Thu, Jul 30, 2015
A A A
Welcome preal121
RSS

Commodities Briefing - Category | Trading more

China commodities imports resume after holiday but demand weak

Posted on 14 April 2015 by VRS  |  Email |Print

China’s commodities imports generally rose in March on a month earlier as shipments resumed after the Lunar New Year holiday, but analysts pointed to still weak demand for goods ranging from iron ore to coal and soybeans. Overall trade data showed China’s total exports shrank 15 percent in a surprise drop that will exacerbate concerns about the slackening Chinese economy.
The world’s top buyer of iron ore imported 80.51 million tonnes of the steelmaking ingredient in March, up 18.5 percent from the previous month as producers flooded the market and prices fell. First quarter shipments rose 2 percent but the pace of growth was down from 19 percent a year earlier………………………………………..Full Article: Source

Why prefer commodities over commodity manufacturers

Posted on 14 April 2015 by VRS  |  Email |Print

Owning commodities allow investors to take exposure to the commodity he has a view on. Investing in shares of commodity manufacturing companies lead to exposure to many factors such as broader equity market sentiment, company fundamentals.
Investors often face the difficult choice – to buy gold or a gold miner, or to buy aluminum or aluminum manufacturing companies. Put simply, they have to make the difficult choice between a commodity and the commodity manufacturer. The decision requires a detailed look at both the investment options………………………………………..Full Article: Source

5 myths about currency manipulation and exchange rates

Posted on 14 April 2015 by VRS  |  Email |Print

Most observers overestimate the importance of currency policy. This month, the International Monetary Fund (IMF) may name China’s yuan as one of its reserve currencies. Also this month, Congress could vote on whether to give Trade Promotion Authority (TPA) to President Obama. Then another vote looms on the Trans-Pacific Partnership (TPP).
In these instances and others, currency manipulation will be treated as vital despite the fact that it is not particularly important to the United States. Dispelling myths about exchange rates makes this clearer………………………………………..Full Article: Source

Commodity giants’ Singapore trading hubs under fire in tax probes

Posted on 13 April 2015 by VRS  |  Email |Print

The Singapore trading hubs of the world’s largest commodity companies are coming under scrutiny from the governments of some resource-producing countries who say they suspect they are using units in the Southeast Asian financial centre to avoid tax.
Some of the world’s largest oil, mining and soft commodity companies book billions of dollars of revenue in the tiny island state every year, where tax rates can be very low, which is perfectly legal unless they deliberately underprice group transactions so as to shift profit there from units in other countries………………………………………..Full Article: Source

India: Commodity trade needs strong regulator

Posted on 13 April 2015 by VRS  |  Email |Print

The new regulator – SEBI or Warehouse Development and Regulatory Authority – should understand the aspiration of the market: National Bulk Handling Corpn chief. The merger of Forward Markets Commission and SEBI should throw up better business opportunity for commodity exchange and brighten the prospects of warehouses. Post-National Spot Exchange crisis, regulations on warehouses have been tightened and Sebi is expected to play a crucial role.
Anil Choudhary, Managing Director & CEO, National Bulk Handling Corporation: “We are regulated by the Forward Markets Commission and Warehouse Development and Regulatory Authority. SEBI should not look at commodity trading as just a financial asset class. It can play a far bigger and effective role. Futures exchange can give price signals to farmers six months in advance and help them decide what to grow. The futures market needs participation of financial sector, foreign institutional investors and mutual funds.”……………………………………….Full Article: Source

The curious case of the cash-rate currency trades

Posted on 13 April 2015 by VRS  |  Email |Print

One could almost hear the groans from Martin Place a few seconds before the 2.30pm on Tuesday when the Australian dollar jumped ahead of the Reserve Bank’s atomically precise interest rate decision.
The mysterious trades in the Australian dollar around the RBA’s rates decisions were already a national curiosity and the subject of a two-month-long investigation by the Australian Securities Commission. So when it happened again, the plot thickened – to the frustration of the central bank’s staff………………………………………..Full Article: Source

Commodity trading in Switzerland

Posted on 10 April 2015 by VRS  |  Email |Print

Representatives from the Swiss Government, individual trading companies and transparency advocates will discuss the current lack of publicly available information about commodity trading in Switzerland at UNCTAD’s sixth annual Global Commodities Forum at the Palais des Nations in Geneva on 13–14 April 2015.
The Forum continues a debate, begun at the 2014 event, on the need for improved transparency in the commodity trading sector – with Switzerland as its focus this year. The current dearth of information complicates governments’ responsibility to formulate policies that are effective as well as feasible to implement, and a lack of transparency represents a growing and significant reputational risk to firms, and their home and host governments………………………………………..Full Article: Source

Currency Hedging? Individual Investors Shouldn’t Bother

Posted on 09 April 2015 by VRS  |  Email |Print

As it has been so frequently noted in the financial press, last year the U.S. dollar appreciated significantly against most foreign currencies, including the widely quoted benchmark euro. For investors with a portion of their portfolio in unhedged international stocks, this caused some short-term pain.
For illustrative purposes, let’s expand the discussion beyond the euro to examine a broader basket of foreign currencies against which to assess the U.S. dollar’s movement relative to foreign currencies. Going back to 1998 with MSCI data, you can observe wide swings–in both directions–on an annual basis………………………………………..Full Article: Source

Government forms panel for Sebi-FMC merger

Posted on 08 April 2015 by VRS  |  Email |Print

The government has set up a committee to oversee the merger between commodities market regulator Forwards Market Commission (FMC) and the Securities and Exchange Board of India (Sebi).
The committee is headed by Ajay Tyagi, additional secretary, finance ministry and has representatives from both the regulators and the ministry. It met last month for the first time to sort out various issues involved in the merger process………………………………………..Full Article: Source

Gold attracts buyers on tepid economic data

Posted on 07 April 2015 by VRS  |  Email |Print

Gold prices shot higher on Monday, supported by Friday’s surprisingly weak jobs report. June gold GCM5, -0.52% rose $17.70, or 1.5%, to settle at $1,218.60 an ounce. May silver SIK5, -1.55% added 41 cents, or 2.5%, to $17.11 an ounce.
Major markets were closed on Friday as the U.S. reported a far smaller increase in jobs in March than analysts had expected. On Monday, the Institute for Supply Management said its nonmanufacturing index fell to 56.5% in March from 56.9% in February, indicating the service sector grew at a slower pace………………………………………..Full Article: Source

Commodities Explained: Metals trading in China

Posted on 07 April 2015 by VRS  |  Email |Print

Once already this year traders in London have been dragged out of bed at 1am when copper plunged in Shanghai. That could happen more often and to more drowsy Londoners as SHFE adds two new contracts — nickel and tin — that were long the preserve of the London Metal Exchange only.
Metals volumes on the SHFE, which was launched in 1999, have been increasing over the past few years. Last week’s launch of the new contracts takes its offerings in industrial metals to six, equal to those traded on the LME, the world’s largest centre of metals trading. The LME was bought by Hong Kong Exchanges and Clearing for £1.4bn in 2012………………………………………..Full Article: Source

U.S. Oil Imports From OPEC Have Plunged to a 28-Year Low

Posted on 02 April 2015 by VRS  |  Email |Print

America is the world’s biggest oil customer, and OPEC is losing its business—fast. U.S. imports of oil and petroleum products from OPEC have fallen to a 28-year low, according to data from the Energy Information Administration. The U.S. is pumping more of its own oil, and relying less on OPEC imports than any time since April 1987.
In the past six years, U.S. production has increased dramatically, catching global markets off-guard and contributing to the crash in oil prices. Last year, the U.S. surpassed Saudi Arabia to become the world’s biggest oil producer………………………………………..Full Article: Source

Commodities are going lower—here’s my play: Trader

Posted on 02 April 2015 by VRS  |  Email |Print

A strong dollar sent global commodity prices plunging in the past year. And one currency trader is setting himself up to profit from further declines. “We expect the uptrend in the U.S. dollar to continue,” said TradingAnalysis.com founder Todd Gordon on Wednesday’s “Trading Nation.” The dollar has already surged more than 22 percent in the last 52 weeks.
So, in order to play for further upside in the greenback, and downside in commodities, Gordon looked to the land Down Under: Australia. Specifically Gordon targeted, the FXA, the Australian dollar ETF, which is down more than 17 percent in the past 12 months………………………………………..Full Article: Source

Commodities traders’ alarm over Europe’s stricter regulations

Posted on 01 April 2015 by VRS  |  Email |Print

If you thought US plans to cap speculative activity in commodities were broad, then take a glance at what’s unfolding on the other side of the Atlantic.Policy makers in Europe want to place position limits, or caps, on the number of contracts speculators may control, on around 1,900 commodity derivatives (and securities priced off commodities), according to calculations by the UK’s Financial Conduct Authority.
To put that figure in perspective, the US Commodity Futures Trading Commission position limit plan extends to just 28 contracts………………………………………..Full Article: Source

Basic Materials: China Will Keep a Lid on Most Commodities

Posted on 01 April 2015 by VRS  |  Email |Print

Looser credit conditions or fiscal stimulus may temporarily boost China’s demand for coal, copper, and iron ore, but the bounce would be fleeting. Mined commodity prices are unlikely to recover from recent lows, as China’s structural economic transition diminishes the main source of global demand growth.
Falling input costs and global overcapacity have reshaped the global steel industry: Prices will be lower for longer. Weak crop prices and low farmer incomes are a significant headwind for fertilizer and seed companies, but we don’t expect the breeze will be too strong………………………………………..Full Article: Source

Is This the Bottom for Commodities?

Posted on 25 March 2015 by VRS  |  Email |Print

All the overnight action was in the currency markets. The Fed’s decision to delay interest rates rises is having a major impact on the flow of global capital. The Aussie dollar had a massive session, finishing at 78.95 US cents.
As I explained last week, traders got caught out by the Fed’s ultra-mega dovishness. They had positioned for the start of US interest rate ‘normalisation’…then the Fed wavered. As a result, the US dollar is now in correction mode as these bets are unwound. The Aussie dollar, commodity currencies and commodities more generally are all beneficiaries of this current unwind. The question is, how long will it run?……………………………………….Full Article: Source

Progress in Iran talks puts oil traders on edge

Posted on 25 March 2015 by VRS  |  Email |Print

Talk of progress in the nuclear negotiations between Iran and the world powers has had oil traders on edge. With large amounts of Iranian oil already in storage, an injection of hundreds of thousands of barrels a day into the oil market already struggling with a crude overhang could depress prices further.
The prospect of a wave of Iranian crude exports has already hit internationally traded Brent: after rebounding to $60 a barrel last month, it now hovers around $55 a barrel amid expectations of a deal by March 31………………………………………..Full Article: Source

Top gold experts share secrets for making money in any market

Posted on 25 March 2015 by VRS  |  Email |Print

Pierre Lassonde, co-founder and chairman of Franco-Nevada Corp.: I think today’s gold market is reminiscent of the 2001–2004 era. Gold bottomed around August of 2001 at $250/ounce ($250/oz) when the gold stocks recorded their absolute lows. I became president of Newmont Gold Co. at that point, and we were selling for $18/share and our cash costs were $160/oz.
Over the next three years, gold went up to $450/oz, then $500/oz. Our stock price went up to $62/share because our cash costs stayed exactly the same. That allowed us to deliver real shareholder value. After that, producers’ costs have been going up atrociously every year, and companies have struggled to deliver anything to shareholders………………………………………..Full Article: Source

Next Five Years Will Bring Huge Changes To China’s Commodity Demand

Posted on 24 March 2015 by VRS  |  Email |Print

Remember the commodity super-cycle? It was pedaled by the Chinese. It made smart investors like Jim Rogers filthy rich. That story is over, as everyone now knows. And the next five years are going to bring huge changes to the country’s demand for raw materials, especially coal and oil.
China’s commodity demand is in transition, says Barclays Capital’s commodity research team led by Kevin Norrish in London. What’s taking place of China’s raw materials appetite is “a less investment driven, more consumer-led economy that is not as competitive in global manufacturing, but less polluting.”……………………………………….Full Article: Source

The price of oil is going lower: Trader

Posted on 24 March 2015 by VRS  |  Email |Print

With OPEC signaling over the weekend that it would not change course and cut production, expect oil prices to fall even lower, trader Jeff Kilburg said Monday. Traders are “looking for more of a bearish short-term output,” the founder of KKM Financial said.
On Sunday, Saudi Arabia’s oil minister said it will not take sole responsibility for propping up the oil price and will keep production unchanged. Kilburg said the kingdom is actually producing more oil, noting the oil minister said it is pumping about 350,000 more barrels of crude a day………………………………………..Full Article: Source

European commodity trading firms baulk at tougher rules

Posted on 24 March 2015 by VRS  |  Email |Print

Commodity trading houses and energy companies are making a final attempt to win exemptions from European regulations that are set to subject them to the same capital requirements as banks. In a report published on Monday, Trafigura, one of the world’s leading commodity traders, said there was “little justification” for proposals that would impose substantial requirements but not reduce risk in the financial system.
Trafigura is one of the biggest names to enter the debate over the regulations, which threaten to force tougher demands on many of the region’s energy and commodities traders, regardless of size. The pushback comes as European authorities conclude their final review in coming months of the Markets in Financial Instruments Directive (Mifid II), the region’s flagship markets legislation………………………………………..Full Article: Source

Next Five Years Will Bring Huge Changes To China’s Commodity Demand

Posted on 23 March 2015 by VRS  |  Email |Print

Remember the commodity super-cycle? It was pedaled by the Chinese. It made smart investors like Jim Rogers filthy rich. That story is over, as everyone now knows. And the next five years are going to bring huge changes to the country’s demand for raw materials, especially coal and oil.
China’s commodity demand is in transition, says Barclays Capital’s commodity research team led by Kevin Norrish in London. What’s taking place of China’s raw materials appetite is “a less investment driven, more consumer-led economy that is not as competitive in global manufacturing, but less polluting.”……………………………………….Full Article: Source

Commodity Traders Aren’t Too Big Too Fail, Trafigura Report Says

Posted on 23 March 2015 by VRS  |  Email |Print

Commodity traders don’t pose systematic risks to the global financial system and shouldn’t be subjected to bank-style regulation, according to a paper published Monday by the second-largest metals trader Trafigura Beheer BV.
The report ‘Not Too Big To Fail,’ funded by Trafigura and written by University of Houston finance professor Craig Pirrong, argues against imposing capital requirements on commodity trading firms. It says commodity traders aren’t highly leveraged compared with banks, have strong capital structures and use syndicated lending to mitigate risk………………………………………..Full Article: Source

ANZ forecasts surge in gold demand and price

Posted on 23 March 2015 by VRS  |  Email |Print

More gold-related investment offerings could be on the cards for local investors given estimates that demand for the precious metal is set to double in the region over the next 15 years. ANZ commodity strategist Victor Thianpiriya told The Sunday Times: “The country is already quite advanced when it comes to such options”, but there is still “room for more”.
He added that the booming demand in Asia could see prices surge to over US$2,400 an ounce by 2030, up from its level of US$1,170 now. An ANZ report on Wednesday said that the price rise will be fuelled by long-term growth in the key consumer markets of China and India, which are already the world’s largest consumers of gold……………………………………….Full Article: Source

New Hong Kong brokers focus on metals trading

Posted on 23 March 2015 by VRS  |  Email |Print

A new breed of broker, focused purely on trading commodities, is applying for licences from Hong Kong’s securities watchdog. Listed metal trading firm Lee Kee will start offering commodities broking in the city during the second quarter, after the Securities and Futures Commission granted it a futures broker licence last month.
Lee Kee, a Hong Kong firm established in 1947, has no history in any brokering business but it trades zinc, nickel, aluminium and a host of other metals for more than 1,000 customers, mostly manufacturers in toys, fashion, cars and other industries on the mainland and in Southeast Asia………………………………………..Full Article: Source

Canada Hub Aims to Boost Deals in China Currency

Posted on 23 March 2015 by VRS  |  Email |Print

Canada’s launch of a trading hub Monday will make it easier for companies in the Western Hemisphere to do business in Chinese currency, part of a larger effort to boost trade with the world’s second-largest economy and give its money an expanded role on the world stage.
China’s central bank is backing the new Renminbi Trading Hub for the Americas, which will allow firms in numerous countries to conduct their renminbi transactions through Canadian banks. The system is expected to save companies time and fees while creating new revenue for the Canadian financial institutions that act as hub gatekeepers. Industrial and Commercial Bank of China’s Canadian subsidiary will clear the transactions………………………………………..Full Article: Source

Goldman Sachs And Morgan Stanley Commodities Trading Alarms Fed Governor

Posted on 20 March 2015 by VRS  |  Email |Print

At a U.S. Senate committee hearing Thursday, Federal Reserve Board member Daniel Tarullo singled out Morgan Stanley and Goldman Sachs over continued trading in commodities markets, suggesting that the Dodd-Frank Act could be bolstered to limit the banks’ activities in these markets.
In response to questions from Sen. Elizabeth Warren, D-Mass., as to how Dodd-Frank could be strengthened, Tarullo raised concerns that “those two firms are by statute allowed to engage in the extraction and transportation of highly combustible materials with substantial risks associated with them.” (The Dodd-Frank Act, signed into law by President Barack Obama in 2010, enhanced federal regulations on the U.S. financial system in response to the 2007-09 recession.)……………………………………….Full Article: Source

Why Commodities Are Toast

Posted on 19 March 2015 by VRS  |  Email |Print

The 1970s were much like the previous decade. While, as Mark Twain said, the past doesn’t repeat itself, but it does rhyme, the 1970s and the 2000s had many of the same elements: war in the middle east, commodities boom, market crashes. It’s likely a generational effect.
Commodities are a stand out similarity to me. Commodities soared, resource plays sizzled. Plenty of crazy volatility lit up the various markets attached to commodities. Commodities is the fastest game in town. The volatility and the leverage combine to create a potent cocktail for a dangerous speedball of speculation. Commodity trading is a story of fortunes won and lost………………………………………..Full Article: Source

Will The Oil Markets (And Shale Producers) Capitulate Before Demand Recovers?

Posted on 19 March 2015 by VRS  |  Email |Print

Is the U.S. shale industry at a tipping point? Oil prices fell to a six-week low on Friday after the International Energy Agency warned that the U.S. may soon run out of room to store all the oil being pumped out of shale plays across the country.
As oil starts to back up, the worry is that prices could fall like a rock. But despite this grave warning, bullish oil traders are keeping their cool. They believe that the low prices will ultimately decimate the U.S. shale industry, removing a large chunk of supply from the market indefinitely, similar to what happened during the last major oil price crash 30 years ago………………………………………..Full Article: Source

Commodities Decline Near ‘Exhaustion’ as Hackett Says Buy Rice

Posted on 16 March 2015 by VRS  |  Email |Print

The commodities fall is near “exhaustion” with wheat, rice and coffee set to rebound, according to Shawn Hackett, president of Hackett Financial Advisors in Florida. The Bloomberg Commodity Index of 22 raw materials closed on Friday at the lowest level since August 2002, capping an almost 30 percent decline in the past year.
Wheat dropped 25 percent in the past 12 months and rice fell 30 percent. Arabica coffee slipped 37 percent as Brazil’s weak real currency encouraged exports, adding to supplies. “For speculators wheat and rice are the two markets that are the ones to buy given that both have the lowest supplies relative to global demand,” Hackett said in an e-mailed report on Saturday………………………………………..Full Article: Source

Singapore Fostering Commodity Trade as Clearing Units Expand

Posted on 13 March 2015 by VRS  |  Email |Print

Singapore’s financial regulator will work with commodity exchanges, investors and producers to support the development of the city-state as a trading center, including the expansion of clearing houses in Asia.
The entry of new clearing houses can boost liquidity and encourage the development of products, the Monetary Authority of Singapore said in an e-mailed response to queries. Clearing houses help improve risk management in derivatives markets during Asian hours, the MAS said………………………………………..Full Article: Source

The Case Against Commodities

Posted on 12 March 2015 by VRS  |  Email |Print

Commodity prices can go up, and they can go down. But while volatility is an expected part of investing, the volatility associated with commodities in particular makes this asset class a poor investment for most investors. That’s true whether they’re held in physical form (gold coins) or through vehicles like exchange traded funds (ETFs).
Commodities are fundamentally different from investments like stocks and bonds. Stocks and bonds are financial assets, representing ownership or debt of businesses, respectively, whereas commodities are typically raw materials, such as oil, gold, copper, and corn………………………………………..Full Article: Source

OPEC oil output to go unchanged: Kuwaiti gov

Posted on 12 March 2015 by VRS  |  Email |Print

The Organization of the Petroleum Exporting Countries may maintain its current oil production of over 30 million barrels a day at its next meeting in June, says Kuwaiti official. Kuwait’s OPEC governor Nawal Al-Fuzaia said Tuesday, “I think so because there is less than two months, removing weekend and summer time, before the next OPEC meeting,” adding, “I don’t think there would be a big change in the oil market supply/demand in this time.”
The cartel’s president and Nigerian Oil Minister Diezani Alison-Madueke had suggested an early meeting could be convened, should oil prices continue to fall, but so far they have not………………………………………..Full Article: Source

Gold sinks to $1,155; dirham at high vs rupee: Buy gold or remit?

Posted on 12 March 2015 by VRS  |  Email |Print

Gold price recently sank to a fresh four-month low of $1,155 per troy ounce yesterday on the back of a strong US jobs data and India’s surprise decision to maintain the import duty on the yellow metal.
Data showed America added 295,000 jobs in February, 55,000 more than economists expected. US unemployment rate is now at 5.5 per cent, the lowest it has been since May 2008. This is fuelling investor confidence in the economy and, therefore, equities, and further reducing gold’s safe haven appeal………………………………………..Full Article: Source

Nasdaq looks to halve energy trading cost

Posted on 12 March 2015 by VRS  |  Email |Print

Nasdaq plans to halve the cost of trading energy with the launch of a new, low-cost futures exchange that executives believe will challenge the current dominance wielded by the CME Group and Intercontinental Exchange.
The US exchange group, best known as a stock market operator, took aim at what it called a “monopoly” as it formally announced the launch of Nasdaq Futures, a commodity market that will list contracts in oil, natural gas and US power………………………………………..Full Article: Source

China Commodities Imports Slow as Lunar New Year Cools Trade

Posted on 10 March 2015 by VRS  |  Email |Print

China’s commodity trade slowed in February as the Lunar New Year holiday crimped imports of oil, iron ore, copper and soybeans while exports of aluminum and steel fell. Inbound shipments of copper tumbled by the most in four years, soybeans to the least since October, while oil and iron ore imports slowed to the weakest in three months, according to customs data released Sunday in Beijing.
Steel exports fell for the first time since August and the country shipped the smallest amount of aluminum products in four months. The slowdown in raw materials trade reflects the impact of the country’s most-important festival, when factories and output slow before and during the weeklong holiday………………………………………..Full Article: Source

5 Commodities Leading The Price Plunge

Posted on 10 March 2015 by VRS  |  Email |Print

The Bloomberg Commodity Index, which tracks the price of 22 different commodity investments, recently traded at its lowest level since 2002. Stocks of commodity-exposed companies have suffered over the past year, but investors with direct stakes in the commodities themselves have been hit hardest.
Here’s a look at five commodities that have lined the downward-spiral path over the past year. 1. Silver - Silver prices have plummeted as investors anticipate money flowing out of precious metals when the Federal Reserve begins raising interest rates. The iShares Silver Trust (ETF) SLV, -0.59% is down nearly 25 percent in the past year………………………………………..Full Article: Source

Commodities Routed as China Cuts Growth

Posted on 09 March 2015 by VRS  |  Email |Print

As China’s top economic officials announced a slower economic growth forecast, the commodities markets are bracing for another rout in 2015. Last Thursday at the National People’s Congress, China Premier Li Keqiang lowered the country’s economic growth forecast to “about 7 percent,” confirming a period of “new normal” of sluggish investments, overcapacity, and slowing infrastructure projects.
It’s a harrowing thought for commodity producers. Since the early 2000s, China’s investment in factories, infrastructure, and real estate has largely driven the commodities boom over the last decade. According to data from Australian bank Macquarie, China last year accounted for more than half of the world’s consumption of iron ore, around half of the global demand for aluminum and nickel, and more than 40 percent of the world’s demand for copper and zinc………………………………………..Full Article: Source

China’s Copper Imports Tumble as Lunar New Year Crimps Demand

Posted on 09 March 2015 by VRS  |  Email |Print

China’s copper imports fell for a second month to the lowest in more than three years as the week-long national Lunar New Year holiday sapped demand for the metal. Inbound shipments in February of unwrought copper and products fell 32 percent from the previous month to 280,000 metric tons, the lowest since May 2011, according to data released by the General Administration of Customs on Sunday. Imports during the first two months of the year are down 24 percent from the same period in 2014.
Demand for the metal slowed as businesses and factories shut before and during the holiday, which ran from Feb. 18-24 this year. Copper rebounded 7.3 percent in London last month after a 13 percent tumble in January as investors weighed slowing economic growth in China against supply disruptions at mines globally………………………………………..Full Article: Source

IME to boost commodity trading

Posted on 09 March 2015 by VRS  |  Email |Print

Commodity exchange plays an important role in generating employment, improving business environment and expanding international relations, said Hossein Panahian, the head of Iran Mercantile Exchange (IME). “The government is determined to organize the commodity market through IME,” he said.
Panahian said both producers and consumers could benefit from IME, as it is regarded a national asset, stressing that no one could take more than 2 percent ownership in the company, Iran Daily reported. The IME chief said the government is confident that the performance of the exchange is transparent………………………………………..Full Article: Source

China February trade surplus hits record $60.6 bn

Posted on 09 March 2015 by VRS  |  Email |Print

China’s monthly trade surplus hit $60.6 billion in February, the government said Sunday, a new record for the world’s second-largest economy. Exports leapt 48.3 percent year-on-year to $169.2 billion while imports fell 20.5 percent to $108.6 billion, Customs said on its website.
The country’s trade surplus, long a source of tensions with its trading partners, rose above a previous all-time monthly high of $60.0 billion recorded in January. The growth in exports last month was well ahead of the median estimate for a 14 percent jump in a Bloomberg survey of economists………………………………………..Full Article: Source

World’s biggest listed commodities trader says 2015 could be a boom year for oil

Posted on 05 March 2015 by VRS  |  Email |Print

Glencore Plc, the world’s biggest listed commodities trader, said 2015 could be a boom year for oil amid the biggest price swings in six years. “It is looking very well structured for oil trading,” Chief Executive Officer Ivan Glasenberg said in a conference call with analysts Tuesday. “If it continues like this, oil could have a blowout year.”
Volatility in Brent crude rose to the highest since 2009 last month, creating bigger gaps between prices that traders need to make a profit. Crude oil plunged 61 percent from June to January because of oversupply, before paring some of that slump. Glencore, based in Baar, Switzerland, and Vitol Group, the largest independent trader, will benefit from bigger price swings in 2015, said Fitch Ratings Ltd., a provider of financial information………………………………………..Full Article: Source

Aluminium trading profits under threat

Posted on 05 March 2015 by VRS  |  Email |Print

The days of easy profits for aluminium traders benefiting from warehouse queues may finally be over as prices fall and new rules seek to change behaviour. When demand for aluminium cratered during the financial crisis, supplies swamped warehouses, where banks and commodity trading houses could borrow at low interest rates, store the metal and sell a futures contract for delivery at higher prices.
It was a trade that took significant amounts of metal off the market. Rather than suffering, producers from Alcoa to Rusal earned handsome profits by satisfying demand from industry as long queues built up at warehouses for metal that subsequently needed to be withdrawn………………………………………..Full Article: Source

India’s Gold Buying to Pick Up After Budget

Posted on 03 March 2015 by VRS  |  Email |Print

Traders are bracing for a short-term bump upward in India’s gold demand after the world’s largest consumer of the precious metal maintained an import duty in a budget unveiled Saturday. In the weeks leading up to the budget announcement, India’s gold imports slowed. Some wholesalers delayed purchases, anticipating that the government would announce a cut in taxes on gold imports.
Imports in January totaled around 39 metric tons, according to Macquarie Group Ltd. That compares with a monthly average of 81 tons in the second half of 2014. Data for February isn’t available, but traders and analysts said imports remained subdued last month………………………………………..Full Article: Source

Regulator plays down impact of rules shake-up on gas traders

Posted on 27 February 2015 by VRS  |  Email |Print

Fewer than four natural gas traders hold positions big enough to breach broad new limits on speculation in the US, a regulator said in comments that played down the impact of a controversial rule proposal.
The disclosure came as the US Commodity Futures Trading Commission held its latest meeting to ponder its proposed “position limits” rule for commodities that would cap the number of futures contracts held by any single trader………………………………………..Full Article: Source

China’s new Shanghai-Hong Kong gold link-up hope to rival Western competition

Posted on 27 February 2015 by VRS  |  Email |Print

China is set to launch a link between gold markets in Shanghai and Hong Kong this year following a landmark stock connect scheme, aiming to enhance its pricing power of gold contracts and ultimately challenge its competitors in the West.
While China is the world’s largest consumer of the precious metal, having surpassed India, daily trading of gold in financial centre Shanghai is small compared with London. The move to develop gold trading comes as more trade flows to Asia and is in line with Beijing’s efforts to open up its domestic markets to foreign investors. China wants more market players to use its yuan currency when settling trade contracts and for making investments………………………………………..Full Article: Source

How Do Commodity Suppliers Go Sustainable?

Posted on 26 February 2015 by VRS  |  Email |Print

Social and environmental responsibilities are rarely at the top of mind when suppliers are racing to the bottom of the price curve. That’s why sustainability is hard to come by in commodity industries. But a small giant in New Zealand is changing all that, at least when it comes to wool.
Dave Maslen is global partnership and sustainability manager at the New Zealand Merino Co. (NZM). In this video interview (after the jump), he shares the story of how Merino brings traceable, sustainably-produced wool to market by working directly with farmers and the value chain………………………………………..Full Article: Source

Gold trade coming back, if you can wait 2 years: BofA

Posted on 26 February 2015 by VRS  |  Email |Print

Gold will come under further pressure over the course of the year as the Federal Reserve moves closer to lifting rates, but prospects for the precious metal looks far more promising in the next few years, according to Bank of America Merrill Lynch.
“Right now, investors are not in the mood for holding gold because they see the Fed raising rates. So, I think in the next three months you’ll see downside risk, $1,100 an ounce is likely,” Francisco Blanch, commodities analyst at Bank of America Merrill Lynch told CNBC. “But if you look out 2-3 years, things are a lot brighter for gold,” he said………………………………………..Full Article: Source

How can options trading gain ground in commodities ?

Posted on 24 February 2015 by VRS  |  Email |Print

The commodities futures market underwent changes in 2003 with many policy reversals. But option-based derivatives are yet to gain ground in commodities. Though the Forward Contract (Regulation) Bill, 2010, has provisions for option trading, its execution requires considerable attention from the regulator, commodity exchanges and market participants.
The government can replace the price support scheme with minimum guaranteed price (MGP). Policy makers are passive on the adoption of option-based trading despite the benefits. Option can be over-the-counter and exchange-traded. Similar to the futures, option requires at least two parties to exercise the contract. Exchange-traded option can help to mitigate counter-party credit risk as the contract will be more standardised in nature………………………………………..Full Article: Source

India’s gold imports set to rise as RBI eases curbs ahead of budget

Posted on 20 February 2015 by VRS  |  Email |Print

Gold imports to top consumer India are set to jump in coming months after the Reserve Bank of India (RBI) eased gold import curbs, ahead of an expected cut in import duty in next week’s budget.
The Reserve Bank of India said on Wednesday banks would again be allowed to import gold on a “consignment basis”, under which they act as intermediaries and don’t pay for the stock until a buyer has been found, which is usually quickly. Trading houses will be allowed to bring in gold with no conditions attached………………………………………..Full Article: Source

banner
July 2015
S M T W T F S
« Jun    
 1234
567891011
12131415161718
19202122232425
262728293031