Sat, Dec 20, 2014
A A A
Welcome preal121
RSS

Commodities Briefing - Category | Performance more

India: Commodity trading turnover halves to Rs 65-trillion in 2014

Posted on 19 December 2014 by VRS  |  Email |Print

Grappling with its biggest ever scam running into Rs 5,600 crore, it appears to be a journey down the hill for the commodity markets with total exchange traded turnover halving to almost Rs 65 lakh crore in 2014.
Although not a formal member of the commodity futures market, the payment default at National Spot Exchange Ltd (NSEL) shook the market to its core, resulting into a series of regulatory steps to revive investor confidence and credibility during 2014 and it is now hoping for a fresh start in the new year………………………………………..Full Article: Source

The Best and Worst Performing Commodities of 2014

Posted on 18 December 2014 by VRS  |  Email |Print

Commodities took investors on another wild ride for 2014. This year was characterized by yet another bull market for U.S. equities that was accompanied by a surging greenback. The strong dollar put pressure on the entire commodity industry.
With that in mind, many investors kept their sights set on the equity world, as commodities took the back seat yet again. As more accusations of the “commodity supercycle” come to a close, a number of hard assets struggled on the year. Still, others prevailed and were able to turn in handsome gains. Below, we present the best and worst performing commodities of 2014 starting off with the five best performers:……………………………………Full Article: Source

Commodity crush fuels managed futures returns

Posted on 18 December 2014 by VRS  |  Email |Print

Managed futures continued their recent hot streak in November, recording their best monthly return in four years by capitalizing on plummeting commodity prices. “We’ve seen resources get crushed and different markets pull back and this strategy is taking advantage of that situation,” said Tim Pickering, chief investment officer at Auspice Capital Advisors Ltd. in Calgary.
Managed futures — or commodity trading advisor (CTA) funds as they are also known — are investment funds that provide long and short exposure to globally traded futures contracts on physical commodities such as grains, livestock, metals and energy, soft commodities like coffee, cotton, sugar and cocoa, and financial assets such as equity market indexes, government bonds and currencies…………………………………….Full Article: Source

Cheap commodities to spur global growth, China a bright spot: Trafigura

Posted on 09 December 2014 by VRS  |  Email |Print

Lower commodities prices will spur the global economy and China remains a boon for raw materials despite the country’s recent weak data, Swiss trading house Trafigura’s founder Claude Dauphin said on Monday as his firm reported a rise in core earnings.
“It is also worth remembering that current lower commodity prices will themselves act as a boon to the world economy, along with lower freight and financing costs,” Dauphin, Trafigura’s executive chairman, said in a statement. He said Trafigura, one of the world’s largest commodities traders, was insulated from sharp price fluctuations because it hedges price risk. “But we are not indifferent to the benefits of falling prices for growth,” Dauphin added………………………………………..Full Article: Source

Global ETF/ETP industry reaches new record: $2.76 trillion

Posted on 09 December 2014 by VRS  |  Email |Print

ETFGI’s research finds 2014 is proving to be a very good year for the Global ETF/ETP industry. The ETF/ETP industry in Europe also had a strong month gathering US$5.6 billion in NNA and a record level of US$61.8 billion in NNA year-to-date, breaking the prior full year NNA record. Assets in European ETFs/ETPs are US$472.1 billion at the end of November, which is just below the record of US$477.4 billion in assets set at the end of August 2014. We expect the European ETF/ETP industry to break through the US$500 billion milestone in the first half of 2015.
“Economic news in Europe during November was not positive with the OECD warning that Europe was the “locus of weakness” in the global economy - criticising the ECB’s efforts to combat economic stagnation………………………………………..Full Article: Source

Biggest Winners and Losers of International Oil Price Crash

Posted on 05 December 2014 by VRS  |  Email |Print

Oil prices around the world have fallen more than 38 percent since the year’s high in June. Among the winners are airlines, which are saving on fuel and not reducing fares for customers. Bank of America Corp. predicts earnings will gain 73 percent in 2015.
Saudi Arabia flexed its muscle at November’s OPEC meeting by overruling other members, showing that it’s still the dominant producer. The desert kingdom needs oil at $83.60 a barrel to balance its budget, according to the International Monetary Fund, but it’s got $736 billion in reserves………………………………………..Full Article: Source

Silver price outperforming gold – PGM’s rise

Posted on 27 November 2014 by VRS  |  Email |Print

Lack of agreement by key OPEC members yesterday to pledge cutbacks ahead of Thursday OPEC meeting sent oil prices lower and that led to an intraday sell-off in bullion, but prices recovered by the close, ending up 0.7 percent on average, with platinum up the most with a 1.2 percent gain in price to $1,220 and gold finished up 0.4 percent at $1,201.40.
This morning - Precious metals are mixed with bullion prices off 0.1 percent, with the gold price at $1,199.80 while the PGMs are up 0.3 percent. Interestingly silver has been outperforming gold as silver has been extending gains as seen by the weaker gold/silver ratio – this bodes well for bullion generally…………………………………..Full Article: Source

Could Gold Really Jump 15% in December?

Posted on 19 November 2014 by VRS  |  Email |Print

The Swiss might be responsible for bringing early holiday cheer to gold bulls this year by delivering a big boost to bullion demand. On November 30, the people of Switzerland will vote on a referendum that could force the Swiss National Bank (SNB) to reverse a selling spree of the country’s gold reserves.
Switzerland still has large bullion holdings, but the country used to own a lot more of the precious metal. The SNB began selling its gold around the year 2000 when prices were extremely low. The selling continued through 2008 and the Swiss gold reserves now represent just 8% of the Swiss National Bank’s assets……………………………………Full Article: Source

China Oct commodities imports fall despite price slump; copper rebounds

Posted on 10 November 2014 by VRS  |  Email |Print

China’s imports of most major commodities fell in October from month ago due to seasonal factors and a weaker economy, with copper the lone bright spark as trade gradually returned to normal after a financing scandal.
The demand outlook for iron ore and coal for the rest of the year remains bleak, analysts said, as steel mills have started to cut output on continuing weakness in demand and the usual winter slowdown in use. Import tariffs on coal since October are also making overseas supplies uneconomic………………………………………..Full Article: Source

Podcast Play - Download this article   |   Play - Download Full Briefing   |   Subscribe to the Podcast Feed

Price of crude oil: how low can it go?

Posted on 10 November 2014 by VRS  |  Email |Print

Woody’s Smokehouse, a restaurant and fuel station in Centerville, Texas, halfway between Dallas and Houston, posted a petrol price of $1.999 per gallon on Wednesday. It was only a one-day promotion, but it was a sign of a more sustained trend: fuel prices in the US have been falling fast.
This week the average retail price of petrol in the US fell below $3 per gallon, down more than 70 cents since June. Texas is an oil-producing state, but Centerville is in farming country, and the 25 per cent drop in the price of crude oil in the past four months is welcome. “It’s great news for farmers, great news for truckers and great for the economy in general,” says Diana Wood, one of the owners of Woody’s………………………………………..Full Article: Source

Podcast Play - Download this article   |   Play - Download Full Briefing   |   Subscribe to the Podcast Feed

Commodities slide continues in October: RBA

Posted on 04 November 2014 by VRS  |  Email |Print

After another fall in October, commodity prices would now have to rise by 61 per cent to get back to their mid-2011 peak. The RBA’s index of export commodity prices, measured against a basket of foreign currencies, fell by 1.4 per cent in October.
Falls in the prices of iron ore and oil lay behind the latest fall, the RBA said, although the data released by the central bank on Monday showed base metals prices also headed down, losing 1.8 per cent in the month………………………………………..Full Article: Source

Commodities and the End of QE

Posted on 31 October 2014 by VRS  |  Email |Print

As boring as it sounds, I’m going to talk a bit about the end of QE today. Because it’s very important to how markets are going to behave over the next few months. As you probably know, overnight the US Federal Reserve voted to end its policy of quantitative easing. But it will still be reinvesting the interest payments from its $4 trillion plus portfolio and rolling over any maturing treasury securities, so it’s balance sheet will continue to grow, albeit much more slowly.
On the surface, US markets didn’t seem too fussed about the end of an era. Shares sold off around the time of the Fed’s statement and then rallied towards the close. Probably a case of ‘algo’s going wild’ as automated high frequency traders tried to make sense of the Fed’s statement………………………………………..Full Article: Source

Don’t Expect Big Gains In Commodities

Posted on 23 October 2014 by VRS  |  Email |Print

Overall, pressure on commodity prices remains in place. The exception to the rule is the livestock market, which managed to rise 19% since last October. Disease and widespread drought conditions in California and other states drove livestock prices up to record highs.
On the other hand, energy was the worst sector, down 19% since October of last year. Americans driving less and more efficient cars caused US demand to decrease while US production is peaking as the nation is enjoying a renaissance in its domestic crude oil and gas exploration. In the same manner, soft commodities lost 18% this year, the second-worst performer. Precious metals remain at low levels, falling 9% this year………………………………………..Full Article: Source

Commodity returns weaken, remains worst performing sector: Deutsche Bank

Posted on 20 October 2014 by VRS  |  Email |Print

Commodity returns continue to weaken and remains the worst performing sector on an excess returns basis, according to Deutsche Bank. In a weekly report it said that since the end of September, returns are down 6.2% and 1.0% for the SPGSCI and BCOM indices respectively. As a result, commodities remain the worst performing sector on an excess returns basis.
Losses have been most extreme in the energy sector with returns now down 17.1% since the end of last year. Energy is therefore the worst performing sector on an excess returns basis………………………………………..Full Article: Source

World’s top 10 silver producers updated – companies & countries

Posted on 15 October 2014 by VRS  |  Email |Print

While it has always been relatively easy to collate the world’s top 10 gold miners because they are all primary producers, to do the same for silver is not nearly such an easy task as most of the world’s silver is produced as a by- or co-product of gold and base metals mining.
Thus in the table of the top 10 global silver producers shown below only four could be classified as primary silver miners – and virtually all those will, in any case, also be producing other metals – notably gold, lead and zinc – as very significant by products without which they would perhaps not be profitable mining companies………………………………………..Full Article: Source

Years After Swearing Off Commodities, Russia Economy Unchanged

Posted on 08 October 2014 by VRS  |  Email |Print

Russia is entrenched in its old post-communist ways. Political leaders, who have sworn off commodities as their primary growth story for the past 10 years, are stuck in the same old song and dance. Russia has become a broken record.
This became evident at VTB Capital’s annual Russia Calling investor confidence last week. Despite over 1,500 investors from dozens of countries in attendance, investors and businesses leaders heard much of the same. Russia’s problems are structural, says Central Bank governor Elvira Nabiullina. Companies aren’t investing, says Herman Gref, CEO of Sberbank……………………………………….Full Article: Source

Scotiabank’s commodity index falls sharply in August

Posted on 30 September 2014 by VRS  |  Email |Print

Scotiabank’s monthly commodity price index lost ground in August, dropping 5.4 per cent from July in a broad-based decline. Four of Scotiabank’s commodity subindexes fell, with the biggest declines in the oil and gas sector as well as in agriculture.
Forestry was the only subindex to show an increase between July and August while mining and metals was down slightly. Scotiabank says international oil prices have been pulling back since June because of less concern about the risks to oil supplies from Iraq and Libya………………………………………..Full Article: Source

Commodities index tumbles to five-year low

Posted on 15 September 2014 by VRS  |  Email |Print

One of the world’s leading indices for commodities has dropped to its lowest level in five years, casting doubt over renewed investor interest in the sector. After a record year of net withdrawals in 2013, sentiment towards commodities has started to improve this year helped by strong returns and declining correlations with other assets classes.
The Bloomberg Commodity Index, which reflects the prices of 20 commodities and is tracked by billions of dollars of investor assets, delivered total returns of 7.1 per cent in the six months to June, outpacing US equities and high yield corporate bonds………………………………………..Full Article: Source

August Sees Further Consolidation in Commodity Markets

Posted on 11 September 2014 by VRS  |  Email |Print

August was a mixed period for commodities as the market saw further consolidation, according to Credit Suisse Asset Management. The Bloomberg Commodity Index Total Return performance was negative for the month, with 13 out of 22 Index constituents trading lower. Credit Suisse Asset Management observed the following: Livestock was the worst performing sector, down 4.18%, led by Lean Hogs. A decrease in demand expectations due to Russia’s ban on US pork, coupled with reduced cases of PED Virus continued to add to downward pricing pressure.
Agriculture decreased 2.25%, led lower by Soybean Oil. Wheat was the only grain to end the month in positive territory amid concerns that supplies from the Black Sea region might be disrupted due to escalating tensions between Russia and Ukraine. Precious Metals declined 1.00%, led lower by Silver. While Gold was supported by geopolitical uncertainty, the strengthening US Dollar and slowing physical demand weighed on Silver. (Press Release)

Platts Survey: OPEC Pumped 30.2 Million Barrels of Crude Oil Per Day in August

Posted on 10 September 2014 by VRS  |  Email |Print

Oil production from the Organization of the Petroleum Exporting Countries (OPEC) climbed 70,000 barrels per day (b/d) to 30.2 million b/d in August from 30.13 million b/d in July as Libyan output surged despite the downward spiral of political chaos in the country, a Platts survey of OPEC and oil industry officials and analysts showed Tuesday.
The OPEC total in August represents the highest volume from the oil producer group since August 2013, when output averaged 30.28 million b/d. The increase from Libya, supplemented by a 50,000 b/d rise in Angolan output and smaller 20,000 b/d boosts from the United Arab Emirates (UAE) and Venezuela, more than offset decreases of 80,000 b/d and 50,000 b/d from Iraq and Saudi Arabia, respectively. Iranian output remained steady at 2.85 million b/d………………………………………..Full Article: Source

Major banks’ first-half commodity revenue climbs 21 percent

Posted on 29 August 2014 by VRS  |  Email |Print

Commodities revenue at the top 10 investment banks climbed by about a fifth in the first half of the year as a cold winter boosted business in U.S. power and gas and some investors returned to the sector, a consultancy said.
Revenue from commodities for the leading banks rose 21 percent to $3.3 billion in the first six months after falling by a similar percent last year, London-based financial industry analytics firm Coalition said in a report on Thursday………………………………………..Full Article: Source

Commodity Prices Inch Down in July: Scotiabank

Posted on 28 August 2014 by VRS  |  Email |Print

Scotiabank’s Commodity Price Index edged down by 0.3% month-over-month (m/m) in July, as oil prices lost momentum, partly due to an easing of concern over geopolitical supply risks in Libya and Iraq. “On a more positive note, a cyclical recovery in base metal prices is getting underway, with dramatically higher zinc and nickel prices expected in 2015,” said Patricia Mohr, Scotiabank’s Vice President of Economics and Commodity Market Specialist.
“Zinc led a strong rally in base metals in July, climbing from US$0.96 per pound to almost US$1.05 — an increase of 17% since late 2013. Commodity funds and investors have bid up zinc prices, anticipating tightening supplies over the next three to four years — with mine supplies not keeping pace with demand growth. In our view, zinc prices will climb to US$1.25 in 2015 and a very lucrative US$1.60-1.70 in 2016………………………………………..Full Article: Source

Commodity Index Turns Negative On The Year As S&P 500 Breaks 2,000

Posted on 26 August 2014 by VRS  |  Email |Print

One of the main commodity indexes, the Bloomberg Commodity Index is in the red for the first time year-to-date as equity markets post record highs, analysts said.
The Bloomberg Commodity index, formerly known as the DJ-UBS commodity index, is down only about 0.25% year-to-date, but this comes “after commodities outperformed all other global asset markets during the first half of 2014 for their strongest start to a calendar year since 2008,” said analysts at Citi Research………………………………………..Full Article: Source

Commodities house of the year: Societe Generale

Posted on 22 August 2014 by VRS  |  Email |Print

For its creation of new commodity indexes, as well as the array of products it has created for Asian investors based on commodities, Societe Generale is this year’s Structured Products’ commodities house of the year.
Over the past year, commodities as an asset class has undergone a dramatic change, as the strong correlation between commodities and other asset classes that emerged during the global financial crisis began to ease and fundamental factors in the underlying commodities re-emerged in late 2013 as the primary drivers of price………………………………………..Full Article: Source

After awful July, commodities could mount a comeback

Posted on 05 August 2014 by VRS  |  Email |Print

Despite the summer heat, commodities have been anything but hot. In July, commodities suffered their worst monthly decline since May 2012, as the widely watched commodities index, the S&P GSCI, erased nearly all of its gains on the year with a 5.3 percent drop.
The big drags on the index were energy and agriculture, which each responded to specific drivers on the supply side of the equation, according to Jodie Gunzberg, global head of commodities at S&P Dow Jones Indices. In the energy markets, Libya resumed exporting crude, which sent prices across the energy spectrum lower on the increase in supply. Meanwhile, agricultural commodities dropped nearly 9 percent, hitting the lowest level in four years as ideal weather conditions improved the supply outlook………………………………………..Full Article: Source

NZ commodity prices fall for fifth straight month, led by milk powder

Posted on 04 August 2014 by VRS  |  Email |Print

New Zealand commodity prices fell for a fifth straight month in July, led by whole milk powder, reflecting a build-up of inventory in China and a strong milk production season for dairy farmers. The ANZ Commodity Price Index declined 2.4 last month and is now 9.8 percent below its February peak, while milk powder tumbled 12 percent and dairy product prices fell more broadly.
The slide in global dairy prices this year prompted Fonterra Cooperative Group to slash its forecast farmgate milk payout for 2015 to $6 a kilogram of milk solids, from an initial estimate of $7/kgMS. It also attributed the decline in dairy prices to a build-up of inventory in China but expressed some confidence that prices would recover at some stage. Westland Milk Products cut its forecast payout two days later………………………………………..Full Article: Source

Commodities Cap Biggest Monthly Decline Since May 2012

Posted on 01 August 2014 by VRS  |  Email |Print

Commodities had the worst monthly performance in more than two years, led by losses for crops including soybeans and wheat on signs of bigger supplies. The Bloomberg Commodity Index of 22 raw materials fell 5 percent in July to 127.91, the biggest loss since May 2012. Corn had the largest drop since 2011, and cotton posted for the longest losing streak in three years.
The U.S. Department of Agriculture raised its estimates on global stockpiles for cotton, corn, soybeans last month, signaling a growing glut. Bigger crops are helping to keep world food inflation in check, with the United Nations reporting a third monthly drop for prices in June………………………………………..Full Article: Source

Brazil’s Vale Hurt by Write-downs From Commodities Boom

Posted on 01 August 2014 by VRS  |  Email |Print

Brazilian mining company Vale SA reported lower-than-expected net profit in the second quarter as prices for iron ore fell to a four-year low and the company continued to write off assets it acquired during the last decade’s commodity boom.
Vale, the world’s biggest iron-ore producer, said Thursday its second-quarter net profit was $1.43 billion. That was up from a year earlier, when a currency depreciation distorted Vale’s financial results, but less than the $2.08 billion median estimate of 11 analysts surveyed by FactSet………………………………………..Full Article: Source

Reuters: Commodities assets under management rise $8 bln in June - Barclays

Posted on 31 July 2014 by VRS  |  Email |Print

Total global commodity assets under management (AUM) rose to $325 billion in June 2014 from $317 billion in May 2014, Barclays Capital said on Wednesday. “We estimate that there was a small net inflow of around $300 million into commodity investments during June,” the bank said.
The investment bank said in a research note on the sector that investors have continued to withdraw assets from commodity investments on a quarterly basis despite a marked improvement in the health of commodities as an asset class………………………………………..Full Article: Source

Commodity Hedge Funds Continue Building Momentum In 2014

Posted on 31 July 2014 by VRS  |  Email |Print

Newedge, a global leader in multi-asset brokerage and clearing, announced the performance for its suite of hedge fund indices for the month of June. Commodity funds, as represented by the Newedge Commodity Trading Index, were the best performers in June, finishing the month up 0.63%. The Newedge Trading Index continues to build on 2014 gains, leading the Newedge Index performance year-to-date with a return of 3.55%.
The Commodity Equity sub-index extends the positive performance achieved in 2013 and is up 4.85% year-to-date with a return of 1.62% for the month of June. James Skeggs, Global Head of Advisory Group Alternative Investment Solutions at Newedge said: “The Newedge Commodity Trading Index has had its best performance since 2012 so far this year and many managers are positive about the opportunities in the near future. As a result, we have seen a pickup of investors reconsidering investing in commodities.”……………………………………….Full Article: Source

Commodity Prices Edge Down in June: Scotiabank

Posted on 30 July 2014 by VRS  |  Email |Print

Scotiabank’s Commodity Price Index inched down by 0.7% month-over-month (m/m) in June, but has climbed 8.9% from last December’s low — led by stronger oil and gas prices. “The Metal and Mineral sub-Index retreated in June, but will rally sharply in July amid a spurt in base metal prices and steadier gold prices,” said Patricia Mohr, Scotiabank’s Vice President of Economics and Commodity Market Specialist.
“Exuberance over a moderate pick-up in China’s economy in the second quarter partly accounts for the recent surge in investor interest in base metals, as does a second year of record global auto production, with strength in China (+9.7% YTD), North America (+4.3%) as well as Germany and Spain (+7.9% — the two biggest auto manufacturers in Western Europe).” (Press Release)

Shock as commodities hedge fund performs reasonably well

Posted on 29 July 2014 by VRS  |  Email |Print

Commodities hedge funds have not being doing well lately. Clive Capital shut its doors last year, so did Higgs Capital, Arbalet Capital and Schroders’ Opus commodities fund. Armajaro Asset Management, the coffee and chocolate specialist hedge fund, has not been without its problems – it biggest fund lost nearly 25% of assets in the first quarter – but it’s actually done surprisingly well.
In accounts posted on Companies House last week, Armajaro Asset Management LLP made a profit of $6.7m for the 12 months to September 2013 in what it describes as “difficult conditions”, compared to $7.9m in 12 months previously. At the end of the period its assets under management were $1.5bn………………………………………..Full Article: Source

EIA: OPEC’s 2013 oil export revenues fall 7%

Posted on 29 July 2014 by VRS  |  Email |Print

According to recent estimates from the US Energy Information Administration, members of the Organization of the Petroleum Exporting Countries, excluding Iran, earned about $826 billion in net oil export revenues in 2013, a 7% decrease from 2012 earnings. But this was still the second-largest earnings totals during 1975-2013—the timespan of how long EIA has tracked OPEC oil revenues.
For each country, EIA derived net oil exports based on its oil production and consumption estimates from the latest edition of the EIA’s Short-Term Energy Outlook. For countries that export several different crude varieties, EIA assumes that the proportion of total net oil exports represented by each variety is equal to the proportion of the total domestic production represented by that variety………………………………………..Full Article: Source

India: Commodity exchanges Q1 turnover drops 65%

Posted on 16 July 2014 by VRS  |  Email |Print

The turnover of commodity exchanges fell by 65% to Rs.14.55 trillion in the first quarter of the current fiscal due to poor volumes in most commodities, the Forward Markets Commission (FMC) said. The turnover at these commodity bourses stood at Rs.41.45 trillion in the same period last year.
Much of the fall was seen in bullion, followed by energy, metals and agricultural commodities, FMC data showed. According to the FMC, the turnover from bullion fell by 73% to Rs.5.23 trillion in April-June this year, against Rs.19.38 trillion in the same period a year ago……………………………………….Full Article: Source

Commodities Reverse Their Gains

Posted on 15 July 2014 by VRS  |  Email |Print

The rally that started at the beginning of this year is quickly reversing. While not all of the gains have been given back (yet), the truth is that the current price conditions are not looking that good for commodities. Continuous Commodity Index has now fallen below its 200 day moving average, something that rarely happened during 2001-08 and 2009-11 bull markets.
The more common CRB Index is also not too far off either. Let us look at some of the individual commodities that represent four major sub sectors: energy, industrial metals, grains and softs. We start with the granddaddy of all commodities and a barometer of global economy, Crude Oil. Personally, I prefer to use Brent Crude Oil, as it represents global demand and supply story a lot better. As you may recall from a few weeks back, we were discussing a technical breakout in Brent Crude Oil out of its multi-year triangular consolidation pattern……………………………………….Full Article: Source

2014 Commodities Halftime Report

Posted on 14 July 2014 by VRS  |  Email |Print

What a difference six months can make. After a disappointing 2013, the commodities market came roaring back full throttle, outperforming the S&P 500 Index by more than 4 percentage points and 10-year Treasury bonds by more than 6.
Leading the rally was nickel, delivering a 37.14 percent return, followed by palladium (17.70 percent) and gold (10.90 percent). Nickel also saw the largest gain from last year, climbing more than 55 points to settle close to $19,000 per metric tonne. Gold jumped 38 percentage points to $1,327 an ounce, and palladium rose 16 points to $843 an ounce………………………………………..Full Article: Source

Rallies in energy, metals boost commodity funds in Q2-Lipper

Posted on 11 July 2014 by VRS  |  Email |Print

Commodity funds delivered robust returns in the second quarter, consolidating their recovery since the start of the year, with rallies in energy and metals boosting the top performers in the Lipper Global Commodity group.
Leading commodity fund managers say base metals should continue to perform well in the second half of 2014, with investor sentiment towards China improving, but the upside for oil is seen as more limited. Commodities have put in a solid performance so far this year, although returns eased a little in the second quarter………………………………………..Full Article: Source

How low could crude oil go?

Posted on 10 July 2014 by VRS  |  Email |Print

At the beginning of this year — long before extreme winter weather and the Islamic State seizing Iraq’s largest oil refinery, and everything that’s followed — a high-profile analyst said oil prices could drop by $20 a barrel. His belief was that the oil supply would surge this year thanks to Iraq, Libya and the U.S. being able to increase their production.
On top of that, the lifting of some Iranian sanctions would allow it to increase its oil production as well. Oil prices have been stabilizing over the past few days as the threat in the Middle East has lessened………………………………………..Full Article: Source

LNG market grows at 2.8% CAGR, to reach US$196.4 mn by 2019

Posted on 10 July 2014 by VRS  |  Email |Print

Liquefied Natural Gas market is growing at a compounded annual growth rate (CAGR) of 2.8% from 2013 and will extend up to 2019 when total market value will rise to US$196.4 mn from $161.4 mn in 2012, according to a new report titled “Liquefied Naturla Gas Market: Global Industry Analysis, size, share, growth, trends and forecast, 2013-19.
Key end-user segments analyzed in the study include industrial sector, electric power and other segments such as transportation and commercial. In terms of volume, industrial sector was the largest segment, accounting for around 43.0% of the total market share in 2012. Industries such as fertilizers and petrochemicals are major consumers of LNG as large share of LNG is consumed by these sectors………………………………………..Full Article: Source

Gold outpaces rival asset classes

Posted on 08 July 2014 by VRS  |  Email |Print

Commodity has gained almost 10 per cent since 2013 thanks to demand for jewellery. Following a prolonged period of miserable returns, gold investors are finally clawing back some losses, with the precious metal currently the top performing asset class of 2014.
Since the start of the year, bullion has rallied by 9.3 per cent, well ahead of its nearest challengers, the S&P 500 and the STOXX 600 indices, which have notched up respective gains of 6.2 and 5.5 per cent in dollar terms, according to JPMorgan Asset Management……………………………………..Full Article: Source

Aluminium outperforms other metals except nickel

Posted on 08 July 2014 by VRS  |  Email |Print

Much to the relief of aluminium producers, the white metal has outperformed other non-ferrous metals in price gains, except nickel, which managed to advance 40 per cent after Indonesia put a ban on minerals exports in January.
The three-month aluminium price, which in some intraday trades at London Metal Exchange (LME) breached the psychologically important $1,900 a tonne, has risen to its highest since August 2013. The undoing of aluminium for a long time has been excess capacity outside China and its use leading to the build up of stocks of over 5 million tonnes (mt) at LME warehouses……………………………………..Full Article: Source

Commodities begin H2 2014 on a mixed note, agri bears heavy losses:Saxo Bank

Posted on 07 July 2014 by VRS  |  Email |Print

Commodities have begun the second half of 2014 on a mixed note with Bloomberg Commodity Index (formerly DJ-UBS) falling for second week in a row. The losses were on account of decline in corn, soybeans, soft commodities such as sugar and Arabica coffee, according to Ole S Hansen, Head of Commodity Strategy at Saxo Bank.
The price of key crops such as corn and soybeans traded on the Chicago Board of Trade (CBOT) plunged on Monday following the release of two reports from the US Department of Agriculture. Both the quarterly stock report and the latest update on planted acreage surprised the markets with the stock report showing domestic stockpiles of grains as being significantly bigger than what was forecast………………………………………..Full Article: Source

Everybody Loves Hedge Funds, Assets Hit Record $3 Trillion

Posted on 26 June 2014 by VRS  |  Email |Print

Love ‘em or hate ‘em, the world of hedge funds is only getting bigger. The industry saw assets surpass $3 trillion in May for the first time ever. That’s according to hedge fund database, eVestment, which notes the new record exceeds the asset peak from 2008.
It’s been a particularly strong year for hedge funds. In May alone, $22 billion of new capital was added bringing year-to-date flows to $93.3 billion. That’s the strongest start to a year since 2007………………………………………..Full Article: Source

Goldman Sees Commodities Dropping 5.5% After Iraq-Driven Rally

Posted on 25 June 2014 by VRS  |  Email |Print

Commodities are poised to decline 5.5 percent over the next 12 months after climbing amid tensions in Iraq, Goldman Sachs Group Inc. said. Energy prices will be 5 percent lower a year from now, precious metals will drop 15 percent and agricultural products will retreat 10 percent, the bank said in an asset-allocation report dated yesterday. Commodities will decline 4 percent in the next three months, according to the report.
“Despite the negative return we forecast after the recent rally driven by events in Iraq, we stay neutral commodities due to the hedging benefits they offer against these risks,” Goldman analyst Jeffrey Currie in New York said in the report………………………………………..Full Article: Source

Commodities lose status as world’s best performing asset class in 2014: Deutsche Bank

Posted on 13 June 2014 by VRS  |  Email |Print

Commodities have lost their status as the world’s best performing asset class as gains in the livestock, agriculture and precious metals sector have been surrendered during the second quarter.
Deutsche Bank said in an update on commodity indices that the performance of Dow Jones UBSC Index (DJUBSCI) was affected by losses in agricultural and livestock sectors while gains in energy complex helped Standard & Poors GSCI to post positive returns………………………………………..Full Article: Source

Commodity prices fall for third month, led by dairy products

Posted on 04 June 2014 by VRS  |  Email |Print

New Zealand commodity prices fell for a third month in May, led by dairy products in the wake of a slide in world prices this year. The ANZ Commodity Price Index dropped 2.2 percent to 317.7 last month for an annual decline of 3.1 percent. In New Zealand dollar terms, prices fell 2.1 percent in the latest month and 6 percent in the year.
The commodity index comes after dairy product prices fell 4.2 percent in the latest GlobalDairyTrade auction overnight, the eighth straight decline, to a 16-month low. Economists say the drop in dairy prices mean the terms of trade, which reached a new 40-year high in the first quarter, is unlikely to push on to a record high any time soon………………………………………..Full Article: Source

Commodity Prices Slip Again in April: Scotiabank

Posted on 29 May 2014 by VRS  |  Email |Print

After a strong start to 2014, Scotiabank’s Commodity Price Index fell by 3.2% month-over-month (m/m) in April, the second consecutive monthly decline. The All Items Index is currently 1.3% below a year earlier.
“In the first half of 2014, the improvement in oil prices for Western Canada’s oil patch has been bolstered by a narrowing of the two price discounts which hurt earnings last year,” said Patricia Mohr, Scotiabank’s Vice President of Economics and Commodity Market Specialist. “Firstly, the Western Canadian Select (WCS) heavy crude oil discount off WTI oil declined to about US$21.57 per barrel (still high, but a US$4 improvement over a year ago). Secondly, the discount on WTI oil off Brent — the international benchmark — has also dropped to US$8 year-to-date (YTD). The net result, the S&P TSX Oil & Gas Exploration and Production Index has climbed by almost 16% YTD.” (Press Release)

Major banks Q1 commodities revenue jumps 26 pct

Posted on 19 May 2014 by VRS  |  Email |Print

Commodities revenue at the top 10 investment banks climbed 26 percent in the first quarter after years of declines, due to higher U.S. power and gas turnover as well as stronger investor interest, a consultancy said on Monday.
Revenue from commodities for top banks in the first quarter rose to $1.8 billion from $1.4 billion in the same period last year, London-based financial industry analytics firm Coalition said in a report. “The cold winter in North America created volatility and had a positive impact on U.S. power and gas revenues,” it said…………………………………….Full Article: Source

Wall Street banks count commodities trading profits

Posted on 15 May 2014 by VRS  |  Email |Print

While the world has been writing epitaphs for Wall Street banks’ commodity trading desks, Wall Street has been counting its ­profits. Banks that held firm amid an industry pullback from energy, metals and agricultural markets – and even some that beat a partial retreat – mined a rich seam as North America’s coldest winter in three decades drove up energy prices, results show.
Citigroup, Goldman Sachs, Morgan Stanley and Macquarie flagged commodities trading as a bright spot in first-quarter earnings. Coalition, a consultancy which tracks banks’ performance, estimates revenues for the top 10 banks in commodities rose 20 per cent year on year in the three months to March………………………………………..Full Article: Source

Commodity funds down in first quarter, even as energy markets rally

Posted on 08 May 2014 by VRS  |  Email |Print

Two-thirds of commodity hedge funds lost money in the first quarter, extending last year’s dismal run, possibly because they bet against higher crop and energy prices in a rallying market, data from futures broker Newedge and banker HSBC showed on Wednesday.
Of some 120 commodity-focused funds in the United States and Europe that either trade on discretion or follow trends, about 70 finished lower in the three months through March, despite a run-up in the corn, wheat, soybean, arabica coffee, lean hog and natural gas markets, the data showed………………………………………..Full Article: Source

banner
banner
December 2014
S M T W T F S
« Nov    
 123456
78910111213
14151617181920
21222324252627
28293031