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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

UBS passes commodity index control to Bloomberg

Posted on 10 April 2014 by VRS  |  Email |Print

UBS has transferred control of one the world’s top indices for commodity prices to Bloomberg as banks retreat from setting financial benchmarks in the wake of the Libor scandal.
Governance, calculation, distribution and licensing of the Dow Jones-UBS Commodity Index will now fall to the financial data and media company, which plans to rename it the Bloomberg Commodity Index on July 1, said Srikant Dash, head of Bloomberg Indexes………………………………………..Full Article: Source

NZ: Commodity prices fall for first time in four months

Posted on 03 April 2014 by VRS  |  Email |Print

New Zealand commodity prices dropped for the first time in four months in March as cheese and milk powder declined. The ANZ Commodity Price Index fell 0.1 per cent to 337 from February. The index is 14 per cent above its level of March 2013. International prices for 10 of New Zealand’s main commodities increased in the month and three fell.
The price of whole milk powder led the decline, down 6 per cent, while prices for skim milk powder and cheese dropped 2 per cent. Dairy product prices fell 8.9 per cent in Fonterra Cooperative Group’s latest GlobalDairyTrade auction, the biggest drop in 20 months, as volumes increased…………………………………Full Article: Source

Financial markets focus on commodity prices

Posted on 13 March 2014 by VRS  |  Email |Print

The price moves are not for the most part very big, but it is beginning to look as if the markets are rolling over. The dollar, yen and Swiss francs are all relatively strong. Equity markets are under pressure. The MSCI Asia Pacific Index and the Emerging Equity Index are off 1.3%-1.5%. Europe bourses are also in the red, with the Dow Jones Stoxx 600 off almost 1%. Core bond yields are lower and the periphery higher.
There is much focus at the moment on the decline of copper, iron ore and crude oil prices. Copper prices continue to plunge. The 5% limit was hit in Shanghai. The four-session (though today) swoon, copper prices have fallen nearly 10%. The break of the $300 level is important as that represents the shelf that extends back to 2011………………………………………..Full Article: Source

Gold to oil climb as commodities reach six-month high on Ukraine

Posted on 04 March 2014 by VRS  |  Email |Print

Gains in everything from gold to oil drove commodities to the highest since September as Ukraine’s turmoil boosted the appeal of haven assets and fueled concern that energy and agricultural supplies will be disrupted.
The Standard & Poor’s GSCI Spot Index (SPGSCI) of 24 raw materials climbed as much as 2.1 percent to 663.48 yesterday, the highest since Sept. 9, and settled at 660.22 in New York. Crude oil jumped as much as 2.6 percent, wheat surged 7 percent, while gold increased 2.5 percent. Corn and gasoline also rose………………………………………..Full Article: Source

RBA commodity price index at 47-month low

Posted on 04 March 2014 by VRS  |  Email |Print

Export commodity prices fell in February to their lowest level in almost four years. The Reserve Bank of Australia’s index of commodity prices was 1.3 per cent lower in foreign currency terms in the month.
Coking coal and iron ore were the most important contributors to the monthly fall and were partly offset by a rising gold price, the RBA said on Monday. The RBA said the prices of many base metals fell, while many rural commodities enjoyed price rises………………………………………..Full Article: Source

Commodities rip higher. Good news?

Posted on 27 February 2014 by VRS  |  Email |Print

Commodity markets have rallied sharply over the past month. That could be good or bad. Good if it signals a recovery in the global economy. Bad if it’s mostly a result of Chinese financial speculation.
The Dow Jones-UBS Commodities Index has rallied 7% since mid-January and is now at the highest level it’s been since the end of last April. Indeed, the one-month rally is the strongest since the summer of 2012, when the euro crisis was finally broken by European Central Bank President Mario Draghi’s promise to do “whatever it takes” to rescue the single currency………………………………………..Full Article: Source

Commodity prices strengthen in January

Posted on 21 February 2014 by VRS  |  Email |Print

Scotiabank’s Commodity Price Index rallied back by 3.3% month-over-month (m/m) in January, after dropping sharply in late 2013. “Commodity prices are in the process of bottoming,” said Patricia Mohr, Scotiabank’s Vice President of Economics and Commodity Market Specialist.
“Prospects for a pick-up in the U.S. economy in 2014 and a slow recovery in Europe — in the context of a Chinese economy still growing by more than 7% — point to reasonable demand growth going forward, offsetting the challenges faced by some emerging markets in dealing with capital outflows linked to U.S. Fed tapering.”……………………………………….Full Article: Source

Commodities hit 2014 highs

Posted on 13 February 2014 by VRS  |  Email |Print

Commodities climbed to the highest since December as extreme weather fueled supply concerns for crops and energy at a time of rising imports by China, the world’s largest consumer of everything from metals to pork.
The Standard & Poor’s GSCI Spot Index of 24 commodities gained 0.3 percent to 636.4641 at 1:45 p.m. New York time after touching 639.9293, the highest since Dec. 30. Sugar headed for the biggest increase since Jan. 31, while natural gas advanced for a second day. Coffee was also among the biggest gainers, and cocoa reached the highest since 2011………………………………………..Full Article: Source

Commodities: Winter is coming

Posted on 04 February 2014 by VRS  |  Email |Print

A month into 2014, the winning position in the commodities market is to be frozen with fear—literally. Last year was, on average, another one to forget for investors in raw materials: The Dow Jones-Commodity index fell 10% against a 24% increase in the MSCI World Index of stocks. But those trends reversed in January. The MSCI index finished the month down 3.7%, while the DJ-UBS index eked out a slight gain.
But as rallies go, this one is at best a two-horse race. It is fortunate for investors in the DJ-UBS that its biggest component, weighing in at nearly 14.5%, is U.S. natural gas. Near-term gas futures returned about 18% in January amid America’s big freeze………………………………………..Full Article: Source

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Index changes shift commodity ETF exposure

Posted on 10 January 2014 by VRS  |  Email |Print

The annual rebalancing of two major S&P Dow Jones commodities indexes are going to result in massive buying of Brent crude oil and gold, and unloading of WTI crude and natural gas in the days ahead. The adjusting exposure should directly impact a roster of ETFs that either track one of these benchmarks directly, or that invest in those specific markets, all of which will be impacted by the move.
In a process that began Wednesday and should go on for five days, according to S&P Dow Jones, the rebalancing of the Standard & Poor’s Goldman Sachs Commodity Index and the Dow Jones-UBS Commodity Index will trigger roughly $2.7 billion in new buying in the Brent market, and some $1 billion in fresh gold demand……………………………..Full Article: Source

RBA commodity prices at 42-month low

Posted on 03 January 2014 by VRS  |  Email |Print

Australia’s export commodity prices ended 2013 on a weak note, falling to their lowest level in over three and a half years. The Reserve Bank of Australia’s index of commodity prices fell by one per cent in foreign currency terms between November and December.
Lower prices for gold, iron ore and coking coal were the main reasons for the latest fall, the RBA said. The fall in December brought the decline through 2013 to four per cent………………………………………..Full Article: Source

China launches daily iron ore price index

Posted on 03 January 2014 by VRS  |  Email |Print

China has launched a daily iron ore price index from this year, the China Iron & Steel Association (CISA) said on Thursday, as Beijing wants to have a bigger say in pricing the steel-making raw material.
The move is part of China’s latest effort to shift pricing benchmarks for commodities from West to East as it has launched a series of futures contracts from iron ore to eggs………………………………………..Full Article: Source

Commodity prices fall but still high

Posted on 04 December 2013 by VRS  |  Email |Print

Commodity prices fell for the first time in five months in November, dragged down by falls in aluminium and some dairy products. The ANZ Commodity Price Index eased 0.4% to be 21.4% higher than a year ago. The index is now 2% below the record high reached in April.
Aluminium recorded the largest fall across the commodity basket, dropping 4% to a four-year low, while wholemilk powder and butter also eased. This was partly offset by higher prices for meat, skins, wool and other dairy products. The price index edged higher in New Zealand dollar terms………………………………………..Full Article: Source

RBA commodity price index lifts in November

Posted on 03 December 2013 by VRS  |  Email |Print

Export commodity prices started rising again in November. The Reserve Bank of Australia’s (RBA) index of commodity prices was 0.1 per cent higher in the month, in Special Drawing Rights (SDR) terms, after falling by 0.4 per cent in October.
The price index is measured in terms of special drawing rights (SDRs), an average of four major currencies - the US dollar, euro, Japanese yen, and British pound. The RBA said prices for gold, coking coal and wheat fell……………………………….Full Article: Source

Canadian Commodity Index declines along with oil and gas prices

Posted on 29 November 2013 by VRS  |  Email |Print

For a third month in a row, commodity prices have fallen in Canada, according to the latest Scotiabank Price Index. It shows prices were down by 3.8 per cent, with the Oil and Gas Sub-Index leading the decline down 8 1/2 percentage points in October.
Patricia Mohr, an economist with Scotiabank, said the main reasons for the decline are lower oil prices and a buildup of light oil in the United States. She also noted transporting product has been a problem, as Albertans are getting around $26 less per barrel than the world market, but she said railways are starting to pick up the slack………………………………………..Full Article: Source

Rogers commodity index cuts 2014 US crude weighting; adds to natgas

Posted on 28 November 2013 by VRS  |  Email |Print

Rogers International Commodity Index (RICI), managed by veteran investor Jim Rogers, will cut its weighting toward crude oil next year and raise exposure to natural gas, gold and silver, due to what Rogers termed “consumption changes”.
The shift in weightings of the RICI comes amid projections for higher U.S. crude oil supplies in 2014, which some analysts say could further weigh on weakening prices. U.S. natural gas production is also expected to rise next year, although gas prices have been trending higher lately due to cold weather in key consuming regions of the country………………………………………..Full Article: Source

Charts: Commodity indices continue to struggle

Posted on 14 November 2013 by VRS  |  Email |Print

It is one of the more obscure anecdotes of pop music history: Bobby Fuller’s classic “I Fought the Law” was originally entitled, “I fought the idea of long-only commodity indices as an investment, and it won.” I bought the rights to the latter and the rest, they say, is history.
The idea that physical commodities as a group or individual physical commodities taken separately can offer some measure of protection against inflation and/or currency debasement has a lot of appeal on the surface, but really has none underneath………………………………………..Full Article: Source

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