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Commodities Briefing - Category | Trading more

An exclusive look at commodity investing and trading

Posted on 17 October 2013 by VRS  |  Email |Print

Strong gains in commodity prices since the early 2000s created a growing interest in the asset class. The financial industry responded with many products, including new hedge funds, index funds, commodity-linked fixed income products and exchange-traded funds.
With oil and natural gas making a prominent peak in 2008 and gold hitting a peak in 2011, many took this as a sign that the commodity bull had run its course and expected that we would return to the normal, long-standing trend of commodity price deflation………………………………………..Full Article: Source

Russia’s oil industry spills 30 mln barrels a year

Posted on 17 October 2013 by VRS  |  Email |Print

Last month Greenpeace protestors attempted to board the Prirazlomnove oil platform to hang a protest banner against Arctic Sea oil drilling. In a report from February this year, titled “Point of No Return”, Greenpeace identified new oil drilling in the Arctic seas as one of the biggest threats to the environment that is currently ignored by world governments.
“Oil companies plan to take advantage of melting sea ice … to produce up to 8 million barrels a day of oil and gas. The drilling would add 520 million tons of CO2 a year to global emissions by 2020.”……………………………………….Full Article: Source

JPMorgan to pay $100-mln to settle with commodities regulator on Whale trades

Posted on 17 October 2013 by VRS  |  Email |Print

JPMorgan Chase & Co agreed to pay $100-million and admit its traders acted recklessly to settle one more set of U.S. charges over its disastrous “London Whale” trade, the Commodity Futures Trading Commission announced on Wednesday.
Last month the bank paid $920-million to four other U.S. and British regulators to resolve civil probes of the bank’s $6.2-billion in derivative losses involving its chief investment office………………………………………..Full Article: Source

Hiring of iron-ore carriers rose 51 pct in September

Posted on 16 October 2013 by VRS  |  Email |Print

Commodity markets were relatively well behaved on the first day of the week, as investors continued to track events in Washington D.C. Significantly, the US government is discussing a plan that would end the shutdown and increase the debt ceiling by enough to cover the nation’s borrowing needs at least through mid-February 2014, sources told Reuters.
The agreement would also see the government re-open until January and include a mechanism to force lawmakers into longer-term budget discussions, the Financial Times reported. Oil futures finished the day down by 0.13% at $102.28 on the NYMEX despite those signs of progress………………………………………..Full Article: Source

FCA checks on commodity warehouses, prepares for EU abuse rules

Posted on 16 October 2013 by VRS  |  Email |Print

Britain’s financial watchdog said officials are visiting commodity warehouses in Europe to see how they operate, in preparation for tough new EU market abuse rules as regulators focus unprecedented scrutiny on physical trading practices.
For decades, traders have made money from their knowledge of shortages and surpluses of physical commodities, which they say enables them to play a vital role in balancing global markets………………………………………..Full Article: Source

Key trends shaping the future of commodities trading

Posted on 14 October 2013 by VRS  |  Email |Print

As firms face increasing regulatory pressure and globalization continues to rise, commodity trading operations worldwide face significant impact. SunGard has identified six key trends that will shape the future of commodities trading over the next 12-18 months:
Low correlation across commodities is driving hedge fund managers to reevaluate their strategies with a micro approach, instead of riding the commodity super cycle. Safe havens from collateral charges in the over-the-counter (OTC) marketplace will become scarce under new regulatory requirements, prompting a need for collateral management systems in both hedging and trading operations………………………………………..Full Article: Source

Key trends shaping the future of commodities trading

Posted on 10 October 2013 by VRS  |  Email |Print

As firms face increasing regulatory pressure and globalization continues to rise, commodity trading operations worldwide face significant impact. SunGard has identified six key trends that will shape the future of commodities trading over the next 12-18 months:
Low correlation across commodities is driving hedge fund managers to reevaluate their strategies with a micro approach, instead of riding the commodity super cycle. Safe havens from collateral charges in the over-the-counter (OTC) marketplace will become scarce under new regulatory requirements, prompting a need for collateral management systems in both hedging and trading operations………………………………………..Full Article: Source

Commodity prices wrong as often as 27pct of the time for traders

Posted on 09 October 2013 by VRS  |  Email |Print

Commodities traders who buy and sell as much as $5.67 trillion of raw materials a year say the benchmark prices for everything from oil to iron ore to gasoline are wrong as often as 27 percent of the time.
In a Bloomberg News survey conducted during the past eight weeks, 85 traders and analysts said they have little confidence in the assessed prices of crude, metals and iron ore. Regulators, including European Union Competition Commissioner Joaquin Almunia, may examine commodities markets, having already increased investigations of manipulation of benchmarks for interest rates, derivatives, foreign exchange and oil………………………………………..Full Article: Source

Commodities trading largely unregulated during shutdown

Posted on 09 October 2013 by VRS  |  Email |Print

The Commodities Futures Trading Commission (CFTC) is the federal agency responsible both for regulating the commodities markets and publishing weekly data on the state of those markets. The weekly Commitment of Traders report which provides information on open interest in the commodities markets was last published on September 24th.
The opportunities for market shenanigans multiply as the government shutdown continues. Of the CFTC’s approximately 680 employees only 28 are exempted from the shutdown and of those just a handful remain to watch the daily trading in the commodities markets where the usual number is 50………………………………………..Full Article: Source

7 unreliable economic indicators that move markets

Posted on 07 October 2013 by VRS  |  Email |Print

Investors and traders live on weekly and monthly economic reports published by private and public data agencies. With the government shut down, much of the popular economic data — like the closely followed monthly U.S. jobs report — has been delayed.
But maybe we’re better off without some of these reports. The Bank of England keeps a table of which indicators correspond nicely to observed global growth. Air freight and Suez Canal data are useful, but there are plenty of other indicators out there that are just unreliable or overrated………………………………………..Full Article: Source

OPEC to boost shipments on Chinese demand, Oil Movements says

Posted on 04 October 2013 by VRS  |  Email |Print

The Organization of Petroleum Exporting Countries will increase shipments through late October as refiners in China resume operations after seasonal maintenance, according to tanker tracker Oil Movements.
OPEC, which supplies about 40 percent of the world’s oil, will raise exports by 100,000 barrels a day, or 0.4 percent, to 23.97 million a day in the four weeks to Oct. 19 compared with 23.87 million a day in the period to Sept. 21, the researcher said today in a report. The figures exclude two of OPEC’s 12 members, Angola and Ecuador………………………………………..Full Article: Source

Gold traders bullish a third week on U.S. stalemate: Commodities

Posted on 04 October 2013 by VRS  |  Email |Print

Gold analysts are bullish for a third consecutive week on speculation that the first U.S. government shutdown in 17 years and a standoff over raising the country’s debt limit will spur demand for the metal as a haven.
Eighteen analysts surveyed by Bloomberg expect prices to rise next week, eight are bearish and four neutral. That’s the longest positive run since July. Bullion capped a 7.6 percent gain last quarter, the first in a year, as the U.S. Federal Reserve unexpectedly refrained from tapering its $85 billion-a-month bond-purchase program………………………………………..Full Article: Source

India: Currency derivatives turnover falls 19.6% to 5.97 lakh crore in August

Posted on 03 October 2013 by VRS  |  Email |Print

Marking a second consecutive monthly decline, the currency derivatives turnover on the country’s three bourses plunged by 19.6 per cent to Rs 5.97 lakh crore in August.
The three stock exchanges - NSE, MCX-SX and USE - had cumulatively recorded a currency derivative turnover of Rs 7.42 lakh crore in July, which was down 42 per cent from the preceding month, as per the latest data compiled by market watchdog Sebi………………………………………..Full Article: Source

OPEC oil output hits near lowest of 2 years

Posted on 02 October 2013 by VRS  |  Email |Print

OPEC oil output has fallen in September to the lowest in almost two years because of work at Iraq’s main export outlet, according to a Reuters survey, although record Saudi Arabian output prevented a larger decline.
Supply from the Organization of the Petroleum Exporting Countries has averaged 30.07 million barrels per day (bpd), down from 30.32 million bpd in August, the survey of shipping data and sources at oil companies, OPEC and consultants found………………………………………..Full Article: Source

U.S. can end OPEC imports by 2020 says Houston analyst

Posted on 01 October 2013 by VRS  |  Email |Print

Young people preparing for a career in the American military and oil patch pump jacks cranking at high pace. What one has to do with other may not be clearly obvious, but in reality, they are deeply connected.
The reason goes something like this - when America is producing plenty of it’s own oil, it’s far less inclined to use the nation’s military might protecting petroleum coming from somewhere else. That is why the news energy analyst Marshall Adkins brings to the table is so compelling………………………………………..Full Article: Source

Chicago Mercantile Exchange floats Wall Street cloud

Posted on 01 October 2013 by VRS  |  Email |Print

Cloud computing promises the easy migration from one supplier to the next, but we all know that isn’t the case because there isn’t any market punters can access to buy and sell their resources.
But on Monday that changed when the Chicago Mercantile Exchange (CME) announced it had signed a non-binding Letter of Intent with cloud broker 6fusion to try and build a market for buying and selling cloud resources………………………………………..Full Article: Source

Iran oil-export revival needs more than Obama phone call

Posted on 30 September 2013 by VRS  |  Email |Print

U.S. President Barack Obama and Iran’s Hassan Rouhani must build on their weekend phone call to convince crude traders that a thaw in relations will open the way to increased oil exports. While the historic conversation Sept. 27 will probably limit gains in prices, any “long-term” declines for crude will depend on the success of negotiations aimed at curbing the Persian Gulf nation’s ability to enrich uranium, according to Nomura Holdings Inc.
For Citigroup Inc., the differences between the two nations are likely to weigh on talks even as some countries, such as India, seek to boost imports from Iran………………………………………..Full Article: Source

OPEC to boost exports before refinery halts, Oil Movements says

Posted on 27 September 2013 by VRS  |  Email |Print

The Organization of Petroleum Exporting Countries will increase crude shipments by 1 percent next month as they maximize flows before refineries are shut for maintenance, according to tanker tracker Oil Movements.
OPEC, which supplies about 40 percent of the world’s oil, will raise exports by 230,000 barrels a day to about 23.9 million a day in the four weeks to Oct. 12 compared with the period to Sept. 14, the researcher said today in a report. The figures exclude two of OPEC’s 12 members, Angola and Ecuador………………………………………..Full Article: Source

Commodity trading advisors, puzzled by Fed, head for third year of losses

Posted on 27 September 2013 by VRS  |  Email |Print

Long-term trend-following hedge funds are heading for a third straight year of losses unless the commodity and financial markets they trade in settle into a more predictable pattern, which does not seem likely given the Federal Reserve’s mixed signals on the U.S. economic stimulus.
Known generically as “managed futures”, or Commodity Trading Advisors (CTAs), many trend followers were whipsawed in the first half by market gyrations over whether the Fed would cut its bond buying this year. More volatility seems likely; last week, the Fed said it needed more time to decide………………………………………..Full Article: Source

Why Indians love it when government makes gold expensive

Posted on 26 September 2013 by VRS  |  Email |Print

Government of India makes gold more expensive by hiking duties four times in 20 months, hoping this will deter citizens of India from holding more gold. But not only does gold remain attractive for Indians, expectations of a high price regime have increased its attractiveness.
This is not a perverse outcome. It’s more a case of wrong official logic. Economics 101 says high prices dampen demand for a product or a service. But Investing 101 says expectations that an asset class will get pricier can increase demand for that asset. Gold is an asset class………………………………………..Full Article: Source

Thai gold buyer doubles imports after bear slump: Southeast Asia

Posted on 26 September 2013 by VRS  |  Email |Print

YLG Bullion International Co., Thailand’s biggest domestic gold importer, expects to more than double purchases this year after the bear market in prices spurred a surge in demand for physical metal.
The company may import as much as 200 metric tons in 2013, from 92 tons last year, Chief Executive Officer Pawan Nawawattanasub said in an interview yesterday. First-half shipments advanced to 112 tons, accounting for 60 percent of the country’s total, she said. A ton is valued at $42.6 million………………………………………..Full Article: Source

Wall Street hijacks yet another commodities market

Posted on 20 September 2013 by VRS  |  Email |Print

Wall Street, with all its so-called genius and ingenuity, now has the ability to screw around with the price of your gasoline. That’s not all. Loosely regulated commodities markets appear to be more and more the apple of Wall Street’s eye, even as the major stock market indices on Wednesday hit all time highs.
Banks’ focus on commodities is particularly worrisome, as commodities are extremely volatile and can whipsaw and wipe out investors on the wrong side of a trade in the blink of an eye………………………………………Full Article: Source

Uncertainty is the only certainty for oil traders

Posted on 20 September 2013 by VRS  |  Email |Print

Vince Cable, currently the UK’s secretary of state for business, innovation and skills, once said: “When my job was attempting to predict future economic developments for the Shell oil company, I was frequently reminded of an Arabic saying: ‘Those who claim to foresee the future are lying, even if by chance they are later proved right.”
He might have been talking about the price of a barrel of crude oil – uncertainty is the only certainty, and that uncertainty is today as great as it has ever been………………………………………Full Article: Source

Should the U.S. export its oil? One more CEO says yes

Posted on 20 September 2013 by VRS  |  Email |Print

U.S. oil companies plan to lean hard on lawmakers to loosen restrictions on oil exports as crude production soars in North America, according to Scott Sheffield, chief executive of Pioneer Natural Resources.
“I think the industry will be making a push over the next five years to export,” Mr. Sheffield said, speaking on the sidelines of Hart Energy’s DUG Eagle Ford conference in San Antonio………………………………………Full Article: Source

Natural Gas the next big commodity trade?

Posted on 20 September 2013 by VRS  |  Email |Print

To put it mildly, natural gas simply doesn’t get as much attention as crude oil, or even gold. Mr. Speculator, my good old friend, once said, “Why would you want to even bother looking at it? The prices have collapsed and have been ranging for years.”
It’s certainly true that natural gas prices have come down from where they used to be. Just take a look at the chart below to see what has happened to the price of natural gas in the past few years………………………………………Full Article: Source

India: Govt may consider Sebi-like regulations for commodities market

Posted on 20 September 2013 by VRS  |  Email |Print

As a multi-agency probe continues into the Rs 5,600-crore payment crisis at National Spot Exchange Ltd (NSEL), the government may consider streamlining the norms for commodities and capital markets, regulated by FMC and Sebi, respectively, to plug potential regulatory gaps.
The idea is to make the regulations governing commodity derivatives markets much more stringent and bring them at par with the norms applicable for Sebi-regulated capital markets, sources said………………………………………Full Article: Source

World trade growth in 2013 slower than forecast, to expand 4.5pct in 2014: WTO

Posted on 20 September 2013 by VRS  |  Email |Print

World trade is expected to grow 2.5% in 2013 and 4.5% in 2014 as against earlier estimates fo 3.3% and 5% in 2013 and 2014 respectively, according to World Trade Organisation (WTO).
Import demand from developing countries is gaining but at a slower pace and hence the lower growth forecast compared to previous one made in April, WTO added. “There is a message for the WTO in this,” said WTO Director General Roberto Azevêdo. “The past two years of sluggish trade growth reinforce the need to make progress in the multilateral negotiations………………………………………Full Article: Source

Global macro: Commodities are acting as if rates are going higher

Posted on 19 September 2013 by VRS  |  Email |Print

As the Federal Reserve meeting approaches this Wednesday, low volumes and declining interest rates are leading to surprising correlations among financial markets. For investors looking to see the negative effects in assets tied to tighter monetary policy, they can continue looking.
Equities are at record highs and investors continue to buy treasuries and sell U.S. dollars. Although it can be said that much of the cut for future bond purchases is already priced in, only commodities look to be acting as if the future holds higher rate………………………………………..Full Article: Source

CEO Blankfein says commodities trading is ‘core’ to Goldman

Posted on 19 September 2013 by VRS  |  Email |Print

Goldman Sachs Group Inc Chief Executive Lloyd Blankfein made his most public commitment to the bank’s commodity trading business on Wednesday, even as regulators consider measures that may push Wall Street out of physical markets.
While rival JPMorgan Chase & Co decided in July to quit trading in the physical raw material markets and Morgan Stanley has publicly weighed spinning off all or part of its vast franchise, Goldman has remained steadfast………………………………………..Full Article: Source

CME applies to create commodities swap execution facility

Posted on 19 September 2013 by VRS  |  Email |Print

CME Group Inc., the owner of the world’s largest futures market, applied to create a new kind of venue known as a swap execution facility that will initially focus on trading commodities derivatives.
The Chicago-based exchange operator said today that it’s seeking U.S. Commodity Futures Trading Commission permission to form the market. Other companies that have asked for or received approval to create one include IntercontinentalExchange Inc., ICAP Plc (IAP), Tradeweb Markets LLC, GFI Group Inc. and Bloomberg News parent Bloomberg LP, according to the CFTC website………………………………………..Full Article: Source

India bans trading in non-farm commodities on Saturdays

Posted on 19 September 2013 by VRS  |  Email |Print

India’s commodity market regulator Wednesday asked the country’s six national-level commodity exchanges to stop futures trading in non-agriculture commodities on Saturdays, as it is the global practice.
Commodity exchanges in India currently allow trading on Saturdays for four hours, compared with seven hours for agriculture commodities and 14 hours for non-agriculture commodities during week days………………………………………..Full Article: Source

India bans trading in non-farm commodities on Saturdays

Posted on 19 September 2013 by VRS  |  Email |Print

India’s commodity market regulator Wednesday asked the country’s six national-level commodity exchanges to stop futures trading in non-agriculture commodities on Saturdays, as it is the global practice.
Commodity exchanges in India currently allow trading on Saturdays for four hours, compared with seven hours for agriculture commodities and 14 hours for non-agriculture commodities during week days………………………………………..Full Article: Source

Fixing commodity trading: Amend and pass new regulatory framework

Posted on 18 September 2013 by VRS  |  Email |Print

The transfer of administrative control of the regulator for commodity trading, the Forward Markets Commission (FMC), from the consumer affairs ministry to the finance ministry seems a typical government response to a crisis like the one besetting the National Spot Exchange Ltd (NSEL).
But it is a sensible step that should have been taken much earlier, although it will not suffice to regulate exchange-based commodity trading - be it spot trading or forward trading. That requires a strong and autonomous regulator with sufficient expertise and infrastructure, as well as the authority to take expeditious action and effectively enforce its orders. The FMC currently lacks all these………………………………………..Full Article: Source

Record Saudi oil output fills supply gap

Posted on 17 September 2013 by VRS  |  Email |Print

The US might be drowning in oil, but the world is still dependent on Saudi Arabia. Indeed, Saudi Arabia is pumping out more crude than at any time since at least the 1970s. In neighbouring Kuwait and the United Arab Emirates meanwhile, oil production levels hit record highs.
These numbers reflect a profound but easily overlooked trend in the global oil market. In spite of the shale oil revolution in the US, the world has become, if anything, more dependent on a handful of Gulf producers to fill supply shortfalls elsewhere………………………………………..Full Article: Source

One million barrel difference between Iran’s and OPEC’s stats

Posted on 17 September 2013 by VRS  |  Email |Print

Addressing IRGC commanders on September 16, Iranian president Hassan Rouhani announced that the country’s crude oil exports have dropped to below one million barrels per day (bpd). Meanwhile, OPEC has recently released its September report, which includes information about Iran’s crude oil output. This is the first report of Iran’s Oil Ministry to OPEC in Rouhani administration.
Based on Iran’s Oil Ministry data (direct communication), OPEC has said that Iran produced 3.717 million bpd in August. But, OPEC’s own assessment (secondary sources) puts the figure at 2.683 million bpd, ranking Iran as the fifth leading producer in OPEC………………………………………..Full Article: Source

Banks’ commodity trade exemption should be revoked, Chilton says

Posted on 16 September 2013 by VRS  |  Email |Print

U.S. lawmakers should revoke an exemption that lets Goldman Sachs (GS) Group Inc. and Morgan Stanley own commodity warehouses and other assets, Commodity Futures Trading Commission member Bart Chilton said.
The Wall Street firms, converted to bank holding companies during the 2008 credit crisis, benefit from “extraordinary treatment” under the exemption included in a 1999 law, Chilton said in remarks prepared for a speech tomorrow to the Michigan Agri-Business Association………………………………………..Full Article: Source

China’s commodity demand seen by Goldman rising rest of year

Posted on 13 September 2013 by VRS  |  Email |Print

Commodity demand in China, the world’s largest user of iron ore, copper and tin, will rebound through the end of the year as infrastructure projects gather pace and users restock, according to Goldman Sachs Group Inc.
The key demand driver is infrastructure and fixed-asset investment, analyst Julian Zhu told reporters at a briefing in Singapore today. Steel prices in the world’s largest producer were seen higher through the end of December, Zhu said………………………………………..Full Article: Source

OPEC exports to rise 1.5pct on Asian demand, Oil Movements says

Posted on 13 September 2013 by VRS  |  Email |Print

The Organization of Petroleum Exporting Countries will increase crude shipments by 1.5 percent this month to meet rising demand from Asian refiners, tanker tracker Oil Movements said.
OPEC, which supplies about 40 percent of the world’s oil, will boost exports by 360,000 barrels a day to about 23.87 million barrels a day in the four weeks to Sept. 28 from the period to Aug. 31, the researcher said in a report. The figures exclude two of OPEC’s 12 members, Angola and Ecuador………………………………………..Full Article: Source

India’s gold imports slump in August

Posted on 11 September 2013 by VRS  |  Email |Print

India’s imports of gold in August fell to less than a 10th of what it bought a year earlier, as higher import tax and a weaker rupee currency drove up local prices to a near record and tighter rules made imports tougher. But demand is expected to pick up over the next two months because of the festival season, industry executives said.
India imported three metric tons of gold in the past month, compared with 35 tons a year earlier. The drop was even more dramatic compared with April, when imports totaled 142 tons as buyers rushed to take advantage of a fall in gold prices to a two-year low………………………………………..Full Article: Source

China’s Aug commodities imports fall from highs but stay elevated

Posted on 09 September 2013 by VRS  |  Email |Print

China’s imports of crude oil, iron ore, copper and soybeans fell in August from July’s record highs, but shipments stayed at elevated levels as manufacturing activity in the world’s second-largest economy gains pace.
Headline trade data showed China’s overall imports and exports in August were stronger than expected and have sustained the upward trend since July, adding to evidence that the world’s top commodity buyer may have avoided a sharp slowdown………………………………………..Full Article: Source

Traders split on gold touching new highs in next 2 years

Posted on 09 September 2013 by VRS  |  Email |Print

Gold traders are divided on the outlook for prices next week, weighing signs of an improving US economy against the threat of a military attack on Syria. Two years after bullion set a record, the majority said a new peak won’t be reached in the next 24 months.
Thirteen analysts surveyed by Bloomberg expect prices to rise next week, the same number were bearish and five were neutral. Gold slumped 28% since it reached an all-time high of $1,921.15 an ounce on September 6, 2011………………………………………..Full Article: Source

Gold traders split on two-year anniversary of peak: Commodities

Posted on 06 September 2013 by VRS  |  Email |Print

Gold traders are divided on the outlook for prices next week, weighing signs of an improving U.S. economy against the threat of a military attack on Syria. Two years after bullion set a record, the majority said a new peak won’t be reached in the next 24 months.
Thirteen analysts surveyed by Bloomberg expect prices to rise next week, the same number were bearish and five were neutral. Gold slumped 29 percent since it reached an all-time high of $1,921.15 an ounce on Sept. 6, 2011. Eighteen people surveyed said the metal won’t exceed that level in the next two years and 11 predicted another record………………………………………..Full Article: Source

Currency trade reaches $5.3 trillion a day amid yen turnover

Posted on 06 September 2013 by VRS  |  Email |Print

Foreign-exchange trading surged to an average $5.3 trillion a day in April 2013, boosted by greater yen volumes, the Bank for International Settlements said. Trading increased 33 percent since the same period in 2010, the BIS said, citing a survey of currency traders it runs every three years. That’s an acceleration from a 20 percent increase in the three years through 2010.
The yen had the biggest jump in trading activity among major currencies, while the euro’s role as the second-most traded currency was reduced. Emerging-market currencies increased their share, with the Mexican peso entering the top 10 most-actively traded currencies………………………………………..Full Article: Source

Brazil’s commodities exports rise over dry August

Posted on 03 September 2013 by VRS  |  Email |Print

Brazil’s commodities exports including sugar, corn, coffee and iron ore rose in August compared with July while soy shipments eased now that the harvest is over, the Trade Ministry said on Monday.
Dry weather in recent weeks helped harvesting and loading of a record sugar cane crop, and 44 percent more sugar was exported in August than in the previous month. Brazil finished harvesting a record soybean crop in May and exported 5.4 million tonnes of the crop in August, slightly below the amount exported in July but twice the amount exported in August of 2012 when drought hurt production………………………………………..Full Article: Source

China’s hydrocarbon buying spree hits $19 bln

Posted on 03 September 2013 by VRS  |  Email |Print

Sinopec is buying up assets around the world, racking up over $22 billion in oil and gas asset deals since 2010 in the UK, US, Canada, Brazil, Argentina, Australia and Egypt. Recently, Sinopec said it would purchase a 10% stake in Marathon Oil Corp’s oil and gas field in Angola for $1.5 billion—it’s second purchase in this field in the past two years. It also scooped up stakes in five US shale venues this year.
One of its biggest deals was its purchase of a stake in Portugal’s Gal Energija Brazil holdings for $5.19 billion in November 2012………………………………………..Full Article: Source

Higher freight rates could push up non-ferrous transport costs

Posted on 03 September 2013 by VRS  |  Email |Print

Increasing freight rates, driven by higher volumes of iron ore and coal, are likely to cause a rise in transportation costs and delivered prices for other commodities such as bauxite, alumina, copper concentrate, and nickel ore, analysts at JP Morgan said in a note on Monday September 2.
This could then feed through to refined metal via cost-push pressures, the analysts said, and among the base metals, data suggest nickel – especially the nickel contained in Chinese nickel pig iron production (NPI) – has the greatest exposure to possible changes in ocean freight rates………………………………………..Full Article: Source

Bank of China sets up onshore commodities trading unit

Posted on 30 August 2013 by VRS  |  Email |Print

The international arm of Bank of China has set up a commodities trading unit on the mainland as it looks to beef up its presence in the sector, a senior bank official said.
Chinese regulations prohibit banks from trading physical commodities, with the exception of gold. Therefore Bank of China, the country’s fourth largest lender by market value, used its overseas subsidiary to apply for a trading license………………………………………..Full Article: Source

China to exempt some commodities imports from licence requirements

Posted on 29 August 2013 by VRS  |  Email |Print

China will do away with licence requirements for imports of some commodities, including refined copper, stainless steel and natural gas, from September 1 as part of broader moves to cut red tape and open up its commodities markets.
Products exempt from the import license requirement also include semi-finished copper products, scrap copper, scrap aluminium, steel, steel products and some agricultural products, according to a statement posted on the Ministry of Commerce website on Tuesday………………………………………..Full Article: Source

Autumn might see gold trading down before rebounding

Posted on 28 August 2013 by VRS  |  Email |Print

One hallmark of a successful trader is knowing the time frame on which he or she is trading. In this respect, the long-term investor has it easier than the trader. There’s a certain peace of mind that an investor may find in buying a fund or issue that appears to have growth potential, and then sitting back and waiting for the investment to incubate. A trader has to approach the market with a different mindset.
The trader’s advantage, though, is that good trades will cover far more price movement than an investor can ever hope to see. However, it’s crucial to keep one’s trading practices consistent with the time frame………………………………………..Full Article: Source

The furore over physical commodity trading

Posted on 26 August 2013 by VRS  |  Email |Print

Despite the agitation over their role, there are valid reasons why banks are involved in physical commodities. In the wake of the financial crisis, opponents of the banking industry are always eager to find new sticks with which to beat the villains of Wall Street. The latest one they have stumbled upon is banks’ participation in physical commodities.
On July 19, the US Federal Reserve Board issued a statement saying it was reviewing a 2003 determination that paved the way for banks to increase their involvement in the transport and storage of physical commodities………………………………………..Full Article: Source

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