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Worst raw-material slump since ’08 seen deepening

Posted on 03 December 2013 by VRS  |  Email |Print

The commodity slump that spurred bear markets in everything from gold to corn to sugar this year will deepen by the end of December as prices head for their first annual loss since 2008, if history is any guide.
The Standard & Poor’s GSCI Spot Index of 24 raw materials fell in December 83% of the time since 1971 when the benchmark gauge was posting losses for the year through November, data compiled by Bloomberg show. The average December loss was 3.9%, which if it happened this time would mean a 7.8% drop for the year……………………………….Full Article: Source

MCX turnover hits five-year low on CTT, NSEL fallout

Posted on 02 December 2013 by VRS  |  Email |Print

Anew tax on non-food items, a crisis in a promoter group firm, increase in margins and a trading closure of non-farm products on Saturdays have culminated in trading volumes on MCX, the country’s largest commodity exchange and the only listed one, having fallen by a whopping 70% over the past five months.
Average daily volumes during November plunged to Rs 15,369 crore from Rs 48,179 crore in June, a decline of 68.1%. This, in turn, took MCX’s turnover to a five-year low last month………………………………..Full Article: Source

Canadian Commodity Index declines along with oil and gas prices

Posted on 29 November 2013 by VRS  |  Email |Print

For a third month in a row, commodity prices have fallen in Canada, according to the latest Scotiabank Price Index. It shows prices were down by 3.8 per cent, with the Oil and Gas Sub-Index leading the decline down 8 1/2 percentage points in October.
Patricia Mohr, an economist with Scotiabank, said the main reasons for the decline are lower oil prices and a buildup of light oil in the United States. She also noted transporting product has been a problem, as Albertans are getting around $26 less per barrel than the world market, but she said railways are starting to pick up the slack………………………………………..Full Article: Source

Commodity exchanges’ turnover down 30pct in April-October due to CTT

Posted on 18 November 2013 by VRS  |  Email |Print

The turnover of the commodity exchanges fell by 30 per cent to Rs 71,60,162.84 crore in the first seven months of this fiscal due to sharp fall in trading volumes in most commodities, according to the Forward Markets Commission (FMC).
The business at these bourses stood at Rs 101,55,637 crore in the same period last year, the commodity markets regulator FMC said in its latest report………………………………………..Full Article: Source

Palladium is outperforming the other precious metals

Posted on 12 November 2013 by VRS  |  Email |Print

Precious metals are on sale. And one of them – palladium – looks like it’s poised to shine this holiday season. Here are three reasons why… and three great ways to play it.
1. Palladium Is Outperforming the Other Precious Metals. I think all the precious metals have found their bottoms for the year. And if I’m right, then you can buy them on sale without a lot of worry that they’ll tumble much further………………………………………..Full Article: Source

Gold may remain under pressure; likely to ease further in 2014

Posted on 21 October 2013 by VRS  |  Email |Print

Global commodity markets, so far this year, have gone through wide swings given the diversity of driving forces including economic growth, monetary policy, geopolitical instabilities and currency gyrations.
Central banks of different countries have often followed monetary policies that are seemingly divergent. The economic growth trajectories of different countries have also diverged. The risk-on/risk-off environment too has undergone subtle but unmistakable changes. No wonder that the risk-reward profile of commodities has not been the same this year………………………………………..Full Article: Source

40 years after embargo, OPEC is over a barrel

Posted on 18 October 2013 by VRS  |  Email |Print

Today marks the 40th anniversary of the Organization of the Petroleum Exporting Countries embargo against the U.S. and states that supported Israel after Egypt and Syria initiated simultaneous offensives against it on Yom Kippur in 1973. While it’s not an anniversary that many will celebrate, it’s a good opportunity to reflect on how much more secure our energy situation is, despite our continued heavy reliance on fossil fuels.
Most commentators have focused, with good reason, on the West’s greatly enhanced ability to withstand similar shocks were they to occur today. Equally important, although generally overlooked, is the reality that OPEC has no incentive or real ability to inflict them on the world………………………………………..Full Article: Source

40 years of OPEC manipulation

Posted on 18 October 2013 by VRS  |  Email |Print

Four decades ago this month, members of the Organization of the Petroleum Exporting Countries (OPEC) launched an oil embargo against the United States in retaliation for our steadfast support of Israel in her hour of need.
As the Jewish State fought off the Soviet-backed Egyptian and Syrian armies in what would become known as the Yom Kippur War, the OPEC cartel’s actions sent the price of oil soaring and our economy into a recession………………………………………..Full Article: Source

Commodity ETPs turn the corner

Posted on 15 October 2013 by VRS  |  Email |Print

In the third quarter (Q3) of 2013, total assets in commodity-linked exchange-traded products (ETPs) rose $8.4 billion to $135.9 billion, marking the first quarterly rise since Q3 2012, according to ETF Securities, a leading London-based provider of commodity ETPs.
The rise was driven by a combination of price increases and the largest quarterly inflows into non-gold commodity ETPs since Q1 2012. In terms of flows over the quarter, commodity ETPs excluding gold saw $1.9 billion of inflows, more than compensating for the outflows in Q2, and the largest quarterly inflows since Q1 2012. Including gold, global commodity ETPs saw $2.3 billion of outflows in Q3 2013………………………………………..Full Article: Source

India: Combined turnover of commodity exchanges dips by 25pct in H1

Posted on 11 October 2013 by VRS  |  Email |Print

Combined turnover of commodity exchanges fell by 25 per cent to Rs 65.68 lakh crore in the first six months of 2013-14 due to a sharp decline in trading volumes in most commodities, according to the Forward Markets Commission (FMC).
These exchanges had done business of Rs 87.62 lakh crore in the April-September period of the 2012-13 fiscal, FMC said in a statement. Maximum fall in business was seen in agricultural items, followed by bullion, metals and energy commodities, commodity markets regulator FMC noted………………………………………..Full Article: Source

Zinc to outperform base metals pack on supply crunch

Posted on 04 October 2013 by VRS  |  Email |Print

Zinc is likely to outshine all the other base metals for the next two years as its prices are likely to rise on supply crunch globally, experts and analysts said. “Over the coming two years, we would expect to see a significant tightening of the global zinc market.
For 2014, we forecast average zinc prices of $2,175/tonne, rising to an average of $2,400/tonne in 2015,” a report by Natixis Commodities Research said………………………………………..Full Article: Source

Commodity ETP assets rise in 3Q on higher prices; Net outflow seen for gold

Posted on 03 October 2013 by VRS  |  Email |Print

Total assets under management in global commodity exchange-traded products rose in the third quarter for the first time in a year, said ETF Securities Wednesday.
They climbed by $8.4 billion from the second quarter to $135.3 billion. The boost came from higher prices of commodity prices themselves, as otherwise there were net outflows mainly due to the gold sector, ETF Securities said………………………………………..Full Article: Source

Commodity assets increase to a four-month high, Barclays says

Posted on 02 October 2013 by VRS  |  Email |Print

Commodity assets under management rose to a four-month high in August as prices of raw materials increased and investors slowed the pace of selling precious metals, Barclays Plc said.
The value of commodity assets under management rose to $363 billion in August, up $13 billion from the prior month, according to an e-mailed report from the bank, which tracks index and exchange-traded products and medium-term notes. Assets were still below a peak of $458 billion in June, the bank said………………………………………..Full Article: Source

World trade growth in 2013 slower than forecast, to expand 4.5pct in 2014: WTO

Posted on 20 September 2013 by VRS  |  Email |Print

World trade is expected to grow 2.5% in 2013 and 4.5% in 2014 as against earlier estimates fo 3.3% and 5% in 2013 and 2014 respectively, according to World Trade Organisation (WTO).
Import demand from developing countries is gaining but at a slower pace and hence the lower growth forecast compared to previous one made in April, WTO added. “There is a message for the WTO in this,” said WTO Director General Roberto Azevêdo. “The past two years of sluggish trade growth reinforce the need to make progress in the multilateral negotiations………………………………………Full Article: Source

India: Turnover of commexes drops 17pct in April-August this year

Posted on 16 September 2013 by VRS  |  Email |Print

The total turnover of commodity bourses fell over 17 per cent to Rs 58,98,170 crore till August 2013, mainly due to sluggish trade volumes in almost all items, according to sector regulator FMC.
The business at the 21 commodity exchanges stood at Rs 71,39,917 crore in the same period last year. Much of the fall was in farm commodities, followed by bullion, metals and energy items, said the Forward Markets Commission (FMC) said while releasing its latest data………………………………………..Full Article: Source

Commodities outperform stocks, bonds, dollar in August

Posted on 05 September 2013 by VRS  |  Email |Print

Commodities outperformed equities, bonds and the dollar in August with a surge in metals and oil prices, following lacklustre performance against other asset classes over the past two years. Commodity prices have largely been weak over the past two years as a stagnant world economy has coincided with ample supplies.
The 19-commodity Thomson Reuters-CRB index has shed 21 percent since April 2011, underperforming MSCI’s world equity index, which tracks shares in 45 countries, by nearly 30 percent over the past two years………………………………………..Full Article: Source

Commodity prices bounced back in August

Posted on 04 September 2013 by VRS  |  Email |Print

The Reserve Bank of Australia last night released its commodity price index for the month of August, which registered an increase in commodity prices in both Australian Dollar and special drawing rights (SDR) terms (effectively a measure of commodity prices based on a broad range of currencies) on the back of rises in iron ore and gold prices:
Preliminary estimates for August indicate that the index rose by 0.2 per cent (on a monthly average basis) in SDR terms, after rising by 1.6 per cent in July (revised). The largest contributors to the rise in August were increases in the prices of iron ore and gold. The prices of base metals also increased, while the prices of many rural commodities declined in the month. In Australian dollar terms, the index rose by 2.7 per cent in August………………………………………..Full Article: Source

Brazil’s commodities exports rise over dry August

Posted on 03 September 2013 by VRS  |  Email |Print

Brazil’s commodities exports including sugar, corn, coffee and iron ore rose in August compared with July while soy shipments eased now that the harvest is over, the Trade Ministry said on Monday.
Dry weather in recent weeks helped harvesting and loading of a record sugar cane crop, and 44 percent more sugar was exported in August than in the previous month. Brazil finished harvesting a record soybean crop in May and exported 5.4 million tonnes of the crop in August, slightly below the amount exported in July but twice the amount exported in August of 2012 when drought hurt production………………………………………..Full Article: Source

Commodity prices rose August, says RBA

Posted on 03 September 2013 by VRS  |  Email |Print

Australia’s export commodity prices edged higher in August, the second rise in a row, following a run of four monthly falls. The main contributors to the monthly rise in the Reserve Bank of Australia’s foreign currency commodity price index were iron ore and gold.
Base metals prices also increased, although the prices of many rural commodities declined in the month, the RBA said. Commodity prices peaked in July 2011 and are still down by 22 per cent, despite the minor rises in July and August………………………………………..Full Article: Source

Morningstar: European funds post inflows after June exits

Posted on 03 September 2013 by VRS  |  Email |Print

European investors’ sentiment “reversed” during July 2013 with a return to long-term funds following a month of massive outflows in June, says Morningstar.
The latest Morningstar Direct Asset Flows Commentary for Europe shows inflows of €26.8bn (£22.7bn) for European open-ended funds during July, compared with outflows totaling €35bn over the course of the previous month………………………………………..Full Article: Source

Index funds add bullish commodity positions in July

Posted on 30 August 2013 by VRS  |  Email |Print

Index funds increased their bullish exposure to commodities in July for the first time in three months amid signs of a better economy and higher oil and gold prices, Commodity Futures Trading Commission data showed on Thursday.
The value of net-long index fund investments in U.S. commodities rose by nearly $9 billion, or 5 percent, to $193.4 billion at the end of last month, according to the CFTC’s monthly Index Investment Data report………………………………………..Full Article: Source

Why India’s gold has outperformed global prices

Posted on 30 August 2013 by VRS  |  Email |Print

Gold price hits fresh all-time high of Rs 34,622 per ten grams in futures trade on Wednesday on heavy buying as rupee plunged to its new record low of 68.75 against the US dollar.
Despite recovering about USD 240 an ounce, or more than 20 percent, since hitting a near three-year low of USD 1,180.71 in late June, gold prices are still down 15 percent so far this year in international market. On the contrary, the yellow metal, which plunged to a low of Rs 25,000 in mid-April, is at a record high in India………………………………………..Full Article: Source

Commodity bulls hope for new Chinese dawn

Posted on 23 August 2013 by VRS  |  Email |Print

For much of this year, investors have seen the commodities sector as a straightforward story. Chinese growth and industrialisation, the great driver of the decade-long commodity boom, was slowing, according to ever-widening consensus.
The effect on industrial commodities like iron ore, copper or nickel would surely be bleak. Investors headed for the exits, pulling money from industrial commodities and contributing to a 15 per cent slide in metals prices in the first half of the year………………………………………..Full Article: Source

Behind the blowout in commodities

Posted on 22 August 2013 by VRS  |  Email |Print

The S&P 500 Index (SPX) has performed well this year and is up over 19% on the year as of July 31st. The Federal Reserves accommodative stance on monetary policy may be one of the reasons for this action.
I assume this to be true due to the sharp but short correction and rise in interest rates we had in June. The markets came right back and hit all time highs in July as the Fed verbally backed off from comments about tapering bond purchases………………………………………..Full Article: Source

Commodity funds on track for big launch year in uncertain market

Posted on 07 August 2013 by VRS  |  Email |Print

An ex-Glencore oil trader and a veteran grains merchant are among those behind the largest number of commodity fund launches in 3 years despite investor worries the multi-year rally in those markets is over.
A dozen hedge funds trading raw materials derivatives on discretion were launched in the first six months of this year, the same as in the whole of 2012, data from London-based research house Preqin showed. In 2011, only seven of such funds took off, the smallest number in 5 years………………………………………..Full Article: Source

Commodities revenue of top 10 banks fell 25% in first half

Posted on 06 August 2013 by VRS  |  Email |Print

Commodities revenue at the 10 largest investment banks fell 25 percent in the first half, putting those units on pace for the worst annual performance in more than five years, according to analytics company Coalition Ltd.
Revenue fell to about $2.7 billion in the first six months from $3.6 billion in the same period of 2012, Coalition said today in an e-mail. Last year’s total of $6 billion was down 24 percent from 2011 and was less than half that of 2008, when oil prices climbed to a record………………………………………..Full Article: Source

Commodities revenues plummet at top banks

Posted on 05 August 2013 by VRS  |  Email |Print

The world’s 10 largest investment banks suffered a 25% plunge in their commodities revenues in the first half of the year as the units continued to suffer from regulatory scrutiny and lower market volatility.
The early calculations from research provider Coalition mean combined revenues fell from $3.6 billion in the first half of last year to $2.7 billion, according to Financial News analysis………………………………………..Full Article: Source

India: Commexes’ turnover dips by 42 pct due to CTT in July 1-15

Posted on 05 August 2013 by VRS  |  Email |Print

The turnover of 22 commodity bourses fell by 42 per cent to Rs 4,07,670 crore in the first fortnight of July mainly due to sharp fall in business at MCX following the imposition of commodity transaction tax (CTT) on the futures trading of non-farm items and some processed food.
The turnover of these commodity bourses stood at Rs 7,08,342 crore during the June 16-30 period, the immediate fortnight before the introduction of CTT. CTT of 0.01 per cent has been made effective from July 1 on the futures trading of non-agri commodities and processed foods. The government has exempted 23 agricultural commodities from the new tax………………………………………..Full Article: Source

Commodity prices fall in July: RBA

Posted on 02 August 2013 by VRS  |  Email |Print

The Reserve Bank of Australia’s index of commodity prices fell by 1.5 per cent in the month in foreign currency terms. After the latest fall, commodity prices are down by 24 per cent from their peak in July 2011, and at their lowest ebb since April 2010.
The RBA said the main contributors to the fall in July were coal and gold, which were partly offset by increases in iron ore and crude oil prices. The RBA uses estimates of actual prices received by exporters to compile its index and noted that spot market prices for iron ore, coking coal and thermal coal had actually risen by 2.3 per cent…………………………………..Full Article: Source

OPEC countries earned $ 982 bln net oil export revenues in 2012

Posted on 26 July 2013 by VRS  |  Email |Print

The OPEC countries, excluding Iran, witnessed a five per cent increase in net oil export revenues in 2012 from the previous year, amounting to earnings of about$982 billion, the US Energy Information Administration (EIA) has estimated.
This is estimated to be the largest level over the 1975-2012 period for which EIA has tracked OPEC oil revenues. According to EIA’s revenues fact sheet, Saudi Arabia earned the largest share of these earnings,$311 billion in 2012, representing approximately 32 per cent of total OPEC revenues……………………………………….Full Article: Source

Goldman Sachs keeps “neutral” recommendation on commodities

Posted on 24 July 2013 by VRS  |  Email |Print

Goldman Sachs has maintained a “neutral” recommendation for commodities both a near-term and a 12-month horizon on expectations of flat returns. The bank lowered its 12-month S&P GSCI Enhanced Commodity Index return forecast to 0.1 per cent from 2.3 per cent.
“Our current outlook is extremely benign, with returns expected to be mostly flat over the next 12 months,” analyst Jeffrey Currie said in a note. The 12-month return forecast will include a 1.5 per cent gain in energy and 6 per cent gain in industrial metals, the bank said in a note dated Monday………………………………………..Full Article: Source

Palladium seen as 2013’s top-performing precious metal

Posted on 23 July 2013 by VRS  |  Email |Print

Palladium, this year’s top performing precious metal, is heading for a strong end of year as brighter economic conditions favour industrial demand for the metal and supply tightness remains in place, a Reuters poll showed on Monday.
In contrast, confidence in platinum has weakened due to its stronger correlation with gold and softer demand prospects. A survey of 20 analysts, traders and fund managers yielded a median palladium price forecast of $740 an ounce, only slightly below that of $750 in a similar poll done in April………………………………………..Full Article: Source

Commodity hedge funds suffer longest losing streak on record

Posted on 19 July 2013 by VRS  |  Email |Print

Funds betting on commodity price moves have lost money every month since January, their joint longest losing streak on record, raising more doubts about their ability to make money at a time when the commodity “supercycle” may be over.
The average fund slid 3.58 percent in the first half of 2013, according to a widely watched Newedge commodity index. Funds have suffered five straight losing months only once before, in 2002-03, the index shows. Hedge funds market themselves are capable of making money in all markets, yet funds trading commodities as varied as gold, grains and gas have failed to turn an annual profit in the past three years………………………………………..Full Article: Source

10 most popular funds in Q2

Posted on 19 July 2013 by VRS  |  Email |Print

Japan equity is among readers’ favourites, while natural resources have fallen off the list amid fears the commodity “super cycle” is over. It’s wise to keep in mind that users of Morningstar.co.uk search for funds not only when they’re considering an investment, but also when they’re concerned and are considering selling share classes.
As such, while several of the usual suspects dominate the list of most-searched-for funds on Morningstar.co.uk in the second quarter, some are notable for their emerging market debt exposure—an asset class that is widely considered to be overvalued at present and has therefore had investors running for the doors. ……………………………………….Full Article: Source

Commodities 2013 halftime report: A time to mine for opportunity?

Posted on 16 July 2013 by VRS  |  Email |Print

It was a challenging first half of the year for most commodities, with only two resources we track on our Periodic Table of Commodities Returns rising in value. Natural gas and oil rose 6.5 percent and 5 percent, respectively, while silver lost a third of its value and gold lost a quarter of its price from the beginning of the year.
At first glance, this correction seems to support naysayers who believe the supercycle in commodities has ended, such as Credit Suisse analysts, who had declared that the “era is over,” in its digital magazine, The Financialist. We disagree. Instead, we see severe price declines as possible buying opportunities during this ongoing commodity supercycle………………………………………..Full Article: Source

India: Commexes’ turnover slips to Rs 41.45 lakh cr in April-June quarter

Posted on 15 July 2013 by VRS  |  Email |Print

Turnover of commodity exchanges fell marginally to Rs 41.45 lakh crore in the April-June quarter this fiscal due to drop in trading volumes of bullion and farm items, according to Forward Markets Commission (FMC).
The exchanges had made a business of Rs 41.71 lakh crore in the same period last year. Except for energy futures, trading volumes in farm items, gold, silver and industrial metals remained lower in the said period, commodity market regulator FMC said in a statement………………………………………..Full Article: Source

Hedge funds post first decline for 2013 in June, HFRI down -1.3pct

Posted on 09 July 2013 by VRS  |  Email |Print

Opalesque Industry Update:Hedge funds posted the first monthly decline for 2013 in June, ending a streak of seven consecutive months of gains, the longest run of positive performance seen by the industry since 2011, according to data released today by HFR, the established global leader in the indexation, research and analysis of the hedge fund industry.
The HFRI Fund Weighted Composite Index declined -1.3 percent for the month, only the second decline in the trailing thirteen months. All four main HFRI Strategy Indices posted losses for June, with declines led by Macro and Equity Hedge strategies………………………………………..Full Article: Source

Investors flee commodities in June as Fed signals end to stimulus

Posted on 05 July 2013 by VRS  |  Email |Print

Investors sold out of commodity exchange-traded products (ETPs) in June after the U.S. Federal Reserve signalled it would wind down its economic stimulus programme, pushing up real interest rates and making gold less attractive.
But the June outflow of $4.7 billion from commodity ETPs was less than May’s $6.3 billion and April’s record of $9.3 billion, according to data from BlackRock, the world’s largest asset manager. Gold ETP outflows at $4.1 billion accounted for most of the June total………………………………………..Full Article: Source

Platinum surges as investors sell off gold and other commodities

Posted on 05 July 2013 by VRS  |  Email |Print

Investors embraced platinum amid a general market inclination to sell commodity based Exchange Traded Products (ETPs) in the second quarter of this year. Commodity ETPs are products that allow investors to ‘bet’ on the price of commodities such as gold. With real interest rates rising and expectations of an early end to quantitative easing (QE) in the US, there was a record decline in ETP commodity assets under management between April and June 2013.
ETP assets dropped by $49 billion to $127 billion, the lowest level since 2010 according to data produced by ETF Securities………………………………………..Full Article: Source

Commodities from gold to oil slump on Fed outlook, China crunch

Posted on 21 June 2013 by VRS  |  Email |Print

Commodities tumbled as everything from gold to crude oil and copper dropped on concern that the Federal Reserve may phase out stimulus and as China’s cash crunch worsened.
The Standard & Poor’s GSCI Index lost 3 percent to 616.46, capping the biggest drop since December 2011. All 24 raw materials tracked by the gauge declined. Gold futures slid below $1,300 an ounce to the lowest in more than 2 1/2 years, and silver plunged as much as 9.7 percent, while nickel touched the lowest price since 2009………………………………………..Full Article: Source

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World crude steel production up 2.6pct in May Y-o-Y

Posted on 21 June 2013 by VRS  |  Email |Print

World crude steel production for the 63 countries reporting to the World Steel Association (worldsteel) was 136 million tonnes (Mt) in May 2013, an increase of 2.6% compared to May 2012.
China’s crude steel production for May 2013 was 67.0 Mt, up by 7.3% compared to May 2012. Elsewhere in Asia, Japan produced 9.6 Mt of crude steel in May 2013, an increase of 4.3% compared to the same month last year. South Korea’s crude steel production was 5.5 Mt in May 2013, down by -7.1% on May 2012………………………………………..Full Article: Source

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Commodity funds mostly in red in gloomy first half year

Posted on 14 June 2013 by VRS  |  Email |Print

Commodity funds with combined assets of about $10 billion are heading for the half-year mark with losses, with some hoping that improving market fundamentals will overpower worries over global growth and stimulus measures in the second half.
The funds, run by some of the most high-profile commodity traders such as Andy Hall, Stephane Nicolas, Chris Levett, Neal Shear and Chris Brodie, have declared negative returns through the first five months of the year, performance data from their investors showed on Thursday………………………………………..Full Article: Source

Investors continue to dump commodity ETPs in May-BlackRock

Posted on 12 June 2013 by VRS  |  Email |Print

A stronger dollar and weaker inflation expectations prompted further redemptions from commodity exchange traded products (ETPs) by investors in May,although the pace slowed from April’s record outflows.
ETPs, whose value is linked to moves in their underlying assets, are seen as an easy route into commodities. Commodity ETPs lost $6.3 billion last month according to data from BlackRock, compared with an unprecedented $9.3 billion in April. This was largely due to a reduction in outflows from gold ETPs, which totalled $5.7 billion in May, compared with $8.7 billion in April………………………………………..Full Article: Source

What’s behind the remarkable growth of DGCX?

Posted on 11 June 2013 by VRS  |  Email |Print

As the Dubai Gold and Commodities Exchange unveils another rise in volumes, Galen Stops looks at what is behind the exchange’s recent success. 2012 was a year that most derivatives exchanges would rather forget. But for the Dubai Gold and Commodities Exchange it was the best year ever as volumes grew 138%.
The Dubai Gold and Commodities Exchange was founded in 2005 and had been growing steadily, if not spectacularly, until the beginning of 2011. That year it more than doubled the 2010 volumes, but with 4m contracts traded for the year, it was still a small exchange………………………………………..Full Article: Source

Commodity investments drop the most in 11 months

Posted on 10 June 2013 by VRS  |  Email |Print

Commodity investments fell $27 billion in April, the most in 11 months, on record sales of gold exchange-traded products, Barclays said. Assets under management dropped to $385 billion from $412 billion in March, the biggest decline since May 2012, London-based Barclays said in a report.
Net redemptions in gold were a record 182 metric tonne worth $8.7 billion in April followed by another 99 tonne in May, it said. The Standard & Poor’s GSCI Total Return Index of 24 raw materials fell 4.7% in April, the biggest drop since May 2012………………………………………..Full Article: Source

India: Gold funds may be hit by RBI’s curbs on imports for domestic use

Posted on 17 May 2013 by VRS  |  Email |Print

Gold exchange traded funds (ETF), among the hottest financial products in recent times, may face a curious problem because of a recent RBI circular which bars the import of gold on a consignment basis for domestic use.
Authorised participants (APs) who create and redeem units backed by gold, and fund houses said this could crimp liquidity in the product and prevent growth of assets under management in quantity terms unless RBI clears the air on the issue………………………………………..Full Article: Source

Commodities revenue at 10 top banks seen down 54pct in 1st Quarter

Posted on 16 May 2013 by VRS  |  Email |Print

Commodities revenue at the 10 largest banks fell 54 percent in the first quarter from a year earlier, according to analytics company Coalition.
Commodities revenue of the top banks in the Coalition index dropped to $1.2 billion from $2.6 billion a year earlier, the London-based Coalition said in an e-mailed report today. Revenue fell 24 percent last year, it said in February…………………………………….Full Article: Source

Wall St commodity slump deepens in Q1, led by Morgan Stanley

Posted on 16 May 2013 by VRS  |  Email |Print

Global investment banks suffered another bruising decline in commodity trading in the first three months of this year, new reports showed on Wednesday, with Morgan Stanley’s revenues collapsing to a quarter of what they were a year ago. Morgan Stanley Q1 commodity revenues fall 77 pct.
While industry heavyweights Goldman Sachs and JPMorgan reported slightly higher revenues year-on-year in detailed quarterly filings made with the SEC in the past week, the overall sector continues to be squeezed by increased regulation, tepid markets, and low levels of client activity…………………………………….Full Article: Source

Scotiabank’s Commodity Price Index posts mild decline in April

Posted on 14 May 2013 by VRS  |  Email |Print

The decline in Scotiabank’s Commodity Price Index in April was quite mild - down 0.2% month-over-month (m/m) - despite a sharp mid-month selloff in gold and talk of an end to the ‘Super-Cycle’ in commodity prices. “Financial market concern over the outlook for commodity markets was overblown mid-month,” said Patricia Mohr, Scotiabank’s Vice President of Economics and Commodity Market Specialist.
“While China’s Gross Domestic Product (GDP) slowed to 7.7% year-over-year (y/y) in 2013:Q1, from 7.9% in 2012:Q4, actual demand for raw materials was robust in China. The double-digit growth of China’s passenger car market, up 20% in Q1, reinforces its importance as a driver of growth in worldwide auto demand and related commodities such as copper.”……………………………………….Full Article: Source

Commodity investors withdrew a record $9.3 bln last month

Posted on 10 May 2013 by VRS  |  Email |Print

Investors withdrew a record $9.3 billion from commodity exchange-traded products as gold sales pushed the metal into a bear market, BlackRock Inc (BLK) said. The outflow for commodities in April pushed the total for the first four months this year to $17.8 billion, compared with inflows of $6 billion for the same period last year, BlackRock said in a report dated April 30.
The previous record for commodity sales was $5.2 billion in February. Gold outflows were an all-time high of $8.7 billion last month as the metal slid to a two-year low in London on April 16, two sessions after falling into a bear market………………………………….Full Article: Source

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