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U.S. gold exports in 2013 through September exceeded all of 2012

Posted on 20 December 2013 by VRS  |  Email |Print

U.S. gold bullion exports hit a new record during the first nine months of the year. Not only have exports recorded significant growth year-on-year, but also surpassed the total exports for the entire year 2012.
According to data provided by the U.S. Geological Survey (USGS), U.S. gold bullion exports during 2013 through September totaled 416 mt. This is 47% higher when compared with the exports during the corresponding nine-month period in 2012. In the first nine months of 2012, the United States had exported only 283 mt of gold bullions……………………………………….Full Article: Source

OPEC, Iran, API and Libya focus of oil traders

Posted on 19 December 2013 by VRS  |  Email |Print

Crude oil is trading at 97.66 climbing 18 cents this morning after the release of the weekly American Petroleum Institute’s inventory report. The American Petroleum Institute late Tuesday reported a 2.5 million-barrel fall in U.S. crude supplies for the week ended Dec. 13, according to data from sources.
Analysts had forecast a decline of 4 million barrels in crude supplies. Sources also said the API reported gasoline stockpiles down 481,000 barrels, while distillate supplies fell 434,000 barrels. Analysts were looking for gasoline supplies to rise by 1.4 million barrels and distillate inventories to decline by 1 million barrels………………………………………..Full Article: Source

China’s Bohai exchange to launch rubber, iron ore trading in yuan

Posted on 19 December 2013 by VRS  |  Email |Print

China’s Bohai Commodity Exchange, a local government-backed online trading platform for spot commodities, plans to launch cross-border trading in yuan for natural rubber and iron ore.
It announced the plans in Hong Kong Tuesday during a roadshow to promote the new trading system, an exchange official said in an interview Wednesday. In April, the exchange became China’s first non-financial organization to get approval from the central government to offer yuan-based cross-border trading………………………………………..Full Article: Source

Commodity traders step up investments as prices decline -Trafigura

Posted on 16 December 2013 by VRS  |  Email |Print

The golden era for commodities is far from over and declines in previously overheated prices offer opportunities for trading houses to extend ownership of assets while still betting on continued growth in China and Africa, top player Trafigura said.
In its first fully public annual report since being set up 20 years ago, Trafigura said 2013 has been a year of “reappraisal in commodities” as many resource markets appeared to move into large surpluses while global growth looked insufficient to absorb increases in supply………………………………………..Full Article: Source

Exporting American oil

Posted on 16 December 2013 by VRS  |  Email |Print

The happy paradox of U.S. energy markets is that the domestic fossil-fuels boom has been overwhelming destructive federal government policy. The latest example of emerging common sense is Energy Secretary Ernest Moniz’s suggestion last week that the U.S. may need to reconsider its 40-year ban on most oil exports.
“Those restrictions on exports were born, as was the Department of Energy and the Strategic Petroleum Reserve, on oil disruptions,” Mr. Moniz told reporters at the Platts Global Energy Outlook Forum in New York………………………………………..Full Article: Source

North American oil supply to continue to pressure OPEC in 2014

Posted on 12 December 2013 by VRS  |  Email |Print

Rising oil supply from outside OPEC, particularly North America, is set to continue to outpace growth in demand next year, the Organization of the Petroleum Exporting Countries said Tuesday, underscoring the pressure the group faces to curtail its own production.
In its monthly market report, the group of oil producers raised its forecast for non-OPEC oil supply growth this year by 15,000 barrels a day to 1.2 million barrels a day, a growth rate it expects will be sustained in 2014………………………………………..Full Article: Source

China’s commodities imports rebound

Posted on 10 December 2013 by VRS  |  Email |Print

China’s iron ore imports rebounded in November from the previous month to a fresh record, customs data showed on Sunday, as steel mills purchased more on improving steel demand driven by a more promising economic outlook. Crude oil imports also rebounded from a 13-month low in October to 5.73 million barrels per day (bpd) in November, the fourth highest daily imports this year, as refineries restarted following maintenance.
Soybean imports surged 44 percent from October to more than 6.0 million tonnes last month, driven by good crushing margins and healthy demand. China’s total exports handily beat forecasts in November, adding to recent evidence of a stabilisation in the world’s second-largest economy as its leaders embark on an ambitious restructuring plan………………………………………..Full Article: Source

Are commodities traders ‘too big to fail’?

Posted on 09 December 2013 by VRS  |  Email |Print

When the banking industry’s top lobby group commissioned a report on commodity trading houses the idea was to show trading houses like Glencore Xstrata, Vitol or Cargill were “too big to fail” and therefore needed to be regulated in a similar manner to the banks.
But instead of highlighting the inherent issues surrounding the industry, the report found trading companies posed less systemic risk than the big banks. As a result, the Global Financial Markets Association, which commissioned the report, decided not to finalise or publish it………………………………………..Full Article: Source

Why petrol prices could be about to fall - at last

Posted on 05 December 2013 by VRS  |  Email |Print

Opec, the cartel of Middle Eastern, Latin American and African oil producers is meeting in Vienna today and this time they won’t be toasting the rising price of oil.
Commodity traders are whispering about a big drop in the price of oil over the next twelve months due to a range of factors from the emergence of American shale power to the potential softening of sanctions on Iran………………………………………..Full Article: Source

Single global gas price unlikely: IEA chief

Posted on 04 December 2013 by VRS  |  Email |Print

The development of natural gas trading hubs in Asia will be critical, but will not happen overnight, according to Maria van der Hoeven, Executive Director, International Energy Agency (IEA).
The IEA is a France-based autonomous organisation that seeks to ensure reliable, affordable and clean energy for its 28 member countries………………………………………..Full Article: Source

OPEC exports to increase on refinery demand, Oil Movements says

Posted on 29 November 2013 by VRS  |  Email |Print

The Organization of Petroleum Exporting Countries will bolster crude shipments through to mid-December, driven by Iraq and as refiners come out of maintenance, according to tanker tracker Oil Movements.
OPEC, which supplies about 40 percent of the world’s oil, will raise sailings by 700,000 barrels a day, or 3 percent, to 24.05 million barrels in the four weeks to Dec. 14, the researcher said today in a report. That compares with 23.35 million in the period to Nov. 16. The figures exclude two of OPEC’s 12 members, Angola and Ecuador………………………………………..Full Article: Source

China would replace US as world’s largest oil importer

Posted on 29 November 2013 by VRS  |  Email |Print

Energy-hungry China would replace the US as the world’s largest oil importer by the 2020s followed by India, according to a report that said emerging economies are poised to claim most of the global energy supplies.
China, world’s second largest economy, will be the main contributor to the increase in global energy use over the coming decade, after that India will replace it as the world’s biggest driving force for energy demand in the 2020s, International Energy Agency (IEA) said……………………………………….Full Article: Source

World grain demand, output may continue to rise in 2013-14

Posted on 29 November 2013 by VRS  |  Email |Print

Global food grain production in the year 2013-14 is expected to be higher, healthy and is likely to put pressure on commodity futures in the international market. Output of corn, rice and others is expected to go up in the current year, experts say.
World cereal production (including rice in milled equivalent) is expected to increase by 8% in 2013, to 2498 mn tons. This forecast is almost 10 mn tonnes higher than forecast in October, mostly reflecting upward adjustments to production estimates in Canada, China, EU, the United States and Ukraine, said Food and Agriculture Organization in its latest monthly FAO Cereal Supply and Demand Brief………………………………………..Full Article: Source

India’s gold bar imports plunged 42pct year-on-year in October

Posted on 27 November 2013 by VRS  |  Email |Print

The Gems and Jewellery Export Promotion Council (GJEPC) has released the details of imports of raw materials for gems and jewellery for the month of October. According to the data, the gold bar imports by the country in October this year witnessed a huge fall of 42.07% over the previous year.
The provisional figures released by GJEPC suggests that the total gold bar imports by the country in October amounted to INR 2,940.93 crores (USD 477.27 million).In rupee terms, the gold bar imports have declined sharply by 42.07%. The decline in dollar terms stood at 50.15%. It must be noted that the country’s gold bar imports during October last year were INR 5,076.56 crores (USD 957.48 million)………………………………………..Full Article: Source

Hard for Iran to ramp up oil exports: IEA

Posted on 26 November 2013 by VRS  |  Email |Print

It would be difficult for Iran to revive its oil output to former levels quickly even if international restrictions on its exports are lifted, International Energy Agency (IEA) head Maria van der Hoeven said on Monday.
Van der Hoeven was speaking to reporters in Moscow after Iran and six world powers reached a deal on Sunday to curb Tehran’s nuclear program in exchange for limited relief on sanctions………………………………………..Full Article: Source

Gold trade in Thailand: Bullion backwash

Posted on 26 November 2013 by VRS  |  Email |Print

The two gold biscuits an Indian man in Bangkok’s Chinatown holds in his right hand are no bigger than a Swiss army knife. He has just bought them on Yaowarat Road for $15,000, but in his native Mumbai they are worth $16,500. They can travel in a computer bag or “if you are really worried about customs”, he says pointing at a shop which sells plain golden necklaces, “you buy those and put them around your wife’s neck.”
Earlier this year the Indian government imposed quotas and increased taxes on gold imports, but it takes more than that to limit Indians’ love of gold. Although the country’s statisticians report that Indians officially buy a lot less of the precious metal—148.2 tonnes from July to September, a third less than in the same period last year—there has been a surge in gold smuggling………………………………………..Full Article: Source

Commodity traders wake up to LNG market

Posted on 25 November 2013 by VRS  |  Email |Print

Commodity traders dream of creating markets that did not exist before, and for some of the world’s largest energy companies and trading houses, liquefied natural gas looks to promise exactly that. For decades the market for LNG – gas supercooled into liquid form so that it can be shipped – was a closed shop.
Needing sufficient revenues to cover the huge upfront cost of developing projects, producers tied customers into long-term contracts, while the pool of buyers was small………………………………………..Full Article: Source

Danske Commodities expands energy trading as utilities cut staff

Posted on 21 November 2013 by VRS  |  Email |Print

Danske Commodities A/S, a closely-held Danish energy trader, is taking advantage of growing electricity-price volatility by expanding its operations, even as banks and utilities are reducing staff to cut costs.
The Aarhus, Denmark-based company has hired nine power traders and one carbon trader this year from Barclays Plc, Axpo Holding AG, EON (EOAN) SE, Enel SpA and NEF Asset Management, Torben Nordal Clausen, Danske Commodities’ chief executive officer, said by telephone on Nov. 19…………………………………Full Article: Source

For IEA, shale has no long-term impact on oil price: Kemp

Posted on 15 November 2013 by VRS  |  Email |Print

Shale will not significantly boost oil production or bring down prices in the long term, according to the International Energy Agency (IEA). The surprising findings are contained in the latest version of the agency’s annual World Energy Outlook (WEO).
Worldwide production of light tight oil (LTO) from shale and other formations requiring fracking is expected to grow from 2.0 million barrels per day in 2012 to just 5.8 million bpd by 2030, before declining slightly to 5.6 million bpd in 2035………………………………………..Full Article: Source

OPEC not expected to change output next month

Posted on 14 November 2013 by VRS  |  Email |Print

Kuwait Oil Minister Mustafa al-Shamali said Wednesday that he does not expect the OPEC oil cartel to change production at its next ministerial meeting in December. “I don’t expect it to be changed because the production till now goes with the needs of consumers and that’s enough,” Shamali told reporters outside parliament.
“I think it won’t be changed,” he said, but added that the decision will ultimately depend on a review of statistics by ministers of the 12-member Organisation of the Petroleum Exporting Countries at the meeting in Vienna meeting early next month………………………………………..Full Article: Source

Why this could be an awful week for commodities

Posted on 11 November 2013 by VRS  |  Email |Print

The U.S. dollar has enjoyed a massive rally over the past two weeks, which has weakened commodities such as gold and crude oil. But according to several traders, the worst could be yet to come.
A strong dollar tends to hurt commodity prices, because as the dollar gains in value, then it takes fewer of those dollars to buy an ounce of gold or a barrel of oil. Consequently, a rising Dollar Index (which compares the U.S. dollar to a basket of four other currencies) usually causes gold and oil prices to drop………………………………………..Full Article: Source

OPEC exports to recover slowly before winter, Oil Movements says

Posted on 08 November 2013 by VRS  |  Email |Print

The Organization of Petroleum Exporting Countries will increase crude exports through the end of this month as shipments from Saudi Arabia and Iraq recover before the northern hemisphere’s winter season, according to tanker tracker Oil Movements.
OPEC, which supplies about 40 percent of the world’s oil, will increase sailings by 350,000 barrels a day, or 1.5 percent, to 23.92 million barrels in the four weeks to Nov. 23, the researcher said today in a report. That compares with 23.57 million in the period to Oct. 26. The figures exclude two of OPEC’s 12 members, Angola and Ecuador………………………………………..Full Article: Source

Copper trade most bullish in eight months on China

Posted on 08 November 2013 by VRS  |  Email |Print

Copper analysts are the most bullish in eight months, joining hedge funds betting prices will gain on stronger demand from China, the biggest buyer. Eighteen analysts surveyed by Bloomberg News expect prices to rise next week, seven are bearish and seven neutral, the largest proportion of bulls since March 8.
Money managers and other speculators held a net-long position of 10,297 contracts on Oct. 29 after betting on lower prices as recently as September, the latest U.S. Commodity Futures Trading Commission data show. They were bearish from February to August………………………………………..Full Article: Source

China’s Oct commodities imports to rise on year on better economy

Posted on 07 November 2013 by VRS  |  Email |Print

China’s main commodities imports likely eased from record levels last month due to a week-long holiday in October, but shipments of crude oil, copper and iron ore are still expected to post strong annual growth as economic recovery gathers pace.
Import demand for crude oil, copper and soybeans is seen staying elevated through the rest of the year, as an invigorated manufacturing sector boosts consumption by refineries, smelters and crushers, traders and analysts said………………………………………..Full Article: Source

Return of Iran crude may spark OPEC ‘price war’

Posted on 07 November 2013 by VRS  |  Email |Print

The possible lifting of sanctions against Iran as early as next year - setting the stage for the return of the country’s oil exports - may spark a “price war” within OPEC as rival producers try to compete with heavily discounted crude offered by Tehran.
International sanctions aimed at curbing Iran’s nuclear program have more than halved the country’s oil exports to about 1 million barrels a day since the beginning of 2012. But a recent thaw in relations with the West under a more moderate leadership led by President Hassan Rouhani who took office in August has raised expectations that the embargo may be rolled back………………………………………..Full Article: Source

Tumbling US oil price transforms trading

Posted on 07 November 2013 by VRS  |  Email |Print

It is a taste of things to come. As the benchmark US oil price has slumped over the past month, so has the cost of crude in the Gulf of Mexico, one of the largest refining hubs in the world.
The sharp price moves are testament to the impact of the US shale revolution, which has sent new supplies of crude from oilfields in North Dakota and Texas to the coasts of the US - with far-reaching effects on international oil markets………………………………………..Full Article: Source

Proposed rule limits size of commodities traders’ positions

Posted on 06 November 2013 by VRS  |  Email |Print

In 1979, Nelson Bunker Hunt and William Hunt famously bought up as much silver as they could in the commodities market. By the time they were done, the brothers had acquired more than a third of the world’s supply of silver, sending the price of the precious metal soaring.
Citing the Hunt brothers’ attempt to corner the market more than three decades ago, the Commodity Futures Trading Commission on Tuesday voted 3 to 1 to limit the size of any trader’s footprint in the commodities market………………………………………..Full Article: Source

The commodities sector gained in the third quarter.

Posted on 05 November 2013 by VRS  |  Email |Print

Price increases for commodities in the third quarter have rekindled investors’ optimism. The commodities sector gained in the third quarter. The S&P GSCI index, which comprises 24 commodity futures, recovered its losses from the first two quarters of the year.
In the energy sector the supply of US natural gas and crude oil increased, partly because of fracking, which squeezed prices in the first half of the year………………………………………..Full Article: Source

OPEC exports to drop as US output gains

Posted on 05 November 2013 by VRS  |  Email |Print

The Organisation of Petroleum Exporting Countries will cut crude exports through mid-November as rising US output allows the nation to curb purchases from the Middle East and Africa, according to Oil Movements.
OPEC, which supplies about 40 percent of the world’s oil, will reduce sailings by 80,000 barrels a day, or 0.3 per cent, to 23.78 million barrels in the four weeks to Nov. 16, the tanker tracker said in a report. That compares with 23.86 million in the period to Oct. 19. The figures exclude two of OPEC’s 12 members, Angola and Ecuador………………………………………..Full Article: Source

Fee for commodities traders puts Fed on unfamiliar turf

Posted on 04 November 2013 by VRS  |  Email |Print

The possibility that the Federal Reserve will slap a surcharge on physical commodity trading by banks highlights some tricky new challenges for the US central bank as it tries to rein in Wall Street’s involvement in the raw materials supply chain.
Banking lawyers and finance experts say that implementing a proposal to require additional capital from banks, a possibility first raised by the Wall Street Journal in October, would put the Fed on uncertain ground in formulating a new policy for banks owning physical commodities………………………………………..Full Article: Source

C.F.T.C. approves tighter commodity trading rules

Posted on 01 November 2013 by VRS  |  Email |Print

In October 2011, as the futures broker MF Global teetered on the brink of collapse, it dipped into client accounts in an effort to avert bankruptcy. But the action failed to save the broker, and its implosion left thousands of clients short a total of $1.6 billion.
Two years after MF Global’s bankruptcy, regulators have sought to restore confidence in the industry, tightening rules that force brokerage firms to better safeguard client money…………………….Full Article: Source

Scotiabank’s Commodity Price Index loses further ground in September

Posted on 31 October 2013 by VRS  |  Email |Print

Scotiabank’s Commodity Price Index fell in September, declining 2.8% month over month (m/m) and 3.8% year over year (yr/yr). While the All Items Index will likely fall further over the balance of 2013, the correction in commodity prices, especially in metals and minerals, since April 2011 should be largely over by year-end.
“Traditionally, junior mining companies have been important contributors to mineral exploration across Canada, finding and delineating deposits, before selling them to senior producers for development,” said Patricia Mohr, Scotiabank’s Vice President of Economics and Commodity Market Specialist. “However, equity capital raised by junior mining companies on the TSX Venture plunged in 2012 and has moved even lower in 2013 year to date. (Press Release)

Libya’s oil exports still restricted, little improvement

Posted on 31 October 2013 by VRS  |  Email |Print

Libyan crude oil exports showed little improvement on Wednesday after falling to a trickle this week, except for one tanker that was expected to load condensate from the small western port of Mellitah, trading sources said.
Over the weekend, Libya’s two western ports of Zawiya and Mellitah suspended oil exports, on top of the closures of its eastern facilities……………………………….Full Article: Source

Barclays reviews foreign exchange trading

Posted on 31 October 2013 by VRS  |  Email |Print

Barclays reported a decline in quarterly profits as it confirmed it was reviewing foreign exchange trading operations in response to an investigation into the $5.3tn market by global regulators.
European lenders UBS and Deutsche Bank on Tuesday admitted their involvement in an international probe into alleged manipulation of currency trading by regulators in the US, UK, Hong Kong and Switzerland……………………………….Full Article: Source

Commodity financing in Asia bright spot for banks amid cutbacks

Posted on 30 October 2013 by VRS  |  Email |Print

Booming commodity trade financing in Asia is a rare bright spot for Western banks, forced to withdraw from other areas of commodities due to tougher regulation and capital constraints.
Commodity revenue for banks has shrunk dramatically in recent years and in the first half of 2013, turnover in the sector for the top 10 investment banks slid by about 20 percent to $2.7 billion, according to financial consultancy Coalition…………………………………….Full Article: Source

OPEC sees no danger to its production plans

Posted on 30 October 2013 by VRS  |  Email |Print

OPEC, the Organization of the Petroleum Exporting Countries, said on Monday there would still be demand for its oil despite the shale oil boom in the United States, downplaying concerns the group may lose its market share.
Boom in shale oil production in the United States has changed the global energy landscape, as Washington has ceded its ranking as top global oil importer to China by cutting its import needs. Next year, the United States is set to overtake Russia as the world’s top oil producer due to the growing non-conventional oil output, the International Energy Agency (IEA) said this month…………………………………….Full Article: Source

OPEC exports to drop as Saudi Arabia trims, Oil Movements says

Posted on 25 October 2013 by VRS  |  Email |Print

The Organization of Petroleum Exporting Countries will reduce crude shipments through early next month as Saudi Arabia reduces exports, according to data from Oil Movements. OPEC, which supplies about 40 percent of the world’s oil, will reduce sailings by 110,000 barrels a day, or 0.5 percent, to 23.8 million barrels in the four weeks to Nov. 9, the tanker tracker said today in a report.
That compares with 23.91 million in the period to Oct. 12. The figures exclude two of OPEC’s 12 members, Angola and Ecuador………………………………………..Full Article: Source

Oil traders hunger for lost years of volatility

Posted on 24 October 2013 by VRS  |  Email |Print

Many hedge funds do not care how high prices are. They only want oil to move. Using complex options trades such as “straddles”, which gain value when markets go up or down, they “buy” volatility. A straddle involves buying both a bullish call option and a bearish put option at the same strike price – say, $110 a barrel.
Clive Capital has thrown in the towel. Deep into its third year of losses, what was once one of the world’s largest commodity hedge funds shut down late last month. The closure is symptomatic of a broader trend – or more accurately, the lack of one. Hedge funds once feasted on wild action in oil. Now, volatility has fallen to historic lows. Plodding prices have forced traders to experiment with new ways to make money. ……………………………………….Full Article: Source

India: Bullion traders approach govt over high gold premium

Posted on 24 October 2013 by VRS  |  Email |Print

The bullion business seems to have lost glitter in the past couple of months. An increase in the import duty, exorbitant commissions charged by gold importing agencies and a lack of availability for domestic jewellers has left bullion traders wading through choppy waters.
Traders have sought relief from the central government. Recently, representatives of the All India Bullion and Jewellers Association (AIBJA) met the director general of foreign trade and senior government officials, including the revenue secretary and the economic affairs secretary, to air their grievances………………………………………..Full Article: Source

Reasons to be wary about banks’ commodity trading: Kemp

Posted on 23 October 2013 by VRS  |  Email |Print

“Bank holding companies ought to confine their activities to the management and control of banks,” the Senate Banking Committee wrote in 1955, reporting favourably on legislation that eventually became the 1956 Bank Holding Company Act.
“Bank holding companies ought not to manage or control nonbanking assets having no close relationship to banking,” the committee went on. Bank holding companies were required to divest shares in nonbanking enterprises and forbidden to acquire new ones, with a few carefully limited exceptions………………………………………..Full Article: Source

Commodity trading cap coming: 6 things investors need to know

Posted on 23 October 2013 by VRS  |  Email |Print

Commodities markets are a lot like the Wild West: they’re either unregulated or have poorly defined regulations, offer enormous possibilities for investors and are prone to boom and bust cycles.
One of the top criticisms investors (as well as consumers and politicians) often make with these markets is “price volatility,” and now the governing body of these markets, the Commodity Futures Trading Commission (CFTC), is weighing in with a new rule designed to prevent commodity price swings caused by rampant speculation………………………………………..Full Article: Source

Commodities may be on an edge

Posted on 23 October 2013 by VRS  |  Email |Print

Commodities have been the strength behind the Australian economy for the past decade with the resources super cycle providing the wherewithal for the Rudd government to throw money at the country during the darkest days of the global financial crisis.
When resource prices did weaken some time into the crisis, the Chinese government’s massive stimulus program kicked in, pushing up demand for iron ore and coal and saving Australia’s economic bacon in the process………………………………………..Full Article: Source

Commodities traders face increased competition

Posted on 22 October 2013 by VRS  |  Email |Print

Glencore Xstrata, Vitol and Trafigura face the prospect of increased competition and lower margins, as national companies from the Middle East, the former Soviet Union and southeast Asia enter the commodity trading market.
Graham Sharp, one of the founders of Trafigura and an adviser at industry consultancy Oliver Wyman, has predicted that between five and 10 “significant” competitors will emerge over the next five years, as national companies try to squeeze higher returns from assets and protect access to end markets………………………………………..Full Article: Source

Reasons to be wary about banks’ commodity trading: Kemp

Posted on 22 October 2013 by VRS  |  Email |Print

“Bank holding companies ought to confine their activities to the management and control of banks,” the Senate Banking Committee wrote in 1955, reporting favourably on legislation that eventually became the 1956 Bank Holding Company Act.
“Bank holding companies ought not to manage or control nonbanking assets having no close relationship to banking,” the committee went on. Bank holding companies were required to divest shares in nonbanking enterprises and forbidden to acquire new ones, with a few carefully limited exceptions………………………………………..Full Article: Source

Chinese copper imports continue to grow

Posted on 22 October 2013 by VRS  |  Email |Print

LME copper futures for three-month delivery gained 0.21 per cent to 7,245 dollars/metric ton last Friday, in-line with the risk-on appetite which was to be observed in financial markets generally at the end of last week.
Furthermore, figures out overnight on Monday showed Chinese import shipments of copper rose by 18% in September, to reach 347,305 metric tons. West Texas crude futures ended the Friday session 9 cents higher to stand at $100.81/barrel by the close of trading on the NYMEX. Market commentary out over the weekend described the on-going nuclear negotiations with Iran as moderately positive………………………………………..Full Article: Source

Emerging market doldrums to weigh on commodities markets

Posted on 21 October 2013 by VRS  |  Email |Print

Weaker economic growth in emerging countries, hit by a squeeze in liquidity and weaker currencies, is due to curb raw material demand and weigh on commodity markets.
This month, the International Monetary Fund cut its forecasts for economic growth in emerging markets for this year and next. China, India and other emerging economies have been the main drivers of demand growth in commodities ranging from copper to oil to soybeans………………………………………..Full Article: Source

U.S. oil supply looks vulnerable 40 years after embargo

Posted on 21 October 2013 by VRS  |  Email |Print

In October 1973, the Organization of Petroleum-Exporting Countries (OPEC) instituted an oil embargo against the nations, including the United States, that supported Israel in the 1973 Arab-Israeli War. The embargo was lifted six months later, but not before it changed the way we drive.
Could oil shocks, such as those in 1973, happen again? How resilient is the U.S. now? While its energy picture has changed dramatically, it still imports 35% of the petroleum it consumes………………………………………..Full Article: Source

Goldman Sachs sees gold to trade close to $1,300 until the year end

Posted on 21 October 2013 by VRS  |  Email |Print

Goldman Sachs sees downside potential for copper, gold and soybeans but upside potential for zinc and lead. According to Goldman Sachs, it would wait for clarity on tapering of U.S. quantitative easing before shorting certain commodities. The debt-ceiling limit was only extended by a few months this week, prompting ideas that the lack of a lasting resolution means that QE will be extended.
“Although we maintain our neutral recommendation for commodities and our expectations for (a) mostly flat S&P GSCI returns over the next 12 months, we see significant downside opportunities in copper, gold and soybeans,” Goldman added………………………………………..Full Article: Source

Analysis: Lurching gold prices mystify traders, undermine confidence

Posted on 21 October 2013 by VRS  |  Email |Print

In the early hours of the New York morning on Thursday, when scarcely a few hundred lots of gold futures are usually traded, a wave of buy orders worth over $2.3 billion surged into the market.
Prices soared 3 percent in just 10 minutes, setting the tone for the next 12 hours of trade - and puzzling many traders and investors who have been rattled by a series of similarly abrupt, and largely unexplained, trade surges over the past two weeks………………………………………..Full Article: Source

What will happen to China’s trading hubs as its exports slow?

Posted on 21 October 2013 by VRS  |  Email |Print

China’s government on Friday reported an increase of 7.8% in the country’s GDP in the third quarter, the latest in a world-beating expansion after three decades of economic reform. Yet export gains – once the country’s main growth engine – have turned modest; they actually declined by 0.3% in September from a year earlier.
Increasingly, there are worries here about the country’s ability to maintain its export competitiveness in the face of rising costs and an appreciating currency………………………………………..Full Article: Source

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