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Exchange traded funds make strongest ever start to a year

Posted on 13 April 2015 by VRS  |  Email |Print

The exchange traded funds industry made its strongest ever start to a year with net inflows of just under $96bn in the first three months of 2015, a first quarter record. First quarter inflows were more than double the $37.2bn recorded in the same period last year, according to ETFGI, a consultancy.
The ETF industry’s best ever year was 2014, when investors ploughed a record $339.7bn into exchange traded funds and products. The surge in ETF inflows will strengthen the hand of regulators pushing for tighter supervision of asset managers………………………………………..Full Article: Source

Global ETF/ETP Assets hit a Record $2.92 Trillion in Q1

Posted on 10 April 2015 by VRS  |  Email |Print

Record levels of assets were reached at the end of Q1 for ETFs/ETPs listed Globally at US$ 2.926 trillion, in the United States at US$ 2.093 trillion, Asia Pacific ex-Japan at US$ 119.6, and Japan at US$ 109.3 billion, according to ETFGI’s preliminary monthly ETF and ETP global insight report for Q1.
The global ETF/ETP industry had 5,669 ETFs/ETPs, with 10,961 listings, from 247 providers listed on 63 exchanges in 51 countries. Record levels of net new assets NNA have been reached in Q1 by ETFs/ETPs listed globally which gathered US$ 95.98 billion up significantly from the US$ 37.19 billion in Q1 2014, products listed in the United States gathered US$ 57.53 billion which is significantly higher than the US$ 15.06 billion gathered in Q1 2014 , ETFs/ETPs listed in Europe gathered US$ 34.96 billion is more than double the US$ 11.16 billion gathered in Q1 2014 and ETFs/ETPs listed in Japan gathered NNA of US$ 10.61 billion which is greater than the US$ 7.7 billion in Q1 2014………………………………………..Full Article: Source

Hedge funds gain 2.4% in Q1 driven by currency and commodity markets

Posted on 10 April 2015 by VRS  |  Email |Print

Hedge funds posted positive results last March to conclude a strong first quarter, with performance driven by strong macro trends in currency and commodity markets, complemented by broad-based gains and positioning in event driven, equity hedge and fixed income-based relative value arbitrage strategies, data provider Hedge Fund Research said.
The HFRI Fund Weighted Composite Index gained 0.5% in March and 2.4% in Q1, completing the strongest quarter of outperformance relative to S&P 500 since the third quarter in 2011. “Hedge funds posted the highest quarterly performance since 2013 in Q1, navigating dislocations in currency and commodity markets, benefitting specifically from trend following macro exposures as financial markets discounted the end to U.S. quantitative easing, as well as the inception of ECB stimulus measures,” stated Kenneth J. Heinz, president of HFR………………………………………..Full Article: Source

Commexes’ turnover dips by 39% in FY15 due to CTT

Posted on 10 April 2015 by VRS  |  Email |Print

The turnover of Indian commodity exchanges dropped 39 per cent to Rs 61.68 lakh crore last fiscal due to higher transaction costs and decline in prices of bullion and metals. The business at these bourses was at Rs 101.44 lakh crore in the previous fiscal, 2013-14, according to the data released by the Forward Markets Commission (FMC).
The turnover of bullion fell by over 49 per cent to Rs 21.88 lakh crore in 2014-15, from Rs 43 lakh crore a year-ago. Similarly, the turnover of energy commodities declined by 34 per cent to Rs 16.46 lakh crore, from Rs 24.72 lakh crore, while that of metals dipped by 28 per cent to Rs 12.74 lakh crore from Rs 17.61 lakh crore in the review period………………………………………..Full Article: Source

ETFs Show $5.7 Billion Riding on Recovery in U.S. Energy Stocks

Posted on 09 April 2015 by VRS  |  Email |Print

The worst earnings season for energy companies since 2009 isn’t stopping investors from favoring the industry above all others this year. Exchange-traded funds tracking oil and gas shares have absorbed $5.7 billion in 2015, the most inflows among 12 groups tracked by Bloomberg.
Energy shares may get a boost from Royal Dutch Shell Plc’s acquisition of BG Group Plc, after the oil and gas industry’s biggest deal in at least a decade spurred speculation of further consolidation. Strategists are forecasting a 63 percent contraction in first-quarter earnings for energy companies in the S&P 500, after predicting expansion as recently as October, Bloomberg data show………………………………………..Full Article: Source

Hedge funds end Q1 on a strong note, up 3.2%

Posted on 08 April 2015 by VRS  |  Email |Print

The first quarter’s market conditions have been supportive of hedge fund performance, posting solid gains while the S&P 500 index is down year-to-date. Looking back at the quarter, there are many positive points worth highlighting, following a lacklustre 2014. Once again monetary policies took the front seat, driving hedge fund returns:
Equity-focused strategies and CTA funds have benefited from the large impact of European and Japanese QEs, as well as the Fed’s patience. European L/S Equity funds, while cautious, managed to limit volatility and catch the rally. Systems, mainly trend-followers, are still gaining from the “central bank” play, and generating gains on long equity and bond positioning………………………………………..Full Article: Source

Tough first quarter for commodities markets

Posted on 02 April 2015 by VRS  |  Email |Print

It’s been a tough first quarter in the commodities markets. Oversupply, a stronger dollar and crude weakness weighed on the price of many raw materials. Iron ore led the decliners, closing the quarter at $51 a tonne, a post financial crisis low.
Nevertheless, money flowed into energy exchange traded funds supporting overall investment inflows. Here is a look at some other issues which came under the spotlight. Is the world running out of crude storage? Concerns have mounted that the current supply glut would overwhelm storage tanks from Oklahoma to Xinjiang and depress prices further………………………………………..Full Article: Source

Commodity Funds Continue To Struggle

Posted on 02 April 2015 by VRS  |  Email |Print

The price of a bushel of corn for May delivery tumbled during the last day of the quarter by almost 5 percent to $3.756. The move was caused by the corn supply in the Unites States coming in much higher than expected, even after the government pegged its inventory in June at its highest level in 28 years.
The 7.75 billion bushels’ stockpile, as of March 1, is 11 percent higher than a year ago, according to the U.S. Department of Agriculture. The reading outpaced economists’ estimates of an 8.6 percent increase and is the highest on record at this date since 1987………………………………………..Full Article: Source

Hedge funds achieve outstanding performance as most indices are in positive territory

Posted on 25 March 2015 by VRS  |  Email |Print

Hedge funds achieved an outstanding performance during last week and were up 1.3%. More than 75% of the funds as well as most hedge funds indices are in positive territory, according to Lyxor Asset Management’s Weekly Briefing. The report said that hedge funds have continued to deliver solid returns in 2015 with the Lyxor HFI up 3.4% year-to-date. The first quarter of 2015 is on track to be the best quarter for hedge funds since Q2-2007 when the Lyxor HFI was up 3.7%.
“CTAs and event driven managers outperformed, both last week and year to date, as a result of the peculiar market environment which continues to see equities and bonds delivering positive returns. Financial markets find themselves in a sweet spot, where economic recovery is supporting consumer confidence but not at such a point that would lead central banks to tighten their monetary policy,” said Philippe Ferreira, Lyxor AM’s head of research, managed account platform………………………………………..Full Article: Source

Preqin: Hedge funds turn the tide on poor 2014 performance

Posted on 18 March 2015 by VRS  |  Email |Print

Hedge fund managers have got off to a strong start in 2015. Following a year which saw the average hedge fund deliver returns of 3.78%, managers have already returned 2.52% on average two months into the year. Given that performance was named as the key concern in the industry in 2015 by investors in a Preqin survey at the end of 2014, managers will have been keen to deliver strong performance early in the year. The challenge, and opportunity, still remains for hedge funds to continue this performance, particularly amidst strong equity markets and turbulent commodity markets.
Other Key Hedge Fund Performance Stats: Equity Strategies Leading the Pack: All main hedge fund strategies generated positive returns in February 2015, with equity strategies posting the highest monthly return of 3.28%. . Oil Prices Causing Problems: The reversal in falling oil prices led to CTAs generating their lowest monthly return since October 2014, and only just hung on to positive performance with average returns of 0.20%. (Press Release)

Commodities fall to 12-year low as dollar rises amid surplus

Posted on 16 March 2015 by VRS  |  Email |Print

Slumping energy prices led commodities to a 12-year low as the dollar’s best rally since 2008 reduced the investment appeal of raw materials amid surpluses of everything from oil to sugar. The Bloomberg Commodity Index fell 1.4 per cent to 97.5777, the lowest level since August 2002, dragged down by crude oil and raw sugar.
The Bloomberg Dollar Spot Index, tracking the greenback against 10 currencies, is set to climb the most since 2008 this quarter and reached the highest level in data going back to the end of 2004. A stronger dollar tends to deter investment in raw materials. Commodities are tumbling as economies expand in the US and cool in other nations, driving the dollar higher. The Federal Reserve will hold a policy meeting this coming week as strength in the US labour market fuels speculation that the central bank will lay the groundwork for higher borrowing costs………………………………………..Full Article: Source

Hedge funds see second consecutive month of gains, up 1.59% (est.) in February, 2.41% YTD

Posted on 12 March 2015 by VRS  |  Email |Print

Hedge funds extended their gains in the second month of 2015, with the Eurekahedge Hedge Fund Index up 1.59% in February, trailing the MSCI World Index which ended the month with a strong finish, gaining 5.47%. All regional and strategic mandates ended the month in positive territory with managers focused on developed markets posting the strongest returns.
Investor allocation activity saw an uptick in February as hedge funds recorded inflows of US$6.8 billion during the month. Distressed debt funds delivered the best performance among all strategic mandates, up 3.03% in February as their bets on distressed oil and gas producers paid off. India focused managers were down 0.51% during the month - their first month of negative returns after a 12 month winning streak………………………………………..Full Article: Source

Hedge funds expect to top $3 trillion in 2015: Deutsche Bank

Posted on 03 March 2015 by VRS  |  Email |Print

Despite producing an average return of 3.3 percent last year, the hedge fund industry is on track to surpass $3 trillion in assets this year, according to a new survey by Deutsche Bank.
“We have seen a doubling in assets under management since 2008,” said Barry Bausano, president of Deutsche Bank Securities and co-head of global prime finance for Deutsche Bank. “That’s despite what’s been pretty pedestrian performance.”……………………………………….Full Article: Source

US Will Never Gain Oil Market Crown Says IEA Head

Posted on 02 March 2015 by VRS  |  Email |Print

No matter how much oil the United States produces over the next few years, it will never become the next Saudi Arabia in the global oil market, according to Fatih Birol, the new executive director of the International Energy Agency (IEA). What’s especially interesting about this forecast is that it directly contradicts what Birol said only three months ago, and he gave no explanation for his change of mind.
On Feb. 26, Birol told The Telegraph’s Middle East Congress in London that OPEC, particularly the Persian Gulf members, will prevail over all other producers for the foreseeable future, even though the revolution in extracting shale oil has been “excellent news” for American producers………………………………………..Full Article: Source

Global commodity AUM rebounds in Jan to $267 billion

Posted on 27 February 2015 by VRS  |  Email |Print

Total global commodity assets under management ( AUM) rebounded to $267 billion in January from a five year low of $259 billion in December 2014, Barclays capital said on Thursday.
Commodity investments saw net inflows of nearly $5 billion in January, the biggest since September 2012, led by energy and precious metals, Barclays said in a research note………………………………………..Full Article: Source

Commodities slump to deliver $110bn hit to export earnings: ANZ

Posted on 26 February 2015 by VRS  |  Email |Print

The aggressive slump in Australia’s key commodities will wipe $110 billion off export earnings over the next three years, new analysis has found. ANZ’s major project update for 2015, which includes developments requiring at least $100 million of investment, also anticipates that aggregate major projects spending on mining, energy and infrastructure projects would fall to about $32bn in 2017 from $88bn last year.
The slump in the resources sector is set to be significant, with the pipeline of potential mining sector projects declining. ANZ said the mining states were expected to be hit hardest as large projects wind down and sharply lower commodity prices reduced the likelihood of new capital spending or project expansions………………………………………..Full Article: Source

Scotiabank Commodity Price Index Hits 8-Year Low

Posted on 24 February 2015 by VRS  |  Email |Print

Scotiabank’s monthly index of commodity prices has plunged to its lowest since January 2007. The bank says global economic conditions are better than during the 2008-09 global downturn, but an extended period of sub-par growth has increased competition and pushed down commodity prices.
Scotiabank says a recent spike in the U.S. dollar against most currencies has also contributed to the decline. The bank’s broadest commodity price index fell to 100.9 points in January, down 8.6 per cent from December and down 27.9 per cent from January 2013………………………………………..Full Article: Source

Fund Selector: Consistent outperformance

Posted on 13 February 2015 by VRS  |  Email |Print

The performance of managers in the Investment Association UK All Companies sector relative to the FTSE 100 index since 1996 has borne a close relationship to the performance of the FTSE 250 index versus the FTSE 100.
Indeed, in all but three of the 19 years the sector only outperforms the FTSE 100 when the FTSE 250 does. Last year was one of the three years when this relationship failed – 1996 and 2005 were the others – with the sector returning 0.6 per cent, while the FTSE 100 and the FTSE 250 delivered 0.7 per cent and 3.7 per cent respectively………………………………………..Full Article: Source

Baltic Dry Index fall is mainly due to oil, commodity price slump

Posted on 12 February 2015 by VRS  |  Email |Print

The costs of shipping bulk commodities have fallen to a near three-decade low, raising concerns about global economic growth. However, there are a number of elements at play and analysts have warned about reading too much into the slump.
The Baltic Dry Index, a measure of a number of shipping routes and the prices for transporting major bulk commodities, has fallen 29.2 per cent in 2015 to 554 points – the lowest level since 1986. Over the past 12 months it has dropped close to 50 per cent. The World Bank recently downgraded global growth by 20 basis points to 3 per cent for 2015. So it would appear that a drop in the BDI would match the faltering growth narrative in the World Bank’s forecasts………………………………………..Full Article: Source

Baltic Dry Freight Index Plummets Amid Commodities Slump

Posted on 06 February 2015 by VRS  |  Email |Print

The Baltic Dry Index, which tracks freight rates for ships carrying raw materials, has slumped to its lowest point in 29 years, hit by a shipping glut, falling commodity prices and declining import demand from China.
This week, the BDI fell to 577, its lowest level since July 1986, and a far cry from its peak of 11,793 in 2008. The world’s fleet of dry-bulk ships far exceeds demand for the vessels that carry commodities such as iron ore and coal, with capacity estimated around 20% above demand over the past few years………………………………………..Full Article: Source

India: Commodity Exchange Turnover Declines by 43%

Posted on 29 January 2015 by VRS  |  Email |Print

The turnover of commodity exchanges declined 43 per cent to Rs 48.54 lakh crore till January 15 of the current fiscal year, due to poor participation, according to the Forward Markets Commission (FMC). These exchanges had made a business of Rs 85.28 lakh crore between April and January 15 of the last financial year.
According to the latest data released by commodity markets regulator FMC, there was fall in business in almost all commodities. The maximum decline in turnover was reported in bullion, metals, energy and agricultural commodities………………………………………..Full Article: Source

Precious metals drove commodity ETPs’ $20bn loss in 2014

Posted on 09 January 2015 by VRS  |  Email |Print

Declines in precious metals prices drove a drop of more than $20 billion in commodity exchange-traded product holdings in 2014, according to ETF Securities Ltd. Assets under management in commodity ETPs fell $20.6 billion to $101.5 billion by the end of the year, according to a report published by the Jersey, U.K.-based company today.
Some 70 percent of the decline was attributable to precious metal ETPs, the value of which slid $14.8 billion to $79 billion. Record inflows into energy products, mostly crude oil, in the final quarter partially offset the annual decline in global ETP values.“With the Federal Reserve having pushed out of quantitative easing and looking to interest rate hikes and as the dollar rallied quite considerably, gold has just been an unfavored asset,” Nitesh Shah, an associate research director at the company, said……………………………………….Full Article: Source

Performance of metals complex mixed in 2014

Posted on 06 January 2015 by VRS  |  Email |Print

Zinc, nickel, palladium posted gains; lead, tin, copper, silver and platinum fell. Now that 2014 is behind us, it would be instructive to examine the price performance of the metals complex covering precious and base metals. Performance of the metals complex was a mixed one.
Zinc, nickel and palladium posted annual average gains of more than 10 per cent over the year. At the same time, the biggest losers were lead, tin and copper as well as silver and platinum. Does this portend the shape of things to come?……………………………………….Full Article: Source

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

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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

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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

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