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The Global Economy Is Slow… But Steadier Than Ever

Posted on 22 July 2016 by VRS  |  Email |Print

It’s not difficult to come to the conclusion that, economically speaking, we are living in very turbulent times. China’s great slowdown. Europe’s persistent woes. Brexit. Yet on a bigger scale, all that’s just noise blocking the signal that the global economy is less volatile than any period in the modern era. This is the conclusion of new research led by David Hensley, director of global economics at JPMorgan Chase & Co. in New York.
Hensley’s work measures standard deviations of quarterly, annualized gross domestic product growth for major developed and emerging markets, plus a selection of regions. The sample compares the middle of the business cycle leading up to the Great Recession with the middle of the next cycle, i.e 2013 to 2016………………………………………..Full Article: Source

Base metals edge higher in subdued trading ahead of ECB meeting

Posted on 22 July 2016 by VRS  |  Email |Print

Base metals apart from aluminium were in positive territory in a subdued LME trading session on Thursday morning – traders are on the sidelines ahead of today’s key European Central Bank (ECB) meeting. The ECB meeting, its first since the June 24 UK Brexit referendum, will be watched for signals on interest-rate moves although several traders believe it will follow the Bank of England’s decision to keep rates unchanged.
“With the true extent of the Brexit effect still unclear, and the euro on the weaker side (due to renewed expectations for a September Fed rate hike), the central bank is under no real pressure to act,” Swissquote said……………………………………….Full Article: Source

EIU Global Forecasts Report 2016: Commodities forecasts

Posted on 21 July 2016 by VRS  |  Email |Print

The Economist Intelligence Unit have produced their first global forecast since the Brexit vote. Please find below, their forecasts for commodities until 2020. EIU Report: As in the case of oil, we expect the price of industrial and agricultural commodities to stage only a partial recovery in 2016-20.
After years of oversupply and falling prices, markets are finally moving back towards balance, with our aggregate commodity price index registering its first quarter-on-quarter rise in two years in April-June. Despite this upward trend, however, prices of most commodities remain well below year-earlier levels. Furthermore, rebalancing is taking place at varying speed………………………………………..Full Article: Source

IMF Global Growth Downgrade Not Impact Gold Prices

Posted on 20 July 2016 by VRS  |  Email |Print

Gold prices are not seeing much of a boost following the International Monetary Fund’s (IMF) downgrading its global growth forecasts for 2016. In its latest report, the IMF said it expects worldwide growth to expand 3.1% this year and 3.4% in 2017; both estimates were cut 0.1% from the previous outlook.
The biggest influence on the fund’s downgrade was the approval of the Brexit vote last month. IMF chief economist Maurice Obstfeld said in the report that “Brexit has thrown a spanner in the works,” Obstfeld said”……………………………………….Full Article: Source

Gold and Other Precious Metals’ Brexit Bounce Has Legs

Posted on 20 July 2016 by VRS  |  Email |Print

Gold and most precious metals are still gaining from the bounce they received after the U.K. voted to leave the European Union and most bankers and analysts expect that to continue. In contrast, European aluminum premiums are falling.
Britain’s vote to leave the European Union has led analysts to raise their gold price forecasts again this year, after the decision shook up financial markets and sparked a rally in the precious metal to two-year highs………………………………………..Full Article: Source

Why a 500% Jump in Gold Prices Isn’t Far-Fetched

Posted on 19 July 2016 by VRS  |  Email |Print

One doesn’t have to be gold bug, think that a financial apocalypse is around the corner or know that predicting anything will increase 500% in value sounds a little crazy to think that history suggests that the precious metal’s price could soar.
The decade that brought us disco music, velour jumpsuits and Pong also saw a 2,300% jump in gold prices. Gold traded at $35 an ounce in 1971, but by the beginning of 1980, it had reached $850 an ounce. Meanwhile, stock markets were volatile but with ultimately flat returns, it was a lost decade………………………………………..Full Article: Source

Are the Events in Turkey Bullish for Commodities?

Posted on 18 July 2016 by VRS  |  Email |Print

UBS Wealth Management’s Wayne Gordon discusses the outlook for commodities with Bloomberg’s Betty Liu and Yvonne Man on Daybreak Asia.”.………………………………………Full Article: Source

Why is the oil recovery taking so long?

Posted on 18 July 2016 by VRS  |  Email |Print

Why aren’t oil prices rising faster? The recent recovery in oil prices has largely stalled out and investors looking at historical figures could be forgiven for not understanding why prices cannot move higher for now.
Oil is stuck in neutral despite the fact that even after prices started to crash, many investors once saw $60 as a remarkably cheap threshold. Today, prices remain firmly below that level, and investors will probably have to wait for more positive data before getting close to that level. The problem is not production or a glut of oil. U.S. oil output is falling slowly but steadily over time………………………………………..Full Article: Source

Lithium gets second wind

Posted on 18 July 2016 by VRS  |  Email |Print

The lithium boom has been showing signs of maturing. In a winnowing process that all booms go through, there has been a natural floating to the top of those with the biggest and best lithium positions.
In the listed ASX space, the rise of Pilbara Mines (PLS) is a case in point. It is now a $700 million-plus company courtesy of the success it has had in outlining one of the world’s biggest hard-rock sources of lithium at its Pilgangoora ­deposit, 120km south of Port ­Hedland………………………………………..Full Article: Source

Oil rebounds as investors join global market rally

Posted on 15 July 2016 by VRS  |  Email |Print

Oil prices rebounded Thursday in tandem with a rally on global equity markets as risk appetites grew and a weaker dollar helped to boost demand. Snapping back from two-month lows Wednesday on disappointing US inventories, prices advanced as investors joined the bullish mood on markets expecting more stimulus in major economies.
US benchmark West Texas Intermediate for delivery in August rose 93 US cents to US$45.68 a barrel on the New York Mercantile Exchange. In London, Brent North Sea crude for September delivery, the global benchmark, finished at US$47.37 a barrel, up US$1.11 from Wednesday’s settlement………………………………………..Full Article: Source

IEA, WoodMac raise worries about global oil market recovery

Posted on 14 July 2016 by VRS  |  Email |Print

Two influential think tanks on Wednesday raised worries about the pace of recovery in the world oil market. The International Energy Agency, the oil-consuming countries’ main energy watchdog, warned in its monthly oil market report on Wednesday that despite continued signs that the market is more balanced, the huge supply overhang built up over recent years still weighs on oil prices.
“Although market balance is upon us, the existence of very high oil stocks is a threat to the recent stability of oil prices,” the IEA report said. “There are signs that [demand] momentum is easing,” especially in the US and China, while Europe’s surprisingly robust demand “is unlikely to last”, it said………………………………………..Full Article: Source

Diamonds Seen as ‘Next-Best’ Commodity After Gold Rally

Posted on 14 July 2016 by VRS  |  Email |Print

Commodity investors concerned that gold’s rally will sputter may want to consider another luxury item: diamonds.
With odds of a U.S. rate hike creeping higher and long positions in bullion soaring, “it may make even more sense to look at a next-best commodity exposure such as diamonds, where there has been limited investor flow and presumably less downside in case the bear case unfolds,” Citigroup Inc. analysts including Barry Ehrlich said in a note. The bank recommends shares of Alrosa, the world’s largest rough-diamond producer………………………………………..Full Article: Source

Global research houses revise commodity price outlook upward

Posted on 13 July 2016 by VRS  |  Email |Print

Global investment banks have started revising upward their price outlook for base metals, coal & oil, and precious metals. They see demand starting to outweigh supplies that were cut over the past few quarters.
Crude oil and precious metals have already seen a sharp up-move from low levels. Crude oil was quoted around $25-26 per barrel, gold below $1,100 six months ago. Recovery in metals was slower and they are facing resistance at higher levels, except zinc which is up about 20 per cent………………………………………..Full Article: Source

Commodity rally will continue into second half of the year: Citi

Posted on 12 July 2016 by VRS  |  Email |Print

Commodity prices will buck the trend of the past two years and continue their rally into the second half of 2016, says Citigroup. The new report from Citi says that fund flows should continue to move into commodity-focused assets this year, including physically-backed exchange traded funds and long-only investment funds.
“This is in stark contrast to the last two years, during which time commodities sold off during 2H leading the asset group to be the worst performing as compared with equities and debt securities,” said analysts led by Edward Morse in a note to clients………………………………………..Full Article: Source

Rare-earth prices fall as China postpones purchase plan

Posted on 08 July 2016 by VRS  |  Email |Print

International spot prices for rare-earth metals are declining. At China’s six major suppliers, production costs in mid-June began exceeding bid prices for these key materials that go into smartphones, hybrid vehicles and other high-tech products. At the same time, an upward price trend started losing steam.
The prices of some major rare-earth metals had spiked in May and early June, but even these have started to fall. The price of terbium — which is added to high-performance magnets to enhance heat resistance and is also a raw material in phosphor — has dropped 21% from a month earlier to around $450 per kilogram………………………………………..Full Article: Source

U.S. oil boom isn’t dead. It’s plotting a 2017 comeback

Posted on 07 July 2016 by VRS  |  Email |Print

New cracks have emerged in the U.S. oil boom, thanks to the crash in prices orchestrated by OPEC. U.S. oil production is down seven straight months and recently dropped below the 9 million barrel mark for the first time in nearly two years. It’s further evidence of how the supply glut and relentless pumping from Saudi Arabia, Iran and other OPEC nations have forced American shale companies to hit the brakes.
But OPEC has hardly dealt the U.S. oil boom a death blow. Production is still twice what it was in 2008 and there are early signs of a rebound thanks to the rally in oil prices. Goldman Sachs recently predicted American production will continue declining this year, but then resume growing in 2017 and beyond………………………………………..Full Article: Source

Investors Expand Their Appetite for Commodities

Posted on 06 July 2016 by VRS  |  Email |Print

Desire for commodities-based funds is expanding beyond just oil and gold. In recent months, investors also have developed a healthy appetite for funds focused on agricultural products and industrial materials. Indeed, the entire commodities complex has become a magnet for fund investors’ money, according to new research.
In the first four months of this year, investors poured $38 billion into commodities exchange-traded funds and other commodities investment funds globally, according to a recent report from Barclays. That compares with annual outflows of as much as $83.2 billion in each of the prior three years, through 2015………………………………………..Full Article: Source

Gold Gains on a ‘Perfect Storm’ of Factors

Posted on 06 July 2016 by VRS  |  Email |Print

Gold jumped to its highest price since March 2014 on Tuesday as investors looked for a safe investment amid continued fallout from the United Kingdom’s vote to leave the European Union.
Gold for August delivery settled up 1.5% to $1358.70 a troy ounce on the Comex division of the New York Mercantile Exchange. “We’re seeing people adding to positions,” said Bob Haberkorn, senior market strategist at RJO Futures, adding that buyers are reacting to several factors………………………………………..Full Article: Source

China commodities rally on hopes of stimulus to boost economy

Posted on 05 July 2016 by VRS  |  Email |Print

Chinese commodities from nickel to cotton surged on Monday on hopes Beijing will unleash more stimulus to prop up a sluggish economy, brightening the outlook for raw material demand. An official survey on Friday pointed to China’s weak manufacturing sector in June with export orders and inventories falling and factories shedding more workers.
“There are headwinds in the domestic market and exports and for the government to achieve its macroeconomic targets they need to focus on more stimulus in the second half of the year,” said Helen Lau, an analyst at Argonaut Securities in Hong Kong………………………………………..Full Article: Source

Commodities soar. Silver’s up 50% this year!

Posted on 05 July 2016 by VRS  |  Email |Print

Gold soared to levels over USD 1350 an ounce while Silver moved to over USD 21 an ounce. This is a sharp move for the year, given they had closed 2015 at USD 1060 an ounce and USD 13.83 an ounce. That’s a return of over 50% for Silver in the current year.
The trend is visible across the Commodity space. As per Ole Hansen, Head of Commodity Strategy at Saxo Bank, ‘Apart from grains, all are back in demand following the Brexit vote on June 23. Record low bond yields on the back of raised speculation about renewed central bank action supported metals of all colors. Sugar and coffee found support in Brazil while oil settled down after the initial squeeze and natural gas surged on improved fundamentals.’……………………………………….Full Article: Source

$10 a Barrel Oil Coming Soon? Market Expert Warns the Worst is Yet to Come

Posted on 05 July 2016 by VRS  |  Email |Print

A top oil industry analyst issued an editorial this week suggesting that the recovery of the oil market will be short lived, but is he right? Probably not.
In an editorial this week, acclaimed oil market expert Gary Shilling stood by a prediction he made in August 2015 that oil prices would collapse to $10 per barrel citing higher than expected North American fracking outputs and OPEC’s refusal to limit production………………………………………..Full Article: Source

Silver Tops $21 for First Time Since ’14 as Investors Seek Haven

Posted on 05 July 2016 by VRS  |  Email |Print

Silver vaulted above $21 for the first time in two years and gold advanced for a fourth day on speculation of more central bank stimulus in the wake of the U.K.’s vote to leave the European Union. Mining shares surged.
Spot silver jumped as much as 7 percent to $21.1377 an ounce and settled at $20.3246 in New York on Monday, according to Bloomberg generic pricing. Spot gold rose as much as 1.2 percent to $1,357.63 an ounce, near a two-year high, and settled at $1,350.79………………………………………..Full Article: Source

A ’spluttering’ recovery for commodities in 2016-17

Posted on 01 July 2016 by VRS  |  Email |Print

The 2016 financial year was a year of two halves, with a severe downward shift in prices followed by a period of relative stability, but experts are warning the path to recovery is unlikely to be smooth.
The collapse of iron ore and oil prices persisted in the first half of the financial year, with a raft of other commodities following suit in what some industry executives dubbed the worst industry downturn in many years………………………………………..Full Article: Source

Gold Logs Best Two Quarters Since 2007

Posted on 01 July 2016 by VRS  |  Email |Print

Gold prices settled lower on the day Thursday but logged its biggest two-quarter percentage increase since 2007, as investors piled into the metal amid global economic uncertainty and the U.K.’s vote to leave the European Union.
Gold futures rose some 24% over the last two quarters, the best two-quarter performance since the fourth quarter of 2007, and advanced nearly 7% in the second quarter. The strong gains come even as futures for August delivery, the most actively traded contract on Thursday, settled down nearly 0.5% on the day, to $1,320.60 a troy ounce on the New York Mercantile Exchange………………………………………..Full Article: Source

What The ‘Brexit’ Means For Gold And Other Commodities

Posted on 30 June 2016 by VRS  |  Email |Print

The news out of the United Kingdom rocked global markets. In an historic referendum vote, citizens of the U.K. narrowly voted for a “Brexit” — a British exit from the European Union. Since joining the European Union in 1973, a fair number of Britons have been skeptical of the governing body.
British attitudes toward European unity have been… complicated, to say the least. Winston Churchill advocated for “a kind of United States of Europe” during a speech in Zurich in 1946, while simultaneously setting the precedent for an arm’s length relationship with the continent throughout his career. Now that the votes are cast, questions remain about what this will mean for trade, immigration, travel and a host of other issues……………………………………….Full Article: Source

Brexit fallout, global commodity markets may remain volatile

Posted on 29 June 2016 by VRS  |  Email |Print

“Brexit”, the word continued to keep global markets involved and horrified from the past few days and when reality happened it spooked the financial world in a massive way. Britain is the first state to leave the 28-nation European Union since its foundation.
Now, the billion dollar question is that are the markets overreacting. Will it continue to impact on the trade behaviour? If so,… how long? As per estimates, $2.08 trillion has been wiped off from the global equity markets after Britain voted to leave the European Union………………………………………..Full Article: Source

How long Brexit uncertainty reigns is key for commodities, gold

Posted on 28 June 2016 by VRS  |  Email |Print

Amid the horror for many, the elation for others and the shock for virtually everybody of the British vote to exit the European Union, perhaps the most measured and predictable response was from commodity markets. As it became clear on Friday that the Leave camp was going to pull off an unexpected victory, commodities did what they normally do in a period of heightened risk, they declined.
The outlier of course was gold, which also did exactly what it was expected to do by rallying strongly as investors sought the protection of what is still viewed by many as the ultimate safe-haven in times of crisis and uncertainty………………………………………..Full Article: Source

Goodbye to OPEC?

Posted on 28 June 2016 by VRS  |  Email |Print

Should the 169th OPEC meeting held earlier this month be its last? As former British Prime Minister Winston Churchill said, “To improve is to change; to be perfect is to change often.”
For Saudi Arabia and the remaining Gulf Cooperation Council (GCC) countries (Bahrain, Kuwait, Oman, Qatar and United Arab Emirates), which together account for around 40 percent of the world’s oil reserves and the lion’s share of OPEC’s collective output, their future oil strategy should be an exclusively GCC affair, away from the stress and dysfunction of OPEC………………………………………..Full Article: Source

How long Brexit uncertainty reigns is key for commodities, gold: Russell

Posted on 27 June 2016 by VRS  |  Email |Print

Amid the horror for many, the elation for others and the shock for virtually everybody of the British vote to exit the European Union, perhaps the most measured and predictable response was from commodity markets.
As it became clear on Friday that the Leave camp was going to pull off an unexpected victory, commodities did what they normally do in a period of heightened risk, they declined. The outlier of course was gold, which also did exactly what it was expected to do by rallying strongly as investors sought the protection of what is still viewed by many as the ultimate safe-haven in times of crisis and uncertainty………………………………………..Full Article: Source

Brexit threatens London’s status as a markets hub

Posted on 27 June 2016 by VRS  |  Email |Print

London is the world centre of the complex plumbing of markets, but leaving the EU complicates that. The UK’s decision to leave the EU has already prompted dire warnings over the implications for the City of London’s position as one of the world’s biggest financial trading hubs.
François Villeroy de Galhau, Bank of France governor and ECB governing council member, said: “If tomorrow Britain is not part of the single market, the City cannot keep this European passport, and clearing houses cannot be located in London either,” he told French radio………………………………………..Full Article: Source

Exit signs lead to gold

Posted on 27 June 2016 by VRS  |  Email |Print

There was no place to hide when Brits did what all the smarties of the financial world said they would be mad to do when they voted to leave the European Union. But there was one big ­exception — the gold price.
The barbarous relic’s now informal role in the world’s monetary system as an effective hedge and safe haven was on full display when it became clear that the “leave’’ vote would carry the day, driving gold to as high as $US1358 an ounce………………………………………..Full Article: Source

Investors Map Post-Brexit Strategies Amid Global Market Upheaval

Posted on 27 June 2016 by VRS  |  Email |Print

Britain’s vote to leave the European Union almost a quarter century after its creation with the Maastricht Treaty left global markets in disarray Friday. Today, investors start to figure out the way forward.
“Ultimately, we have no experience in what will happen next,” Glen Capelo, managing director at Mischler Financial Group Inc., who has spent the intervening years on various trading desks, said in a note to clients. “Twenty-three years of positions may now need to be unwound,” he added in an e-mail………………………………………..Full Article: Source

Commodities and Brexit — 5 things to watch

Posted on 24 June 2016 by VRS  |  Email |Print

As the UK begins voting in the EU referendum here are five things to watch in the commodities world. It’s a widely-held view among investors that gold would be among the big beneficiaries of a Brexit. Some analysts reckon the price could rise by as much as 10 per cent to $1,400 after a vote to leave as nervous investors pile in looking for safe places to park cash.
But there are also reasons for thinking gold, a good barometer of risk, could suffer, at least in the near-term. How markets react to Thursday’s vote is a huge unknown but one thing investors have learnt since the financial crisis is how quickly liquidity can dry up and impact markets………………………………………..Full Article: Source

The End of Economic Forecasting

Posted on 24 June 2016 by VRS  |  Email |Print

The dominance of finance has made economic volatility the new normal. Why have economic forecasters recently been so wrong? Just two years ago, for example, the common perception was that the big emerging markets would drive global growth. That oil prices would remain above $100 per barrel.
That interest rates would move higher. All of these predictions have been wildly wrong. Yet these variances are neither a coincidence nor a temporary phenomenon. We have entered an age in which economic and financial forecasting is much harder and less reliable………………………………………..Full Article: Source

Leading index reveals commodity price burden is easing, says Westpac

Posted on 23 June 2016 by VRS  |  Email |Print

While the Australian economy still appears set for more sub-trend growth, a survey has found that sentiment improved in May as the commodity price burden began to ease.
The monthly Westpac-Melbourne Institute leading index showed that the expected six-month annualised growth rate, which assesses likely growth against the long-term trend, had improved from 1.19 per cent below trend in April to minus 0.42 per cent in May — the best reading since October. The index had bottomed in March at -1.53 per cent — its weakest print in five years — but has improved in ensuing months as commodity prices regained their footing………………………………………..Full Article: Source

What Could Brexit Mean For Precious Metals?

Posted on 23 June 2016 by VRS  |  Email |Print

The recent narrowing of the Brexit polls has sparked retail gold buying in the UK, according to data from the GFMS team at Thomson Reuters. Additional expectations for precious metals around the EU Referendum follow below: Market uncertainty, such as the conditions experienced around Brexit, is likely to benefit the price of safe havens, crucially the U.S. Dollar and gold.
A more difficult call at this juncture is whether gold or the U.S. Dollar is seen as the chief beneficiary, with the latter being the case in the Greek crisis in 2011. On balance, GFMS expect gold to gain even in Dollar terms as any strength in the U.S. Dollar for this reason will lessen the chances of any imminent U.S. interest rate rises as the Fed would rapidly become concerned about the adverse trade effects of these exchange rate movements………………………………………..Full Article: Source

Donald Trump has commodity traders nervous, could impact ag commodities, says analyst

Posted on 22 June 2016 by VRS  |  Email |Print

The controversial rhetoric of presumptive republican nominee Donald Trump has commodity traders nervous, according to one analyst. Pete Johnson, of marketing news publication Cotton Compass believes a Trump presidency could have a negative impact on the price of Australian agricultural commodities like beef, grain and fibre.
Mr Johnson, a market analyst, said Trump had so far shown himself to be hard to predict, which could put pressure on the US dollar and in turn, the international commodity market………………………………………..Full Article: Source

Why gold could crash or soar this week

Posted on 22 June 2016 by VRS  |  Email |Print

Britons will go to the voting booth on 23 June in what could mark a historic date for the country, while the outcome could have a lasting impact on the global economy as a whole. Although much has been said and written about the potential Brexit, the consequences of a ‘leave’ decision are still unclear.
Overnight, for instance, George Soros warned that an exit from the EU risks ‘Black Friday’ for the United Kingdom, as reported by The Guardian, while others suggest that Brexit would be a complete non-event. One way or another, the upcoming referendum vote has created much uncertainty………………………………………….Full Article: Source

Commodities focus on looming Brexit vote

Posted on 20 June 2016 by VRS  |  Email |Print

Market activity has increasingly been dictated or distracted by the uncertainty surrounding the UK referendum vote on June 23. Opinion polls indicating rising support for the Leave camp sent investors looking for cover with stocks falling and bonds rising.
This was followed on Wednesday by a distinctively dovish statement following the latest Federal Open Market Committee meeting. The FOMC lowered its projection of its own interest rate path with six members now only seeing one rate hike in 2016………………………………………..Full Article: Source

World waits for global commodity bubble to deflate

Posted on 17 June 2016 by VRS  |  Email |Print

When the Federal Reserve raised rates in December, it thought the fallout would be minimal. It had telegraphed the increase for a year and it was, after all, just a quarter of a percentage point. Yet since then both the US and, even more so, the global economies have slowed. The reason isn’t because a quarter-point rate increase by itself represents a stringent tightening of monetary policy.
Rather, it brought to an end seven years of unprecedented monetary ease that had helped fuel a global commodity bubble. That bubble began deflating in 2014 and the effects are now being felt around the world and washing back on the US………………………………………..Full Article: Source

China Plans to Boost Metals Reserves Amid Commodities Glut

Posted on 17 June 2016 by VRS  |  Email |Print

China, the world’s top consumer of base metals, will boost stockpiles, accelerate the closure of excess capacity and provide tax breaks for producers as the country grapples with a raw-materials glut amid the slowest growth in decades.
The nation will increase reserves of some metals and study a trial program for companies to build stockpiles in addition to their inventories, according to State Council guidelines posted on its website Thursday. China already holds stockpiles of metals though the State Reserve Bureau. The statement from China’s cabinet didn’t specify a timeline or say how the plan would be financed………………………………………..Full Article: Source

OPEC’s Chasm of Doom

Posted on 17 June 2016 by VRS  |  Email |Print

OPEC’s members are divided by many things: language; size; politics; sometimes outright war.And money. Don’t forget money.If you want to understand why OPEC has responded to its current crisis with all the cohesion of cat herding, some numbers in the Energy Information Administration’s “OPEC Revenue Fact Sheet,” published on Tuesday, provide some important clues.
First up, estimated revenue, adjusted for inflation: OPEC’s real net oil export revenue is expected to be the lowest since 2003. The estimate for this year, $337 billion in real terms, is barely a third of 2012’s peak — and, uncannily, exactly the same as the consensus forecast for the combined revenue of Exxon Mobil and Chevron in 2016………………………………………..Full Article: Source

These two commodities will get a boost from Brexit

Posted on 17 June 2016 by VRS  |  Email |Print

Most investors anticipate a global selloff and flight to safety in the event of a British exit from the European Union, but two commodities are expected to rally. The cocoa and U.K. natural-gas markets are two of the last remaining commodities contracts still denominated in sterling. Most commodities, from oil to copper to gold, are priced in dollars.
If Britain votes to leave the EU, the pound is expected to plummet, boosting these commodities by making them cheaper in other currencies. A vote to exit the EU would cause a sharp rally in the London-traded cocoa contract, said Max Goettler, a trader at Cocoanect in Rotterdam………………………………………..Full Article: Source

Rare-earth metal prices climb as China builds reserves

Posted on 16 June 2016 by VRS  |  Email |Print

International spot prices for rare-earth metals are rising amid moves by China to stockpile those key materials for high-tech consumer electronics and hybrid vehicles.
Neodymium, which is used in high-performance magnets, is selling for around $56 per kilogram — up 10% from a month ago and the highest since July 2015. Dysprosium prices have climbed 3% from the previous month to $265 per kilogram, while prices of terbium, a phosphor raw material, have increased 11% to around $570 per kilogram………………………………………..Full Article: Source

BMO: Silver Lagging Gold But Expected To Continue Moving Higher

Posted on 15 June 2016 by VRS  |  Email |Print

Analysts at BMO Capital Markets say silver has been lagging gold again lately, but they expect silver to continue moving higher later this year. “There continues to be profit taking in silver, while gold speculative positions are seeing growing longs again,” BMO says.
“Earlier this year, silver prices lagged gold by about six weeks due to uncertainty around industrial activity globally. However, we note that the negative sentiment towards industrial demand has eased somewhat, especially given the outperformance of the steel complex.” The firm says silver industrial demand tends to be “sticky,” although this is often overlooked by markets………………………………………..Full Article: Source

Fluctuating Commodities: How They Impact Businesses and What You Can Do

Posted on 14 June 2016 by VRS  |  Email |Print

The volatility of the commodities market can be extremely difficult to manage as a company. The cost of goods can fluctuate immensely, which can be devastating to those predicting profits. This can also eat away at profit margins slowly and a smaller company can quickly become unprofitable.
Most people do not realize the impacts that commodities have on everyday life. The prices of good we buy or ship are impacted on a daily basis along with the jobs that we have. The following are some ways to deal with fluctuating commodities in order to secure a business………………………………………..Full Article: Source

IMF Warns Canada Recovery Faces Commodity Risks

Posted on 14 June 2016 by VRS  |  Email |Print

Canada is undergoing a modest economic recovery but faces increased risks from a long period of lower commodity prices and a possible housing downturn in two of the country’s biggest cities, the International Monetary Fund said Monday.
For now, Canada is adjusting to the recent drop in the price of crude oil, a top Canadian export, the IMF said in its latest update on the country’s economy. However, the agency said uncertainty about future oil prices and further turbulence in China are the biggest external headwinds for the Canadian economy. It warned the fallout from lower commodity prices continues to play out………………………………………..Full Article: Source

How OPEC lost its iron grip on oil prices

Posted on 13 June 2016 by VRS  |  Email |Print

When his final press conference as secretary-general of the Organization of the Petroleum Exporting Countries came to an end last week, Abdallah Salem el-Badri finally addressed the whispers that have been circulating throughout the oil markets.
Energy industry observers are howling that “OPEC is dead,” El-Badri acknowledged, after the group again failed to reach an agreement to cap oil production that would bolster sagging prices. His frustration was evident. “I have heard this comment maybe five, six times in my career,” he told reporters in Vienna. “Don’t take that notion that OPEC is dead. OPEC is alive. OPEC will be a very important segment of the economy, of the world.”……………………………………….Full Article: Source

Billionaire Investors Back A Gold Price Rally In 2016

Posted on 10 June 2016 by VRS  |  Email |Print

It wasn’t so long ago that some of the more famous investor gurus were shrugging off gold as nothing more than shiny trinkets with no investment value. They were wrong. This safe haven is back, the recovery is clear, and there have been some very big changes of heart.
The biggest gold producers in the world have seen their share prices double this year. Not only are gold prices soaring, but producers are cutting costs and slimming down debt as they pave the way for gold to return to the top of the favored commodities list………………………………………..Full Article: Source

Gold is sending a warning signal: Bouroudjian

Posted on 10 June 2016 by VRS  |  Email |Print

The recent action in the gold market is sending out a big warning signal that investors need to heed, veteran industry insider Jack Bouroudjian said. That “red flag” is the acceleration of the move higher in gold over the last couple of months, which he believes is telegraphing a loss of confidence in central banks.
“It may have started out as a reinflation trade, but right now it is turning into that flight to quality and flight to safety. It is one of those things that is more than likely going to stop any kind of a move in equities,” the co-founder and director of UCX said……………………………………….Full Article: Source

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