Wed, Aug 20, 2014
A A A
Welcome kbr175@gmail.com
RSS

Commodities Briefing - Category | Trading more

Gold premiums seen falling further on any ease in trade curbs

Posted on 04 April 2014 by VRS  |  Email |Print

Gold premiums in India are expected to fall from current levels of about $30 an ounce after the Reserve Bank of India (RBI) indicated it is considering removing some of the curbs to trade that have crippled imports.
India, the second biggest consumer of gold after China, last year imposed a record 10 percent import duty on the metal and said a fifth of all shipments should be re-exported as finished product to help narrow its current account deficit (CAD)………………………………Full Article: Source

Japan traders seen returning $3 bln on commodities fall

Posted on 02 April 2014 by VRS  |  Email |Print

The commodities boom is over and you can have some money back. For investors in Japan’s biggest trading houses, Mitsubishi Corp. and Mitsui & Co., the payoff in dividends and stock buybacks could be as much as 300 billion yen ($3 billion) in the financial year beginning today, according to analysts who follow them.
As the China-led, decade-long rally in commodity prices fades, the traders have been left with excess cash and the need to boost their attractiveness to investors………………………….Full Article: Source

Commodity traders: Is there still value?

Posted on 28 March 2014 by VRS  |  Email |Print

During boom times when commodity prices were high compared to mining costs, producers had no qualms about giving up some margin for the use of third party traders to act as middle men in brokering the deals between producer and end-user.
Since the 2008 global financial crisis, companies having become more discerning over their cost base, questioned the necessity of the trader. This question has become more imperative as falling grades, increased labour, transport and utility costs and deeper mines threaten producers’ margins. The trend among producers is to go direct………………………………Full Article: Source

OPEC to cut exports on lower Asian demand, Oil Movements says

Posted on 28 March 2014 by VRS  |  Email |Print

The Organization of Petroleum Exporting Countries will curtail exports through mid-April in response to lower seasonal demand from refiners in Asia, according to tanker-tracker Oil Movements.
OPEC, responsible for 40 percent of global oil supplies, will reduce shipments by 620,000 barrels a day, or 2.5 percent, to 23.78 million a day in the four weeks to April 12, the researcher said in an e-mailed note. The figures exclude two of OPEC’s 12 members, Angola and Ecuador………………………………Full Article: Source

Will the stagnant demand in commodities encourage hedging

Posted on 27 March 2014 by VRS  |  Email |Print

The commodity market, which had defied gravity during the last few years, is showing signs of slowing down. It is not a breather but a shift to a bear cycle. No doubt the “investors” have vanished and the herd mentality has gone out.
The standard explanation during the period of price surge was that the booming demand, particularly from China, was clashing with stagnant supply of energy, metals and agricultural produce. Talks of stagnant or falling demand are now in the favour…………………………………Full Article: Source

Spain’s oil deposits and fracking sites trigger energy gold rush

Posted on 27 March 2014 by VRS  |  Email |Print

Spain is already the world’s largest olive oil producer but now it’s looking to a very different kind of oil to pull it out of economic decline: petroleum. The discovery of two significant offshore deposits, and prospects for fracking in many areas, have triggered a black-gold rush, with demand for exploration permits up 35% since 2012.
A report published this week by Deloitte says the oil industry could create 250,000 jobs and constitute 4.3% of GDP by 2065. The report is based on an estimate of 2bn barrels of oil and 2.5bn cubic metres of gas…………………………………Full Article: Source

Are US weekly oil imports from OPEC nations finding support?

Posted on 27 March 2014 by VRS  |  Email |Print

Higher-grade crude yields larger volumes of premium products such as gasoline, but it doesn’t yield as many lower-value products due to chemical differences. In the past, refiners spent millions of dollars on equipment that would allow them to produce larger amounts of premium products from heavier and sourer crude.
As the economics maybe isn’t there to change existing capacity to accommodate lighter and sweeter crude, demand for crude from Kuwait, Colombia, Venezuela, and Saudi Arabia remains strong…………………………………Full Article: Source

U.S. shale oil could withstand big price correction: analyst

Posted on 26 March 2014 by VRS  |  Email |Print

U.S. oil production from shale formations such as the Bakken in North Dakota and Eagle Ford in Texas would remain economically viable even if world crude prices drop by as much as 30 per cent from today’s levels, a U.S. analyst says.
The industry that has revolutionized North American energy supply faces numerous risks, including the potential for weak markets, transport constraints and the inability of technology to keep up with demand, though none currently looks like it could force a halt in drilling for the light, tight oil, said Skip York, analyst at Wood Mackenzie, the international energy consultancy……………………………….Full Article: Source

Korea Exchange seeks cut of $3 bln illegal gold trade

Posted on 24 March 2014 by VRS  |  Email |Print

South Korea’s equity exchange will start offering physical gold trades for the first time today, as the government seeks to curb as much as $3 billion of black-market transactions.
Korea Exchange Inc., which has offered bullion futures since 1999, aims to gradually replace illegal sales that total as much as 70 metric tons annually and deprive the state of an estimated $280 million in taxes. Customs officers intercepted 360 kilograms last year as the number of busts more than doubled from 2012………………………………………..Full Article: Source

Carlyle’s commodity arm starts trading new gold and base metals fund

Posted on 21 March 2014 by VRS  |  Email |Print

Vermillion, the commodity arm of U.S. private equity group Carlyle Group LP, started trading a new gold and base metals fund this month as it seeks to rebuild market presence after losing more than half of its capital, people familiar with the matter said on Thursday.
In a regulatory filing dated Feb. 14, Vermillion’s chief operating officer, Christopher Zuech, said the Aeris Metals Fund had raised $122.5 million from 23 investors in total. The filing did not state the launch date………………………………………..Full Article: Source

Iran oil exports show steady increase as Asia buys more

Posted on 19 March 2014 by VRS  |  Email |Print

Iran exported more crude than allowed under Western sanctions for at least a fourth straight month in February, as ship loading data obtained by Reuters showed top clients again bought more than 1 million barrels per day (bpd) of Tehran’s oil.
The rise in sales to Iran’s main clients, mostly in Asia and including Turkey, comes after an agreement that eased some of the sanctions aimed at the OPEC member’s nuclear program. The November deal also freed up 4.2 billion US dollars in oil payments to Tehran, but it does not allow for shipments to increase………………………………………..Full Article: Source

OPEC to cut exports as refinery demand slows

Posted on 19 March 2014 by VRS  |  Email |Print

The Organisation of Petroleum Exporting Countries (OPEC) will cut crude exports this month to the lowest level since November as refinery demand slows in Europe and North America, according to tanker-tracker Oil Movements.
OPEC, responsible for 40 percent of global oil supplies, will decrease shipments by 1.1 million barrels per day (bpd), or 4.6 percent, to 23.6 million bpd in the four weeks to March 29, according to Oil Movements, reported Bloomberg………………………………………..Full Article: Source

Nickel moves over $16,000/mt on Indonesia raw material export ban

Posted on 19 March 2014 by VRS  |  Email |Print

Three-months nickel on LMEselect Tuesday breached $16,000/mt for the first time since April 2013 on the back of Indonesia’s decision to ban the export of raw materials, including nickel ore. The increase in nickel prices has seen the metal shift from the worst performing metal on the London Metal Exchange in 2013, to the best performing metal so far in 2014.
Three-months nickel on LMEselect has risen by around 22% this year, from a low of $13,334/mt in January to a year high of $16,230/mt in March. David Wilson, director of metals research and strategy at Citi Research, said technical issues are supporting nickel prices from a heightened interest in the metal due to the Indonesian ban on nickel ore exports………………………………………..Full Article: Source

Canada setting stage for oil exports beyond U.S.

Posted on 18 March 2014 by VRS  |  Email |Print

Canadian Natural Resources Minister Joe Oliver said his country is on the verge of becoming an energy superpower. While the United States mulls its options for energy hegemony, a recent free-trade deal with South Korea and pipeline developments suggest Canada may beat it to the punch.
The International Energy Agency said that, despite recent volatility, Asian economies are contributing to the bulk of macroeconomic growth. That, in turn, means global oil demand is expected to grow by 1.4 million barrels per day this year………………………………………..Full Article: Source

Will oil producers run into losses without crude exports?

Posted on 17 March 2014 by VRS  |  Email |Print

The chief operating officer at Continental Resources said that oil producers would be forced to cut back on production if the United States doesn’t allow for crude oil exports.
Is a problem of plenty brewing? Rick Bott — president and COO of Continental — said that crude oil prices will remain artificially depressed because domestically produced crude isn’t finding its way into the global markets. And this eventually lowers the incentive to keep up with production volumes. As evidence, he points out to the fact that the crude oil markets are heavily “backwardated.”……………………………………….Full Article: Source

Iraq’s oil output surges to highest level in over 30 years

Posted on 17 March 2014 by VRS  |  Email |Print

Iraq’s oil production surged to its highest level in over 30 years last month, surprising skeptics of the country’s efforts to restore its oil industry after decades of war and neglect, The Wall Street Journal said in news briefed by “Shafaq News”.
In its monthly oil report published Friday, the International Energy Agency said Iraq’s oil output jumped by half a million barrels a day in February to average 3.6 million barrels a day. The country hasn’t pumped that much oil since 1979, when Saddam Hussein rose to power………………………………………..Full Article: Source

China’s debt defaults to hit industrial metals as trading unravels

Posted on 17 March 2014 by VRS  |  Email |Print

All the warning signals are now pointing to a continuing slide in prices as the full extent of China’s economic problems emerges and bearish sentiment grips the large commodity trading houses.
Investors in vital industrial metals such as copper and iron ore will have their nerves tested again this week after China’s unfolding debt crisis caused volatility on commodity markets………………………………………..Full Article: Source

India: Right mix of speculation, hedging to deepen commodity exchanges: FMC

Posted on 17 March 2014 by VRS  |  Email |Print

Traders and physical market users who trade on domestic commodity futures exchanges may soon witness a deepening of the decade-old market.
To encourage more physical market users to hedge on domestic commodity bourses, regulator Forward Markets Commission (FMC) will soon write to the finance ministry, under which it functions, suggesting that it urge banks to ask their clients to trade on exchanges like MCX and NCDEX. ……………………………………….Full Article: Source

OPEC to cut exports as refinery demand slows, Oil Movements says

Posted on 14 March 2014 by VRS  |  Email |Print

The Organization of Petroleum Exporting Countries will cut crude exports this month to the lowest level since November as refinery demand slows in Europe and North America, according to tanker-tracker Oil Movements.
OPEC, responsible for 40 percent of global oil supplies, will decrease shipments by 1.1 million barrels a day, or 4.6 percent, to 23.6 million a day in the four weeks to March 29, Oil Movements said in an e-mailed note. The figures exclude two of OPEC’s 12 members, Angola and Ecuador………………………………………..Full Article: Source

Singapore, Dalian exchanges to collaborate on commodity trading

Posted on 13 March 2014 by VRS  |  Email |Print

The Singapore Exchange (SGX) and China’s Dalian Commodity Exchange have signed an agreement to collaborate on developing their commodities businesses, the Singapore bourse said on Monday.
The memorandum of understanding between the two exchanges will allow them to work together on developing commodity derivatives products and investor education, among other areas………………………………………..Full Article: Source

Currency traders mourn loss of volatility

Posted on 13 March 2014 by VRS  |  Email |Print

Political crises and central bank action have played havoc with emerging markets currencies since the start of the year. But for many investors in the foreign exchange market, the bigger problem has been the unnatural calm prevailing in major currency pairs.
Uncertainty over the pace of the US recovery, combined with the steady policy stance of the biggest central banks, has confounded fund managers and driven volatility in developed market currencies to lows barely seen since the “great moderation” that preceded the financial crisis………………………………………..Full Article: Source

Investment continues for Carbon Trade Exchange

Posted on 13 March 2014 by VRS  |  Email |Print

Carbon Trade Exchange (CTX) continues to expand both its team and operations in Australia and International markets, on Wednesday, announcing the appointment of Dan Jackson as Chief Technology Officer and Nicole Favretto as Marketing Manager, both effective immediately.
Dan has over 10 years’ experience with systems architecture, analysis and design in the IT industry, including significant experience in the development of software solutions for large-scale defence projects in both the intelligence and communications sector………………………………………..Full Article: Source

Chinese demand for gold, silver exploded in 2013 - FIA

Posted on 12 March 2014 by VRS  |  Email |Print

The biggest growth in trading activity of gold future contracts in the last five years has come from China, according to the latest information from the Futures Industry Association.
Monday evening the FIA released its annual report on global trends in the trading of futures and options; Gold futures on the Shanghai Futures Exchange saw the biggest increase volume in the last five years as 20.09 million contracts were traded in 2013, an increase of 416% from the 3.9 million contracts traded in 2008………………………………………..Full Article: Source

Could graphite be the ‘next big thing’ for commodity traders?

Posted on 12 March 2014 by VRS  |  Email |Print

Advances in automotive battery technology are making graphite the next big thing for commodity investors. Graphite is the critical material for the new generation of batteries, even more than lithium or rare earths.
Focus Graphite President and Chief Operating Officer Don Baxter explains the eyebrow-raising supply/demand picture of the graphite industry, the attractive financials of the Lac Knife project and the significance of the graphite industry’s first offtake agreement, including what it means to investors looking to understand an unfamiliar but well-positioned market………………………………………..Full Article: Source

Commodities trading jumped 23pct last year even as banks retreat

Posted on 11 March 2014 by VRS  |  Email |Print

Commodities derivatives trading jumped 23 percent last year, led by the U.S. and China, even as the biggest banks pulled back amid slumping revenues.
The increase in commodities trading, which accounted for 18 percent of volumes across all products, outpaced gains in interest rate and currency derivatives, the World Federation of Exchanges said in an e-mailed report today. Equity volumes fell 5.3 percent, it said………………………………………..Full Article: Source

Get all of your commodities in one basket

Posted on 11 March 2014 by VRS  |  Email |Print

Coffee is up 80 percent this year. Lean hogs are up 28 percent. Corn is up 13 percent. Gold is up 12 percent. Most of these same commodities were down last year, and any of them could fall at the drop of a hat. So how do rational investors participate in the upside for unpredictable commodities without losing their all-cotton shirts?
One approach is to invest in a diversified basket of commodities. That lowers the chance of a big loss and adds diversification to an investment portfolio, since commodities tend not to track the stock market. While there are 149 commodity ETFs, only a handful are broadly diversified. ……………………………………….Full Article: Source

China exports plunge, commodities worry

Posted on 11 March 2014 by VRS  |  Email |Print

Chinese exports plunged tanked by a shocking 18.1% leading to a 23 billion dollar trade deficit. The markets are trying to adjust to a shaky new Lunar New Year. Oh, sure, some blame the holiday but after getting one China company default it is possible that China is headed towards a very hard landing.
The reason why this is so shocking is just one month ago China trade expanded by 10.6%. We saw copper imports were soaring. Still China Copper Imports were up January through February was up 41.2% but in February fell 29%………………………………………..Full Article: Source

Commodities trade in Ukraine goes on

Posted on 10 March 2014 by VRS  |  Email |Print

Steel, grain and other commodity export deals are yet to be significantly affected by the growing crises in Ukraine which escalated on 6 March with a US restriction on visas for Russians and Ukrainians threatening Ukrainian sovereignty and the imposition of sanctions by the EU on 18 Ukrainians including ousted president Viktor Yanukovich, the former Prosecutor General, the Head of Security Service, Minister of Justice and some of their relatives or associates.
The presence of Russian troops in Crimea and in particular of Russian ships in the port of Sevastopol are a concern, particularly as Russia is now claiming sovereignty over Crimea and by extension, of all its ports………………………………………..Full Article: Source

OPEC to cut exports as Asian demand slows, Oil Movements says

Posted on 07 March 2014 by VRS  |  Email |Print

The Organization of Petroleum Exporting Countries will reduce crude exports this month as refiners in Asia prepare for seasonal maintenance, according to tanker-tracker Oil Movements.
OPEC, responsible for 40 percent of global oil supplies, will decrease shipments by 400,000 barrels a day, or 1.6 percent, to 24.2 million barrels in the four weeks to March 22, Oil Movements said in an e-mailed note. The figures exclude two of OPEC’s 12 members, Angola and Ecuador. Exports had climbed from January through early March on winter demand in the northern hemisphere and stockpile-building in China, according to the consultant………………………………………..Full Article: Source

FCA warns that Euro laws may curtail commodities

Posted on 07 March 2014 by VRS  |  Email |Print

Four incoming pieces of legislation from Brussels will increase regulation on investing in commodities and securities, replicating the movement of commodity prices, the FCA has warned.
In an eight-page document, Regulating the Commodity Markets: a Guide to the Role of the FCA, the City watchdog claimed that the European Markets Infrastructure Regulation (EMIR), MiFID II, the Market Abuse Regulation (MAR) and new benchmarks from the European Commission could create a stricter environment for trading and investing in commodities………………………………………..Full Article: Source

After buying up the world’s commodities, China gears up to trade more of them

Posted on 06 March 2014 by VRS  |  Email |Print

The Hong Kong Exchange is moving into commodity trading this year to cater to the changing needs of “China Inc.,” the bourse’s exuberant chief executive Charles Li told analysts and reporters in Hong Kong on March 4. “China’s commodity business needs to internationalize and we’ll be here,” he said, with “new products, new members and new partners,” including potential tie-ups with the mainland’s fast-growing commodity trading platforms.
His announcement is the latest sign that after investing heavily around the world to buy and mine the world’s raw materials, China’s next step is to plan an even bigger role in trading them………………………………………..Full Article: Source

Iraq returns as world’s fastest-growing oil exporter

Posted on 06 March 2014 by VRS  |  Email |Print

Iraq is reclaiming its rank as the world’s fastest-growing oil exporter, cushioning consumers from Libyan supply outages for now and, perhaps, reviving OPEC market share rivalries down the road.
Despite worsening violence due to spillover from the war in Syria, Iraq - already OPEC’s second-largest producer - is likely to post one of the biggest annual output jumps in its history as BP, Exxon Mobil and other companies tap its southern fields, which are untouched by the unrest………………………………………..Full Article: Source

Grain boom busts Canada farmers as rail lags: Commodities

Posted on 05 March 2014 by VRS  |  Email |Print

Canada’s grain-supply boom is turning into a bust for farmers as record harvests and railroad logjams make sales almost impossible.
Consider Dennis Gallant, 76. He has yet to collect one cent on the wheat, canola, barley and oats harvested last year on the 1,000-acre farm in Warren, Manitoba, he has run since 1960. He has called the local grain elevator every 10 days since October. The answer since is always the same. No thanks. We’re full………………………………………..Full Article: Source

Crude oil drops after big jump over Ukraine crisis

Posted on 05 March 2014 by VRS  |  Email |Print

The price of crude oil dropped sharply Tuesday after a big jump the day before over concern that Russia’s military advance into Ukraine could result in economic sanctions against one of the world’s major energy suppliers.
By early afternoon in Europe, benchmark U.S. crude for April delivery was down $1.58 to $103.34 a barrel in electronic trading on the New York Mercantile Exchange. On Monday, the contract added $2.33 to close at $104.92………………………………………..Full Article: Source

HKEx to add yuan futures in night trading session

Posted on 05 March 2014 by VRS  |  Email |Print

HKEx looks to extend trading hours for the products from April to allow for hedging by investors in the wake of recent volatility in the currency. Hong Kong Exchanges and Clearing will add yuan currency futures in an after-hours evening session from April 7 in its latest effort to promote yuan products.
“The yuan has become very volatile recently while its trading pattern last week showed the currency did not always go up. This would be the right time for HKEx to extend the trading hours for yuan futures to allow investors to do some hedging,” Charles Li Xiaojia, chief executive of the bourse, said as he unveiled HKEx’s strategy at its annual media briefing……………………………………….Full Article: Source

Keeping the faith in commodity trading

Posted on 28 February 2014 by VRS  |  Email |Print

The commodities trading landscape is changing. Faced with rising costs, increased regulation and directionless markets, big banks such as Deutsche Bank are retrenching or retreating from the sector. It is a trend that looks set to continue.
“Sentiment-driven and largely directionless markets, alongside declining client interest, has seen total revenues for the leading 10commodities investment bank businesses across the globe fall to just below a third of their peak, from $14.1bn in 2008 to $4.5bn in 2013, with no foreseeable prospect of recovery,” the UK’s financial watchdog, the Financial Conduct Authority, said……………………………………….Full Article: Source

Commodities forecast suffers

Posted on 27 February 2014 by VRS  |  Email |Print

As rising supplies and slowing demand compound dips that led to last year’s bear market in gold, copper and corn, Bloomberg reports that banks expect commodities to head that way again in 2014.
The super cycle that led commodities to almost quadruple since 2001 is reversing, with prices set to drop 3% in 12 months, reports Goldman Sachs Group Inc………………………………………..Full Article: Source

U.K. FCA: Commodities houses pose oversight challenges

Posted on 27 February 2014 by VRS  |  Email |Print

Commodities-trading houses are posing a challenge to market oversight, the U.K.’s Financial Conduct Authority warned Thursday. As tighter regulatory requirements have reduced banks’ activities in the sector, their places have been taken by specialist companies, many of which are closely held and have substantial operations outside direct oversight of market regulators.
The best known, such as Cargill, Vitol Group SA and Trafigura Beheer B.V., churn through hundreds of billions of dollars of sales every year through global operations that span from London to Singapore and control the movement of huge volumes of essential goods—ranging from grains, cocoa and coffee beans to industrial metals and oil………………………………………..Full Article: Source

Barclays pulls down shutters on European, U.S. power trading desks

Posted on 26 February 2014 by VRS  |  Email |Print

Britain’s Barclays Plc said on Tuesday it has closed its power trading desks in London and New York, joining a string of global investment banks that are paring down their commodity market activities as increased regulations bite.
Barclays, a top-five banking player in commodities trading which is in the process of shrinking its investment banking activities, said its “core commodities franchise continues to operate business as usual”………………………………………..Full Article: Source

Who is #1 consumer of gold? Does smuggling count?

Posted on 24 February 2014 by VRS  |  Email |Print

The recently released Gold Demand Trends Report 2013 by the World Gold Council states that China surpassed India to become the world’s top consumer of the yellow metal in 2013. However, based on official imports and smuggled gold, India’s consumption is still higher.
According to the report China tops the list with total gold imports of 1066 tons. India’s official gold imports totaled 975 tons during the year. The report also states that nearly 200 tons of gold were smuggled to India during the year. Adding the official and smuggled gold, the total gold consumed by the country would be 1075, which is higher than the gold imports by China………………………………………..Full Article: Source

US to be world’s biggest oil supplier by 2016

Posted on 21 February 2014 by VRS  |  Email |Print

As the US economy continues to grow, experts say it will rely less on the world’s major oil exporters in Africa and the Middle East, regions largely sustained by U.S. imports.
According to the International Energy Agency, the economy will grow by 2.8 percent in 2014, higher than the 2.6 percent it previously forecasted. The International Monetary Fund predicts the global economy will grow in the same direction by 3.7 percent………………………………………..Full Article: Source

Supply shortage in India for yellow metal

Posted on 21 February 2014 by VRS  |  Email |Print

The delay in clearing the gold procurement requests by the Directorate General of Foreign Trade (DGFT) has led to supply crunch in India. As per reports, nominated agencies too were seen delaying supply to bulk consumers thus heightening the fall in gold supply to jewellery exporters.
The Reserve Bank of India (RBI) had come up with 80:20 rule in August last year which linked exports to gold imports, making it mandatory for gold importers to supply at least 20% of their imports to exporters………………………………………..Full Article: Source

Switzerland sent 80pct of bullion exports to Asia in January

Posted on 21 February 2014 by VRS  |  Email |Print

Switzerland sent more than 80 percent of its gold and silver bullion and coin exports to Asia last month, the Swiss Federal Customs Administration said. It imported most from the U.K.
Hong Kong was the top destination at 44 percent on a value basis, with India at 14 percent, the Bern-based customs agency said in its first breakdown of the gold trade data since 1980. Singapore accounted for 8.6 percent of exports, the United Arab Emirates 7.9 percent and China 6.3 percent………………………………………..Full Article: Source

NZ: Commodity export boom forecast

Posted on 20 February 2014 by VRS  |  Email |Print

Strong demand for New Zealand’s main commodity exports - particularly from China - has prompted the Ministry for Primary Industry to revise up its revenue forecast for the sector by $4.9 billion to $36.5 billion for 2013/14.
The ministry, in an update of last year’s Situation Outlook for Primary Industries, said the net effect of higher demand for dairy was a $2.7 billion increase in forecast dairy revenues over last year’s forecast for the 2013/14 year to June………………………………………..Full Article: Source

Oil boss urges overhaul of Brent oil price benchmark

Posted on 20 February 2014 by VRS  |  Email |Print

The head of the world’s largest oil trading firm has called for an overhaul of the Brent Crude benchmark oil price. Ian Taylor, the chief executive of Vitol, says Brent is no longer efficient as a price and should include other global oil grades.
A leading oil analyst at Citigroup, Seth Kleinman, has also called Brent a “broken” benchmark. Platts, the price reporting agency, says change may be necessary, but not yet………………………………………..Full Article: Source

Could you be a commodity trading advisor or commodity pool operator and not know it?

Posted on 20 February 2014 by VRS  |  Email |Print

As the Commodity Futures Trading Commission’s (CFTC) Division of Swap Dealer and Intermediary Oversight recently reminded market participants in a Staff Advisory, entities that meet the definition of a commodity trading advisor (CTA) are subject to various regulatory requirements and may be required to register as a CTA with the National Futures Association (NFA).
The Staff Advisory is an indication that the CFTC is turning to compliance with its regulatory and registration requirements now that the rulemaking process of the Dodd-Frank Act is finishing………………………………………..Full Article: Source

Major banks’ commodities revenue slid 18 pct in 2013

Posted on 19 February 2014 by VRS  |  Email |Print

Commodities revenue at the top 10 investment banks dropped 18 percent in 2013 in a third year of declines due to weak investor interest and low volatility, a consultancy said on Tuesday.
Revenue from commodities for top banks fell to $4.5 billion last year from $5.5 billion the previous year, London-based financial industry analytics firm Coalition said in a report. Many banks have slashed their commodities businesses and others have completely shut down commodities units, which also have been hit by tougher regulation and higher capital requirements after the global financial crisis………………………………………..Full Article: Source

Oversupply forces aluminium industry cuts

Posted on 19 February 2014 by VRS  |  Email |Print

Two of the world’s three biggest aluminium producers have announced cuts to production in the latest sign of how weak prices and oversupply are weighing on the industry.
US company Alcoa said on Monday it was shutting its 190,000 tonne-a-year Point Henry smelter in Australia since the plant had “no prospect of becoming financially viable”. Two rolling mills there will also be permanently closed. Alcoa’s total closures or curtailments to production now represent 551,000 tonnes of capacity, or about 1 per cent of world supply of the metal………………………………………..Full Article: Source

China’s record copper, iron ore imports are not being put to work

Posted on 19 February 2014 by VRS  |  Email |Print

The copper price’s February comeback accelerated on Tuesday, bringing gains so far this month to more than 4%. In New York trade spot copper jumped 2c to $3.34 a pound, up from $3.20 hit at the end of January over fears of a marked slowdown in the economy of number one consumer China.
For 2014 economists are predicting 7.4% which would make it the slowest nominal growth since 1990. Given its widespread use in transportation, manufacturing and construction the copper price is sensitive to any economic slowdown………………………………………..Full Article: Source

Sorting reality from hype in the rare Earth industry: Ryan Castilloux

Posted on 19 February 2014 by VRS  |  Email |Print

China has two competing REE industries: legal and illegal. This results in an abundance of REE suppliers. End-users are aware of this and exploit it by shopping around. They use the last guy’s offer to negotiate a lower price with the next supplier, and ultimately, the spread between prices widens, and prices trickle downward.
China’s consolidation plans aim to remedy this situation. The Baotou Rare Earth Products Exchange shares this goal. In the long term and in the context of the recent World Trade Organization (WTO) ruling against China’s REE restrictions and tariffs, consolidation is a power play. It aims to drive down production costs, so that China can undercut emerging suppliers, should it find its grip on the industry weakening………………………………………..Full Article: Source

August 2014
S M T W T F S
« Jul    
 12
3456789
10111213141516
17181920212223
24252627282930
31