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Armajaro commodities fund assets fall almost 25 pct in first quarter

Posted on 17 April 2014 by VRS  |  Email |Print

London-based Armajaro Asset Management lost nearly a quarter of assets at its largest commodities fund in the first quarter, the latest sign that edgy investors have continued to withdraw cash from the sector after weak returns, documents show.
Assets under management at Armajaro Commodities Fund (ACF), the biggest of the group’s six hedge funds and one of three dedicated to commodities, fell to $686 million by end-March from $904 million at end-December, documents obtained by Reuters on the fund showed on Wednesday………………………………………..Full Article: Source

Commodities seen by Goldman down after ‘transient events’

Posted on 15 April 2014 by VRS  |  Email |Print

Goldman Sachs Group Inc. expects commodity prices to decline this year even after precious metals and crop prices rallied on Ukraine tension and weather concerns. The S&P GSCI Enhanced Commodity Index may drop 4 percent in the next 12 months from a 4.3 percent decrease predicted in February, analysts led by Jeffrey Currie wrote in a report.
Precious metals will decline 15 percent, compared with a 14 percent retreat forecast in February, it said. Agriculture prices will drop 10 percent, from February’s estimate of a 9 percent loss, it said………………………………………..Full Article: Source

Commodity funds bounce in Q1 after 2013 losses

Posted on 11 April 2014 by VRS  |  Email |Print

Commodity funds bounced in the first quarter from a 2013 loss, with the top performers in the Lipper Global Commodity group racking up double-digit returns after rallies in agriculture, natural gas and nickel.
Supply disruptions provided opportunities across the asset class, but fund managers said only a few of these bullish fundamentals would persist into the second quarter and that some commodities are now over-valued………………………………………..Full Article: Source

China March commodity imports resilient despite slowing economy

Posted on 11 April 2014 by VRS  |  Email |Print

China’s imports of iron ore and copper soared in March from the previous month in anticipation of higher seasonal demand in the world’s top metals consumer, though crude oil shipments dropped after three months of high inbound volumes.
The double-digit monthly gains in iron ore and copper shipments came even as China posted weak trade data, raising doubts whether the high commodity import levels are sustainable and reinforcing forecasts that the world’s second-largest economy has slowed notably at the start of 2014………………………………………..Full Article: Source

Commodity market increased slightly in March due to encouraging supply fundamentals

Posted on 11 April 2014 by VRS  |  Email |Print

Commodities increased slightly in March as positive fundamentals and heightened macroeconomic risk supported returns. Nelson Louie, Global Head of Commodities in Credit Suisse’s Asset Management business, said, “Commodities were driven largely by fundamental factors in March, and returns were generally uncorrelated with other asset classes. The key themes continued over from January and February, and were largely related to one-off event-driven risks which negatively impacted supplies.
While weather risks seem to be subsiding in North America with the end of the winter season, the risk of further extreme climate events in South America and other parts of the world are still possible. In addition, heightened macroeconomic risk in Ukraine, and in other developing countries, most notably China, may continue to impact economically sensitive commodities.” (Press Release)

OPEC says its oil output tumbled in March

Posted on 11 April 2014 by VRS  |  Email |Print

OPEC’s oil output tumbled to its lowest level this year in March, the cartel of some of the world’s biggest oil producers said Thursday. Production by the Organization of the Petroleum Exporting Countries—which supplies more than a third of the oil consumed globally each day—fell by over half a million barrels a day last month to 29.6 million barrels a day, the group said in its monthly oil market report.
A steep drop in Iraq’s oil output of nearly 300,000 barrels a day led the decline, though there was also a substantial downturn in Angola, Libya and Saudi Arabia last month………………………………………..Full Article: Source

Global zinc demand could rise by 1.9 mln mt over next three years: IZA

Posted on 09 April 2014 by VRS  |  Email |Print

The global zinc market has potential to add a further 1.9 million mt of demand from new initiatives over the next three years, according to Stephen Wilkinson, director of the International Zinc Association Tuesday.
Speaking at the Metal Events 6th International Zinc conference in Dubai Wilkinson said that zinc is essential for human health and that one of the key areas of demand will come from the addition of zinc to fertilizers. He laid out data that showed vastly improved crop yields when zinc is added to the fertilizer blend………………………………………..Full Article: Source

India: Commodities futures trade volumes fall for second year

Posted on 09 April 2014 by VRS  |  Email |Print

Commodity futures trading volumes in India fell 40.49 percent in the year to March 2014, its second straight year of decline, the market regulator said on Tuesday.
In value terms, futures trading at commodity exchanges fell to 101.44 trillion rupees in the first twelve months from April 2013 from 170.46 trillion rupees a year ago, the Forward Markets Commission said in a statement on its website………………………………………..Full Article: Source

NZ: Commodity prices fall for first time in four months

Posted on 03 April 2014 by VRS  |  Email |Print

New Zealand commodity prices dropped for the first time in four months in March as cheese and milk powder declined. The ANZ Commodity Price Index fell 0.1 per cent to 337 from February. The index is 14 per cent above its level of March 2013. International prices for 10 of New Zealand’s main commodities increased in the month and three fell.
The price of whole milk powder led the decline, down 6 per cent, while prices for skim milk powder and cheese dropped 2 per cent. Dairy product prices fell 8.9 per cent in Fonterra Cooperative Group’s latest GlobalDairyTrade auction, the biggest drop in 20 months, as volumes increased…………………………………Full Article: Source

Commodities have outperformed this year, but oil prices may fall: Citi

Posted on 26 March 2014 by VRS  |  Email |Print

Commodities have mostly outperformed other assets by a wide margin so far this year, analysts at Citi said on Tuesday. Of the roughly 27 active contract markets that Citi regularly tracks, nearly 20 commodities show increases in value in the first quarter to date, but not all are destined to continue their rise.
A bar graph provided by Citi shows that among the commodities, coffee and lean hogs have seen the biggest price increases so far this year, while West Texas Intermediate crude has seen the least. Among the decliners, Brent crude saw the least amount of percentage losses, while iron ore saw the most……………………………….Full Article: Source

Global stainless steel production growth positive at 7.8pct in 2013

Posted on 19 March 2014 by VRS  |  Email |Print

The International Stainless Steel Forum (ISSF) has released preliminary figures for 2013 showing that stainless steel melt shop production increased by 7.8% to 38.1 million metric tons (mmt). With the exception of Western Europe and Africa, all regions achieved positive growth.
Asia excluding China recorded a production of 8.8 mmt during 2013 corresponding to a y–o–y increase of 0.8%. But growth throughout the region ranged from +5.4% (India) to -3.7% (Taiwan, China). Production levels in Japan and South Korea remained unchanged………………………………………..Full Article: Source

Commodity assets expand for first time since August after rally

Posted on 18 March 2014 by VRS  |  Email |Print

Commodity investments grew for the first time since August as prices of coffee to cocoa to hogs surged, and the trend may continue, Barclays Plc said. Raw-materials assets under management expanded $13 billion last month to $327 billion, with exchange traded products gaining $6 billion, the bank said.
Investors added $2 billion to commodities from precious metals to agriculture and energy, while rising prices also boosted the assets. The Standard & Poor’s GSCI gauge of 24 raw materials rose 4.4 percent last month, the most since July………………………………………..Full Article: Source

Precious metals posting strong ‘14 performance

Posted on 13 March 2014 by VRS  |  Email |Print

Gold and silver prices have logged solid gains this year, helped by concerns over the crisis in Eastern Europe and slowing economic growth in China. Tensions continued to build in Ukraine this week as negotiations appear to be at a standstill and European Union governments are considering sanctions against Russia.
Also leading investors to opt for safe-haven assets rather than equities was weaker-than-expected Chinese export data for February. Over the weekend, China said exports plunged 18.1%, compared to expectations they would jump more than 7%, leading to a broad selloff in Asian markets earlier this week. ……………………………………….Full Article: Source

Global ETF and ETP flows rebound in February

Posted on 13 March 2014 by VRS  |  Email |Print

Flows into ETFs and ETPs listed globally rebounded in February with net inflows of $29.0 billion, according to ETFGI, a London-based consultancy. When combined with the positive market performance over the month, the inflows helped push global industry assets under management to a new record high of $2.44 trillion.
“Positive comments from the Fed indicating that the US economy continues to brighten, the S&P 500 ending February with a record close of 1859 and signs of a wider global recovery in equities seems to have caused investors to come out of their winter hibernation after the winter storms and put net inflows of $29.0 billion into ETFs/ETPs in February,” said Deborah Fuhr, Managing Partner at ETFGI………………………………………..Full Article: Source

Will platinum, palladium and silver outperform gold this year?

Posted on 12 March 2014 by VRS  |  Email |Print

So far this year gold has probably been the best performing asset class of all having risen around 12% to date. But, within the overall precious metals sector, silver has only moved up a seemingly disappointing 7%, platinum 8% and palladium perhaps an even more disappointing 5% - despite analysts almost being unanimous in their views that the platinum group metals (pgms) in particular will outperform given the ongoing industrial action in South Africa, the world’s largest producer.
The South African situation is potentially severely disrupting supplies, while the global economy is seen as being in a recovery phase, which should indeed be a positive for the pgms given that within the Western recovery – and also with ongoing Chinese sales increasing – the automobile sector seems to be doing particularly well and that is the principal user of pgms, especially palladium………………………………………..Full Article: Source

China exports plunge, commodities worry

Posted on 11 March 2014 by VRS  |  Email |Print

Chinese exports plunged tanked by a shocking 18.1% leading to a 23 billion dollar trade deficit. The markets are trying to adjust to a shaky new Lunar New Year. Oh, sure, some blame the holiday but after getting one China company default it is possible that China is headed towards a very hard landing.
The reason why this is so shocking is just one month ago China trade expanded by 10.6%. We saw copper imports were soaring. Still China Copper Imports were up January through February was up 41.2% but in February fell 29%………………………………………..Full Article: Source

Carlyle commodity fund Vermillion’s assets halved to below $1 bln

Posted on 07 March 2014 by VRS  |  Email |Print

U.S. private equity group Carlyle said assets at its commodities hedge fund Vermillion fell by more than half in the nine months to December, suggesting investor redemptions at the fund after some negative returns.
New York-based Vermillion Asset Management was managing about $2 billion in March 2013 but that fell to around $900 million by December, Carlyle said in regulatory filings to the U.S. Securities Exchange and Commission………………………………………..Full Article: Source

Gold to oil climb as commodities reach six-month high on Ukraine

Posted on 04 March 2014 by VRS  |  Email |Print

Gains in everything from gold to oil drove commodities to the highest since September as Ukraine’s turmoil boosted the appeal of haven assets and fueled concern that energy and agricultural supplies will be disrupted.
The Standard & Poor’s GSCI Spot Index (SPGSCI) of 24 raw materials climbed as much as 2.1 percent to 663.48 yesterday, the highest since Sept. 9, and settled at 660.22 in New York. Crude oil jumped as much as 2.6 percent, wheat surged 7 percent, while gold increased 2.5 percent. Corn and gasoline also rose………………………………………..Full Article: Source

RBA commodity price index at 47-month low

Posted on 04 March 2014 by VRS  |  Email |Print

Export commodity prices fell in February to their lowest level in almost four years. The Reserve Bank of Australia’s index of commodity prices was 1.3 per cent lower in foreign currency terms in the month.
Coking coal and iron ore were the most important contributors to the monthly fall and were partly offset by a rising gold price, the RBA said on Monday. The RBA said the prices of many base metals fell, while many rural commodities enjoyed price rises………………………………………..Full Article: Source

Silver will be the king precious metal performer

Posted on 04 March 2014 by VRS  |  Email |Print

While gold is the king monetary metal, silver will turn out to be the king precious metal performer. Currently, gold is stealing the show as the East (China) continues to consume more than total world gold production. However, silver will surprise the markets in the future as overwhelming demand will outstrip supply in a big way.
The key factor that will drive up the price (value) of silver much higher than gold in percentage terms, will be its affordability. As the price of gold heads back above $1,500 and silver to $30, an individual can buy a heck of a lot more silver than gold………………………………………..Full Article: Source

Top 10 gold miners losing billions – but are they really?

Posted on 25 February 2014 by VRS  |  Email |Print

Based on recent headlines, non-financially-aware observer could be forgiven for thinking mining gold is a sure way to lose money, not to make it. Take the following batch from Mineweb over the past couple of weeks: Barrick cuts reserves 26%; reports $10.34 billion loss.
Goldcorp reports $2.71 billion loss; cuts reserves 15%. Newmont Mining reports $2.5 billion loss for 2013. Kinross Gold reports $3B loss: 33% cut in GEO reserves - to name the most recent. Overall, the world’s top 5 gold miners between them made book losses of some $20.8 billion in 2013. The smaller members of the Top 10 gold mining club who have reported to date all also made book losses, but not quite on the same scale, commensurate with their smaller outputs………………………………………..Full Article: Source

JPMorgan posts 12 pct decline in ‘13 commodities revenues-filing

Posted on 21 February 2014 by VRS  |  Email |Print

JPMorgan Chase & Co’s commodity revenues fell 12 percent last year, the bank said in a filing on Thursday, shedding new light on the unit as the bank prepares to sell its physical trading arm to Swiss-based trader Mercuria.
The drop in commodity revenues at JPMorgan is the second in two years, and follows tighter restrictions across Wall Street on banks trading with their own money and growing scrutiny of their role in the natural resources supply chain………………………………………..Full Article: Source

Commodities revenue at top 10 banks declined 18pct last year

Posted on 20 February 2014 by VRS  |  Email |Print

Commodities revenue at the 10 largest investment banks dropped 18 percent last year, according to analytics company Coalition Ltd. Revenue dropped to $4.5 billion from $5.5 billion in 2012, Coalition said in an e-mailed report. In November, the company anticipated a 14 percent drop in revenue.
“Revenues continued to decline, affected by a depressed client environment and low volatility,” Coalition said. “In 4Q13, performance in U.S. power and gas was particularly weak.”……………………………………….Full Article: Source

Major banks’ commodities revenue slid 18 pct in 2013

Posted on 19 February 2014 by VRS  |  Email |Print

Commodities revenue at the top 10 investment banks dropped 18 percent in 2013 in a third year of declines due to weak investor interest and low volatility, a consultancy said on Tuesday.
Revenue from commodities for top banks fell to $4.5 billion last year from $5.5 billion the previous year, London-based financial industry analytics firm Coalition said in a report. Many banks have slashed their commodities businesses and others have completely shut down commodities units, which also have been hit by tougher regulation and higher capital requirements after the global financial crisis………………………………………..Full Article: Source

Silver outperforming gold; Analysts mixed on short-term momentum

Posted on 18 February 2014 by VRS  |  Email |Print

Although a lot of focus was on gold last week as the price made major technical advances, silver was actually the better performer. Last week, Comex April gold futures advanced 4.2%; however, March silver futures rallied 7.27% with most of the gains coming on Friday as the price opened at $20.480 per ounce and closed the day at $21.421, a daily gain of 4.6%.
U.S. markets are closed Monday in honor of President’s day. However, in electronic trading, silver continued to outperform the yellow metal. As of 11:28 a.m. EST, March silver futures were trading at $21.905 an ounce, up 2.26% on the day, while April gold futures were trading at $1,328.80 an ounce up 0.77%………………………………………..Full Article: Source

Natural gas: 2013’s top commodity performer

Posted on 14 February 2014 by VRS  |  Email |Print

How dramatically things can change in a decade. We’ve talked about how volatile resources can be, and 2013’s top commodity performer is an excellent example. Per our latest Periodic Table of Commodities Returns, natural gas increased the most in 2013.
However, the commodity is still the worst performer over the past 10 years. You can see several times when gas fell toward the bottom: in 2006, 2009, 2010 and 2011. However, by 2012, gas climbed to the top half of the chart, clamoring for the top spot in 2013………………………………………..Full Article: Source

India: Commodity exchanges’ turnover drops 55 pct in January

Posted on 14 February 2014 by VRS  |  Email |Print

The combined turnover of commodity exchanges declined by 55 per cent to Rs. 6.56 lakh crore in January due to a sharp fall in trading volumes in bullion and metals, data from the Forward Markets Commission (FMC) showed.
These exchanges had clocked a business of Rs. 14.55 lakh crore in the corresponding month last year, teh data showed. According to the FMC, maximum business of Rs. 5.18 lakh crore was generated by MCX, followed by NCDEX at Rs. 98,881 crore; NMCE - Rs. 18,294 crore; UCX - 6,318 crore; ICEX - Rs. 5,878 crore, and ACE at Rs. 3,676 crore during last month………………………………………..Full Article: Source

Commodities hit 2014 highs

Posted on 13 February 2014 by VRS  |  Email |Print

Commodities climbed to the highest since December as extreme weather fueled supply concerns for crops and energy at a time of rising imports by China, the world’s largest consumer of everything from metals to pork.
The Standard & Poor’s GSCI Spot Index of 24 commodities gained 0.3 percent to 636.4641 at 1:45 p.m. New York time after touching 639.9293, the highest since Dec. 30. Sugar headed for the biggest increase since Jan. 31, while natural gas advanced for a second day. Coffee was also among the biggest gainers, and cocoa reached the highest since 2011………………………………………..Full Article: Source

China commodities imports hit record highs, though outlook uncertain

Posted on 13 February 2014 by VRS  |  Email |Print

China’s imports of crude oil, iron ore and copper hit record highs in January, though some of the unexpected strength was put down to stockpiling ahead of the Lunar New Year holidays rather than underlying strength in consumption.
At the same time, data showed the value of China’s overall imports and exports climbed around 10 percent last month from a year ago and handily beat expectations, raising optimism over the health of the world’s second-largest economy after recent weak data………………………………………..Full Article: Source

Emerging market turmoil keeps pressure on commodity ETPs -BlackRock

Posted on 12 February 2014 by VRS  |  Email |Print

Emerging markets turmoil drove investors away from commodity exchange traded products (ETPs) in January due to concerns about demand growth, but gold outflows slowed as its safe haven status was revived.
Some $1.7 billion was withdrawn from commodity ETPs in January global data from BlackRock, the world’s biggest asset manager, showed. ETPs, whose value is linked to moves in their underlying assets, offer an easy route into commodities and allow asset managers to make quick, tactical shifts………………………………………..Full Article: Source

Gold’s performance as a diversifier needs more credit - UBS

Posted on 11 February 2014 by VRS  |  Email |Print

Amid the disappointment on display after gold’s lacklustre, late-session performance on Friday, the outlook isn’t entirely poor for the yellow metal. In its daily commodities note, UBS points out that, while gold seems stuck in a range at the moment, the metal remains negatively correlated with risk.
It explains that the gold vs S&P 500 20-day rolling correlation is currently at -0.54, after recently reaching -0.63, its lowest level in more than three years………………………………………..Full Article: Source

Copper’s outlook? Not good

Posted on 11 February 2014 by VRS  |  Email |Print

In the last five weeks copper prices are lower by 6% finding mild support at the 61.8% Fibonacci level just above $3.18. Expectations of a continued slowdown in China has weighed on futures. Since China’s demand accounts for approximately 40% of the world’s copper market, a contraction there will have a major influence on prices.
The latest evidence of this slowdown came in the smaller figures in the purchasers manages index indicating that manufacturing and service sectors are losing momentum………………………………………..Full Article: Source

Commodity outpeformance may bring mixed fortunes for investors: Barclays

Posted on 04 February 2014 by VRS  |  Email |Print

Commodities have turned outperformers so far in 2014 compared to equities and other assets but this may be good news for some but painful for investors who have been switching exporsure out of commodities into other assets especially equities, according to a weekly report by Barclays.
The S&P500 is down 3% in the year-to-date, whilst both the DJUBSCI and the CRB index are both in modest positive territory and the S&PGSCI is down lees than one percent. Emerging market equities are weak with BRIC-40 having declined 8%. These nations account for 50% of commodity demand and hence this outperformance in commodities looks very robust in comparison, Barclays added………………………………………..Full Article: Source

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Gold among best performers in Jan, supportive factors may fade out: DB

Posted on 03 February 2014 by VRS  |  Email |Print

Gold has been one of the best performing commodities in January 2014 due to emerging market stress, weakness in equities, strong China physical demand, likely relaxation of India gold import curbs and US macro data, according to Deutsche Bank (DB).
However, the bank said many of these supportive factors may fade out in the course of the year. Bouts of threats from emerging markets are posing a renewed threat to global markets with CDS spreads in Argentina, Venezuela, Turkey and South Africa widening, Deutsche Bank said………………………………………..Full Article: Source

This petroleum indicator hits a 20-year low

Posted on 28 January 2014 by VRS  |  Email |Print

There are some massive changes afoot in U.S. petroleum markets. Including some unusual trends many investors have never heard of. In commodities like propane, for example. With the U.S. Energy Administration Information (EIA) reporting this month that propane inventories in the American Midcontinent have hit an all-time low.
Stocks of this natural gas liquid in the central states have been plunging of late. With inventories for the second week of January coming in at just 11.5 million barrels………………………………………..Full Article: Source

Commodities continue to underperform on supply pressures: Barclays

Posted on 27 January 2014 by VRS  |  Email |Print

Commodities continue to underperform despite some positive trends in global economy due to extended period of supply gains, according to Barclays Research. Commodities have been underperforming equities and pricing in below levels unwarranted by the uptick in industrial production, manufacturing indices and the business sentiment indicators.
The HSBC China flash Purchasing Managers Index (PMI) data and US Markit PMI has been below consensus but business confidence is set to be positive in January………………………………………..Full Article: Source

Global ETF and ETP assets reached US$2.4 trillion

Posted on 16 January 2014 by VRS  |  Email |Print

US$24.5 billion net inflows in December and positive market performance pushed assets in the global ETF/ETP industry to a new record high of US$2.4 trillion at year-end 2013, according to preliminary findings from ETFGI’s global ETF and ETP industry insights report. The global ETF/ETP industry had 5,090 ETFs/ETPs, with 10,172 listings, from 218 providers on 60 exchanges at the end of 2013.
“After spending most of 2013 wondering when and how the Fed would taper its QE scheme, investors felt a degree of positive cheer and certainty after the Fed announced in December that the US economy was strong enough for it to begin to taper by US$10 billion in January 2014” according to Deborah Fuhr, Managing Partner at ETFGI………………………………………..Full Article: Source

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Commodity market increased in December due to positive fundamentals

Posted on 14 January 2014 by VRS  |  Email |Print

Commodities were higher in December due to positive fundamentals supporting the energy and industrial metals sectors. Nelson Louie, Global Head of Commodities in Credit Suisse’s Asset Management business, said, “The 2014 global economy looks to be the most orderly in several years, centering on modest yet stable growth. We expect global growth to accelerate gradually in 2014, with most of the pick-up occurring in developed market economies, narrowing the growth gap with the Emerging Markets. We believe this steady uptick in growth may be beneficial to commodities.”
Christopher Burton, Senior Portfolio Manager for the Credit Suisse Total Commodity Return Strategy, added, “Amid macroeconomic improvements in the US and abroad, correlations between commodities and traditional asset classes have been decreasing. We expect individual commodities to continue to be increasingly driven by fundamental factors rather than macroeconomic headlines. While broad macroeconomic trends continue to be important, they will likely impact asset classes in different ways. We continue to expect commodities to provide valuable diversification benefits going forward………………………………………..Full Press Release: Source

India: Commodity bourses turnover drops by over 36 pct in April-December of FY’14

Posted on 10 January 2014 by VRS  |  Email |Print

The turnover of the commodity bourses fell by 36.38 per cent to Rs 82.46 lakh crore till December of the ongoing fiscal, as against Rs 129.6 lakh crore in the year-ago period, according to regulator FMC.
The business turnover has showed a decline in most of the 17 commodity bourses in the country after the imposition of commodity transaction cost since July 2013 and due to the around Rs 5,500 crore payment crisis at spot exchange NSEL, analysts said……………………………..Full Article: Source

Commodity ETP assets decline in 2013 mainly due to gold

Posted on 08 January 2014 by VRS  |  Email |Print

Global assets under management in commodity-related exchange-traded products fell sharply during 2013 mainly due to a steep fall in gold assets, said ETF Securities Tuesday. However, AUM for ETPs for platinum group metals rose. And whereas AUM for silver ETPs fell, this apparently was due to the lower price, as otherwise the metal had a net inflow, according to ETF Securities’ data.
AUM declined to $122.2 billion at the end of 2013 from $199.8 billion at the end of 2012 for commodity ETPs, said ETF Securities, which provides a number of metals exchange-traded funds. AUM for gold ETPs fell to $75.9 billion from $146.6 billion………………………………………..Full Article: Source

RBA commodity prices at 42-month low

Posted on 03 January 2014 by VRS  |  Email |Print

Australia’s export commodity prices ended 2013 on a weak note, falling to their lowest level in over three and a half years. The Reserve Bank of Australia’s index of commodity prices fell by one per cent in foreign currency terms between November and December.
Lower prices for gold, iron ore and coking coal were the main reasons for the latest fall, the RBA said. The fall in December brought the decline through 2013 to four per cent………………………………………..Full Article: Source

Gold will continue to underperform equities over the next 2 years

Posted on 30 December 2013 by VRS  |  Email |Print

Gold is the investment asset class which provides a hedge against inflation and better returns during recession when currencies lose their value drastically. The world is now coming out of tough times and major economies like the US have started showing good economic numbers which are fundamentally bearish for gold.
Against this backdrop gold may not give better return than equities in coming 1-2 years. Nevertheless, from a long-term perspective bet 5-10 years investors will definitely get positive returns not less than inflation rate………………………………………..Full Article: Source

Commodity funds head for record outflow

Posted on 18 December 2013 by VRS  |  Email |Print

Commodity-linked investment funds are headed for record outflows in 2013, with an $88bn decline in assets under management in the year to November, according to a Barclays report.
Investors have withdrawn a net $36.3bn from commodity funds this year – also a record – as prices fell across the market, from coffee to nickel. The bulk of the sell-off came through gold exchange traded funds (ETFs), as the decade-long bull run for the yellow metal ended, with prices falling 26 per cent this year………………………………………..Full Article: Source

Commodity assets lost record $88-bln in value this year add to …

Posted on 18 December 2013 by VRS  |  Email |Print

Commodity assets lost $88-billion (U.S.) in value through November, the largest decline for the first 11 months of the year on record, from a combination of investor exits and from price drops that took place mostly in gold, Barclays said on Tuesday.
In terms of withdrawals alone, investors took out a net $36.3-billion in the 11 months of the year so far, setting another record over that time period, the London-based investment bank said in a research note………………………………………..Full Article: Source

Commodity market decreased slightly in November due to macroeconomic uncertainty

Posted on 12 December 2013 by VRS  |  Email |Print

Commodities were lower in November due to uncertainty regarding the future of US stimulus measures. Nelson Louie , Global Head of Commodities in Credit Suisse’s Asset Management business, said, ‘There is increasing optimism among some economists that global GDP will accelerate from a trough of 2.8% in the third quarter of 2013 to higher levels in 2014, driven by stronger than expected growth in the US and a continuing recovery in Europe .
This is potentially the first significant acceleration in global growth in three years and may be supportive of global commodity demand. While key macroeconomic risks have recently diminished and the economic tide appears to have shifted, significant changes to expectations may negatively impact markets, including commodities.’ (Press Release)

Copper 2013’s star performer – PwC

Posted on 10 December 2013 by VRS  |  Email |Print

Amidst write downs, a drop in commodity prices and lower revenues, gold, silver and copper were among the most closely watched metals in the mining sector. They were also some of the hardest hit metals in 2013, according to professional services firm PwC’s new ‘Gold, silver and copper’ report.
PwC on Monday said gold had been the big mining story of the year. The metal, which reached $1 900/oz in 2011, fell to about $1 200/oz this summer and prices were currently hovering not far above that………………………………………..Full Article: Source

Five top-performing commodity funds

Posted on 09 December 2013 by VRS  |  Email |Print

Commodities have faced a miserable run in the last two years. Despite this, certain market players remain hopeful and say there is strong evidence that sentiment is turning in the space.
Neil Gregson, fund manager for the £1 billion JPMorgan Natural Resources fund, explains investors have suffered severely over the last two years in the fund in absolute terms, but relative to its peers and the index benchmark, this negative performance has been exacerbated by the fund’s small-cap bias………………………………………..Full Article: Source

Hedge funds’ bearish turn on ags sets 2013 record

Posted on 04 December 2013 by VRS  |  Email |Print

Hedge funds’ negative streak on positioning in agricultural commodities extended to its longest this year, fuelled by an increase to a record high in the net short on wheat – a rise which may provoke a buying ahead.
Managed money, a proxy for speculators, cut its net long in futures and options in the top 13 US-traded agricultural commodities by nearly 14,000 contracts in the week to last Tuesday, according to data from the Commodity Futures Trading Commission, the US regulator………………………………………..Full Article: Source

Commodities: Worst performing asset class for second year in a row

Posted on 03 December 2013 by VRS  |  Email |Print

Commodities continue to be the worst performing asset class for second year in a row, but it could signal a recovery in returns heading into next year, according to Deutsche Bank.
The bank expects Crude oil to be sensitive to the possibility of Iranian sanctions easing while Natural Gas is bullish on weather-deficit is seen in storage and further upward price movements could mean its decreasing competitiveness with CAPP coal……………………………….Full Article: Source

Return to growth will bring next twist for commodities mkts

Posted on 03 December 2013 by VRS  |  Email |Print

Has the much vaunted super cycle in commodities finally come to an end? Or is it only taking on a different form in response to the narrative unfolding in commodities markets? There are as many answers to these questions as there are informed opinions in the underlying industry.
One of the few certainties is that consumers will complain that they feel the effect of commodity price rises almost immediately but seldom see the benefit of any fall. Some industry specialists express sympathy for this latter view, but point to a number of factors to explain it away……………………………….Full Article: Source

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