Opalesque Commodities Briefing http://www.opalesque.com/Commodities_Briefing Fri, 29 May 2015 00:38:06 +0000 http://wordpress.org/?v=2.5.1 en India: RBI asks banks to create awareness on hedging agri-commodities http://www.opalesque.com/Commodities_Briefing/?p=136469 http://www.opalesque.com/Commodities_Briefing/?p=136469#comments Fri, 29 May 2015 00:38:06 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136469 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136469>Article Link</a> The Reserve Bank of India (RBI) on Thursday advised banks to create awareness among their borrowers for hedging agricultural commodity price risk. “Banks should encourage hedging by the agri-borrowers by creating awareness amongst them regarding the utility and benefits of hedging through agri-commodity derivatives,” RBI said in a notification to all banks. “This would help to develop strong risk management capabilities to manage agri-commodity price risk,” it added. (more…)

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Oil price: Why further falls may be on the way http://www.opalesque.com/Commodities_Briefing/?p=136468 http://www.opalesque.com/Commodities_Briefing/?p=136468#comments Fri, 29 May 2015 00:37:45 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136468 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136468>Article Link</a> Those hoping for a bit of oil price stability after the past few months’ volatility may be disappointed. Next week’s Organisation of Petroleum Exporting Countries (OPEC) meeting is widely expected to be another case of the cartel sitting on its hands, and maintaining levels of oil production despite historically low oil prices. (more…)

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OPEC says global oil glut to persist till 2017 http://www.opalesque.com/Commodities_Briefing/?p=136467 http://www.opalesque.com/Commodities_Briefing/?p=136467#comments Fri, 29 May 2015 00:37:19 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136467 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136467>Article Link</a> Crude supply from non-OPEC producers will continue growing for another two years, according to an OPEC draft report seen by Reuters. Increased production, mainly shale in North America, is a ‘turning point’ in the restructuring of global markets, it said. (more…)

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OPEC sees rivals boosting oil output despite weak prices http://www.opalesque.com/Commodities_Briefing/?p=136466 http://www.opalesque.com/Commodities_Briefing/?p=136466#comments Fri, 29 May 2015 00:37:02 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136466 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136466>Article Link</a> The North American oil boom is proving resilient despite low oil prices, producer group OPEC said in its biggest and most detailed report this year, suggesting the global oil glut could persist for another two years. A draft report of OPEC’s long-term strategy, seen by Reuters ahead of the cartel’s policy meeting in Vienna next week, forecast crude supply from rival non-OPEC producers would grow at least until 2017. (more…)

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Oil price slump will not stem flow of US oil, says Opec http://www.opalesque.com/Commodities_Briefing/?p=136465 http://www.opalesque.com/Commodities_Briefing/?p=136465#comments Fri, 29 May 2015 00:36:44 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136465 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136465>Article Link</a> Despite almost a year of low oil prices, the world’s biggest producers say that the North American oil boom shows no signs of abating, leading analysts to suggest that the global oversupply of oil could continue for at least another two years. (more…)

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US oil production at 43-year high as OPEC prepares to meet http://www.opalesque.com/Commodities_Briefing/?p=136464 http://www.opalesque.com/Commodities_Briefing/?p=136464#comments Fri, 29 May 2015 00:36:28 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136464 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136464>Article Link</a> U.S. oil production surged to a 43-year high, despite a price war that resulted in a more than 50 percent reduction in active U.S. oil wells. Oil prices saw downward pressure in volatile trade Thursday morning, after the Department of Energy reported a draw down in crude inventories of 2.8 million barrels for the week ended May 22. (more…)

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Gold price to test $1,100/oz imminently – ANZ http://www.opalesque.com/Commodities_Briefing/?p=136463 http://www.opalesque.com/Commodities_Briefing/?p=136463#comments Fri, 29 May 2015 00:36:02 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136463 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136463>Article Link</a> Gold lacks direction at present but could break lower to test $1,100 in the very near term, ANZ said. “The right signals might be just around the corner,” the bank said in a note on Thursday. “To us, a downside break of the $1,180-1,220 per ounce range looks imminent.” (more…)

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The Fix Is In: Gold Price Manipulation is a Global Effort http://www.opalesque.com/Commodities_Briefing/?p=136462 http://www.opalesque.com/Commodities_Briefing/?p=136462#comments Fri, 29 May 2015 00:35:45 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136462 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136462>Article Link</a> Many people think about gold as a percentage of a country’s total reserves. They are surprised to learn that the United States has 70% of its reserves in gold. Meanwhile, China only has about 1% of its reserves in gold. People look at that and think it shows an imbalance. But the way I see it, those are not very meaningful figures. (more…)

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Gold price consolidate as safe haven status wanes http://www.opalesque.com/Commodities_Briefing/?p=136461 http://www.opalesque.com/Commodities_Briefing/?p=136461#comments Fri, 29 May 2015 00:35:28 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136461 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136461>Article Link</a> The gold price was steady on Thursday, as dollar strength continued to cap gains and the yellow metal remained under the psychologically important $1,200 level. Spot gold was last at $1,188.80/1,189.50 per ounce, a $1.10 increase on the previous day’s close, as the metal was content to tread in well-worn ranges. (more…)

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NCDEX launches “Gold Now”- the new national market for Gold http://www.opalesque.com/Commodities_Briefing/?p=136460 http://www.opalesque.com/Commodities_Briefing/?p=136460#comments Fri, 29 May 2015 00:35:11 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136460 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136460>Article Link</a> NCDEX, the leading national commodity exchange, today announced the launch of a new national market for gold. The “Gold Now” platform is the first transparent and convenient online market for buying and selling gold. Aligned with the “Make in India” campaign of the government, the platform will accept gold recycled in exchange-approved refineries as Good Delivery. This is intended to reduce the dependence on imports. (more…)

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Is cobalt the commodity of the future? http://www.opalesque.com/Commodities_Briefing/?p=136459 http://www.opalesque.com/Commodities_Briefing/?p=136459#comments Fri, 29 May 2015 00:34:53 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136459 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136459>Article Link</a> If the vision of Elon Musk comes to fruition, cobalt will become an important commodity for the mining industry in the future. The billionaire genius recently unveiled Powerwall, a home battery that give homeowners the ability to get off the commercial power grid entirely by storing surplus electricity generated from solar panels during the day or from the utility grid when rates are low. (more…)

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Copper, aluminium recover from losses on dollar http://www.opalesque.com/Commodities_Briefing/?p=136458 http://www.opalesque.com/Commodities_Briefing/?p=136458#comments Fri, 29 May 2015 00:34:29 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136458 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136458>Article Link</a> Copper and aluminium recovered from recent losses on Thursday as the dollar weakened against the euro and optimism grew over a Greek debt deal, but some analysts were cautious over whether gains could be sustained due to plentiful supplies. Most other base metals also rebounded from a recent downturn that had been partly due to a stronger dollar, which makes commodities priced in the U.S. currency more expensive to buyers using other currencies. (more…)

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Iron Ore Surges on Declining Stockpiles in China http://www.opalesque.com/Commodities_Briefing/?p=136457 http://www.opalesque.com/Commodities_Briefing/?p=136457#comments Fri, 29 May 2015 00:34:14 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136457 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136457>Article Link</a> The price of iron ore rose to its highest level in nearly three months, as declining stockpiles at China’s major ports sparked concerns about a temporary shortage of the raw material. A benchmark price for iron ore, published by The Steel Index, rose to US$62.60 a metric ton on Wednesday, up 0.8% from Tuesday and its highest level since March 2. The price is up 9% from a week earlier. (more…)

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Mining Sector Still Sluggish http://www.opalesque.com/Commodities_Briefing/?p=136456 http://www.opalesque.com/Commodities_Briefing/?p=136456#comments Fri, 29 May 2015 00:33:53 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136456 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136456>Article Link</a> EY’s Canadian Mining Eye index fell 1% in Q1 2015, compared to a 12% decline in Q4 2014. With a weak global macroeconomic backdrop, most players are working on controlling expenses, as declining grades will put continued pressure on costs. (more…)

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Energy ETF investors are betting oil’s rally is already over http://www.opalesque.com/Commodities_Briefing/?p=136455 http://www.opalesque.com/Commodities_Briefing/?p=136455#comments Fri, 29 May 2015 00:33:21 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136455 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136455>Article Link</a> Investors are cautiously pulling money out of energy producers for the first time in eight months, taking short-term gains after oil rebounded from a six-year low. More than $1.55 billion has been withdrawn this month from exchange-traded funds concentrated on energy stocks such as Exxon Mobil Corp. and Chevron Corp. It’s on pace for the first monthly setback for the group since investors began pouring into the sector in October with an eye toward profiting from an eventual recovery in prices. (more…)

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Energy ETF Investors Grow Wary of Oil Outlook http://www.opalesque.com/Commodities_Briefing/?p=136454 http://www.opalesque.com/Commodities_Briefing/?p=136454#comments Fri, 29 May 2015 00:33:01 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136454 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136454>Article Link</a> Exchange traded fund investors are exiting energy sector bets for the first time in eight months after oil prices rebounded off a six-year low. Investors have yanked over $1.55 billion from energy stocks exchange traded funds, setting up the first monthly outflows from the sector since October, reports Jim Polson for Bloomberg. (more…)

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Hedge Funds Have Taken a Shine to Silver http://www.opalesque.com/Commodities_Briefing/?p=136453 http://www.opalesque.com/Commodities_Briefing/?p=136453#comments Fri, 29 May 2015 00:32:46 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136453 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136453>Article Link</a> Silver prices have remained stuck at historical lows for the past three years, but hedge funds have decided now is the time to pile in. Last week, hedge funds snapped up silver at the fastest pace since 1997, increasing their net long position to a three-month high according to data from Bank of America Merrill Lynch. (more…)

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Stop Calling China a Currency Manipulator http://www.opalesque.com/Commodities_Briefing/?p=136452 http://www.opalesque.com/Commodities_Briefing/?p=136452#comments Fri, 29 May 2015 00:32:27 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136452 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136452>Article Link</a> Christine Lagarde’s people say China’s currency is no longer undervalued. Jacob Lew’s argue it still is. There’s a lot at stake in the debate: The yuan can’t gain status as a global currency reserve if China is thought to be manipulating its value. So who should we believe, the head of the International Monetary Fund or the U.S. Treasury Secretary? (more…)

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Citi Urges UK Government to Create its Own Digital Currency http://www.opalesque.com/Commodities_Briefing/?p=136451 http://www.opalesque.com/Commodities_Briefing/?p=136451#comments Fri, 29 May 2015 00:31:53 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136451 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136451>Article Link</a> Around the same time as Accenture’s call for the UK government to regulate bitcoin wallets, Citi suggested that officials should look into creating their own digital currency. This has been revealed in the Treasury’s release of a document entitled “Digital Currencies: Response to the Call for Information”. (more…)

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California carbon permits fetch $12.29/tonne at auction - state http://www.opalesque.com/Commodities_Briefing/?p=136450 http://www.opalesque.com/Commodities_Briefing/?p=136450#comments Fri, 29 May 2015 00:31:38 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136450 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136450>Article Link</a> California carbon permits covering emissions this year sold for$12.29 a tonne at the cap-and-trade program’s May auction, up 8 cents from what they fetched at the previous auction in February, the program’s regulators said on Thursday. (more…)

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Turn out the lights as commodity spending boom ends http://www.opalesque.com/Commodities_Briefing/?p=136449 http://www.opalesque.com/Commodities_Briefing/?p=136449#comments Thu, 28 May 2015 02:46:34 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136449 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136449>Article Link</a> Australia, one of the engine rooms of the decade-long global commodity boom, is forecasting a staggering 90 per cent plunge in spending on projects, calling time on its biggest resources bonanza since the 1850s gold rush. After a collapse in prices from oil to iron ore, the value of the nation’s approved and financed mining and energy projects is forecast fall to about $15 billion in 2017, from $226 billion at the end of April. (more…)

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SocGen Deal Reflects Commodity Troubles http://www.opalesque.com/Commodities_Briefing/?p=136448 http://www.opalesque.com/Commodities_Briefing/?p=136448#comments Thu, 28 May 2015 02:46:15 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136448 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136448>Article Link</a> Société Générale SA told Jefferies LLC that it’s interested in buying its Bache commodities-trading unit — but only parts of it, Christian Berthelsen and Tatyana Shumsky report. It’s an indication of how unattractive raw-materials trading is amid fewer profits and more regulation. SocGen expects to take more than 300 of Bache’s top clients by revenue, including producers and end users of materials ranging from crude oil to aluminum. (more…)

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Where next for the oil industry? http://www.opalesque.com/Commodities_Briefing/?p=136447 http://www.opalesque.com/Commodities_Briefing/?p=136447#comments Thu, 28 May 2015 02:29:59 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136447 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136447>Article Link</a> Oil companies have had to make dramatic changes to their view of the future following the collapse in the oil price at the end of last year. The surge in US shale oil production and Saudi Arabia’s reluctance to step aside and make room for the extra oil have forced the industry to reassess the viability of their exploration and development efforts. (more…)

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Opec backing Saudi Arabia’s plan to keep supplies elevated http://www.opalesque.com/Commodities_Briefing/?p=136446 http://www.opalesque.com/Commodities_Briefing/?p=136446#comments Thu, 28 May 2015 02:29:35 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136446 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136446>Article Link</a> When Saudi Arabia argues next week that Organisation of Petroleum Exporting Countries (Opec) should keep up production to fight the rise in US shale oil levels, prices will be on its side. (more…)

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OPEC not finished securing market share yet http://www.opalesque.com/Commodities_Briefing/?p=136445 http://www.opalesque.com/Commodities_Briefing/?p=136445#comments Thu, 28 May 2015 02:29:14 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136445 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136445>Article Link</a> Analysts are making their predictions for what OPEC members will do at their semi-annual meeting on June 5 and none of it looks good for U.S. oil companies. OPEC is not exactly a transparent institution and members engage in all kinds of psychological warfare before they meet behind closed doors. But the one thing everyone seems to agree on is that the 12-nation cartel is not going to reduce output. (more…)

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Gold Price Has Bottomed – More Evidence http://www.opalesque.com/Commodities_Briefing/?p=136444 http://www.opalesque.com/Commodities_Briefing/?p=136444#comments Thu, 28 May 2015 02:27:12 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136444 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136444>Article Link</a> Prominent analysts have announced often and persistently that gold will drop to $1,000, $850, and even below $500. Mainstream media, “gold-bashers,” and banks encourage the “gold is going lower” meme. But gold is real money, in contrast to the paper stuff that is valuable only as long as people, businesses, and countries retain confidence that it will devalue, but only slowly. (more…)

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Bullish And Bearish Forces In The Gold Market http://www.opalesque.com/Commodities_Briefing/?p=136443 http://www.opalesque.com/Commodities_Briefing/?p=136443#comments Thu, 28 May 2015 02:26:55 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136443 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136443>Article Link</a> The price of gold has gone nowhere in the last two years and has created a 2-year basing pattern. That is constructive for gold prices as the stronger the base, the stronger the next trend. But a trendless market also indicates a battle between bullish and bearish forces. (more…)

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Gold Has Two Major Hurdles to Overcome http://www.opalesque.com/Commodities_Briefing/?p=136442 http://www.opalesque.com/Commodities_Briefing/?p=136442#comments Thu, 28 May 2015 02:26:39 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136442 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136442>Article Link</a> Gold has 2 major hurdles to overcome and they are as follows: 1. Interest rate rises in the US. 2. Money printing by other nations, Japan, UK, Europe, etc. Both support the US$ and put downward pressure on gold. The specter of interest rate increases in the US hangs over the precious metals sector like the Sword of Damocles. (more…)

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Gold is Poised to Move Lower Than Its $1,200 level http://www.opalesque.com/Commodities_Briefing/?p=136441 http://www.opalesque.com/Commodities_Briefing/?p=136441#comments Thu, 28 May 2015 02:26:21 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136441 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136441>Article Link</a> Gold had a rough start to the week as the yellow metal dulled when it fell below the key $1,200 level, due to the strength of the U.S. dollar. For most of 2015, gold has been trading around $1,200 as it struggles to find its footing amid speculation over interest rate hikes that is causing gyrations in the markets. (more…)

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Copper hits month low on China, supply rise hits aluminium http://www.opalesque.com/Commodities_Briefing/?p=136440 http://www.opalesque.com/Commodities_Briefing/?p=136440#comments Thu, 28 May 2015 02:26:00 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136440 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136440>Article Link</a> Copper hit a one-month low on Wednesday due to concerns about the economic outlook for big metals consumer China, while aluminium fell to its lowest in a year on rising production. Aluminium is in oversupply with a huge stock overhang, and output has continued to rise this year, with the latest industry figures showing daily average production rising to 68,500 tonnes in April. (more…)

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World Steel Demand to continue expansion http://www.opalesque.com/Commodities_Briefing/?p=136439 http://www.opalesque.com/Commodities_Briefing/?p=136439#comments Thu, 28 May 2015 02:25:43 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136439 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136439>Article Link</a> After five years of strong growth in demand, 2014 saw the world steel sector enter turbulent times. What can we expect in the next five years…? MEPS expects that 2015 will be a year in which global steel supply and demand turn negative. This situation is likely to develop as a result of weakening steel requirements and oversupply in some of the main consuming markets around the world - including, China, United States, Japan, Russia and Brazil. (more…)

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Iron ore forecast cut 32% by Citigroup as demand to drop http://www.opalesque.com/Commodities_Briefing/?p=136438 http://www.opalesque.com/Commodities_Briefing/?p=136438#comments Thu, 28 May 2015 02:25:27 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136438 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136438>Article Link</a> Global iron ore demand will contract over the 2020s as steel consumption growth in China peaks, according to Citigroup, which reduced its long-run price forecast for the raw material by 32 percent. The long-run estimate was cut to $55 a metric ton from $81 as the world’s major mining companies added more cheap supply, analysts including Ivan Szpakowski wrote in a report on Wednesday. From 2016 to 2018, prices may average $40, it said. (more…)

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No point in top iron ore miners cutting supply: Goldman http://www.opalesque.com/Commodities_Briefing/?p=136437 http://www.opalesque.com/Commodities_Briefing/?p=136437#comments Thu, 28 May 2015 02:24:58 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136437 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136437>Article Link</a> The world’s largest iron ore producers are moving in the right direction by continuing to increase output even as demand cooled in top consumer China, sending prices tumbling and leaving smaller, high-cost producers struggling to survive. That seems to be the main conclusion of experts from Goldman Sachs Group, which wrote in a report Wednesday that “efforts to support prices via voluntary production cuts would be counter-productive,” as quoted by Bloomberg. (more…)

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Iron ore rebounds but outlook remains grim http://www.opalesque.com/Commodities_Briefing/?p=136436 http://www.opalesque.com/Commodities_Briefing/?p=136436#comments Thu, 28 May 2015 02:24:37 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136436 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136436>Article Link</a> A recent rebound in iron ore prices has done nothing to sway the downbeat outlook from forecasters, with Atlas Iron declaring lower price assumptions will see it write $130 million to $160 million off the value of development assets, and Citi slashing its long-term forecast to $US55 a tonne. (more…)

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Chinese Hedge Funds Turn Bearish on Copper http://www.opalesque.com/Commodities_Briefing/?p=136435 http://www.opalesque.com/Commodities_Briefing/?p=136435#comments Thu, 28 May 2015 02:24:16 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136435 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136435>Article Link</a> Gains of as much as 20 percent since January haven’t convinced Chinese hedge funds that demand for copper is improving in the world’s biggest-consuming country. “The outlook for China’s demand will be worse, not better,” said Shen Haihua, a senior portfolio manager at Hong Kong-based HFZ Capital Management, a joint venture of U.K. hedge fund Red Kite Management Ltd. and Maike Metals International, a Chinese metals trader. HFZ Capital says demand will weaken in the second half of the year. (more…)

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Energy ETFs a Riskier Bet Last Week Than Commodity ETFs http://www.opalesque.com/Commodities_Briefing/?p=136434 http://www.opalesque.com/Commodities_Briefing/?p=136434#comments Thu, 28 May 2015 02:24:00 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136434 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136434>Article Link</a> As we saw in the previous part, WTI (West Texas Intermediate) oil futures gained 0.05% last week. While retail investors don’t have easy access to the futures market, they can benefit from access to safer, low-cost avenues to bet on WTI crude prices. The first avenue is energy ETFs such as the United States Oil Fund (USO), an ETF that tracks prompt WTI crude oil futures. Shares of USO trade on the NYSE (New York Stock Exchange) like company stock. The fund lost 1.3% last week. (more…)

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5 Factors to Consider Before Investing in an ETF http://www.opalesque.com/Commodities_Briefing/?p=136433 http://www.opalesque.com/Commodities_Briefing/?p=136433#comments Thu, 28 May 2015 02:23:44 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136433 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136433>Article Link</a> There are now over 1,600 exchange-traded products available to investors, and total assets are quickly approaching $2 trillion. Traditionally, the primary way an investor could get access to a diversified portfolio of stocks was through a mutual fund. But today, many of these investment products mirror the overall market, providing very little differentiation. Good managers are hard to come by. (more…)

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Currency hedging: Does it still work? http://www.opalesque.com/Commodities_Briefing/?p=136432 http://www.opalesque.com/Commodities_Briefing/?p=136432#comments Thu, 28 May 2015 02:23:30 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136432 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136432>Article Link</a> Hedging the euro and the yen has amplified returns for Japan and Europe investors in recent years, but will the trend continue? Over most timeframes, UK investors in Japan and Europe who have hedged the yen and euro have reaped stronger returns. (more…)

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Russia’s Currency Splash Has Economists Saying Ruble Rally Tamed http://www.opalesque.com/Commodities_Briefing/?p=136431 http://www.opalesque.com/Commodities_Briefing/?p=136431#comments Thu, 28 May 2015 02:23:12 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136431 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136431>Article Link</a> Foreign-currency purchases by Russia’s central bank will put a stop to the ruble’s world-beating rally, according to a Bloomberg survey of economists. Buying as much as $200 million a day to replenish reserves will halt gains in the ruble, 19 of 28 economists said. While reserves may swell to $380 billion this year, they’ll stay below the level they were when Russia annexed Crimea last March, a median of 25 estimates showed. (more…)

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Renminbi tops currency usage table for China’s trade with Asia http://www.opalesque.com/Commodities_Briefing/?p=136430 http://www.opalesque.com/Commodities_Briefing/?p=136430#comments Thu, 28 May 2015 02:22:57 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136430 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136430>Article Link</a> China’s renminbi has become the main currency for payments between China and the rest of the Asia-Pacific region, more than tripling in use over the past three years and outstripping the Japanese yen, the US dollar and the Hong Kong dollar in the process, according to data from the clearing system, Swift. (more…)

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Carbon tax or trade? Debate loses steam as world embraces both http://www.opalesque.com/Commodities_Briefing/?p=136429 http://www.opalesque.com/Commodities_Briefing/?p=136429#comments Thu, 28 May 2015 02:22:37 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136429 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136429>Article Link</a> Tax versus trade is an issue that has stalked the EU Emissions Trading System (ETS) over its 10 years of existence, but is fading in importance as the world moves towards increased use of both methods of cutting greenhouse gas pollution. (more…)

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China readies carbon markets in climate struggle http://www.opalesque.com/Commodities_Briefing/?p=136428 http://www.opalesque.com/Commodities_Briefing/?p=136428#comments Thu, 28 May 2015 02:22:19 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136428 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136428>Article Link</a> At first, the numbers and company names flashing on a big board in Beijing’s financial district suggest a booming market. A closer look indicates otherwise: The scrolling list rotates the same dozen or so trades, all from last year. (more…)

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Carbon pricing schemes climb to $50bn, despite Australian backtracking http://www.opalesque.com/Commodities_Briefing/?p=136427 http://www.opalesque.com/Commodities_Briefing/?p=136427#comments Thu, 28 May 2015 02:21:55 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136427 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136427>Article Link</a> The value of carbon pricing schemes rose to $50 billion in 2015, according to a new assessment by the World Bank. It outlines its findings in the latest edition of Carbon Pricing Watch, which examines the state of the world’s carbon markets in advance of its more detailed report due later this year. (more…)

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Commodities’ Biggest Drop of 2015 Underscores Goldman Bear View http://www.opalesque.com/Commodities_Briefing/?p=136426 http://www.opalesque.com/Commodities_Briefing/?p=136426#comments Tue, 26 May 2015 23:43:13 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136426 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136426>Article Link</a> Commodities fell, heading for the biggest two-day selloff since November, as speculation over rising U.S. interest rates fueled a rally in the dollar. The Bloomberg Commodity Index slid 1.9 percent as of 1:20 p.m. in New York, led by losses in wheat, natural gas and crude oil. The U.S. currency strengthened versus all 16 of its major peers. (more…)

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Dollar rise hits commodity prices http://www.opalesque.com/Commodities_Briefing/?p=136425 http://www.opalesque.com/Commodities_Briefing/?p=136425#comments Tue, 26 May 2015 23:42:43 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136425 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136425>Article Link</a> Commodity prices felt the impact of a jump in the dollar to a four-week high, with oil, gold and wheat prices leading the decline. ICE July Brent, the international oil marker, fell more than 2.5 per cent to a low for the month below $64 a barrel. Gold fell almost 2 per cent to a two-week low of $1,185.35 a troy ounce, while CBOT July wheat fell more than 3 per cent. (more…)

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Financial markets undercut commodities http://www.opalesque.com/Commodities_Briefing/?p=136424 http://www.opalesque.com/Commodities_Briefing/?p=136424#comments Tue, 26 May 2015 23:42:17 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136424 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136424>Article Link</a> Financial markets are undercutting commodities. Renewed concerns about European Monetary Union and the euro have surged again this week, thereby spurring big U.S. dollar gains and sending stock indexes lower. Both of those reactions are seen as negative for commodity demand, which is probably a big reason corn futures fell this morning. (more…)

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Oil Price Hurt by Dollar Strength http://www.opalesque.com/Commodities_Briefing/?p=136423 http://www.opalesque.com/Commodities_Briefing/?p=136423#comments Tue, 26 May 2015 23:41:48 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136423 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136423>Article Link</a> Oil prices slipped Tuesday on a stronger dollar and concerns that the recent rally in oil prices could spark an increase in production. Oil prices have climbed sharply since hitting six-year lows in March on expectations that cutbacks in oil drilling would lead to a decline in U.S. production, shrinking the global glut of oil. However, the market remains oversupplied, and some analysts warn that at these price levels, U.S. producers can profitably keep drilling. (more…)

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Iraq About to Flood Oil Market in New Front of OPEC Price War http://www.opalesque.com/Commodities_Briefing/?p=136422 http://www.opalesque.com/Commodities_Briefing/?p=136422#comments Tue, 26 May 2015 23:41:20 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136422 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136422>Article Link</a> Iraq is taking OPEC’s strategy to defend its share of the global oil market to a new level. The nation plans to boost crude exports by about 26 percent to a record 3.75 million barrels a day next month, according to shipping programs, signaling an escalation of OPEC strategy to undercut U.S. shale drillers in the current market rout. (more…)

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Saudi Arabia rewrites its oil game with refining might http://www.opalesque.com/Commodities_Briefing/?p=136421 http://www.opalesque.com/Commodities_Briefing/?p=136421#comments Tue, 26 May 2015 23:40:56 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136421 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136421>Article Link</a> Saudi Arabia’s rapid transition into one of the world’s largest oil refiners adds an extra dimension to the oil exporter’s role as the driver of OPEC policy. When it attends OPEC’s next meeting in two weeks, it does so with major new state-of-the-art oil refineries that can profit from cheaper crude and reviving world fuel demand - exactly as international oil firms have over the past six months. (more…)

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Non-OPEC production growth reduced by over 2 MMbopd towards 2020 http://www.opalesque.com/Commodities_Briefing/?p=136420 http://www.opalesque.com/Commodities_Briefing/?p=136420#comments Tue, 26 May 2015 23:40:30 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136420 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136420>Article Link</a> Non-OPEC liquids growth potential of 5.5 MMbopd over the next five years has been reduced by over 2 MMbopd to 3.3 MMbopd, according to Rystad Energy’s most recent forecasts. Latest oil field research shows investments in oil and gas production are estimated to drop 20% in 2015 compared to 2014. Outside OPEC, $200 billion in yearly capex is considered to be axed over a two-year period. (more…)

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Gold price back under $1,200/oz as dollar strength weighs http://www.opalesque.com/Commodities_Briefing/?p=136419 http://www.opalesque.com/Commodities_Briefing/?p=136419#comments Tue, 26 May 2015 23:39:53 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136419 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136419>Article Link</a> The gold price dropped under $1,200 per ounce during early Tuesday sessions as the yellow metal came under pressure from a stronger dollar following comments from the US Fed chair at the end of last week. On Friday, US Fed chair Janet Yellen said that despite mixed signs on the US economy, she expected to go through with an interest rate hike this year – with many in the market predicting a September date. (more…)

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The truth about gold prices http://www.opalesque.com/Commodities_Briefing/?p=136418 http://www.opalesque.com/Commodities_Briefing/?p=136418#comments Tue, 26 May 2015 23:39:18 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136418 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136418>Article Link</a> Boris Gerjovič, from Maribor, Slovenia, accomplished a thorough examination of the real impact of interest rates on the price of gold. The results may surprise you. For quite some time, central banks around the globe — first and foremost the Federal Reserve System — are tinkering with the threat of a hike in interest rates, whereas the prompt result is a ‘Damocles Sword’ hovering above the markets, especially gold (higher US interest rates are generally believed to lead to a higher US dollar impacting the price of gold in US dollar negatively). (more…)

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When Is the Best Time to Buy Gold? http://www.opalesque.com/Commodities_Briefing/?p=136417 http://www.opalesque.com/Commodities_Briefing/?p=136417#comments Tue, 26 May 2015 23:38:31 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136417 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136417>Article Link</a> Call it superstitious, call it good marketing, or call it tradition, writes Adrian Ash at BullionVault. But where India has Akshaya Tritiya in spring and Diwali in autumn, China then has Lunar New Year – the most ‘auspicious’ time of year for people to buy gold. (more…)

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Silver Is Shaping Up To Be The Best Precious Metal Play Of The Decade http://www.opalesque.com/Commodities_Briefing/?p=136416 http://www.opalesque.com/Commodities_Briefing/?p=136416#comments Tue, 26 May 2015 23:38:15 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136416 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136416>Article Link</a> Despite being caught in a long-term bear market, silver offers considerable long-term potential upside. The gold-to-silver ratio indicates that silver is significantly undervalued in comparison to gold. (more…)

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Aluminum market eyes SHFE, LME arbitrage as support for premiums http://www.opalesque.com/Commodities_Briefing/?p=136415 http://www.opalesque.com/Commodities_Briefing/?p=136415#comments Tue, 26 May 2015 23:37:57 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136415 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136415>Article Link</a> Some traders in Asia are closely monitoring the spread between Shanghai Futures Exchange and London Metal Exchange aluminum contract prices, as a wider spread may see more of the metal head to China. Front-month SHFE June aluminum traded at Yuan 13,150-Yuan 13,160 ($2,152-$2,153)/mt Tuesday, while the most recent LME settlement on May 22 was $1,726/mt. (more…)

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Is US Steel Consumption Headed for a Slowdown? http://www.opalesque.com/Commodities_Briefing/?p=136414 http://www.opalesque.com/Commodities_Briefing/?p=136414#comments Tue, 26 May 2015 23:37:06 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136414 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136414>Article Link</a> As per the World Steel Association (or WSA), US (SPY) steel consumption grew at 11.7% last year. US steel demand grew at the fastest pace among the major steel-consuming countries. However, for this year, the WSA expects US steel consumption to decline 0.4% over the previous year. Demand slowdown from the energy sector, which accounts for almost 10% of US steel consumption, is the prime reason behind the slowdown in steel demand. (more…)

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China’s bid to lock in cheap iron ore http://www.opalesque.com/Commodities_Briefing/?p=136413 http://www.opalesque.com/Commodities_Briefing/?p=136413#comments Tue, 26 May 2015 23:36:49 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136413 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136413>Article Link</a> With iron ore prices still at multi-year lows, a reported interest by China’s biggest steelmaker for indebted Australian iron ore miner Fortescue Metals makes business sense for both parties, depending on how much the deal is worth, analysts say. “It’s logical that Baosteel would try to secure future supply,” Patersons Securities’ director of research Robert Brierley told CNBC. But “I doubt Andrew (Forrest, Fortescue Group’s chairman) would sell at these prices,” he said. (more…)

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China’s new $16bn gold fund at centre of new ‘Silk Road’ http://www.opalesque.com/Commodities_Briefing/?p=136412 http://www.opalesque.com/Commodities_Briefing/?p=136412#comments Tue, 26 May 2015 23:36:31 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136412 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136412>Article Link</a> Gold prices could be boosted by China’s plan to establish a $16bn (£10bn) fund to stockpile the precious metal as part of a scheme known as the ‘Silk Road’ initiative aimed at boosting trade. State endorsed media in China has reported that the new fund Shandong Gold Group and Shaanxi Gold Group will each take stakes of 35pc and 25pc respectively in the new fund alongside other investors. (more…)

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ANZ to launch 6 ETFs in Australia’s USD15bn market http://www.opalesque.com/Commodities_Briefing/?p=136411 http://www.opalesque.com/Commodities_Briefing/?p=136411#comments Tue, 26 May 2015 23:35:57 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136411 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136411>Article Link</a> ANZ Banking Group, the third largest bank by market capitalisation in Australia, is launching six exchange traded funds linked to currency, gold and equities as it embarks on its first venture into the domestic ETF market that is now valued at AUD18bn (USD14.1bn). (more…)

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Invest In These ETFs To Tap Into Cross-Border Merger Boom http://www.opalesque.com/Commodities_Briefing/?p=136410 http://www.opalesque.com/Commodities_Briefing/?p=136410#comments Tue, 26 May 2015 23:35:41 +0000 VRS http://www.opalesque.com/Commodities_Briefing/?p=136410 <br> <a href=http://www.opalesque.com/Commodities_Briefing/?p=136410>Article Link</a> A cross-border merger boom is boosting ETFs holding Catamaran, Dresser-Rand and other pharma and energy companies that are hot takeover targets. Merger-arbitrage exchange traded funds profit from the difference between a stock’s price when a deal is announced and its final purchase price. Typically, that’s an upward move. (more…)

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