Opalesque Commodities Briefing

Cotton closes at highest price since 1995

VRS — Fri, 03 Sep 2010 02:48:33 +0000

From Bloomberg: Cotton futures rose, closing at the highest price since 1995, on concern that supplies will trail rising demand from Asia. (more…)

Cotton demand-supply to achieve parity in 2011

VRS — Fri, 03 Sep 2010 02:48:14 +0000

From Commodityonline.com: World cotton production and consumption are forecast to roughly balance at 25.1 million tons in 2010/11, as a result of a 15% rebound in production and a 2% increase in mill use,according to International Cotton Advisory Committee. World ending stocks are expected to remain at 9.1 million tons, while the ratio of ending stocks to mill use could decrease from 37% to 36%, the lowest since 1989/90. The tightening of stocks available for mill use has pushed cotton prices higher……………………………………….Full Article: Source

The gold debate: Will gold be as good going forward

VRS — Fri, 03 Sep 2010 02:47:58 +0000

From Mineweb.co.za: Gold bugs have spent the last ten years in the sun but, in relative terms the price of gold is rather expensive now, how much higher can it go? Gold has given you roughly four times the return of bonds, and you would have almost five times as much money today if you invested in gold ten years ago rather than in stocks. Clearly, gold has been a fantastic investment over the last ten years………………………………………Full Article: Source

How to trade the gold/silver spread

VRS — Fri, 03 Sep 2010 02:47:34 +0000

From Hardassetsinvestor.com: A spread consists of two or more related futures positions. Note the word “related” here. In order for a spread to be recognized for margin purposes—more on that in a moment—there has to be an economic connection between its constituents. Plainly, gold and silver are fellow-traveling precious metals, but formal recognition of the spread by the exchange clearinghouse is required to derive the spread’s benefits……………………………………….Full Article: Source

Gold gains on investment purchases, may ‘struggle’ for record

VRS — Fri, 03 Sep 2010 02:46:57 +0000

From Bloomberg: Gold gained in London on signs of increased demand from investors seeking to protect their wealth. The price for immediate-delivery bullion touched $1,254.73 an ounce yesterday, the highest level since June 28 and within 1 percent of the all-time high. Gold holdings in 10 exchange- traded products tracked by Bloomberg advanced yesterday to a record……………………………………….Full Article: Source

Optimism over China demand bolsters copper

VRS — Fri, 03 Sep 2010 02:46:29 +0000

From Ninemsn.com.au: Copper rose to a four-month high on Thursday as optimism about Chinese demand buoyed the industrial metals markets amid tightening physical supplies. The red metal’s sensitivity to the strength of the global economy has earned it the nickname Dr Copper and its rise to within $400 of a two-year high is seen by some as evidence that fears of a double-dip recession are overdone……………………………………….Full Article: Source

US pending home sales data helps copper prices

VRS — Fri, 03 Sep 2010 02:46:07 +0000

From Metalmarkets.org.uk: The price of copper was up Thursday after the National Association of Realtors reported that pending home sales were unexpectedly higher in July, adding 5.2 percent to give a boost to the metal that is used extensively in construction. December contracts for copper added 3 cents to $3.50 per pound in New York trade, while three-month contracts for the metal were $29 higher to $7,635 per tonne on the London Metal Exchange……………………………………….Full Article: Source

Ernst & Young reckons mining and metals deal making to accelerate

VRS — Fri, 03 Sep 2010 02:45:53 +0000

From Mineweb.co.za: Ernst & Young’s Global Mining & Metals Leader, Mike Elliott, says the volume of completed deals in the mining and metals sector during first half of 2010 is up 20% to 544 on the same period last year, while deal value is up 46% to US$40.6 billion. “Transactions activity began to really pick up in late 2009 and has continued to gather momentum,” says Elliott……………………………………….Full Article: Source

Russian government rethinks energy policies

VRS — Fri, 03 Sep 2010 02:45:38 +0000

From Telegraph: An economic crisis and an oil spill have shown the Russian government the benefits of green technologies, but tax breaks and other policy incentives await approval. As BP’s share price collapses on the back of environmental disaster in the Gulf of Mexico, Russian companies are learning that going clean could bring in the green……………………………………….Full Article: Source

UN emissions offset spread trades near record on HFC review

VRS — Fri, 03 Sep 2010 02:45:21 +0000

From Bloomberg: The premium of United Nations emissions offsets for this year to those for 2011 traded near a record as the regulator reviews the way it awards emission credits tied to hydrofluorocarbons, or HFCs. The spread between the two so-called certified emissions reductions, traded as a separate contract, advanced 1 cent, or 1.6 percent, to 64 euro cents (82 cents) a metric ton as of 12:10 p.m. on London’s European Climate Exchange……………………………………….Full Article: Source

EU: Emissions impossible?

VRS — Fri, 03 Sep 2010 02:45:07 +0000

From Europeanvoice.com: UN scheme under fire for lack of effectiveness, while Commission seeks to protect emissions scheme. Pollution trading was not invented in Europe, but it has become as much a part of EU political life as farm subsidies and summits. The emissions trading system (ETS) is the EU’s flagship policy to cut industrial greenhouse gases, the nucleus – in the European Commission’s dreams – of a global cap-and-trade system……………………………………….Full Article: Source

Commodities investing: A key misunderstanding

VRS — Fri, 03 Sep 2010 02:44:52 +0000

From Seekingalpha.com: A significant portion of investing wealth has flowed into commodities funds in recent years as investors sought greater and greater returns. Anyone who invested in equities during the recent decade’s run up in oil prices had to be coveting the large returns they were seeing over in the commodities space. However, commodities investing is significantly different that investing in equities, and not all investors understand this……………………………………….Full Article: Source

Increase your income with commodities

VRS — Fri, 03 Sep 2010 02:44:24 +0000

From Investopedia.com: When investors add a commodities component to a portfolio, they generally do so for capital gains exposure. Commodities are seen as the perfect way to add inflation protection. After all, inflation hits most of us in the food we eat and energy we consume. Exchange-traded funds such as the Energy Select Sector SPDR or PowerShares DB Commodity Index Tracking make perfect portfolio additions for that purpose. However, from an income perspective, both ETFs fall flat……………………………………….Full Article: Source

Market trends: ETNs and specialty ETFs

VRS — Fri, 03 Sep 2010 02:44:10 +0000

From Optionetics.com: Exchange traded securities come in a variety of types offering equity traders and investors with an opportunity to participate in the other financial markets. Of course with opportunity comes risk and a key aspect to managing that risk is by first understanding it. This allows the individual to take measured risk and determine for themselves whether the security is the best vehicle to meet their objectives……………………………………….Full Article: Source

Up to 5 prop metals traders leave JPMorgan

VRS — Fri, 03 Sep 2010 02:43:59 +0000

From Reuters: Up to five JPMorgan proprietary metals traders in London left the company this week, including former Sempra trader Tim Jones, industry sources said on Thursday. Earlier in the week, the bank told proprietary commodity traders — who bet on commodities with the bank’s own money — that their desk would shut down to comply with new U.S. banking laws……………………………………….Full Article: Source

Why JPMorgan is exiting prop trading

VRS — Fri, 03 Sep 2010 02:43:44 +0000

From Fiercefinance.com: The decision by JPMorgan CEO Jamie Dimon to exit proprietary trading has been attributed to Dodd-Frank, in particular the Volcker Rule. But you have to wonder if the bank was considering a drastic scale back anyhow. Some huge prop trading losses may have left a sour taste in the mouth of Dimon, who doesn’t hail from a trading tradition. Recall that back in April, a JPMorgan commodities trader named Chan Bhima lost $130 million due to ill-timed wagers on European coal prices. A massive surge in prices [...]

Galtere targets $1bln for private equity commodities plan

VRS — Fri, 03 Sep 2010 02:43:26 +0000

From Efinancialnews.com: Galtere, a hedge fund that specialises in commodities, has pledged to double its assets under management to $2bn through a push into private equity. It has launched an agribusiness strategy to make direct investments in industrial scale commodity production facilities in Brazil, Uruguay and Australia. It is aiming to raise $1bn of assets from institutions, endowments and family offices……………………………………….Full Article: Source

NZ to enter dairy futures trading

VRS — Fri, 03 Sep 2010 02:43:06 +0000

From Smh.com.au: Significant price lifts in Fonterra’s internet auction of commodity milkpowders have set the scene for the start of NZX trading in global dairy futures contracts. Dairy futures trading has previously been tried with little success in the United States, but the New Zealand-based futures will be will only be traded in cash, won’t be deliverable, and will be for whole milkpowder (WMP)………………………………………Full Article: Source

MCX may offer co-location facility

VRS — Fri, 03 Sep 2010 02:42:52 +0000

From Business-standard.com: If implemented, it will be the first commodity exchange to offer such a facility. The Multi Commodity Exchange (MCX) plans to offer co-location facility to its broker members, which will allow them to host servers near the exchange’s trading platform, facilitating faster trades. This was the first time a leading commodity exchange had shown an interest in offering co-location to its members in India, vendors familiar with the matter said. The MCX has over 85 per cent share of the commodity futures market. However, the plan is [...]

India: It’s time to end Dabba trading

VRS — Fri, 03 Sep 2010 02:42:38 +0000

From Rediff.com: A parallel system of futures trading in commodities, operating outside recognised commodity exchanges, better known by its colloquial epithet Dabba, has been thriving unchecked and is believed to be now generating bigger trading volumes than the regular exchanges. This is chiefly because curbing this mode of trading is proving difficult under existing rules governing commodity futures. The Forward Markets Commission (FMC), the main regulator of this sector, in its present avatar does not have adequate powers to directly intervene in Dabba trading……………………………………….Full Article: Source

Global crisis drives investors to forex markets

VRS — Fri, 03 Sep 2010 02:42:19 +0000

From AFP: The global economic crisis has driven investors to the forex markets where turnover has soared to a staggering four trillion dollars a day — equal to what Germany produces in a year. Overall, daily global foreign exchange market turnover grew 20 percent to some four trillion dollars by April 2010 from 3.3 trillion dollars three years earlier, according to a Bank of International Settlements’ report……………………………………….Full Article: Source

Currency trading rises 20 pct from 2007

VRS — Fri, 03 Sep 2010 02:42:04 +0000

From Ctv.ca: In the past three years commodity currencies like the Canadian and Australian dollars have become increasingly popular and the greenback’s dominance of trading volume has slipped, according to the most recent Central Bank Survey put out by the Bank for International Settlements. The triennial report found that, over all, average global foreign exchange volumes totalled $4-trillion (U.S.) in April, 2010 – 20 per cent higher than the $3.3-trillion posted three years ago……………………………………….Full Article: Source

Trading in emerging/exotic currencies increases

VRS — Fri, 03 Sep 2010 02:41:44 +0000

From Favstocks.com: The long wait is over! The Bank of International Settlements (BIS) has just released the results from its Triennial Central Bank Survey of Foreign Exchange and Derivatives Market Activity, conducted in April 2010. The report contains a veritable treasure trove of data, perhaps enough to keep analysts busy until the next report is released in 2013. First, the data confirmed earlier reports that average daily forex volume had surged to a record level in 2010: “Global foreign exchange market turnover was 20% higher in April [...]

Global currency trading jumps 20pct in three years

VRS — Thu, 02 Sep 2010 03:56:00 +0000

From BBC: A three-year report into currency dealing shows rapid growth in trading, with the majority of business happening in London. Trade has jumped by 20% in the three years since the last survey was conducted by the Bank for International Settlements (BIS), which is sometimes called the “central bankers’ bank”. But London outpaced the average, with turnover up by 25% over the period……………………………………….Full Article: Source

Trend strategy is biggest winner in $4 trillion currency market

VRS — Thu, 02 Sep 2010 03:55:44 +0000

From Bloomberg: Investors who follow trends are reaping the biggest gains in the foreign-exchange market this year as a 11 percent slide in the euro and the surge in the yen against the dollar provide the most profitable returns. Royal Bank of Scotland Group Plc indexes that track the performance of four of the most popular currency strategies show that the so-called trend style was the best-performing method, returning 7.3 percent this year through August. The biggest loser was the volatility strategy, which is down 5.9 percent……………………………………….Full Article: Source

Currency exchange: Don’t be swept away by the currency wave

VRS — Thu, 02 Sep 2010 03:55:29 +0000

From Telegraph: The exchange rate on foreign currencies has been bouncing around wildly over the past 12 months, making it extremely difficult to time any significant conversion of sterling. Timing is particularly important if you are moving a large amount to make a major purchase, such as buying a property abroad, as currency fluctuations can end up costing you many thousands, if the markets move against you……………………………………….Full Article: Source

A brave new world in currencies?

VRS — Thu, 02 Sep 2010 03:55:12 +0000

From WSJ: Foreign exchange: the market of the people. A new army of have-a-go retail traders and hi-tech funds have transformed this business. It is no longer the plaything of a clique of banks. Instead, it is a truly broad, global market, bigger than ever before and growing fast. The Bank for International Settlements says it’s true, so it must be. Right? Well, kind of……………………………………….Full Article: Source

Financial crisis boosts London’s dominance in global currency trading

VRS — Thu, 02 Sep 2010 03:55:00 +0000

From Telegraph: London, the world’s leading centre for foreign exchange, increased its dominance of currency trading during the worst financial crisis since the Great Depression. The average daily turnover in the City this year was $1.85 trillion (£1.2 trillion) - or 37pc of global turnover, according to a three-year report into currency dealing by the Bank of International Settlements……………………………………….Full Article: Source

China slams allegations of exchange rate subsidies

VRS — Thu, 02 Sep 2010 03:54:47 +0000

From AFP: China dismissed allegations by US producers over its exchange rate as “groundless” on Wednesday, as Washington said there was no evidence that the undervalued yuan constituted a state subsidy. The US Commerce Department said Tuesday it found insufficient evidence to probe allegations that China’s undervalued currency is the equivalent of a state subsidy to its manufacturers……………………………………….Full Article: Source

China slowdown seen hitting global commodity markets

VRS — Thu, 02 Sep 2010 03:54:32 +0000

From Metalbulletin.com: International commodity markets are being affected by a combination of near-term slowdown in China and lackluster industrial production in the United States and other developed countries, mining equipment manufacturer Joy Global Inc. said. China’s steel output is expected to fall 4 to 6 percent in the second half after rising 18 percent in the first half, Mike Sutherlin, president and chief executive officer, said in his outlook discussion as the company reported earnings for its fiscal third-quarter ended July 30……………………………………….Full Article: Source

China, India & the copper bull

VRS — Thu, 02 Sep 2010 03:54:17 +0000

From Resourceinvestor.com: China, and to a lesser extent India and other developing nations, are responsible for the largest and longest base metals bull market the world has ever experienced. Many fear the bull market for natural resources is over when in fact nothing could be further from the truth. This seems especially true, because of the supply/demand picture, regarding copper……………………………………….Full Article: Source

Gold in August a record monthly high

VRS — Thu, 02 Sep 2010 03:53:56 +0000

From Resourceinvestor.com: After yesterday’s 1% rise, gold traded sideways in Asia but has risen again in early European trading as the dollar has fallen and oil risen after yesterday’s sharp falls. Gold has risen in dollars, pounds, yen and Swiss francs which are all weaker today but is slightly weaker against the euro and commodity currencies. Gold was up 5.6% in August thereby regaining the 5% losses seen in July……………………………………….Full Article: Source

God may retain its superior edge

VRS — Thu, 02 Sep 2010 03:53:42 +0000

From Indiatimes.com: Among various asset classes, gold has enjoyed a bull run during the past decade, given the strong perception of it being a hedge against inflation and an economic downturn. However, gold can be vulnerable to perpetual selling, going forward. This is because most of the demand at present is on account of investment and speculation and not for jewellery and industrial purposes. Meanwhile, analysts reckon that talks of an asset bubble in gold are premature, considering that the economic recovery in the West still remains fragile [...]

Gold price to double in five years - Frank Holmes

VRS — Thu, 02 Sep 2010 03:53:26 +0000

From Mineweb.co.za: Historically, September is a very good month for gold. On average, the price of the yellow metal rises around 2.5% from its August price. But, according to Frank Holmes, it is not just during September that gold will do well, he is expecting the yellow metal to double in the next five years……………………………………….Full Article: Source

Have silver and gold fallen from favor?

VRS — Thu, 02 Sep 2010 03:53:13 +0000

From Resourceinvestor.com: It seems many main stream commentators from the financial channels have abandoned the precious. Rather than beating the drum that gold is over $1,000 per ounce we hear that gold is in a bubble. In these uncertain financial times selling precious metals may look wise in the short term but what investment class is doing better?………………………………………Full Article: Source

Silver and gold showing upside promise and still the best

VRS — Thu, 02 Sep 2010 03:52:57 +0000

From Mineweb.co.za: With gold and silver steadily moving up in price and looking perhaps to test a new high in the next week or so as the holiday season ends, the serious downside risk looks relatively limited. It is, perhaps, significant that yesterday’s rapid upturn taking the gold price up around $15 to touch the $1,250 level and silver trading comfortably above $19 again, occurred as the U.S. markets opened after the precious metals traded flat to downwards in Europe and this is indicative of sentiment:………………………………………Full Article: Source

Are gold, silver and miner ETFs on the verge of breaking out?

VRS — Thu, 02 Sep 2010 03:52:36 +0000

From Marketwatch.com: Despite the cheering over the 200+ point Dow rally today, stocks remain locked within the trading range in place for about a year. However, ETFs tracking gold, silver and miner stocks may be on the verge of a breakout to the upside as they brush against key resistance levels……………………………………….Full Article: Source

SMX goes live, targets 5pct derivatives share in Asia

VRS — Thu, 02 Sep 2010 03:52:18 +0000

From Indiatimes.com: Financial Technologies-promoted Singapore Mercantile Exchange (SMX) commenced operations on Tuesday, offering a platform for investors wanting to trade in multi-product commodities and currency derivatives. SMX is the second exchange in Singapore to offer commodities trading, and the first in the currency-derivatives segment. SMX’s launch comes at a time when incumbent Singapore Exchange (SGX) is trying to expand its commodities offering. SGX currently offers derivative contracts in palm oil and fuel oil……………………………………….Full Article: Source

CFTC proposal to gather more data a burden: FIA

VRS — Thu, 02 Sep 2010 03:52:02 +0000

From Reuters: The Futures Industry Association warned the U.S. futures regulator that its proposal to collect more data about the ownership and control of all active futures trading accounts was “premature” and would place “overwhelming burdens” on the industry. The association, which represents futures dealers, investors and exchanges, said the Commodity Futures Trading Commission should postpone implementing the measure until it has established an industry committee to help it address a host of issues……………………………………….Full Article: Source

France to crack down on commodity derivatives

VRS — Thu, 02 Sep 2010 03:51:40 +0000

From Euractiv.com: France warned European commissioners yesterday (31 August) that it will crack down on financial bets made in commodities markets to prevent speculative price movements. Three French ministers told the European officials in a letter that they would make regulating derivatives – products that are based on the future value of their underlying assets – a priority once they begin their role as leaders of the G20 meetings in November……………………………………….Full Article: Source

Baltic index rises, trend seen positive for now

VRS — Thu, 02 Sep 2010 03:51:23 +0000

From Reuters: The Baltic Exchange’s main sea freight index .BADI, which tracks rates to ship dry commodities, rose on Wednesday as active buying of freight derivatives contracts boosted sentiment. But brokers said firmer iron ore physical buying was needed to sustain gains……………………………………….Full Article: Source

Australia’s RBA Commodity Index SDR surges

VRS — Thu, 02 Sep 2010 03:51:05 +0000

From Nasdaq.com: The RBA Index gauging commodities prices experiences an upsurge in August, climbing to the 53% growth stance in the annualized indicator. Coming from an aggregate growth of 43.8%. The official report points out some of the main reasons: “Over the past year, the index has risen 53 per cent in SDR terms. Much of this rise has been due to increases in iron ore, coking coal and thermal coal export prices, although all components of the index increased over this period.”………………………………………Full Article: Source

Bullish on commodities

VRS — Thu, 02 Sep 2010 03:50:53 +0000

From WSJ: Charles Zhang, a financial planner in Portage, Mich., has some advice for individual investors looking to boost portfolio returns over the next few years: Buy commodities. Some commodities are trading at prices 40% to 50% below what they were five years ago, with oil down 70% from its 2008 peak, says Mr. Zhang, 43 years old. While he doesn’t think oil will return to its peak level soon, he’s “very confident that in three to five years, it will be double” what it is today, he says……………………………………….Full [...]

Academic: Carbon trading could transform northeast

VRS — Thu, 02 Sep 2010 03:50:32 +0000

From Peopledaily.com.cn: With traditional heavy industries that rely on intensive consumption of resources, Jilin province in northeast China could help the move toward sustainability through trading in carbon emissions, according to a proposal from an academic in the province. Du Li, a professor with Jilin University, has proposed that the provincial government work with financial institutions to build a carbon finance mechanism that would help reduce emissions……………………………………….Full Article: Source

Oil production up on hot summer, US baseline and Chinese supply

VRS — Thu, 02 Sep 2010 03:50:21 +0000

From Petroleum-economist.com: Global oil output rose by 0.86m b/d to 85m b/d in July, as seasonal maintenance in Norway ended and Opec boosted supply. The IEA has revised its 2010 and 2011 non-Opec estimates up by 200,000 b/d (to 52.6m b/d) and 100,000 b/d (to 52.9m b/d) respectively in the wake of a baseline adjustment from final 2009 US production figures and higher-than-forecast Chinese output. BP has stabilised the leaking Macondo well in the US Gulf of Mexico. The IEA estimates that there will be 60,000 b/d of potential [...]

Global cotton use to rise on Asian demand

VRS — Thu, 02 Sep 2010 03:50:03 +0000

From Bloomberg: Global cotton demand in the year ending July 31 will be higher than forecast a month earlier because of increasing consumption in Asia, the International Cotton Advisory Committee said. Consumption will be 25.1 million metric tons, up 0.8 percent from last month’s estimate, the Washington-based group said today in a report. That would leave demand up 2 percent from a year earlier……………………………………….Full Article: Source

Wheat resumes rally as rain hurts crop in Europe, Egypt buys

VRS — Thu, 02 Sep 2010 03:49:50 +0000

From Bloomberg: Wheat posted its biggest gain in almost two weeks as excessive rain threatened to damage crops in Europe, and Egypt increased purchases from the U.S., the world’s biggest exporter. The grain harvest in northwestern Europe has been slowed by rainfall that may cause flooding, the European Union’s Monitoring Agricultural Resources unit said yesterday……………………………………….Full Article: Source

Strong manufacturing data propel commodities higher

VRS — Thu, 02 Sep 2010 03:49:28 +0000

From WSJ: Better-than-expected manufacturing data from the U.S. and China pushed many commodities higher on Wednesday as the demand outlook brightened for industrial materials. Strong readings from manufacturing indexes boosted economic sentiment and provided a lift to markets that had slumped through August……………………………………….Full Article: Source

Europe targets commodities derivatives trade

VRS — Wed, 01 Sep 2010 03:08:40 +0000

From AFP: Europe warned on Tuesday of moves to rein in commodity derivatives trading under a French-led drive to tame price distortions for raw materials ranging from oil to grain. (more…)

France proposes EU commodities markets regulation

VRS — Wed, 01 Sep 2010 03:08:23 +0000

From Reuters: France has sent detailed proposals to the European Commission calling for common action to regulate volatile commodities markets before it is due to head the Group of 20 economic powers, ministry officials said. (more…)

Currency trading: Market hits $4 trillion a day as investors chase profit in growing economies

VRS — Wed, 01 Sep 2010 03:08:08 +0000

From WSJ: Currency trading volume around the world has hit $4 trillion a day, fueled by investors in the wealthiest nations looking to diversify beyond their home markets in a time of economic turmoil. The $4 trillion mark represents a 20% gain from $3.3 trillion in 2007, the last time the global foreign-exchange markets were surveyed, according to the Bank for International Settlements……………………………………….Full Article: Source

CFTC’s retail currency rules back off strictest leverage

VRS — Wed, 01 Sep 2010 03:07:50 +0000

From WSJ: Federal futures regulators backed off a plan to place much stricter limits on how they can use borrowed funds to trade currencies, in a move that represents a partial victory for the booming retail foreign exchange industry. In new rules unveiled late Monday, the Commodity Futures Trading Commission said it had scrapped a proposal to reduce the amount of borrowed funds that investors can use to trade currency contracts to 10-to-1, from the existing 100-to-1 for major currencies……………………………………….Full Article: Source

CFTC-July gross index investment $278.4 bln

VRS — Wed, 01 Sep 2010 03:07:32 +0000

From Reuters: Index investing for large funds and swap dealers for July grossed $278.4 billion, up from $263.9 billion in June, the U.S. Commodity Futures Trading Commission said on Tuesday. Investments were split in a ratio of 4.16:1 with $224.4 billion worth of long futures and option positions and $54 billion of short positions, compared to the 4.11:1 ratio in June, the CFTC said……………………………………….Full Article: Source

Japan’s Mitsubishi Futures to exit commod futures

VRS — Wed, 01 Sep 2010 03:07:13 +0000

From Reuters: Japan’s leading commodity brokerage Mitsubishi Corp Futures will end all trade at the country’s two leading commodity futures exchanges, highlighting the plight of the industry in the country. An industry official said shrinking liquidity on the exchanges, which have been in steady decline since volume peaked in 2003, has left market players with only small lots to handle, making trading costly and often not economically viable……………………………………….Full Article: Source

J.P. Morgan to close proprietary-trading desks

VRS — Wed, 01 Sep 2010 03:06:59 +0000

From WSJ: J.P. Morgan Chase & Co. is winding down its proprietary-trading operations and has given notice to its roughly 20 proprietary-commodities traders about the elimination of their jobs, according to a person familiar with the matter. The bank hasn’t focused much on proprietary trading, but its small proprietary-trading desks are nonetheless affected by the Dodd-Frank financial-overhaul law, particularly by what is known as the Volcker rule, which curtails proprietary trading, private equity and other investments that banks make with their own capital rather than for their clients……………………………………….Full Article: [...]

First signs of commodity price fall

VRS — Wed, 01 Sep 2010 03:06:45 +0000

From Smh.com.au: There are tentative signs the commodity price boom will soon lose some heat, with pressure on miners to accept lower prices for coal and iron ore in the next quarter. Negotiations of new quarterly supply contracts for the December quarter are expected to be finalised this week, after the big miners this year convinced many customers to renegotiate prices every three months, rather than once a year……………………………………….Full Article: Source

Gold rallying to $1,500 as Soros’s bubble inflates

VRS — Wed, 01 Sep 2010 03:06:32 +0000

From Bloomberg: Investors are accumulating enough bullion to fill Switzerland’s vaults twice over as gold’s most- accurate forecasters say the longest rally in at least nine decades has further to go no matter what the economy holds. Analysts raised their 2011 forecasts more than for any other precious metal the past two months, predicting a 10th annual advance, data compiled by Bloomberg show……………………………………….Full Article: Source

Gold rises above $1,250/oz on refuge demand

VRS — Wed, 01 Sep 2010 03:06:15 +0000

From Dow Jones: Gold futures crept closer to record highs Tuesday, rising on continued insecurity about the economic recovery as global equity markets struggle. The most actively traded contract, for December delivery, settled up $11.10, or 0.9%, at $1,250.30 an ounce on the Comex division of the New York Mercantile Exchange, the highest settlement price since June 28……………………………………….Full Article: Source

No asset can defeat gold in a market death fight

VRS — Wed, 01 Sep 2010 03:06:01 +0000

From Commodityonline.com: Silver and Gold Stocks, particularly Gold Juniors, are preparing to confirm gold’s move to new highs. I would be concerned about gold if silver went to new highs but gold didn’t. The reverse is the case here. While gold is the world’s most powerful financial entity, it functions as a control mechanism, and only asserts its power when push comes to shove. No asset, except perhaps arguably food, can defeat gold in a market death fight, but most of the time there is no death fight, even [...]

China’s insatiable appetite for gold

VRS — Wed, 01 Sep 2010 03:05:48 +0000

From Resourceinvestor.com: Gold bugs and naysayers alike take note. When the world’s second largest and fastest growing economy liberalizes gold ownership by individuals, who happened to be the planet’s most fastidious savers at a 17% rate, you better pay attention. Among other reforms, the Middle Kingdom is repealing the death penalty for the illegal importation of the yellow metal. The potential demand this will unleash boggles the mind……………………………………….Full Article: Source