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Commodities Briefing - Category | Trading more

OPEC, Oil Glut on Minds of Commodities Traders

Posted on 28 September 2016 by VRS  |  Email |Print

Oil traders are betting on a deal that would cap production, one that could hinge on two polarized, but key, Middle Eastern oil producers - Saudi Arabia and Iran. The two oil-producing powerhouses can’t seem to agree on any production level cuts. Earlier in 2016, Saudi Arabia indicated it would cut production — but only if Iran agreed to curb its own production to 3.6 million barrels per day.
Iran said it was unlikely it would comply, as President Hassan Rouhani has said the country would stick to its minimal production levels of four million barrels per day……………………………………Full Article: Source

Is HK a threat to Singapore’s lead in Asia FX trading ?

Posted on 27 September 2016 by VRS  |  Email |Print

Singapore remains the world’s third largest foreign exchange (FX) centre and Asia’s biggest, according to the 2016 Triennial Central Bank Survey by the Bank for International Settlement. This is no mean feat but with perennial rival Hong Kong snapping at its heels, an interesting question is whether the Republic’s status as the largest FX Asian centre is under threat.
The survey results, which were released early this month, showed that Singapore’s FX average daily trading volume jumped 35 per cent from three years ago to US$517 billion in April 2016……………………………………..Full Article: Source

Forex Trading Has Gone Social

Posted on 27 September 2016 by VRS  |  Email |Print

Forex social trading is a rapidly growing trend across the globe. Social investment networks allow investors to copy profitable trading strategies from other investors in their network or share their market knowledge with other traders, sometimes for a profit.
What social trading platforms do is provide an avenue for retail traders to learn from expert and talented peers so that they can minimize investment risks and boost returns. The reason forex social trading is on the rise is that it is perceived to produce more winners compared to conventional forex trading platforms where you have to rely on individual efforts to beat the market and that is sometimes hard for new traders……………………………………..Full Article: Source

Considering Commodities Amid A.P. Moeller-Maersk’s Split (Video)

Posted on 23 September 2016 by VRS  |  Email |Print

Jonathan Bell, chief investment officer at Stanhope Capital, discusses A.P. Moeller-Maersk splitting and outlook for the commodities market as a whole. He speaks with Guy Johnson, Nejra Cehic and Caroline Hyde on Bloomberg Television’s “On The Move.”.…………………………………….Full Article: Source

Commodity Traders Face Tougher Rules as EU Curbs Speculation

Posted on 22 September 2016 by VRS  |  Email |Print

Traders in commodities from sugar to oil may face tougher regulation in the European Union as policy makers wrangle over new rules intended to curb speculation. European Parliament lawmakers warn that the EU’s latest proposals for preventing market abuse and spikes in food prices aren’t strict enough.
They delivered that message to Valdis Dombrovskis, the bloc’s financial-services chief, in a closed-door meeting earlier this month. Dombrovskis said he would “reflect on the points raised” and come out with a fresh proposal “soon.”……………………………………Full Article: Source

Gold Seen Entering a Long-Term Bull Cycle

Posted on 22 September 2016 by VRS  |  Email |Print

Gold will likely soar to a record within five years as asset bubbles burst in everything from bonds to credit and equities, forcing investors to find a haven, according to Old Mutual Global Investors’ Diego Parrilla.
The metal is at the start of a multi-year bull run with a “few thousand dollars of upside” in a world of “monetary policy without limits” where central banks print lots of money and low or negative interest rates prevail, said Parrilla, who joined the firm as managing director of commodities last month. He’s worked at Goldman Sachs Group Inc. and Bank of America Merrill Lynch…………………………………….Full Article: Source

Is global trade suffering from ‘cardiac arrest?’

Posted on 22 September 2016 by VRS  |  Email |Print

Global trade is stuck in a deep malaise and may even be suffering from “cardiac arrest.” That’s the grim warning in new research released by the Organisation for Economic Co-operation and Development (OECD), which warns of serious consequences for living standards if trade growth does not rebound.
OECD researchers found that annual growth in global trade has fallen dramatically from 3.4% before the financial crisis, a catastrophic economic event that marked the end of two decades of rapid expansion………………………………………Full Article: Source

Commodities are in a ‘mini-renaissance’ that will last for some time yet

Posted on 21 September 2016 by VRS  |  Email |Print

To the surprise of many, 2016 has turned out to be a bonanza for metals and bulk commodity prices, recovering strongly from the lows seen in the early parts of the year. It’s been such a dramatic turnaround that analysts at Macquarie Wealth Management have dubbed the recovery as a “mini-renaissance” for commodity markets, suggesting that demand, rather than supply, has helped to drive prices higher over the past six months.
Front-and-centre of that improved demand, says Macquarie, stems from the largest end consumer globally for commodities, China………………………………………Full Article: Source

Gold Hits Snooze Button Ahead of Fed Rate, BOJ Policy Decisions

Posted on 21 September 2016 by VRS  |  Email |Print

Gold traders are taking a snooze a day before Federal Reserve and the Bank of Japan announce their monetary policy decisions. The precious metal’s 60-day historical volatility has fallen to the lowest in 13 months.
Aggregate trading on the Comex in New York slumped 45 percent below the 100-day moving average for this time of day, data compiled by Bloomberg show. Open interest, a tally of outstanding contracts, is down 14 percent from a record in July. Gold and copper prices swung between small gains and losses………………………………………Full Article: Source

How Are Silver And Copper Prices Impacting CME’s Metal Trading Volumes?

Posted on 21 September 2016 by VRS  |  Email |Print

CME Group ’s metal derivative trading volumes have seen a significant increase over the last two years. In addition to fluctuations in gold prices ( as discussed in a previous article ), the surge in volumes was partly driven by uncertainty surrounding the prices of copper and silver, which together account for about 40% of the exchange’s metal volumes.
Continued volatility in the silver and copper markets is likely to boost the exchange’s trading volumes further in the near future. Below we take a look at how silver and copper prices have impacted the exchange’s derivatives volumes………………………………………Full Article: Source

Commodities exchange gets trading system upgrade

Posted on 21 September 2016 by VRS  |  Email |Print

The Tokyo Commodity Exchange on Tuesday put into operation a new trading system that includes extended hours to permit trading at times when economic data is announced. It will also facilitate higher-speed transactions. It is the first such upgrade for the exchange since May 2009, aiming to improve convenience for investors and reinvigorate the sluggish commodity futures market.
TOCOM will share its derivatives trading system with the Osaka Exchange, a unit of Japan Exchange Group Inc., or JPX. Commodity futures industry officials hope that the joint use will encourage stock brokerage firms to start commodities trading………………………………………Full Article: Source

Derivative trading rules for commodity bourses tightened

Posted on 21 September 2016 by VRS  |  Email |Print

Before launching any futures contract, its specifications and launch calendar have to be notified well in advance to the market, Sebi said. The Securities and Exchange Board of India (Sebi) tightened on Tuesday the norms for derivatives traded on commodity bourses and said the terms of a futures contract cannot be changed without taking the regulator’s approval and informing market participants in advance.
Before launching any futures contract, its specifications and launch calendar have to be notified well in advance to the market, Sebi said………………………………………Full Article: Source

Gold Advances as Traders Pare Bearish Bets Before Fed Meeting

Posted on 20 September 2016 by VRS  |  Email |Print

Gold had the biggest gain in almost two weeks as traders pulled back bets on further declines before meetings of the U.S. Federal Reserve and Bank of Japan this week.
Investors who have been betting on price declines are accumulating protection ahead of the Fed’s meeting Tuesday and Wednesday, where a decision to hold rates steady would give gold a boost, said George Gero at RBC Wealth Management. Odds of a move this week are at 18 percent, Fed fund futures show. The probability rises above 50 percent by December………………………………………..Full Article: Source

Commodity traders accused of ‘illegitimate’ African fuel trade

Posted on 16 September 2016 by VRS  |  Email |Print

An NGO has slammed Swiss commodity traders for allegedly making handsome profits from selling poor grade fuel to African countries that contains high concentrations of toxic substances, such as sulphur.
Public Eye (known until recently as Berne Declaration) released a report on Thursday that called on traders to stop the legal, but “illegitimate”, practice of selling “African Quality” fuel to countries with low environmental and health standards………………………………………..Full Article: Source

How to trade the oil market right now

Posted on 15 September 2016 by VRS  |  Email |Print

Oil prices dropped 36 percent during the fourth quarter of 2015 and the first quarter of 2016, only to rebound back to roughly $53 just six months later. More recently, oil dropped 23 percent only to rebound back to nearly $50 again. With all the up and down volatility, traders have been eyeing the $45 mark as fair value for oil where supply meets demand.
With oil above $45, traders begin to focus on the Federal Reserve tightening, a stronger dollar, potential weaker demand globally and oil producers turning on the spigots - all the things that would be a reason to sell oil. With oil below $45, the reasons to buy oil surround the talks about OPEC production cuts and Chinese demand picking up………………………………………..Full Article: Source

U.S. Announces Trade Case Against China Over Agriculture Products

Posted on 14 September 2016 by VRS  |  Email |Print

The Obama administration on Tuesday challenged China over its support for domestic wheat, rice and corn growers, alleging that Beijing is subsidizing these industries in excess of internationally agreed levels.
Beijing spent nearly $100 billion more than allowed under the World Trade Organization on “market price support” for those agricultural products in 2015, U.S. officials said in announcing a new case against China at the WTO………………………………………..Full Article: Source

Commodities Declined in August, Led Lower by Agriculture and Metals

Posted on 13 September 2016 by VRS  |  Email |Print

Commodities declined in August, largely driven by supply fundamentals and evolving macroeconomic headlines, according to Credit Suisse Asset Management. The Bloomberg Commodity Index Total Return performance was negative for the month, with 14 out of 22 Index constituents posting losses.
Precious Metals was the worst performing sector, down 4.95%, led lower by Silver. Positive US economic data increased expectations that the US Federal Reserve (Fed) may raise interest rates earlier than expected. Agriculture declined 4.78%, led by Soybean Meal, due to a continued strong production outlook for Soybeans and Soybean Meal following supportive weather conditions in the US Midwest. (Press Release)……………………………………….Full Article: Source

Destructive nature of China’s soft commodities imports revealed

Posted on 13 September 2016 by VRS  |  Email |Print

China’s imports of soft commodities are causing massive damage to the environment, the extent of which is revealed in a new report. For every US dollar of soft commodities imports, 7,467kg of embodied emissions are released into the atmosphere. This is well over three times the second-highest emitting import, mining and quarrying products.
Deforestation is the second biggest culprit in carbon emissions after power generation. The report, by the Cambridge Institute for Sustainable Leadership (CISL), the Banking Environment Initiative (BEI) and the Research Centre for Climate and Energy Finance (RCCEF – a Beijing-based organisation), reveals that 50% of illegal deforestation in the tropics is for agricultural purposes………………………………………..Full Article: Source

Food Commodities Trader Olam Sees Low Grain Prices Into 2017

Posted on 13 September 2016 by VRS  |  Email |Print

Olam International Ltd., one of the world’s largest food commodities traders, forecasts that grain prices will remain low into 2017 as oversupply and softening Chinese demand weigh on crops.
“Prices will stay low for the next six months,” Olam’s chief executive officer, Sunny Verghese, said in an interview in Singapore last week. “We have very burdensome balance-sheets across the entire grain complex.”……………………………………….Full Article: Source

China’s steel volumes seen as risk to world economy

Posted on 08 September 2016 by VRS  |  Email |Print

World leaders who attended the summit meeting of the Group of 20 advanced and emerging economies in Hangzhou, China, shared the view that the world economy is facing serious risks stemming from the excessive production of steel.
In a joint statement issued on Monday, the G-20 leaders said they would establish a new forum for steel manufacturing nations to address the issue. However, if member nations fail to come up with a solution and manufacturers continue to suffer from their downturn, there are concerns that it may aggravate the situation, such as causing the streamlining of manufacturers on a global scale………………………………………..Full Article: Source

Australian Iron Exports Climb to Record as China Prices Drop

Posted on 08 September 2016 by VRS  |  Email |Print

Iron ore shipments from the world’s largest bulk-export terminal in Australia swelled to a record, offering fresh evidence of strong supply and underpinning forecasts of lower prices through the year-end. Futures in China slumped to the lowest in more than two months.
Exports from Port Hedland totaled 42.9 million metric tons in August from 38.7 million in July and 39.2 million a year earlier, data from the Pilbara Ports Authority showed Wednesday. Cargoes to China were 35.4 million tons, also an all-time high, from 32.5 million in July and 33.9 million in August 2015………………………………………..Full Article: Source

Barclays says conducts first blockchain-based trade-finance deal

Posted on 08 September 2016 by VRS  |  Email |Print

Barclays and an Israel-based start-up company have carried out what they say is the world’s first trade transaction using blockchain technology, cutting a process that normally takes between seven and 10 days to less than four hours.
The transaction guaranteed the export of almost $100,000 worth of cheese and butter from Irish agricultural food co-operative Ornua - formerly the Irish Dairy Board - to the Seychelles Trading Company. The deal was executed via a blockchain platform set up by Wave, a firm that came through a Barclays development programme………………………………………..Full Article: Source

Commodity traders ‘key to managing risks’ in volatile global economy

Posted on 07 September 2016 by VRS  |  Email |Print

Commodity traders play an even more important role in managing risks and logistics now, given the increased complexity and volatility of the global economy, according to a leading finance academic.
“Commodity traders reduce prices that consumers pay and increase the price producers receive by moving commodities from producers to consumers in an efficient way,” said Professor Craig Pirrong of the University of Houston. He added that they respond to supply and demand shocks by adjusting commodity flows………………………………………..Full Article: Source

Report shows low commodity prices weighing on U.S. producers

Posted on 07 September 2016 by VRS  |  Email |Print

Declining commodity prices weighed on U.S. farmer sentiment during August, according to the Purdue University/CME Group Ag Economy Barometer. Producer sentiment fell 17 points between July and August to 95, the largest one-month decline since November 2015.
The Purdue University/CME Group Ag Economy Barometer is a nationwide measure of the health of the U.S. agricultural economy. On the first Tuesday of each month, the Ag Economy Barometer provides a sense of the agricultural economy’s health with an index value. The index is based on a survey of 400 agricultural producers on economic sentiment each month………………………………………..Full Article: Source

LME owner targets China’s commodity traders

Posted on 06 September 2016 by VRS  |  Email |Print

Owner of LME will keep new platform tied to physical metals after excesses in futures trading. The owner of the London Metal Exchange aims to target Chinese commodity traders concerned by speculative excesses on the country’s domestic bourses, with plans to establish a physical metals trading platform in mainland China next year.
Charles Li, chief executive of Hong Kong Exchanges and Clearing, which bought the LME in 2012, said its planned exchange in Qianhai would make sure prices remained tied to the underlying economy by underpinning it with an LME-style warehouse system for the physical delivery of metal………………………………………..Full Article: Source

G-20 Reaches ‘Broad Consensus’ on Supporting Global Economy, China’s Xi Jinping Says

Posted on 06 September 2016 by VRS  |  Email |Print

China rallied the Group of 20 around a call to use new levers to revive global growth, though the group’s nine-page statement was short on concrete steps and there were few signs that Beijing would lead by example.
Chinese President Xi Jinping said leaders would put in place guidelines on global investment and explore structural overhauls, acknowledging the need for measures beyond low interest rates to prop up the global economy amid growing resentment of globalization’s effects………………………………………..Full Article: Source

Gold shines on disappointing US data

Posted on 05 September 2016 by VRS  |  Email |Print

Gold prices, which have been trending down over the last couple of weeks and threatening to decline below the psychological $1,300 per ounce mark, found respite after a strong bounce-back on Friday. This was thanks to the weak US job numbers released on Friday, which dimmed the prospects of a US Fed rate hike.
The global gold spot prices fell to a low of $1,302 on Thursday and reversed sharply higher, recovering all the losses made during the week to close at $1,325. Prior to this reversal the yellow metal was trading under pressure as the dollar index had surged after US Federal Reserve Chair Janet Yellen’s Jackson Hole speech on August 26. Yellen had indicated that the case for the next rate hike had strengthened in recent months………………………………………..Full Article: Source

Keeping up with high-frequency traders

Posted on 05 September 2016 by VRS  |  Email |Print

Market regulators charged with overseeing orderly trading are fighting a losing battle when it comes to keeping up with super fast technology. Modern trading can take place in barely comprehendible measurements of time. Banks and high-frequency traders often boast of executing orders on stocks and futures exchanges in milliseconds, or thousandths of a second.
The bar is constantly being raised and already some trade in microseconds (millionths of a second) and even nanoseconds — billionths of a second. To put this into perspective, the average time it takes a human finger to click a mouse is a leisurely 150,000 microseconds………………………………………..Full Article: Source

Currency War Fears Prompt G20 to Act

Posted on 05 September 2016 by VRS  |  Email |Print

The United States and China have agreed to do what they can to avoid a currency war, according to a White House statement issued before the opening of the Group of 20 nations meeting Sunday in the Chinese lake city of Hangzhou. The move reflects rising fears that some countries might forcibly devalue their currencies to protect falling exports, and hurt their competitors.
“The United States and China jointly reaffirm their G-20 exchange rate commitments, including that they will refrain from competitive devaluations and not target exchange rates for competitive purposes,” the White House said……………………………………….Full Article: Source

The new drivers of emerging market growth

Posted on 02 September 2016 by VRS  |  Email |Print

Perceptions about emerging markets (EM) usually lag behind reality, sometimes by decades. Nowhere is this more evident than in the perception about EM equities, where the consensus opinion remains that EM equities - and the MSCI EM in particular - is primarily a commodities and cyclical play.
This view is outdated and wrong. Today, the structural growth drivers constitute more than 50% of the MSCI EM equity index, while the cyclical share is down to 20%. The commodity component has fallen to just 14%, which is less than half of its share a decade ago. Moreover, the tech share of the MSCI EM now constitutes 23%, which is greater than the tech share of the S&P 500………………………………………..Full Article: Source

Japan says resuming U.S. white wheat purchase

Posted on 02 September 2016 by VRS  |  Email |Print

Japan’s Ministry of Agriculture has resumed buying U.S. white wheat after a trade halt following the discovery of unapproved genetically modified (GMO) wheat in July.
GMO wheat developed by Monsanto Co, not approved by federal regulators, was found growing in a Washington state field, the U.S. Department of Agriculture (USDA) said in late July. That prompted Japan to take steps to block certain imports of U.S. wheat, suspending purchases of Western White wheat from Washington state for food use, and purchases of Western White wheat from the U.S. West Coast for feed use………………………………………..Full Article: Source

The Gold Trade Is Not Overcrowded Says UBS

Posted on 30 August 2016 by VRS  |  Email |Print

The best performing precious metal for the week was gold, down slightly by 1.47 percent. Current market conditions make it the perfect time to invest in gold, according to Heather Ferguson, an analyst at Hargreaves Landsown.
“There is a fixed amount of this precious metal in the world so central banks are not able to manipulate the gold market like they can with bonds and cash,” Ferguson explains. “In the current environment of quantitative easing and increasingly extreme monetary policy, gold is highly sought after.”……………………………………….Full Article: Source

Why currency traders can’t lose in the $5.3 trillion-a-day global currency market

Posted on 30 August 2016 by VRS  |  Email |Print

For just the second time in the past decade, three major foreign-exchange trading strategies are all producing positive returns. The carry trade, in which investors borrow in Group of 10 currencies with low interest rates and use the proceeds to buy assets with higher yields, is on pace for its biggest annual gain since 2012, according to Deutsche Bank AG index data.
Trades that buy undervalued currencies and sell expensive ones, and tactics that latch onto foreign-exchange trends, are also making money. Choosing the correct foreign-exchange strategy has become even more important in a world of unprecedented central-bank monetary stimulus and currencies linked to historically low interest rates………………………………………..Full Article: Source

Currency swap between South Korea and Japan

Posted on 30 August 2016 by VRS  |  Email |Print

The currency swap between South Korea and Japan will likely resume in the coming months as the two countries’ finance ministers reached a consensus on Saturday to promptly start negotiations on the bilateral financial pact.
The two countries’ previous currency swap deal expired in February 2015. The new swap is designed to prepare for currency volatility arising from negative external factors - effectively acting as a buffer against sharp currency swings. A currency swap is an accord between two parties to exchange one currency for another at a specific rate in a bid to use the foreign currency to ease volatility in the market………………………………………..Full Article: Source

World economy still sputtering, trade figures show

Posted on 25 August 2016 by VRS  |  Email |Print

The amount of goods traded globally fell sharply in the second quarter after a flat performance in the first few months of 2016, highlighting a major challenge for leaders around the world grappling with soft growth.
The volume of merchandise traded globally dropped by 0.8% from April to June following no change in the first quarter, according to the CPB World Trade Monitor produced by the Netherlands. Weaker trade patterns reflect fresh economic struggles in various countries and less demand among consumers, the main drivers of growth………………………………………..Full Article: Source

Commodities Rout Is Far From Finished As Glencore’s Profits Sink 66%

Posted on 25 August 2016 by VRS  |  Email |Print

Commodities colossus Glencore dipped to one-month lows in Wednesday business after latest half-year numbers highlighted the ongoing malaise whacking raw materials markets. Glencore was last dealing 5% lower after announcing that net income slumped by two-thirds between January and June, to $300m, a result that narrowly missed broker estimates.
The business saw revenues at its Metals and Minerals division dip 4% in the first six months, to $30.9bn, as much of the base metals complex continued to struggle. Bellwether metal copper saw its value sink 21% in the period, for example, to $4,707 per tonne, Glencore noted………………………………………..Full Article: Source

Oil prices: Crude will be stuck in a back-and-forth market, analyst says

Posted on 23 August 2016 by VRS  |  Email |Print

Traders have bid up oil futures on speculation that producers will take measures to prop up crude prices, but any such deal might do little to quickly bring supply and demand into balance, ClearView Energy Partners Managing Director Jacques Rousseau said. As a result, crude prices could continue swinging back and forth, he said.
A rally that lifted benchmarks about 16 percent and pushed Brent above $50 a barrel during the last seven sessions lost steam on Monday as market watchers including Morgan Stanley said the gains were overdone. The bank said it was “highly unlikely” OPEC members and Russia would be able to overcome the many headwinds to striking a deal………………………………………..Full Article: Source

Commodities’ rebound is accelerating in China

Posted on 22 August 2016 by VRS  |  Email |Print

China may be slowing, but a commodities rebound is under way and the world’s biggest miner knows where the next growth story is building – emerging economies in Southeast Asia.
Combined gross domestic product in the Asean-5 nations – Indonesia, Thailand, Malaysia, the Philippines and Vietnam – will rise about a third to $3tn in the five years to 2020, fuelling commodities-intensive infrastructure projects. Momentum like this across Asia will help maintain and increase commodity demand, BHP Billiton’s Chief Executive Officer Andrew Mackenzie said last week………………………………………..Full Article: Source

Conditions right for commodities to rally

Posted on 19 August 2016 by VRS  |  Email |Print

The outlook for commodities is favourable, despite the fact most of them are trading below their 15-year median level, says Columbia Threadneedle. Commenting on the state of global equities, Columbia Threadneedle chief investment officer Mark Burgess noted that while commodities were trading at a lower level than in previous years, recent market signs indicated improvement may be just around the corner.
“Commodities stand out as one asset class that has yet to see an uplift. We see commodities as a useful portfolio diversifier and are mindful of its ‘catch-up’ potential, so we have lifted our allocation to the asset class,” Mr Burgess said………………………………………..Full Article: Source

Rally in gold may continue

Posted on 19 August 2016 by VRS  |  Email |Print

There may be further upside, as negative real interest rates in developed world unlikely to end soon. Gold has risen about 26.1 per cent year-to-date in 2016. The strong rally in yellow metal has raised three questions for investors: Will the rally continue? Will it be prudent to make fresh investments at current levels? And, should existing investors stay put or book profits?
Recent data from the World Gold Council for the first half of 2016 show the upsurge in demand for gold was driven primarily by investment demand from investors in the developed world — US, Europe and Japan. The investment demand of 1,063.9 tonnes during the first half of 2016 was 16 per cent more than the previous high in the first half of 2009 (after the financial crisis)………………………………………..Full Article: Source

Saudi Arabia has oil traders hanging on every word

Posted on 18 August 2016 by VRS  |  Email |Print

Kingdom offers a reminder that well-chosen words can move the oil market. Central bankers have long understood that a few well-placed words can wield nearly as much power as pulling the actual levers of monetary policy. It is a lesson that Opec and Saudi Arabia has started to heed.
Just a few short sentences from Saudi Arabia’s energy minister Khalid al-Falih last week sent hedge funds scrambling to cover large bets against the oil price, subsequently propelling Brent crude 10 per cent higher and largely silencing fears the market was on the cusp of another rout………………………………………..Full Article: Source

End of the Affair as Chinese Commodity Traders Exit Market

Posted on 17 August 2016 by VRS  |  Email |Print

Chinese traders are falling out of love with commodities. Aggregate volumes across the nation’s three biggest exchanges have shrunk to the lowest level in six months, a shadow of the fevered trading in March and April when retail investors charged into markets for everything from iron ore to cotton, driving up prices and stoking fears of a bubble.
Chinese authorities brought an end to the frenzy by introducing curbs on excessive speculation and trading has failed to recover since. Flush with record credit and hunting for returns, investors piled into commodities in the first half of the year, spurred by bets that China’s economic stimulus and industrial reforms would lead to shortages of raw materials………………………………………..Full Article: Source

Goldman Sachs: Look at exports and commodities

Posted on 17 August 2016 by VRS  |  Email |Print

Those looking for proof of China’s economic rebalancing act should stay clear of macro data and focus instead on micro evidence, according to Goldman Sachs. The investment bank released a research note Tuesday, detailing how changes in the composition of exports and commodity consumption are the most useful metrics to evaluate how Beijing is moving toward a consumption-led model, the so-called new economy.
“While the exports share of gross domestic product (GDP) in China today is similar to the level seen in the mid-1990s, the types of goods exported by China have changed significantly” Goldman explained………………………………………..Full Article: Source

Oil Bulls Take Heart as OPEC Rekindles Hopes of Output Freeze

Posted on 15 August 2016 by VRS  |  Email |Print

All it took was a few words from OPEC to encourage oil bulls. Money managers increased wagers on rising crude prices by the most since January as futures rebounded from a three-month low.
Prices jumped after OPEC’s president said Aug. 8 the group will hold informal talks in Algiers next month and Saudi Arabia signaled Aug. 11 it’s prepared to discuss taking action to stabilize markets. “The statement certainly achieved its purpose,” said Daniel Yergin, vice chairman of IHS Markit. “The Saudis saw bearish bets had really driven down the prices.”……………………………………….Full Article: Source

Commodities trader Noble swings to second quarter loss

Posted on 12 August 2016 by VRS  |  Email |Print

Embattled commodities trader Noble swung to a loss in the second quarter, as it continued with a turnaround plan to regain investor confidence. The Hong-Kong based group said today that it had initiated the sale of its power marketing business Noble Americas Energy Solutions, with the proceeds due to be ploughed into its turnaround plan.
“Interest in the sale has been strong and we are now entering the latter stages of the process, with completion expected in a couple or so months’ time,” Noble’s British born founder and executive chairman, Richard Elman, said………………………………………..Full Article: Source

Bitcoin pioneer Jered Kenna and TradeZero offer digital currency dark pool trading

Posted on 12 August 2016 by VRS  |  Email |Print

Bitcoin pioneer Jered Kenna has teamed up with online broker dealer TradeZero to create the world’s first dark pool exchange for Bitcoin and eventually other digital currencies. Dark pools are the name given to private exchanges or forums for trading securities, which facilitate very large orders without impacting the market and creating adverse price movements.
The Bitcoin market is less liquid than traditional FX and hence more volatile.Dark pool trading in Bitcoin would be useful to mainstream investors who may want to make large trades in Bitcoin, or use it as a currency hedge without alerting the market to their positions………………………………………..Full Article: Source

Commodities experience broad-based recovery

Posted on 11 August 2016 by VRS  |  Email |Print

Base and precious markets saw a substantial uptick in pricing and trading action amid a softening dollar, which provided an optimistic backdrop before a slew of Chinese data is released.
Copper for September delivery on the Comex division of the New York Mercantile Exchange gained 2.40 cents or one percent to $2.1740 per pound. Trade has ranged from $2.1450 to $2.2050. Comex gold for December settlement edged up $6.70 or 0.5 percent to $1,353.40 – around a one-week high. Trade has ranged from $1,345.70 to $1,363.60………………………………………..Full Article: Source

OPEC upbeat on demand as oil basket posts first fall in five months

Posted on 11 August 2016 by VRS  |  Email |Print

OPEC upgraded its forecast for 2016 oil demand growth on Wednesday, in a report that may dampen hopes for a deal on a production freeze at its meeting next month. In its August report, OPEC forecast demand growth of 1.22 million barrels a day (mb/d) year on year, which was 30,000 barrels higher than forecast in July.
The new forecast would put global oil demand across 2016 at 94.26 mb/d. OPEC, which represents 14 major oil-producing countries, attributed the upgrade to better-than-expected economic performance in advanced European economies and some Asian ones, including India, in the first half of the year………………………………………..Full Article: Source

HKEx Profit on London Metal Exchange Drops as Trading Falls

Posted on 11 August 2016 by VRS  |  Email |Print

Hong Kong Exchanges & Clearing Ltd. said earnings from its commodities business — primarily the London Metal Exchange — extended their slump in the first half as the world’s biggest metals bourse battles lower trading volumes.
The unit’s earnings before interest, tax, depreciation and amortization fell 19 percent to HK$513 million ($66 million) in the six months to June, from HK$632 million a year earlier, for their second consecutive decline over the half-year period. The HKEx’s first-half Ebitda across all its businesses, including equities and derivatives trading, fell 25 percent………………………………………..Full Article: Source

Chinese Traders Roil Commodity Markets

Posted on 09 August 2016 by VRS  |  Email |Print

China has become a mover of global prices; trading volume on the Shanghai and Dalian exchanges has exploded. Chinese markets remain largely closed to foreign investors, and data on them are scarce. But traders say that for years, buying and selling was dominated by state-owned conglomerates, and a handful of funds trading commodities.
Until roughly the last year, metal prices were essentially set in London. Now, China, the world’s top consumer and producer of metals, has become a mover of global prices. Chinese exchanges are staying open until late afternoon in London and midday in New York………………………………………..Full Article: Source

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September 2016
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