indication of US Economic activity or any other activity which can strengthen or weaken US dollar.
Commodities typically follow and inverse relationship with the value of the dollar. When the dollar strengthens against other major currencies, the prices of commodities typically drop. When the value of the dollar weakens against other major currencies, the prices of commodities generally move higher………………………………………..Full Article: Source

The Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry commodities, fell for the seventh straight session on Thursday as rates for both capesize and panamax vessels continued to weaken.
The main index, which factors in the average daily earnings of capesize, panamax, supramax and handysize dry bulk transport vessels, fell 9 points or 1.32 percent to 675 points. The overall index, which gauges the cost of shipping commodities such as iron ore, cement, grain, coal and fertiliser, has fallen about 61 percent this year………………………………………..Full Article: Source

The ANZ’s New Zealand commodity price index rose by 0.5 per cent in world price terms in the month of August following seven consecutive months of decline, the bank said.
The rise in New Zealand’s commodity prices contrasts with a 3 per cent fall in the Reserve Bank of Australia’s index of commodity prices for Australia. Nevertheless, commodity prices in both countries are roughly 15 per cent weaker than a year ago, ANZ said………………………………………Full Article: Source

The Reserve Bank of Australia’s (RBA) index of commodity prices fell 3 percent in August, from July, when measured in special drawing rights (SDR) terms.
The drop followed a revised 0.9 percent increase in July. The largest contributors to the fall in August were declines in the prices of iron ore and coking coal. The prices of rural commodities and base metals also declined, while prices for oil and gold rose in the month……………………………………..Full Article: Source

Scotiabank economist Patricia Mohr says only pipeline expansion to the B.C. coast will ease the massive price discrimination faced by western Canadian oil producers.
Mohr, a commodity markets specialist, made the observation Thursday in a commentary accompanying the bank’s monthly commodity price index. Scotiabank’s All Items Index declined 0.4 per cent month over month in July, though the pace of decline slowed from June’s sharp four per cent drop………………………………………..Full Article: Source

The Chinese economy has been slowing for some time as part of a controlled economic soft-landing initiated by the Chinese government, which was becoming increasingly concerned by a growing property bubble and spiraling inflation.
Price inflation for agricultural products and basic food stuffs was a major concern because the average Chinese consumer, with a low average wage, is particularly price sensitive to consumer staples………………………………………..Full Article: Source

The Baltic Exchange’s main sea freight index, which tracks rates for ships carrying dry commodities, rose on Monday, as higher capesize rates offset the softer panamax rates.
The overall index, which gauges the cost of shipping commodities such as iron ore, cement, grain, coal and fertilizer, rose 2 points or 0.28 percent to 717 points. The main index, which factors in the average daily earnings of capesize, panamax, supramax and handysize dry bulk transport vessels, has fallen about 59 percent this year………………………………………..Full Article: Source

Stocks jumped, sending the Standard & Poor’s 500 Index to the highest level in four months, as Cisco Systems Inc.’s sales topped estimates, U.S. building permits surged and speculation grew that Spain will get a bailout. Commodities rallied and the euro strengthened.
The S&P 500 rose 0.7 percent to 1,415.51 at 4 p.m. in New York, its highest closing level since April 2. Wheat jumped 1.8 percent and oil topped $95 a barrel for the first time in three months to lead the S&P GSCI Index of commodities to the highest level since May………………………………………..Full Article: Source

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Everyone knows that gold is one of the most prolific commodities of all time, as its store of value has been coveted by people across the world for centuries. But another commodity is equally as popular among the wealthy though its presence is relatively unknown.
Diamonds are an extremely lucrative hard asset that may soon become the next big commodity given a recent filing. GemShares, a Chicago-based firm is expected to secure a patent to create an index for diamond pricing which can then be applied to futures contracts and ETFs and so on………………………………………..Full Article: Source

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Everyone knows that gold is one of the most prolific commodities of all time, as its store of value has been coveted by people across the world for centuries. But another commodity is equally as popular among the wealthy though its presence is relatively unknown.
Diamonds are an extremely lucrative hard asset that may soon become the next big commodity given a recent filing. GemShares, a Chicago-based firm is expected to secure a patent to create an index for diamond pricing which can then be applied to futures contracts and ETFs and so on……………………………………….Full Article: Source