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Commodities Briefing - Category | Trading more

Asian players develop an appetite for risky commodities trading

Posted on 22 January 2014 by VRS  |  Email |Print

While Western financial giants have been exiting the high-risk, high-reward commodities trading business, capital-rich Asian firms, including state-owned banks and brokerages from China, have seized the opportunity to enter the market.
Western banks including JPMorgan Chase, the world’s largest by assets, and France’s Natixis have been retreating from the commodities business but have found no shortage of Asian players willing to take their place at the table……………………………..Full Article: Source

US oil demand growth outstrips China in 2013, says IEA

Posted on 22 January 2014 by VRS  |  Email |Print

US demand for oil grew by more than China’s last year for the first time since 1999, according to the International Energy Agency, giving the strongest indication of how abundant energy supplies are driving an economic resurgence in the US.
The IEA – the developed world’s energy body whose forecasts are the gold standard for the energy market – said US oil demand rose by 390,000 barrels a day last year, or 2 per cent, reversing years of steady decline. Chinese demand rose by 295,000 b/d, the weakest in at least six years……………………………..Full Article: Source

Commodities likely to have another muted year

Posted on 21 January 2014 by VRS  |  Email |Print

The global economic recovery might be gaining steam, but Capital Economics is forecasting commodity prices are likely to remain flat in 2014. Commodity prices have struggled to post gains for the past three years, notes Julian Jessop, chief global economist at Capital Economic.
That has led some analysts to predict prices will rebound this year, but he is skeptical. “There is no fundamental reason why the underperformance of commodities relative to equities cannot be sustained for another year, given the prospects for supply,” he said………………………………………..Full Article: Source

How to use arbitrage opportunities in commodities

Posted on 21 January 2014 by VRS  |  Email |Print

Financial markets offer a host of trading options for investors with different risk profiles. While one can opt for various market strategies, such as trading, arbitrage and long-term investing, an interesting, low-risk option is arbitrage.
It’s an opportunity which can help an investor benefit from the difference in the prices of an asset on various platforms. Arbitrage helps reduce the price disparity of an asset in different markets even as it helps boost the liquidity………………………………………..Full Article: Source

OPEC cuts exports to lowest in two months, Oil Movements says

Posted on 17 January 2014 by VRS  |  Email |Print

The Organization of Petroleum Exporting Countries will cut crude shipments to the lowest level since late November as demand from Asia remains weak, according to Oil Movements.
OPEC, supplier of about 40 percent of the world’s oil, will reduce sailings by 660,000 barrels a day, or 2.7 percent, to 23.49 million barrels in the four weeks to Feb. 1, the researcher said today in a report. That compares with 24.15 million in the period to Jan. 4. The figures exclude two of OPEC’s 12 members, Angola and Ecuador………………………………………..Full Article: Source

Goldman’s commodity trade ‘too important’ to quit: CFO

Posted on 17 January 2014 by VRS  |  Email |Print

Goldman Sachs Group Inc (GS.N) reaffirmed its intent to remain in the commodities trading business, deeming it “too important” to clients to exit, a top executive said on Thursday.
The bank’s restated determination to retain its vaunted J. Aron trading business, even as some rivals shed physical trading operations, comes one day after lawmakers at a U.S. Senate hearing pressed the Federal Reserve to quicken efforts to crack down on what they see as risky business………………………………………..Full Article: Source

Senate democrats push Fed on banks’ commodities trading

Posted on 16 January 2014 by VRS  |  Email |Print

Senate Democrats ratcheted up their criticism of big banks’ activities in the physical commodities markets Wednesday, pressuring the Federal Reserve to act quickly in an ongoing review of the banks’ ability to trade in materials such as oil and aluminum.
Several senators pressed a senior Fed official for more decisive action in the wake of the central bank’s decision Tuesday to seek input on—rather than impose—possible limitations for banks that trade, store, and sell commodities………………………………………..Full Article: Source

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EU lawmakers agree deal on commodity trading

Posted on 16 January 2014 by VRS  |  Email |Print

EU lawmakers reached a breakthrough on new rules to crack down on commodity speculation on Tuesday night (14 January) in Strasbourg. Under the so-called Market in Financial Instruments directive (MiFiD) that will regulate financial markets across the bloc, taking financial positions in commodity derivatives will be limited, in a bid to prevent market distortions and abuse.
The new bill is also the first EU law to establish rules for mathematical algorithms used in high frequency trading………………………………………..Full Article: Source

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Commodity traders face fines for failure to complete paperwork

Posted on 16 January 2014 by VRS  |  Email |Print

The drudgery of paperwork is the highlight of few commodity traders’ days. But failure to complete the task can carry a hefty price tag. Two Brazil-based agricultural companies tied to Japan’s Mitsui & Co., Ltd., have agreed to pay $500,000 for failing to submit weekly reports showing their cotton purchases and sales, the U.S. Commodity Futures Trading Commission said in a release on Wednesday.
Multigrain SA and Agricola Xingu SA were not immediately available for comment………………………………………..Full Article: Source

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EU moves to curb food price bets by traders

Posted on 16 January 2014 by VRS  |  Email |Print

New rules would help decrease price volatility and inflation of staple foods and other commodities, says British MEP. The European Union has voted through rules to limit the ability of banks and hedge funds to bet on food prices.
Arlene McCarthy, a Labour MEP for the north-west, said the new rules, known as Mifid, would “curb speculation and help decrease price volatility and inflation” which had a “devastating impact on poor and food dependent countries”………………………………………..Full Article: Source

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JPMorgan commodity risk higher in fourth-quarter

Posted on 15 January 2014 by VRS  |  Email |Print

JPMorgan Chase & Co slightly raised its commodity trading risk for the first time since last spring in the fourth quarter, even as it exits the physical commodities trading business, its quarterly results showed on Tuesday.
Value-at-Risk (VaR) in commodities at JPMorgan, the largest U.S. bank, rose to $15 million in the fourth quarter, from $13 million, unchanged during the previous two quarters, and up $1 million from the fourth quarter of 2012. VaR is the most that can be lost on 95 percent of trading days within a given period………………………………………..Full Article: Source

Commodities super cycle over, says Goldman Sachs

Posted on 15 January 2014 by VRS  |  Email |Print

The “super cycle” that sent commodity prices climbing nearly four-fold over a 10-year period is reversing and raw materials are now in a structural bear market, according to Goldman Sachs.
In a report uploaded on Sunday last, the bank writes that expansion of US shale oil production will suppress energy prices, bolstering economic growth and leading to more QE tapering. As a result, emerging market currencies will depreciate further, encouraging growth in raw materials production in those countries………………………………………..Full Article: Source

Fed eyes fresh measures to restrict banks’ commodities trading

Posted on 15 January 2014 by VRS  |  Email |Print

The Federal Reserve is asking for public input on whether to put restrictions on banks’ trading and warehousing of physical commodities amid lawmaker scrutiny of potential conflicts of interest and market manipulation.
The Fed’s request released today seeks comment on 24 questions, including some on the risks posed by bank ownership and trading of commodities such as oil, gas and aluminum by deposit-taking banks and the possible benefits of imposing additional capital standards………………………………………..Full Article: Source

Fed set to push ahead on new commodity trade rules

Posted on 14 January 2014 by VRS  |  Email |Print

The Federal Reserve is set to take its first formal step toward limiting major Wall Street banks’ role in physical commodities markets this week and issue a notice to seek public comment on the topic, sources familiar with the matter said on Monday.
The Fed will publish a so-called “advance notice of proposed rulemaking” on Tuesday, laying out the issues it is considering, one day before a second Senate banking committee hearing on the matter, the sources said………………………………………..Full Article: Source

Platts survey: OPEC pumps 29.72 mln barrels of crude oil per day in December

Posted on 14 January 2014 by VRS  |  Email |Print

Oil production from the Organization of the Petroleum Exporting Countries (OPEC) edged up by 20,000 barrels per day (b/d) to 29.72 million b/d in December from 29.7 million b/d in November as increases from Saudi Arabia, Iran and Nigeria more than offset a drop in Iraqi volumes, a just-released Platts survey of OPEC and oil industry officials and analysts showed.
“It’s Goldilocks time – not too hot, not too cold — for the oil market,” said John Kingston, global director of news for Platts, a leading global provider of energy, petrochemicals and metals information………………………………………..Full Article: Source

India: Commodities trade dips over 36pct in Apr-Dec

Posted on 14 January 2014 by VRS  |  Email |Print

Commodities exchanges saw a heavy decline in trading during the first nine months (April-December) of the current fiscal. This comes in the backdrop of all-round deceleration in agri and non-agri commodities trade.
According to the latest data from commodities market regulator Forward Markets Commission (FMC), trade was down both in value and volume terms. In terms of volume, the total trade declined to 71.22 crore tonnes in April-November 2013-14, from 112.38 crore tonnes in the corresponding period last year. At the same time, the trade value shrunk to Rs 82.46 lakh crore (Rs 129.62 lakh crore)………………………………………..Full Article: Source

Copper traders bullish as hedge funds bet on gains: Commodities

Posted on 30 December 2013 by VRS  |  Email |Print

Copper analysts are the most bullish in three weeks after manufacturing expanded from the U.S. to Europe and hedge funds bet on higher prices for the first time since November.
Fourteen analysts surveyed by Bloomberg News expect prices to gain this week, four are bearish and six neutral. The metal reached a four-month high of $7,415.50 a metric ton on Dec. 27. Hedge funds and other large speculators are holding their biggest bullish bet since February, U.S. Commodity Futures Trading Commission data show………………………………………..Full Article: Source

Russian, Chinese and Gulf state firms enter commodity trading to control pricing

Posted on 30 December 2013 by VRS  |  Email |Print

As US and European banks dropout of commodity trading, Russian, Chinese and Gulf state firms are filling the gap in an attempt to exert greater control over the pricing of the raw materials on which their economies so heavily depend.
Last week, the Kremlin oil champion Rosneft bought the oil trading unit of Morgan Stanley, one of the largest and oldest trading desks on Wall Street, as banks reduce exposure to trading………………………………………..Full Article: Source

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)

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