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Commodities Briefing - Archive | April, 2010

Personal finance: The commodities hedge

Posted on 30 April 2010 by VRS  |  Email |Print

From Reuters: It’s good to have some commodities in your portfolio, according to a recent academic study slated for publication in the Journal of Investing. The study, “Is Now the Time to Add Commodities to Your Portfolio?” asserts that commodities are a valuable hedge against inflation and that they will protect long-term stock portfolios from big declines.

That’s probably true, and especially so when an economy is in recovery and flirting with inflation. But also true is the fact that the commodities markets carry risks of their own………………………………….Full Article: Source

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What’s really going on in the current commodities boom

Posted on 30 April 2010 by VRS  |  Email |Print

From Fleetstreetinvest.co.uk: Commodity prices are soaring. Wherever you look – copper, zinc, platinum, coal, oil, diamonds or gold – prices have been rising strongly. Against expectations, they have been approaching and sometimes passing the levels from which they dropped so precipitously in the financial crisis just over a year ago.
The charts tell their own story, but what is the underlying cause? To get a real insight, I have been speaking to the bosses of some penny share companies………………………………….Full Article: Source

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Commodity ETFs battle regulator

Posted on 30 April 2010 by VRS  |  Email |Print

From Thestreet.com: The SEC’s focus on leveraged and active ETFs is not the only regulatory war waging within the ETF realm. Futures backed commodity ETFs are battling with the CFTC over the regulatory body’s efforts to enforce position limits on certain commodity markets.
With oil prices loitering around the $85 per barrel level, regulators are becoming increasingly concerned that speculators controlling a large slice of the market could manipulate prices, driving them to the debilitating levels last seen in 2008………………………………….Full Article: Source

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RAB Capital warns on commodity prices

Posted on 30 April 2010 by VRS  |  Email |Print

From Citywire.co.uk: Leading commodity hedge fund RAB Capital has warned that the ever stronger dollar and Asian tightening will ultimately push down metal prices.

The group’s RAB Special Situations fund managed by Philip Richard told investors this week that while metals performed well in March with copper rising 8.3% and returning to autumn 2008 levels and aluminium up 11% there could be trouble ahead………………………………….Full Article: Source

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3 Reasons for the commodity bull market

Posted on 30 April 2010 by VRS  |  Email |Print

From Wallstreetpit.com: The wheels on the bus go round and round…round and round…round and round,” according to a familiar children’s song. The song never tells us what happens when the bus rips through a guardrail and plunges down a ravine. But the stock market might soon solve that mystery for us.

For the better part of a year, the wheels on the stock market have been going round and round. The ride has been delightful. The smooth highway of post-crisis optimism has whisked the stock market along its way. From the 12-year lows of March 9, 2009, the S&P 500 Index has advanced more than 70%………………………………….Full Article: Source

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EU to pressure China, Africa over access to rare earth metals

Posted on 30 April 2010 by VRS  |  Email |Print

From Earthtimes.org: The European Union is to put pressure on China and African nations over access to rare earth metals on which several key industries depend, the EU’s commissioner for industry, Antonio Tajani, said Wednesday.

China’s export restrictions on rare metals such as tungsten, lanthanum, cerium, neodymium, europium and yttrium - key for the manufacture of mobile phones, fibre optics, x-ray machines and lasers - has caused a spike in prices, causing howls of protests from business groups in the EU and in the United States………………………………….Full Article: Source

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The brave new world of carbon trading

Posted on 30 April 2010 by VRS  |  Email |Print

From Apo.org.au: Emissions trading has the potential to have undesirable financial, ethical and psychological impacts and to crowd out voluntary actions according to this journal article.

Human induced climate change has become a prominent political issue, at both national and international levels, leading to the search for regulatory ‘solutions’. Emission trading has risen in popularity to become the most broadly favoured government strategy………………………………….Full Article: Source

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Saudi, IEA views on oil above $80 highlight schism

Posted on 30 April 2010 by VRS  |  Email |Print

From Calgaryherald.com: Saudi Arabia and the International Energy Agency presented differing views on oil prices Wednesday, highlighting the potential for a schism to emerge between consumers and producers as crude tops $80 US a barrel.

Oil Minister Ali al-Naimi reiterated current prices were “more sustainable” as the worst of the economic crisis had passed. He has hailed as “beautiful” an oil price between $70 and $80 that, he says, benefits both producers and consumers………………………………….Full Article: Source

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Carbon market poised for growth, more cases of carbon credit fraud

Posted on 30 April 2010 by VRS  |  Email |Print

From Environmentalleader.com: The fast-track growth of the global carbon trading market, which grew at a compound annual growth rate of 89 percent from 2005 to 2009, has also resulted in several carbon trading scams over the past year in the UK, Norway, Belgium, the Netherlands, and now Germany as European countries put more policing efforts in place.

Regulatory efforts to mitigate climate change have driven tremendous growth in the carbon market, rising from $10.9 billion in 2005 to $138.3 billion in 2009, according to a report from GBI Research, reports Commodity Online………………………………….Full Article: Source

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World rethinks climate legislation

Posted on 30 April 2010 by VRS  |  Email |Print

From WSJ: It was always going to be an uphill battle for the U.S. Congress to pass comprehensive climate and energy legislation in an election year. But with Senator Lindsey Graham’s likely decision to withdraw his support from the landmark bill, the prospects are now virtually zero.

That is not just because Mr. Graham had been the only Republican senator to endorse a broad approach to tackling global warming. It’s because the climate, politically speaking, has changed dramatically since June when the House of Representatives narrowly passed a climate cap-and-tax bill. …………………………………Full Article: Source

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Carbon rallies to year highs

Posted on 30 April 2010 by VRS  |  Email |Print

From Ifre.com: As investors take cover from and falling stock markets and heightened sovereign risk, the pool of flight-to-quality assets is looking increasingly small.
As governments grapple with huge budget deficits and soaring debt levels, leaving the once safe-haven of government bonds in turmoil across much of Europe, commodities are proving key beneficiaries…………………………………Full Article: Source

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The price of a precious commodity - Water trading in Australia

Posted on 30 April 2010 by VRS  |  Email |Print

From Resourceinvestor.com: With cap-and-trade schemes gaining momentum as a viable environmental policy, this column outlines such a market for water licences in Australia. Since the early 90s the market has grown to accommodate trade of nearly 3 billion Australian dollars worth of licenses with a total value of water access entitlements at nearly $A40 billion.

The basic economic problem – scarce resources squared up against insatiable demand – has long been recognised as relevant to environmental issues………………………………….Full Article: Source

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Nasdaq OMX CEO looks to tap into electricity trading

Posted on 30 April 2010 by VRS  |  Email |Print

From Nasdaq.com: Nasdaq OMX, famed as a marketplace for tech stocks, now wants to let investors buy and sell the electricity that powers the world’s software, mobile phone and computer-chip companies.

The New York-based exchange company is expanding power-trading operations on both sides of the Atlantic, part of a broader push into physical commodities that could bring a move into the natural gas market………………………………….Full Article: Source

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India: Sebi yet to decide on futures in gold ETFs on NSE

Posted on 30 April 2010 by VRS  |  Email |Print

From Indiatimes.com: Capital markets regulator Securities and Exchange Board of India (Sebi) has put on hold its decision to approve the launch of futures and options on gold exchange traded funds (GETFs) by National Stock Exchange (NSE) in the face of objections raised by commodity futures market regulator Forward Markets Commission (FMC).

On Thursday, NSE issued a circular which said, “In view of the concerns raised by another regulator, the exchange, in consultation with Sebi, has deferred the launch till further notice.” When contacted, MS Sahoo, whole-time member, Sebi, said: “If somebody has raised an issue, it needs to be examined and we will take a call in course of time.”…………………………………Full Article: Source

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Are grain prices finally ready to rally?

Posted on 30 April 2010 by VRS  |  Email |Print

From Hardassetsinvestor.com: A poorly kept secret has roiled around the Chicago grain pits this month: Traders have been waiting for China to come to the U.S. market for corn for the first time in four years.

And, sure enough, the Department of Agriculture this week confirmed that China had purchased two cargoes of corn - about 115,000 tons - probably destined for a feed mill………………………………….Full Article: Source

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Agriculture best placed among commodities-Rogers

Posted on 30 April 2010 by VRS  |  Email |Print

From Reuters: Agricultural commodities were left in the dust as base metal prices boomed last year but now represent the better investment, commodities bull Jim Rogers told Reuters on Thursday.

“I’d rather buy agriculture which didn’t move up, and I don’t want to buy base metals because they did go up. I’m not selling base metals — I’m just watching,” he told Reuters in an telephone interview………………………………….Full Article: Source

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Commodities a good bet in long term

Posted on 30 April 2010 by VRS  |  Email |Print

From Indiatimes.com: Kirby Daley, Senior Strategist, Newedge Group: “Commodities, yes, long term, this is again to use the term again, perversely in the risk aversion trade, commodities and equities drop. The safe havens are the US dollar and treasuries and for now the Yen as well.
The Yen, the treasuries and the dollar are things long term I do not want to be out of, I want to be in commodities for the long term but at these levels with the risk aversion coming back and the trade flows being such, the commodities will take a hit. Investors should be very wary of that………………………………….Full Article: Source

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The winners and losers in the ‘commodities new world order’

Posted on 30 April 2010 by VRS  |  Email |Print

From Moneymorning.com: In the “commodities new world order,” commodity producers will be king. Investors who need proof need only consider recent events. Iron ore prices are at record levels, and the annual-price-setting arrangement has broken down.
Venezuela President Hugo Chávez has signed “dark side” agreements with Russian Prime Minister Vladimir Putin for Russian companies to develop Venezuela’s oil-and-mineral resources. China may have invested $1 trillion or so in U.S. Treasuries, but the Asian giant’s only truly successful investment so far has been the 17% stake it took in Canadian-resources player Teck Resources Ltd………………………………….Full Article: Source

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Commodities trading outshines tourism in Swiss GDP

Posted on 29 April 2010 by VRS  |  Email |Print

From Reuters: Commodity and energy trading now contributes as much as 2.5 percent of Swiss gross domestic product, more than the tourists going to the Alps to ski and hike, economists said on Wednesday.

Yngve Abrahamsen, head of economic forecasting at the Swiss institute KOF, said the trading houses that have aggregated in Geneva and Zug, bring more revenue to the Alpine country than foreign tourism does………………………………….Full Article: Source

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Commodities outshine equity trading in India

Posted on 29 April 2010 by VRS  |  Email |Print

From Commodityonline.com: Commodities trading is now a buzzword among the investor community in India, which is evident from the statistics that show how the trading volumes in commodities trading has been steadily rising over the years outshining the more popular and retail centric equities trading.
The figures indicate that trading volumes generated in commodities have grown in a steady upward trend and much faster than that in equities during past couple of years………………………………….Full Article: Source

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OPEC’s speculative position

Posted on 29 April 2010 by VRS  |  Email |Print

From WSJ: In its latest monthly report, the Organization of the Petroleum Exporting Countries put a chart front and center showing the price of oil tracking closely the level of open interest in Nymex oil contracts. The message was that speculators are driving oil prices higher.

The timing is interesting in several respects. The Commodity Futures Trading Commission wants to limit the size of positions taken by speculators in the oil futures market. The deadline for public comment on the draft regulations passed Monday………………………………….Full Article: Source

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Qatar says it sees no shortage of crude in market

Posted on 29 April 2010 by VRS  |  Email |Print

From Edmontonjournal.com: There is no shortage of crude oil in the market and inventories are at their highest in more than 62 days, Qatari Oil Minister Abdullah al-Attiyah said Wednesday.

Asked if OPEC would increase output if oil prices reach $100 US a barrel, Attiyah told Reuters in Beirut: “That’s very difficult now to predict, because we should ask ourselves if there’s a shortage of oil or not.”…………………………………Full Article: Source

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Asian demand likely to keep oil prices up

Posted on 29 April 2010 by VRS  |  Email |Print

From UPI: Industrial oil-consuming countries should expect to keep paying higher prices for crude because their slow recovery and low demand is being offset by rising demand in Asia, the London Center for Global Energy Studies said Tuesday.

The think tank said recent spikes in oil prices showed that neither the weakness in Western countries’ recovery nor forecasts by the Organization of Petroleum Exporting Countries had restrained prices………………………………….Full Article: Source

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China and speculators spur oil-price rise

Posted on 29 April 2010 by VRS  |  Email |Print

From Petroleum-economist.com: Crude prices have surged in April, exceeding $80/b with scarcely a backwards glance and hovering around $85/b.

Hopes for global economic growth, rising Chinese demand and expectations from the IEA that world consumption this year would be higher than ever all supported the bullish sentiment………………………………….Full Article: Source

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Australian carbon-trade delay could prompt new plan

Posted on 29 April 2010 by VRS  |  Email |Print

From Reuters: Australia’s move to postpone its emissions trading plan could force the government back to the drawing board on climate policy and revive the push for a straight carbon tax to help curb emissions.
Prime Minister Kevin Rudd has postponed his centrepiece carbon trade plan until at least 2013, and said the government would assess its options in late 2012 when other countries would be clarifying post-Kyoto agreements to curb emissions………………………………….Full Article: Source

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The global carbon trading market: Concepts, regulations and industry trends to 2020

Posted on 29 April 2010 by VRS  |  Email |Print

From Jazzou.com: Regulatory efforts to mitigate climate change have spawned an emerging carbon market that was valued at $10.9 billion in 2005 and grew at compound annual growth rate (CAGR) of 89% to reach $138.3 billion in 2009.
The global carbon market doubled for two consecutive years form $31.2 billion in 2006 to $63 billion in 2007 and $126.3 billion in 2008 due to the expansion of allowance markets. The European Union (EU) Emission Trading System (ETS) experienced a robust growth during this period. However, the recession in the global economy contained the impressive growth of the global carbon market………………………………….Full Article: Source

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Romania to launch carbon trading scheme

Posted on 29 April 2010 by VRS  |  Email |Print

From AFP: The Romanian government on Wednesday gave its go ahead to a carbon trading scheme to cut greenhouse gas emissions, hoping to earn up to 2.5 billion euros (3.3 billion dollars) until 2012.

“Romania can trade about 300 million credits, divided into one-million-ton packages,” economy minister Adriean Videanu said during a press conference………………………………….Full Article: Source

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How carbon trading tax fraud works

Posted on 29 April 2010 by VRS  |  Email |Print

From Reuters: German prosecutors said on Wednesday they had searched more than 230 sites in a probe based on suspicions of tax evasion in the trading of EU carbon emissions permits.

It follows investigations in Britain, France, Spain, Norway and the Netherlands into carbon credit fraud over the last year………………………………….Full Article: Source

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Pro-gold investment attitude may run for years - CPM

Posted on 29 April 2010 by VRS  |  Email |Print

From Mineweb.co.za: CPM Group’s latest Gold Yearbook suggests gold has “solidified its standing…as a premier and exceptional financial asset to provide protection against a host of financial, economic and political problems.”
Whether or not gold prices continue to rise in the future will depend on whether investors remain sufficiently concerned about economic and financial conditions to continue to buy large volumes of gold………………………………….Full Article: Source

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Gold likely to trade between $1,000 and $1,200 in 2010 - Jeff Christian

Posted on 29 April 2010 by VRS  |  Email |Print

From Mineweb.co.za: The gold market is performing a very interesting dance at the moment, says Jeff Christian, MD of the CPM Group. But, it is likely that prices will come off a little in the second half of the year.

Speaking on the Mineweb.com Gold Weekly Podcast, Christian said there are opposing forces at play within the market, “You have a lot of investors who are still very bullish on gold but they’re a little hesitant to buy at what really are elevated prices. So there is buying demand but it is clearly softer than it has been for a couple of years………………………………….Full Article: Source

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If gold goes to $5000, where will commodities head

Posted on 29 April 2010 by VRS  |  Email |Print

From Commodityonline.com: The Gold Punisher will send the Gman to meet his maker, but the time is not yet here. The Chinese endured decades of agony under Chairman “kill ‘em all” Mao.
Americans, and the entire Western World, need to achieve and maintain a similar level of calm and patience, and think big. Gold and technology will make the Gman into a clown, literally make him obsolete, at least on planet Earth. Perhaps he’ll play Space Gman, but his role of power on Earth is in the later stages, I believe………………………………….Full Article: Source

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All aboard the gold train

Posted on 29 April 2010 by VRS  |  Email |Print

From Theaureport.com: Since early 2009, we’ve written about the super-bullish long-term cup and handle pattern in gold. It dates back to 1980 and has a logarithmic target of about $2,100. We noted that previous cup and handle patterns in gold all reached their logarithmic target.
We expect that this move to $2,100 will be the recognition move that awakens the masses to the gold bull market and the reality of severe inflation in the near future………………………………….Full Article: Source

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What China’s gold consumption will do for global supplies of bullion

Posted on 29 April 2010 by VRS  |  Email |Print

From Seekingalpha.com: China has a centuries-long cultural attraction to gold, but affordability has historically been an obstacle. However, rising incomes and accumulation of wealth are bound to result in Chinese citizens becoming bigger consumers of gold for jewelry or investment purposes.

The chart below, courtesy of U.S. Global Investors – Investor Alert, shows where China stands on a per-capita basis among countries with a traditionally high affinity for gold. China’s currently near the bottom of the list but the World Gold Council believes per-capita gold consumption by the Chinese could easily double in the next decade………………………………….Full Article: Source

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Asia gold-premiums soften as bullion soars; India stays away

Posted on 29 April 2010 by VRS  |  Email |Print

From Indiatimes.com: Premiums for gold bars were under pressure in Asia on Wednesday after a spike in bullion prices to a 2010 peak spurred selling from jewellers, but steady demand from the electronics sector offered some solace. Dealers noted selling from Indonesia and Thailand, which kept premiums at 70 US cents to the spot London prices in Singapore, unchanged from two weeks ago.

Selling in Hong Kong cut the premiums by up to 40 percent. “Sentiment seems to be clearly bullish because of the current currency debacle, and as more bad news hits the market, gold should ideally trade firm,” said Pradeep Unni, senior analyst at Richcomm Global Services in Dubai………………………………….Full Article: Source

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Platinum: bursting with opportunities

Posted on 29 April 2010 by VRS  |  Email |Print

From Mineweb.com: A number of “buy-and-hold” investors, sometimes a rare breed, have been asking about the most sensible positions to take in platinum group metals (PGMs, mainly platinum, palladium and rhodium), an area where southern Africa holds around three quarters of global resources.
The short answer is that opportunities are to be found in relative abundance, from the biggest PGM producer in the world, to early greenfield explorers and developers………………………………….Full Article: Source

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How long can you ignore Palladium?

Posted on 29 April 2010 by VRS  |  Email |Print

From Commodityonline.com: Palladium will now need to trade past the 465-475 ranges for 12 days in a row. If it can achieve this, it will set up the base for a rally that could take it all the way to the 800-890 ranges. If we had to put a time frame on this, we would say that once it trades past the 465-475 ranges for the suggested period of time, it could hit these targets within 12-18 months.

It has managed to trade past the $465-475 ranges for more than 12 days in a row, laying the ground work for a move to the $800-$890 ranges. If Palladium maintains this momentum it could end up striking these targets a lot faster than we originally projected; potentially, it could hit these targets before the year is over………………………………….Full Article: Source

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India: Currency derivatives volumes may outstrip equity markets soon

Posted on 29 April 2010 by VRS  |  Email |Print

From Moneylife.in: Average daily trading volumes in the Indian currency market have shown a significant jump; they may eventually outgrow volumes in equity derivatives.

A dramatic shift is currently underway in the financial market scene in India. The currency futures segment, which was only introduced two years ago, is rapidly catching up with the stock futures segment in Indian stock exchanges………………………………….Full Article: Source

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Canadian dollar outperformance at risk

Posted on 29 April 2010 by VRS  |  Email |Print

From Reuters: The Canadian dollar, one of the top performing major currencies this year, looks increasingly vulnerable to overly aggressive expectations for interest rate rises, stretched positioning and a rush of risk aversion.

The currency shot above parity with the U.S. dollar this month, driven by a view Canada would become the first Group of Seven country to raise interest rates, in June, starting a tightening cycle which would see the key rates rise as much as 175 basis points by year-end………………………………….Full Article: Source

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ETF tax traps: Watch out for currencies and commodity ETFs

Posted on 29 April 2010 by VRS  |  Email |Print

From Ctwatchdog.com: Exchange Traded Funds (ETF) can be great investment vehicles, letting you tailor your investment with more precision – and frequently with less expense – that mutual funds. Many can also reduce your tax bill.

However, these financial instruments which represent a basket of assets that trade like stocks, can take a bite out of you if you have not done your homework………………………………….Full Article: Source

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Banks and energy companies fight derivatives reform

Posted on 29 April 2010 by VRS  |  Email |Print

From Telegraph: Banks and energy companies have joined forces to try to persuade the US derivatives regulator not to impose curbs designed to cap the number of contracts a trader can hold in specific markets.
Royal Dutch Shell said that the US Commodity Futures Trading Commission’s (CFTC) plan to impose the caps in oil and natural gas futures markets “will impose new costs and risks” and “could impair the efficient operations of the energy derivatives market”………………………………….Full Article: Source

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Derivative overhaul is powerful for physical metals

Posted on 29 April 2010 by VRS  |  Email |Print

From Resourceinvestor.com: As Congress looks to pass a financial overhaul bill to prevent a second coming of the Troubled Asset Relief Program and another financial crisis, one of the biggest winners are holders of physical precious metals. Language in the bill meant to reduce the volume of the derivatives market could send the price of physical metals soaring.
Physical precious metals investors around the world know that the gold and silver markets are at best over inflated and at worst manipulated. A reduction in the amount of derivatives bought, sold and issued would reduce the amount of “paper” gold and silver trading in the system………………………………….Full Article: Source

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Global wheat prices likely to remain unchanged

Posted on 29 April 2010 by VRS  |  Email |Print

From Ibtimes.com: Global wheat prices are expected to remain unchanged for the time being as the prices already touched at the bottom level, said an Industrial official.

Global wheat prices are unlikely to fall further for the next three months as at present prices are close to multi-year lows, Chris Vanhonacker, Commercial Director of Rias Trading was quoted by Dow Jones Newswires………………………………….Full Article: Source

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Commodities could be the next big short

Posted on 29 April 2010 by VRS  |  Email |Print

From Commodities-now.com: If Rip Van Winkle was a commodity investor, and had fallen asleep in the middle of 1990, or 2000, only to wake up in 2010, he could be forgiven for thinking the super-cycle had never happened. Despite the surge in prices of a wide range of raw materials from crude oil to copper, corn and coffee, most bullish investors have not made money in commodity futures.

What they have gained from being long in outright prices they have mostly paid back in the contango. Many would have done better holding a short position………………………………….Full Article: Source

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Financial speculation seen boosting oil price

Posted on 28 April 2010 by VRS  |  Email |Print

From Reuters: Financial speculators in oil are costing consumers at least $300 billion a year, according to almost 75 percent of industry players surveyed by Reuters.

The poll was of more than 40 major figures in the oil industry, including traders and analysts at some of the largest bank, trading houses and oil companies………………………………….Full Article: Source

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Material matters: Base metal positives and iron ore questions

Posted on 28 April 2010 by VRS  |  Email |Print

From Ninemsn.com.au: China accounts for 40% of global consumption and production in the lead market, so that country’s lead market balance was a major discussion point at Metal Bulletin’s International Lead Conference held last week in Germany.

Barclays Capital notes the consensus view at the conference was 2010 will see China record double-digit growth in lead consumption, but there is far from a consensus view with respect to the level of Chinese stockpiles………………………………….Full Article: Source

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Downgrades push down commodities

Posted on 28 April 2010 by VRS  |  Email |Print

From WSJ: Several benchmark commodities sold off after Standard & Poor’s Corp. cut the credit ratings of Greece and Portugal, further fueling contagion fears swirling around euro-zone countries.

Markets across all asset classes have been jittery for weeks as European officials wrangled over how to deal with Greece’s debt burden………………………………….Full Article: Source

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Demand to sustain bullish oil prices: CGES

Posted on 28 April 2010 by VRS  |  Email |Print

From Business24-7.ae: Oil prices have broken past the psychological $80 (Dh293) per barrel barrier and are unlikely to weaken because the market is dominated by demand, following forecasts about stronger global recovery, a key energy centre has said.

The London-based Centre for Global Energy Studies (CGES), which is managed by former Saudi Oil Minister Sheikh Ahmed Al Yamani, said the market was bolstered by recent statements by the 12-member Organisation of Petroleum Exporting Countries (Opec) that it could lift output when prices surpass $100………………………………….Full Article: Source

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Crude oil: Caution ahead?

Posted on 28 April 2010 by VRS  |  Email |Print

From Seekingalpha.com: If you think the economy is improving, think energy. What is happening in crude oil? Why does it keep moving higher? Natural gas has fallen and it can’t get up. The bottom line is that the U.S. is not the center of the world for pricing world commodities. We are still the largest user, but our use is a reflection of built out infrastructure, not growth.

Economic growth in the U.S. comes from the consumer, technology or financial sector, not from manufacturing. The rising cost of energy does not affect our GDP, on a percentage basis, as much as it does a developing country. Developing countries are dependent on cheap energy to produce goods for sale and export………………………………….Full Article: Source

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Oil price not hampering global recovery: Kuwait

Posted on 28 April 2010 by VRS  |  Email |Print

From Kuwaittimes.net: Kuwait Oil Minister Sheikh Ahmad Abdullah Al-Sabah said yesterday that current oil prices of $75 to $85 a barrel do not hamper the global economic recovery. “So far in 2010, we have witnessed a stable level of oil prices at between 75 and 85 dollars a barrel,” the minister told the opening session of the 18th Middle East Petroleum and Gas Conference.
“This price will not create hurdles for the world economic recovery,” said Sheikh Ahmad………………………………….Full Article: Source

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How to trade natural gas now

Posted on 28 April 2010 by VRS  |  Email |Print

From Resourceinvestor.com: If you liked it at $6, you should have loved it at $5. You could have “backed the truck up” at $4. So now what do you do with prices sporting a “$3” handle?

Natural gas and natural gas stocks have been the darling of several high profile media pundits for going on 18 months. It’s the “fuel of the future” and “rapidly developing” technology will soon mean new avenues of demand. “Buy it now” they say, “quickly, before it goes back up.”…………………………………Full Article: Source

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