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Commodities Briefing - Category | Performance more

Oil suffers a loss of 24% for the quarter

Posted on 01 October 2015 by VRS  |  Email |Print

Oil futures tallied a loss of 24% for the third quarter, after ending Wednesday lower on the back of a report revealing the first U.S. crude-supply increase in three weeks. The report also showed a modest decline in domestic production, helping prices limit losses for the session.
November West Texas Intermediate crude settled at $45.09 a barrel, down 14 cents, or 0.3%, on the New York Mercantile Exchange, trading between a high of $45.85 and a low of $44.68, according to FactSet data. WTI prices, based the front-month contracts, lost 8.4% for the month and were 24% lower for the quarter. Year to date, they’re down by more than 15%………………………………………..Full Article: Source

Gold suffers biggest quarterly loss in a year on Fed outlook

Posted on 01 October 2015 by VRS  |  Email |Print

Gold hit its lowest level in two weeks and recorded its biggest quarterly loss in a year on Wednesday as U.S. jobs data came in stronger than expected and the market awaited clarity on the timing of a hotly anticipated U.S. interest rate rise.
That capped off gold’s worst quarter since the third quarter of 2014, having fallen nearly 5 percent since July. It was its fifth successive quarter of losses, the longest such streak since 1997………………………………………..Full Article: Source

Short bets on suffering commodities netting major returns in meltdown

Posted on 21 September 2015 by VRS  |  Email |Print

The biggest collapse in commodity prices in a generation is giving some investors the best returns of any asset class. Over the past 12 months, eight of the 10 best-performing U.S. exchange-traded funds were securities that benefited from declines in raw-material prices, with five more than doubling their money, according to data tracked by Bloomberg on more than 1,600 ETFs across asset classes, including equities, fixed income and mixed allocation.
With commodity prices languishing near a 16-year low because of excess supplies, money has been flowing out of funds linked to metals, crops and energy. But for the investors that took on more risk with leveraged short bets, the payoff has been big. The VelocityShares Daily 3x Inverse Crude ETN, by far the top gainer, surged 241 per cent over the 12 months through Wednesday as oil prices tumbled 50 per cent in New York………………………………………..Full Article: Source

Hedge funds soar on China slowdown

Posted on 21 September 2015 by VRS  |  Email |Print

As hedge fund managers take a beating from the slowdown in China, Ray Bakhramov is flying. The chief investment officer of Forum Asset Management said he had been betting on an emerging-market slump since 2012. His conviction led to three years of losses of 10 per cent to 20 per cent in his Global Opportunity Fund.
Bakhramov finally got his wish in the past two months, as did a handful of managers who made multi-year wagers that emerging-market stocks and currencies would begin to fall, starting with a downturn in China………………………………………..Full Article: Source

Major banks’ commodities revenue down 25 pct in first half-report

Posted on 09 September 2015 by VRS  |  Email |Print

Global commodities-related revenue at the top 10 investment banks tumbled by a quarter in the first half of the year, due to a retreat in business from the power and gas sectors after last year’s surge, a consultancy said on Tuesday. Revenue earned by leading banks from commodity trading, selling derivatives to investors and other activities in the sector fell to $2.6 billion from $3.5 billion in the same period of 2014, financial industry analytics firm Coalition said.
“Despite increased volatility in oil prices and better corporate activity, commodities revenues declined due to (the) absence of prior-year gains from the unusually cold winter,” Coalition said………………………………………..Full Article: Source

Spain Is Winner From Oil, Commodities Plunge, De Guindos Says

Posted on 04 September 2015 by VRS  |  Email |Print

Spain’s economy minister says his country is a winner from the plunge in oil prices and is well insulated from the Chinese slowdown that’s partly driving the decline. In a Bloomberg Television interview in Madrid, Luis de Guindos said lower energy costs for consumers and companies are helping to drive an acceleration in Spain’s expansion this year.
The economy grew 1 percent in the second quarter, more than three times the euro-area average. “We import the majority of the commodities, especially in the case of energy,” de Guindos said in the interview in Madrid on Wednesday. “So for Spain it’s a gain-gain situation.”……………………………………….Full Article: Source

Commodities: Winners, Losers

Posted on 02 September 2015 by VRS  |  Email |Print

Commodities have been in a bear market for the past seven years. In the past several months, the downturn has accelerated significantly. This produces losers, but also winners, namely the developed world. Three of the largest economic areas of the globe, Europe, Japan and the U.S., receive a net benefit from lower commodity prices.
Low oil and other raw materials prices, which affect consumers and manufacturers alike, are the equivalent of a massive tax reduction on consumers and corporations. This holiday won’t last forever, though: Low commodity prices will eventually curtail commodity supply and pricing will turn back up………………………………………..Full Article: Source

Commodities face a severe price downturn, recovery not anytime soon

Posted on 25 August 2015 by VRS  |  Email |Print

The metal index may have corrected 50% in the past one year and metal stocks may appear good value-buys, but given the structural negatives of a slowing China and a strong dollar, it may not be too long before the long-term bearish trend reasserts itself.
According to a recent Barclays report, this is a much more severe commodity price downturn than any the market has experienced in recent history. The Chinese demand across metal commodities is likely to drop to 2-3% from double digits for the next 5 years and China consumes 40-50% of most of these commodities produced globally. The Bloomberg commodity index is back at 2002 levels, eroding almost all the gains of the commodity super cycle………………………………………..Full Article: Source

Global ETF Assets Surpassed Global Hedge Fund Assets In Q2 of 2015

Posted on 24 July 2015 by VRS  |  Email |Print

Assets invested in the global ETF/ETP industry have surpassed the assets invested in the hedge fund industry at the end of Q2 as we had forecasted.
According to our analysis there was US$2.971 trillion invested in the 5,823 ETFs/ETPs listed globally at the end of Q2 2015, assets were down slightly from their record high of US$3.015 trillion at the end of May 2015, while assets in the global hedge fund industry, according to a new report published by Hedge Fund Research HFR, reached a new record high of US$2.969 trillion invested in 8,497 hedge funds, which is US$2 billion smaller than the assets in the global ETF/ETP industry………………………………………..Full Article: Source

These are the top-performing commodities of 2015

Posted on 22 July 2015 by VRS  |  Email |Print

Can we really be halfway through the year? That’s what my calendar tells me, which means it’s time for the 2015 commodities halftime report. The periodic table of commodity returns, consistently one of our most popular pieces, has been updated to reflect the first half of 2015.
As an asset class, commodities continue to be a challenging space for investors, as they’ve faced many headwinds lately including lackluster purchasing managers’ index (PMI) numbers and a strong U.S. dollar. The widest expansion this year was made by none other than crude oil, the worst-performing commodity of 2014. As of June 30, oil posted gains of over 11 percent, rising to $59.47 per barrel………………………………………..Full Article: Source

Hedge funds post best returns in years

Posted on 17 July 2015 by VRS  |  Email |Print

Global hedge funds reached the halfway mark in 2015 with some of their best returns in years, but performance cooled off in June from growing losses in Asia Pacific and Europe, according to the latest statistics from Preqin, a research firm focused on the alternative assets industry.
“The industry has had a run of five months of positive returns from the start of 2015, and surpassed full-year 2014 performance in May,” said Amy Bensted, Preqin’s head of hedge fund products.”However, various macroeconomic events, notably the Greece/Eurozone crisis and the turbulence experienced in the China stock market, has led to hedge funds failing to generate positive returns in June and has dented the year-to-date return of the sector.”……………………………………….Full Article: Source

Big losses for precious metals

Posted on 09 July 2015 by VRS  |  Email |Print

Gold at lowest level in three and half months. Bullion metals registered big losses at Comex on Tuesday, 07 July 2015. Gold lost more than $20 an ounce on Tuesday, as sharp gains in the U.S. dollar helped send futures to the lowest finish since mid-March. Other metals also took a hit, with silver leading the losses as concerns over China’s economic growth pressured prospects for metals demand.
Gold for August delivery on Comex fell $20.60, or 1.8%, to settle at $1,152.60 an ounce. September silver sank 78.4 cents, or 5%, to settle at $14.69 an ounce, with prices tracking the most-active contracts at their lowest settlement since August 2009………………………………………..Full Article: Source

Tin ‘worst performer among base metals’ in H1 – Triland

Posted on 07 July 2015 by VRS  |  Email |Print

Tin has been “the worst performer among the base metals” on the London Metal Exchange in the first half of this year, according to brokerage Triland’s quarterly metals report. The category I LME member has therefore revised its 2015 price forecast to an average of $16,000-19,000 per tonne, down from $18,000-21,000 per tonne previously.
“Towards the end of the second quarter, prices were trading at the lowest level since September 2009, and real support has yet to be found,” Triland said in the report. Tin shipped out of Indonesia dropped year-on-year in May, and year-to-date exports were down 6.6% to 31,019 tonnes. ……………………………………….Full Article: Source

India: Commodity Exchanges’ Turnover Up 17% in April-May

Posted on 15 June 2015 by VRS  |  Email |Print

Commodity exchanges’ total turnover rose 16.63 per cent to Rs 11.11 lakh crore in the first two months of the current fiscal year on account of higher trade volumes in energy and agri-commodities, according to the Forward Markets Commission (FMC).
These exchanges had done business worth Rs 9.52 lakh crore in the April-May period of last fiscal year (2014-15), commodity market regulator FMC said in a report. The maximum volumes were generated in energy items like crude oil, followed by agricultural and metals………………………………………..Full Article: Source

World oil demand jumps after price slump

Posted on 12 June 2015 by VRS  |  Email |Print

World oil demand will rise much more than expected this year, the International Energy Agency (IEA) said on Thursday, in the latest sign that the collapse in oil prices is helping to boost fuel use. The agency, in a monthly report, raised its forecast for global oil demand growth in 2015 by 280,000 barrels per day (bpd) to 1.40 million bpd, bringing demand this year to almost 94 million bpd.
“Recent oil market strength of course partly stems from unexpectedly strong global oil demand growth,” said the Paris-based IEA, which advises industrialised nations on energy policy. Oil prices have recovered this year after hitting a near six-year low close to $45 a barrel in January………………………………………..Full Article: Source

Gold mining contributed $171 bln to global economy in 2013 – WGC

Posted on 04 June 2015 by VRS  |  Email |Print

The gold mining industry contributed more than $171 billion to the global economy in 2013, according to a new report from the World Gold Council. But weaker prices and lower production in 2015 do not necessarily mean that this figure will drop, the WGC’s John Mulligan said in an interview.
Large-scale commercial gold mining in the 47 countries that account for more than 90 percent of the world’s production contributed $81 billion to the economy in direct gross value added (GVA) and around $171 billion indirectly, the WGC said. GVA measures the contribution to the economy of each individual producer, industry or sector………………………………………..Full Article: Source

Major banks’ commodities revenue down 28 pct in Q1 -report

Posted on 21 May 2015 by VRS  |  Email |Print

Commodities revenue at the top 10 investment banks slid by 28 percent in the first quarter after power and gas activity returned to normal levels after last year’s jump, a consultancy said on Wednesday.
Revenue earned by leading banks from commodity trading, selling derivatives to investors and other activities in the sector declined to $1.6 billion in the first three months of the year compared to the same period of 2014, London-based financial industry analytics firm Coalition said. “Revenues declined due to the absence of one-off gains in power and gas. This weakness was partially offset by an increase in oil trading results,” Coalition said………………………………………..Full Article: Source

Iron Ore Trade Boom Shows China Bid for Commodities Clout

Posted on 08 May 2015 by VRS  |  Email |Print

China’s bid for greater influence over commodity prices is intensifying as record trade in its iron ore futures dwarfs its nearest rivals. Derivatives volumes on the Dalian Commodity Exchange more than doubled to 18.6 million contracts last month, or 1.86 billion metric tons, bourse data show.
Trading in contracts on the Singapore Exchange Ltd. totaled 78.2 million tons. UBS Group AG forecasts global demand at 2.04 billion tons in 2015. The world’s biggest consumer of metals, energy and grains is seeking to tighten its grip over prices with its own contracts for raw materials from tin to coal………………………………………..Full Article: Source

Shale Giants See Growth Again After 40% Price Climb

Posted on 06 May 2015 by VRS  |  Email |Print

EOG Resources Inc. and Pioneer Natural Resources Co., two of the largest shale-oil producers, are preparing to boost drilling again after oil prices climbed 40 percent in the past seven weeks. EOG Chairman and Chief Executive Officer William Thomas said Tuesday his company will increase drilling as soon as oil prices, which closed above $60 a barrel for the first time this year, stabilize at $65. Pioneer is planning to add drilling rigs starting in July, subject to oil price movements and the sale of other assets.
New drilling now means the companies can add to production in 2016. The statements come a month before the Organization of Petroleum Exporting Countries is scheduled to meet to discuss supply quotas………………………………………..Full Article: Source

Oil market climbs on Iran reports

Posted on 29 April 2015 by VRS  |  Email |Print

Oil prices have risen, reversing earlier losses on confusion surrounding reports that Iran had taken control of a container ship in the strategic Strait of Hormuz, dealers say. New York’s benchmark West Texas Intermediate for June delivery added US2c to $US57.02 a barrel.
London’s Brent North Sea crude for June gained US16c to $US64.99 a barrel in late afternoon deals. “During the afternoon … reports hit, and were later denied, of Iranian forces taking control of a US vessel,” IG analyst Chris Beauchamp said………………………………………..Full Article: Source

Hedge funds betting on more losses for crops as supplies swell

Posted on 28 April 2015 by VRS  |  Email |Print

With planting conditions improving across the U.S. Midwest, hedge funds are betting that harvests this year will compound a global crop surplus and worsen losses for corn, soybean and wheat prices.
Corn seeding is already ahead of last year’s pace, and recent rains that hampered sowing in some areas will give way to drier conditions this week, according to MDA Weather Services. In the Great Plains, winter-wheat conditions are better than they were in 2014. Record crops in Argentina and Brazil are adding to soybean supplies as U.S. farmers are forecast to plant the most acres ever next month………………………………………..Full Article: Source

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

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