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Rabobank Report Projects Better Commodity Prices Ahead?

Posted on 30 November 2016 by VRS  |  Email |Print

A recent Rabobank report projects a rise in global demand should bring a three-year decline in commodity prices to an end. Nebraska Farm Bureau Senior Economist Jay Rempe says that outlook should give hope to farmers and ranchers who have been struggling through the downturn in the farm economy.
He agrees with Rabobank officials that global demand for U.S. commodities is improving, especially for beef and pork as the income and diets of consumers improves around the world. Rempe is hoping the incoming Trump administration will work with ag commodity groups to expand export markets………………………………………..Full Article: Source

Goldman Commodities Outlook: Metals & Oil Strength, Gold Suffers

Posted on 29 November 2016 by VRS  |  Email |Print

Commodities analysts at Goldman Sachs raised their outlook for base metals prices on Monday with currencies as a tailwind, but lowered their gold projection and offered a mixed outlook for Australia-based metals producers as the commodities cycle peaks.
The upward revisions included prices for iron ore, hard coking coal, oil & base metals (Aluminum, Cu, Zinc, Pb & Nickel) on 3- 6- and 12-month basis. The Goldman analysts Craig Sainsbury, Meredith Schwarz and Ken Lek see strength in the Australian dollar and U.S. dollar………………………………………..Full Article: Source

A Note On Gold And India – What Is Driving The Gold Price?

Posted on 29 November 2016 by VRS  |  Email |Print

It is well-known that India’s government wants to coerce its population into “modernizing” its financial behavior and abandoning its traditions. The recent ban on large-denomination banknotes was not only meant to fight corruption.
In fact, as our friend Jayant Bhandari has pointed out, fresh avenues for corruption immediately opened up upon enactment of the ban. It is a nigh apodictic certainty that governments are lying – whether outright or by omission – when they impose such drastic measures. It should be clear how the State operates once one recognizes its true nature and realizes that “we” are definitely not the State………………………………………..Full Article: Source

Trump Administration to Rev Up Global Growth, Says OECD

Posted on 29 November 2016 by VRS  |  Email |Print

If all goes according to plan, a group of international economic experts believe President-elect Donald Trump’s incoming administration will help the world economy grow faster than anticipated over the next few years.
The Organisation for Economic Cooperation and Development on Monday revised its growth outlook for the U.S. and the world economy as a whole. Thanks in part to expected tax cuts, fiscal policy revisions and infrastructural investments, the group now expects the American economy to grow 2.3 percent in 2017 and 3 percent in 2018………………………………………..Full Article: Source

As the commodity mega-boom winds down, the mini-boom gathers steam: Russell

Posted on 25 November 2016 by VRS  |  Email |Print

As the once-in-a-lifetime commodity boom winds down, a key concern has been what is going to replace the mega-projects built to feed China’s appetite for natural resources. The huge minerals and energy projects that were both the solution and the demise of the China-inspired commodity super-cycle are unlikely to be repeated any time soon, but developments in Australia show it’s not all doom and gloom.
Australia was one of the biggest beneficiaries of the dramatic rise in China’s demand for commodities, with more than A$400 billion ($300 billion) being spent in the last decade………………………………….Full Article: Source

Commodities set for an ‘extraordinary bull run’, argue Schroders managers

Posted on 25 November 2016 by VRS  |  Email |Print

Managers at Schroders explain why commodities should outperform in 2017 and give their three resources investors should look at to capitalise on this. Commodities have been a very disappointing area to be invested over the past few years but they could be at the start of another “extraordinary” bull run, according to the team at Schroders.
Gavin Ralston, head of official institutions, said: “Commodities have been a very disappointing place to invest for some time. “The return on the broad commodities indices was negative and that was of course at a time when equities and bonds were giving pretty strong inflation-adjusted returns.”…………………………………Full Article: Source

Commodity bulls may be about to hit a wall

Posted on 24 November 2016 by VRS  |  Email |Print

Rampant speculation and exaggerated hopes of a Trump-led boom have fuelled a blistering rally in industrial metal prices. Oil is perking up and talk of a new commodity super cycle is suddenly on everybody’s lips.
It is as if we were returning to the glory days of breakneck industrialisation in China and the rising powers of Asia, but this time the bulls risk bitter disappointment. A hauntingly strong dollar is watching like Banquo’s ghost over the party. Sceptics warn that the market is already starting to fray at the edges, and signs are growing China’s latest recovery is about to fade…………………………………Full Article: Source

Challenges to the global economy

Posted on 24 November 2016 by VRS  |  Email |Print

In this tribute to their teacher, Prabhat Patnaik’s former students put together a volume that covers three major themes: the internal contradictions of capitalism, the growth of the Indian economy and the feasibility of socialism.
Prabhat Patnaik, a frequent contributor to Frontline, is currently Professor Emeritus at Jawaharlal Nehru University and has been one of India’s most renowned economists and public intellectuals. The volume under review contains essays contributed entirely by Patnaik’s former students, especially those whom he guided in their doctoral work…………………………………Full Article: Source

China-led commodities rally about to run out of steam

Posted on 23 November 2016 by VRS  |  Email |Print

All that Trump campaign chatter about making America great again has done wonders for the US dollar. This past week the greenback hit 13-year highs. Another asset class having a storming year: shares in mining companies. The MSCI world metals and miners index is up 90 per cent from its January low. Yet history suggests the two cannot rally in tandem for long.
The surge in metals and miners is largely down to China. Demand there is key to most metals, not least steel. At the start of this year, worry-worts moaned about an imploding Chinese steel industry exporting cheap steel elsewhere………………………………………Full Article: Source

Goldman Bullish on Commodities Amid Mining’s Accelerating Rally

Posted on 23 November 2016 by VRS  |  Email |Print

Commodities are back in favor, boosting oil producers and miners after their annus horribilis of 2015. The Bloomberg Commodity Index is set for its biggest three-day advance since June, led by gains in oil and industrial metals. That’s pushed shares of mining companies close to their highest this year, with Anglo American Plc and Glencore Plc gaining almost 5 percent on Tuesday. Energy companies also rose, with Tullow Oil Plc up 2.2 percent.
Goldman Sachs Group Inc. said investors should bet on higher prices in the next year as manufacturing picks up around the world, the first time the bank has recommended an overweight position for the asset class in more than four years………………………………………Full Article: Source

Goldman Overweights Commodities for First Time in Four Years

Posted on 22 November 2016 by VRS  |  Email |Print

Goldman Sachs Group Inc. said investors should bet on higher commodities prices in the next year as manufacturing picks up around the world, the first time the bank has recommended an overweight position for the asset class in more than four years.
Purchasing managers’ indexes strengthened in all major regions in October, helping to spur gains in iron ore, copper and other base metals. Goldman raised its iron ore price forecasts, citing an unexpected resilience in steel usage and a demand boost coming from broad restocking, as well as its oil price estimates into next year…………………………………….Full Article: Source

Growth forecasts for EM economies finally looking up

Posted on 22 November 2016 by VRS  |  Email |Print

Economic growth projections for emerging markets are finally starting to show signs of restoration from modest levels, having bottomed in the second quarter of this year. The ensuing rebound has steadily been translating into more positive earnings expectations after a lengthy period of net downward revisions.
The early signs of a breakout from these negative ranges have been encouraging, although the breadth of the breakout is likely to be a slow-burn process…………………………………….Full Article: Source

With Trump And Brexit, Is The Global Economy In Danger?

Posted on 22 November 2016 by VRS  |  Email |Print

The popular mobilisation in Europe has given an immense impetus to the conservative polity who maintain the status quo in the world. The rise of ‘protectionist’ politics through democratic and populist processes has questioned the effectiveness and sustainability of the neoliberal economic order.
Upon close observation, one can note how both Britain and the United States of America who have been the biggest players in the neoliberal economy are gradually seeking a different economic model. Both Brexit and the electoral victory of the infamous Donald Trump have exposed the inequities that the neoliberal economy had covered under the facade of a ‘competitive market economy’…………………………………….Full Article: Source

Commodities: Is the bull market out of puff as speculators run for the exits?

Posted on 21 November 2016 by VRS  |  Email |Print

For the commodity bulls out there, the past few months have been rollicking fun. Coking coal prices have tripled since mid-year and iron ore has doubled since January. However, in the past week or so, the news flow has turned somewhat negative.
Iron ore and coking coal futures have endured some stunning reversals — iron ore falling 8 per cent on Wednesday alone — as speculators took their profits and ran……………………………………Full Article: Source

OPEC Math Misses the Point

Posted on 21 November 2016 by VRS  |  Email |Print

Saudi Arabia’s energy minister Khalid Al-Falih said Thursday he’s “optimistic” that the agreement OPEC reached in September to limit supply will be implemented, with individual output ceilings for member countries. But don’t mistake him for a pushover.
The economics of a cut are compelling, but there’s more to it than just doing the math — and this could mean the group fails to reach a deal when it meets in Vienna on Nov. 30. An output cut of just over 1 million barrels a day would only have to boost prices by $1.60 a barrel for producers to be better off……………………………………Full Article: Source

Commodities set for rebound in 2017

Posted on 18 November 2016 by VRS  |  Email |Print

The commodities markets are rebalancing and the worst is over for the oil market, as a slowdown in production is setting prices up for a steeper rebound than predicted at the beginning of the year, Citigroup analysts said.
“Saudi and Russia are expected to spearhead the rebalancing efforts in the oil markets. With strong recovery in oil prices experienced in the past few moths we expect further recovery in 2017,” said Ed Morse, Global Head of Commodities at Citi……………………………………..Full Article: Source

China needs a bigger hammer to beat down commodity prices: Russell

Posted on 16 November 2016 by VRS  |  Email |Print

China may need a bigger mallet to hammer the nation’s commodity investors and take the wind out of what Beijing believes is a speculative bubble in prices for natural resources.
A raft of new measures were announced last week aimed at increasing costs for investors using the domestic commodity exchanges, the latest salvo from the authorities in their ongoing attempts to control commodity markets. But evidence from the first week of the increased fees and margins is mixed as to how successful they have been………………………………….Full Article: Source

Now Is The Best Time Ever To Invest In The Global Economy!

Posted on 16 November 2016 by VRS  |  Email |Print

While it may seem as though the global economy faces a difficult outlook, in reality there is a vast amount of opportunity on offer for long term investors. Certainly, the US economy could endure a challenging period after the election of a new President and the potential for interest rate rises.
Similarly, China’s transition towards a more consumer-focused economy is unlikely to be frictionless. And with Europe having an uncertain future, it may feel as though there is nothing but difficulties and risks ahead for investors. However, the reality is that there has never been a better time to invest in the global economy. For starters, doing so today is easier than ever thanks to advances in technology and globalisation………………………………….Full Article: Source

China trumps Trump over outlook for industrial commodities: Russell

Posted on 15 November 2016 by VRS  |  Email |Print

The election of Donald Trump as U.S. president has added froth to prices for metals and bulk commodities, but the real driver is, and will remain, the outlook for China. While price volatility associated with the somewhat surprising election of the brash real estate mogul was always likely, hopes for a Trump-led revival of industrial commodities and coal look way too optimistic.
Even if Trump can deliver a massive stimulus package as promised when he takes occupancy of the Oval Office in January next year, this alone would unlikely be enough to justify some of the extreme optimism now being priced into commodities……………………………………..Full Article: Source

Trump Effect on Commodities: Copper Up, Oil Down (Video)

Posted on 15 November 2016 by VRS  |  Email |Print

Emad Mostaque, strategist at Eclectic Strategy, examines what is driving oil as prices dip to a three-month low and looks at the commodities market in the wake of the U.S. election. He speaks on “Bloomberg Daybreak: Americas.”.……………………………………Full Article: Source

Commodities: Flying High or Feet of Clay

Posted on 15 November 2016 by VRS  |  Email |Print

What does the fate of the BRIC countries and the launch of the latest acronym for investors tell us about today’s commodities businesses? Forget the BRICs and the MINTs; it appears that there is a new acronym in town. In October, market research firm, Absolute Strategy Research (ASR), launched CARBNS, a new commodities-dominated grouping, consisting of Canada, Colombia, Australia, Russia, Brazil, Norway, and South Africa.
This mix of developed and developing economies is ASR’s attempt to address the shortcomings of the traditional emerging market groupings that have dominated investment portfolios and benchmark indices for the past fifteen years……………………………………..Full Article: Source

Gold Demand In Q3 And Trump: WGC

Posted on 15 November 2016 by VRS  |  Email |Print

Last week, the World Gold Council (WGC) published a new edition of its quarterly report on gold demand. What does Gold Demand Trends Q3 2016 say about the demand for gold in the third quarter of 2016? What does the WGC think about the impact of Trump’s victory on the gold market.
The headline news is that the global demand fell 10 percent in the Q3 2016 compared to the third quarter of 2015. The plunge was caused mainly by jewelry demand, which fell 21 percent year-to-year and 18 percent year-to-date……………………………………..Full Article: Source

Moody’s: Risks to global growth on the rise

Posted on 15 November 2016 by VRS  |  Email |Print

Global economic growth will remain at a historically low level next year, susceptible to a Chinese shock, fragmentation in the euro area and fresh financial market volatility, according to Moody’s.
In a report published on November 14, the ratings agency said it expects global growth to rise to 3% next year and 2.9 % in 2018, from 2.6% in 2016, but that the risks to the trajectory have risen. Moody’s wrote: “We believe that the US and Japan are growing close to potential. Countries in the euro area are recovering at a stable, but modest pace. However, economic activity in the UK is expected to weaken, as uncertainty about its future economic path dampens investment.”…………………………………….Full Article: Source

Commodities Recover From Jolt as Markets Assess Trump Win

Posted on 10 November 2016 by VRS  |  Email |Print

Raw materials and shares of the companies producing them were whipsawed as investors wrestled with the implications of Donald Trump’s stunning victory in the U.S. presidential election.
Oil reversed a slide, while gold was little changed after an early jump on haven demand. Industrial metals fell and then soared, pulling mining shares with them as investors bet governments would fend off weaker growth with infrastructure spending………………………………………Full Article: Source

Dr Doom Marc Faber sees Trump win as boom for commodities and Russian assets

Posted on 10 November 2016 by VRS  |  Email |Print

The foreseeable future under a Donald Trump presidency will prove beneficial for commodities and emerging markets, investor Marc Faber said Wednesday. With huge infrastructure expenditures underway in Asia, “within the stock market … anything that is commodity-related will do well,” Faber, who publishes the Gloom, Boom & Doom Report, told CNBC’s “Squawk on the Street.”
He said that there is another notable trade investors should be eyeing in connection with the Trump win………………………………………Full Article: Source

Best & Worst Commodity Performance Under Presidents Since 1970

Posted on 09 November 2016 by VRS  |  Email |Print

Will recent history of commodities performing better under a Democrat continue or will a Republican break the mold? How are commodities likely to perform under a Hillary Clinton vs. Donald Trump administration?
Data going back to 1970 show that gold, oil and 17 out of 24 commodities fared better on average when a Democrat was in the White House, according to Jodie Gunzberg, head of commodities and real assets at S&P Dow Jones Indices. Gunzberg’s data show that seven other commodities thrived under a Republican administration…………………………………….Full Article: Source

US election risks for commodities markets – Westpac

Posted on 09 November 2016 by VRS  |  Email |Print

Research Team at Westpac, lists down the US election risks for equities and commodities markets by taking reference from the recent Brexit scenario. Expect a similar outcome to Brexit - safe haven demand for gold should push it higher on a Trump win.
Gold rose 5% in the day after the UK vote, those gains holding in subsequent weeks, though gold fell 3.7% in the week before the UK vote as confidence in a “remain” win grew. By contrast gold prices have risen modestly through October as Trump’s odds have firmed. Oil prices fell 4.9% on Brexit, but in the week into the vote they rose almost 10%…………………………………….Full Article: Source

The strains of a weak global economy are showing

Posted on 08 November 2016 by VRS  |  Email |Print

The strains of a global economy mired in a low growth, lowinflation and low interest rate regime are starting to show. Populist, anti-establishment and anti-globalisation sentiment is on the rise across the developed markets. If this leads to a marked deterioration in the quality of economic decision making, it could spell the end of a seven-year period of growth — however weak — for the global economy.
But there are alternative possibilities: a new wave of insurgent politicians could shake things up for the better; or incumbent politicians and central bankers could raise their game and deal with economic headwinds once and for all………………………………………Full Article: Source

How successful is China’s economic rebalancing?

Posted on 08 November 2016 by VRS  |  Email |Print

Over the past decade, there has been much talk of global imbalances, and of the need to correct them in an orderly way. But perhaps these imbalances are already moving towards some correction. The biggest sources of the imbalances were the large external deficits of the US economy, which have been reducing for several years now. But one counterpart of that deficit was large external surpluses in China, which were also associated with extremely rapid GDP growth.
China’s blistering pace of economic growth over the past three decades has certainly transformed both China and the global economy, but there are now clear signs that the pace is slowing………………………………………Full Article: Source

Can commodities end 2016 higher for the first time in six years?

Posted on 04 November 2016 by VRS  |  Email |Print

Agriculture is top contributor after October rally, beating precious metals and energy. With less than two months to go, a nail biting finish looms for investors: Will commodities finish 2016 higher for the first time in six years?
Over the past few years, the final quarter of the year has marked the moment when commodity markets have seen large outflows of funds. Investment withdrawals averaged almost $14bn the three years to 2015, while total returns on the widely followed Bloomberg Commodity Index (BCOM) averaged a drop of 8 per cent in the same timeframe………………………………………Full Article: Source

Zinc and gold poised to break free of commodity slump

Posted on 04 November 2016 by VRS  |  Email |Print

Seasoned investors know that commodity cycles are long and slow affairs that build up to a really great party that ends with a long, lingering hangover. Right now, for most commodities, we are in the hangover phase.
Plenty of culprits can be blamed for the pain. We face a mine overcapacity, as operations that were financed in the boom times are now up and running. An aging population in most of the developed world is responsible for slowing consumption. Developing economies have slowed, headlined by China, which has been increasingly counted on as a global engine………………………………………Full Article: Source

Is the Roller-Coaster Commodities Ride Over? (Video)

Posted on 03 November 2016 by VRS  |  Email |Print

Global stocks fell toward a three-month low and bonds jumped as investors crowded into haven assets after polls showed Donald Trump gaining ground in next week’s U.S. presidential election.
The Bloomberg Industrial Metals Subindex fell for the first time in eight days, as zinc retreated from a five-year high in London and aluminum slid from its highest close since June 2015. Crude oil fell 1.6 percent to a one-month low in New York after industry data showed American inventories increased by 9.3 million barrels last week…………………………………….Full Article: Source

Prospects for oil to hit US$50 to US$60 appear dim

Posted on 01 November 2016 by VRS  |  Email |Print

With Iraq wanting to exit and uncertainty over Russian commitment to an output cut, the prospects for oil to hit US$55-US$60 per barrel appear dim, at least for the moment. “History has shown that sustaining production cuts has never been easy. Any headline news on the Organisation of Petroleum Exporting Countries (Opec) members not toeing the line will create price pressures,” said Thomas Yong, CEO, Fortress Capital.
As it is, oil prices are struggling at around US$50 per barrel. “Already lingering doubts about the oil deal have sent prices struggling to stay firmly above US$50 per barrel. Without the full commitment from all Opec members to the output cut deal, and backing from major non-Opec members, the deal will likely fall through,” said Lee Heng Guie, executive director, Socio Economic Research Centre…………………………………….Full Article: Source

Mobius says gold will gain in 2017 as Fed goes slow on rate increases

Posted on 01 November 2016 by VRS  |  Email |Print

Gold is set to advance by as much as 15 percent before the end of next year as the US Federal Reserve goes slow on increasing interest rates and the dollar remains subdued, buoying bullion demand, according to Templeton Emerging Markets Group.
“The Fed is going to increase the rates by a little bit, but not excessively, and there is no guarantee that a rise in interest rates will put people off,” executive chairman Mark Mobius said in an interview at a Bloomberg event in Mumbai. “A lot will depend on the real rates.”……………………………………Full Article: Source

China’s contribution to world economic growth to stay near 30%

Posted on 31 October 2016 by VRS  |  Email |Print

The transition of China’s economy will become an important driver of world economic growth, according to Chi Fulin, director of the China Institute for Reform and Development. Addressing the China reform forum that opened on Saturday, Chi said the contribution of China to the world economy will remain at about 30 percent for the next five years.
He forecast that in the next few years, the global economy will grow slowly while seeking a new balance, which will have an impact on the transition of China’s economy. On the other hand, as the second-largest economy, China’s transition and growth is increasingly influencing the world economy……………………………………..Full Article: Source

Global uncertainty about economic policy is at record highs

Posted on 28 October 2016 by VRS  |  Email |Print

Newspaper indexes show that the unstable politics and economic climate continue to slow down global consumption and investments. As the U.K. responds to voters’ rejection of the European Union, the U.S. presidential election comes to a head and other disputes play out across the globe, uncertainty is at a record high in 2016, according to a new index that tracks newspaper articles in over a dozen countries.
The index is a measure of economic sentiment that rises and falls with major events like the 9/11 attacks and the 2009 global financial crisis……………………………………Full Article: Source

Why the good economy could be a problem for the next president

Posted on 27 October 2016 by VRS  |  Email |Print

The U.S. economy is delivering some of the best employment and income gains of the past 40 years, boosting workers in a way that recalls the boom years of the 1980s and 1990s.
But while the gains may help Hillary Clinton rebuff Donald Trump’s frequent attacks on the state of the nation and the Obama administration’s record, she would face a series of minefields if she wins the White House. As would Trump, if he pulls off a victory………………………………….Full Article: Source

Africa Must Face Reality of Low Commodity Prices, IMF Warns

Posted on 26 October 2016 by VRS  |  Email |Print

African commodity exporters risk a “disorderly” hit to their economies if they don’t adapt to the reality of low prices, said a senior official at the International Monetary Fund. Some governments in sub-Saharan Africa have been slow to “internalize” the fact that prices of oil and other commodities are likely to remain low, said Abebe Aemro Selassie, director of the IMF’s Africa department.
Countries need to let their currencies adjust to lower demand, while shoring up their budget balances, implementing reforms to improve competitiveness and cushioning the impact on the poor, he said…………………………………..Full Article: Source

Commodities: Acting As A Crystal Ball For The New Year

Posted on 25 October 2016 by VRS  |  Email |Print

Copper, Aluminum, and Crude Oil have reached at a crossroads and their next moves can dictate where the global economy is headed. Commodities’ next moves can dictate where the global economy is headed. Critical macro releases in the US, Europe, and Japan will shed more light on the dynamics of the global business cycle for Q4.
As the Fed remains ambivalent about its next moves, it is actually the commodity markets that might provide an answer as to when the next interest rate hike will happen…………………………………..Full Article: Source

The 5 Biggest Challenges the Global Economy Faces in 2017

Posted on 24 October 2016 by VRS  |  Email |Print

International forecasters fear that 2017 will not be a big improvement on 2016 for a sluggish global economy. With plenty of risks ahead including geopolitical and economic instability, here are the five main challenges facing the world economy in the upcoming Year of the Rooster.
The International Monetary Fund has warned that rising populism and protectionism have correlated with stagnating economic growth. In its latest “World Economic Outlook,” the IMF’s chief economist Maurice Obstfeld warned that “turning back the clock on trade can only deepen and prolong the world economy’s current doldrums.”…………………………………Full Article: Source

World Bank Raises 2017 Oil Price Forecast

Posted on 21 October 2016 by VRS  |  Email |Print

The World Bank is raising its 2017 forecast for crude oil prices to $55 per barrel from $53 per barrel as members of the Organization of the Petroleum Exporting Countries (OPEC) prepare to limit production after a long period of unrestrained output.
Energy prices, which include oil, natural gas and coal, are projected to jump almost 25 percent overall next year, a larger increase than anticipated in July. The revised forecast appears in the World Bank’s latest Commodity Markets Outlook. Oil prices are expected to average $43 per barrel in 2016, unchanged from the July report…………………………………….Full Article: Source

The Domino Effect of China’s Economic Slowdown

Posted on 21 October 2016 by VRS  |  Email |Print

In the 1800s a popular American saying was “As Maine goes, so goes the nation,” meaning that what happened in Maine had a significant impact on U.S. presidential elections. Today, some economists are adapting that sentiment to “As China goes, so goes the world.”
Beijing recently announced a 6.7 percent economic expansion in the third quarter, matching predictions and consistent with its last two quarters. One is tempted to be encouraged by such remarkable stability…………………………………….Full Article: Source

Can Latin America Free Itself from Dependence on Commodities?

Posted on 20 October 2016 by VRS  |  Email |Print

If there is a market that draws special attention in Latin America, it is the market for raw materials. The economies of the region are widely exposed to price fluctuations in markets such as corn, soy beans and copper, not to mention the region’s number-one commodity: petroleum.
At the beginning of this year, the governments of Latin America were very happy to watch how prices in these markets were moving……………………………………Full Article: Source

BHP says sees early signs of commodity recovery

Posted on 20 October 2016 by VRS  |  Email |Print

BHP Billiton, the world’s biggest diversified miner, said on Wednesday it was finally detecting indications of a commodity market turnaround, giving its most upbeat assessment in about five years.
A recovery would be a particular boon for the global miner which has kept production humming through a multi-year collapse in commodities markets, although it cautioned that raw material supply was still outpacing demand despite stronger steel consumption in China. “We have seen early signs of markets rebalancing,” Chief Executive Andrew Mackenzie said in releasing BHP’s September quarter production report and guidance update……………………………………Full Article: Source

Commodities Market: Seeing Signs of Recovery? (Video)

Posted on 20 October 2016 by VRS  |  Email |Print

BHP Billiton says iron ore and petroleum production both fell in the first quarter but CEO Andrew Mackenzie says he expects that market for oil and gas to improve in the medium term. Bloomberg’s David Stringer reports on “Bloomberg Daybreak: Asia.”.………………………………….Full Article: Source

IMF Sees Saudi Break-Even Oil Price Drop Less Than Forecast

Posted on 20 October 2016 by VRS  |  Email |Print

The average oil price that Saudi Arabia needs to balance its budget will fall this year by only half as much as forecast six months ago, according to the International Monetary Fund.
The country’s fiscal break-even price will drop to $79.70 a barrel this year from $92.90 in 2015, the IMF said in a report released on Wednesday, a fall of 14 percent. In April, the IMF projected that the Saudi break-even price would decrease by 30 percent this year, to $66.70 a barrel from $94.80……………………………………Full Article: Source

OPEC Spat Over Production Data Grows as Iran Rejects Estimates

Posted on 18 October 2016 by VRS  |  Email |Print

OPEC’s struggle with the first step of its new production deal — agreeing on how much its members are pumping — deepened as Iran became the third nation to openly question the organization’s data.
Output estimates compiled by OPEC’s Vienna-based secretariat are “not acceptable,” Ali Kardor, managing director of National Iranian Oil Co., said Monday in Tehran. Iran is pumping 3.89 million barrels a day, Kardor said, or about 300,000 a day more than OPEC estimated the country produced last month…………………………………..Full Article: Source

BRICS drive the global economy

Posted on 17 October 2016 by VRS  |  Email |Print

BRICS nations – Brazil, Russia, India, China and South Africa – account for 43 per cent of the world’s population and 25 per cent of the global economy. Despite a global economic slowdown, BRICS has been a main economic engine for the world economy.
Countries such as Brazil and Russia, which struggled with recession in the past two years, are expected to turn the corner and post GDP growth in 2017. Russia’s GDP contracted 1.2 per cent in Q1 2016 but that slowed to 0.6 per cent in Q2, according to data from the Rosstat federal statistics service……………………………………..Full Article: Source

Global economic recovery ’still treacherous’: Xi

Posted on 17 October 2016 by VRS  |  Email |Print

Even though the 2008 credit crisis and the “treacherous recovery” of global economy has impacted growth among the BRICS countries, Chinese President Xi Jinping today said the potential and the inherent strength of the five-nation grouping of emerging economies continues to be unchanged.
The Chinese President said the global economy is yet to fully recover from the 2008 credit crisis and is still struggling with a “treacherous recovery“. Admitting that the crisis of 2008 has not only “slowed down BRICS economies” but they are still “facing challenges” even after eight years of the worst recession since the 1930s, Xi, however, stressed that the “potential and the strength” of the grouping is “unchanged” and they continue to remain positive from a long-term perspective……………………………………..Full Article: Source

Moody’s puts Australia on top of the Triple-A rated commodity exporting economies

Posted on 14 October 2016 by VRS  |  Email |Print

Australia will be the fastest growing Aaa-rated commodity exporting economy in 2016, according to analysis by Moody’s Investors Service. Behind this analysis is the increase in export volumes and a services sector benefiting from a weaker Australian dollar.
The weaker dollar and lower interest rates have allowed Australia to take an increasing market share of rising global demand for tourism and education services……………………………………Full Article: Source

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