Posted on 10 November 2010 by VRS | Email |Print
From Bloomberg: Commodities extended a rally to a 25- month high as the global appetite for crops outpaced dwindling supplies, and precious metals surged on demand for a haven from slumping currencies.
The Thomson Reuters/Jefferies CRB Index of 19 raw materials rose as much as 1.6 percent to 320.38, the highest level since Oct. 6, 2008. The gauge has jumped 21 percent since Aug. 31, led by cotton, sugar and silver……………………………………….Full Article: Source
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From Theglobeandmail.com: The accelerating bull market in commodities may be a boon to Canada if it can be sustained, but some of the country’s top economists suspect the stampede is a market mirage.
“They’ve gotten a bit carried away,” said Peter Buchanan, senior economist at CIBC World Markets.
“There may be a reality check coming for many of these commodities in the next few months.”………………………………………Full Article: Source
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From Seekingalpha.com: Commodities are close to bubble territory. Will they continue to rise? And what happens if they don’t? Wages and unemployment haven’t really moved much in the past year, yet the prices of gold, silver, corn, cotton, and many other commodities are up 50 percent or more.
World markets have enjoyed a big run-up over the past two months, and investor optimism seems to be returning. Big profits have been made in commodities, and future expectations for increased price appreciation are greater than ever. Yet questions remain: How much further can prices run up? And what happens when that ends?………………………………………Full Article: Source
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From Ninemsn.com.au: George Soros and other Wall Street investors are backing a US commodity merchant that is clawing its way into the ranks of the industry’s top trading houses.
The investors – not usually associated with the mundane work of moving and storing corn, fertiliser and crude oil – are betting a more crowded, richer planet will rely more on international trade to meet localised food and energy needs……………………………………….Full Article: Source
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From Independent: Oil prices will rise beyond $200 a barrel as global supplies, strained by rising demand from China, India and other emerging economies, near their peak in 2035, the International Energy Agency (IEA) predicted.
Ahead of that, the Paris-based IEA’s 2010 World Energy Outlook also forecast prices of more than $100 a barrel in 2015. “Production in total does not peak before 2035, though it comes close to doing so,” the agency said……………………………………….Full Article: Source
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From AFP: Oil demand and price are set to grow strongly over the next 25 years despite environmental policies, essentially dooming climate-change goals, the International Energy Agency forecast on Tuesday.
Slightly more than a third of the new demand would come from China’s appetite for energy. “The age of cheap oil is over, though policy actions could bring lower international prices than would be otherwise the case,” said IEA chief economist Fatih Birol………………………………………Full Article: Source
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From Sfgate.com: China will undoubtedly be the most important force in global energy markets over the next two to three decades, according to the latest 2010 World Energy Outlook from the IEA.
While the nation has already experienced enormous consumption growth to date, energy usage per capita remains at just 35% of developed world levels……………………………………….Full Article: Source
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From Dow Jones: The International Energy Agency said Tuesday that Iraq’s oil output will catch up with that of regional rival Iran by around 2015 but won’t hit the country’s ambitious targets, sending a mixed message on Iraq’s ambitious plans despite a reassessment of reserves.
In its annual outlook report, the IEA–which represents some of the world’s largest energy consumers–said Iraq’s crude output will be “”catching up with Iran by around 2015.”" But it also forecasts oil output in Iraq at 7 million barrels a day by 2035, compared with about 2 million barrels a day at present……………………………………….Full Article: Source
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From Tehrantimes.com: Iran’s fossil-fuel subsidy was higher than any other country in 2009 at $66 billion, the International Energy Agency said Tuesday, creating strain on the country’s economy and inefficiencies in its energy sector.
In its World Energy Outlook report, the IEA recognized Iran’s recent efforts to address the problems created by the subsidies, but noted many challenges remain before changes are implemented……………………………………….Full Article: Source
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From Nationalgeographic.com: The projected flat crude oil production doesn’t translate into an immediate shortage of fuels for the world’s cars and trucks. IEA actually projects that the total production of what it calls “petroleum fuels” is most likely to continue steadily rising, reaching about 99 million barrels per day by 2035.
This growth in liquid fuels would come entirely from unconventional sources, including “natural gas liquids,” which are created as a by-product of tapping natural gas reservoirs……………………………………….Full Article: Source
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From Saudigazette.com.sa: Saudi Arabia’s view that $70 to $80 a barrel is a good price range for consumers and producers is still unchanged, and the country is not worried about a weaker US dollar, a senior oil official said Monday.
Saudi Oil Minister Ali Al-Naimi said in Singapore earlier this month that the crude oil price had found its comfort zone at $70-$90 a barrel, which consumers and producers all like……………………………………….Full Article: Source
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From AFP: Oil prices staged their longest rally this year, extending gains into a seventh day in Asia Monday as a mini employment boom in the US and a second quantitative easing by the Fed pushed prices up, analysts said.
New York’s main contract, light sweet crude for December delivery, rose 39 cents to 87.24 dollars a barrel……………………………………….Full Article: Source
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From Reuters: Oil prices are reasonable and relatively comfortable for both producers and consumers, Algeria’s energy minister said on Tuesday.
“It is difficult to gauge the oil prices in the future because prices are influenced by many things but the current level of prices is relatively satisfying, comfortable for producers and consumers,” Youcef Yousfi told Reuters……………………………………….Full Article: Source
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From Zawya Dow Jones: Production quotas are unlikely to be changed when the Organization of Petroleum Exporting Countries meets next month, Qatar Oil Minister Abdullah bin Hamad Al Attiyah said Tuesday.
When asked whether OPEC would alter production levels he said: “I don’t think so, so far.”………………………………………Full Article: Source
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From Reuters: The U.S. Energy Information Administration on Tuesday increased its forecast of a decline in non-OPEC crude oil production next year by 10,000 barrels per day from the agency’s prior estimate.
In its new monthly energy forecast, the EIA said it now expected non-OPEC oil output to fall by 250,000 bpd next year to an average 51.22 million bpd……………………………………….Full Article: Source
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From Reuters: Gold and tin struck record highs on Tuesday and other commodities stormed to their strongest levels in years, supported by expectations of dollar weakness and hopes of demand for raw materials due to U.S. stimulus measures.
Sugar hit a 30-year peak and coffee a 13-year high. Copper, which neared a record, oil, platinum and corn all hit their highest levels since 2008……………………………………….Full Article: Source
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From Bloomberg: Gold climbed on speculation that European governments may struggle to pay debt, which boosted demand for the precious metal as an alternative to currencies.
Gold for immediate delivery gained 0.7 percent to $1,402.20 an ounce at 10:46 a.m. in Seoul……………………………………….Full Article: Source
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From CNBC: A gold standard would just make business cycles more extreme, according economist Nouriel Roubini. What’s more, a gold standard would make central banks unable to fight inflation or deflation, much less do anything to combat persistent unemployement, Roubini said in an interview with NetNet yesterday.
“A fixed exchange regime, even if it is not a gold standard… That world just doesn’t work. Because in that world, monetary policy by definition instead of being countercyclical becomes procyclical,” Roubini told NetNet. “Suppose you have a fixed exchange rate regime…It just exacerbates the business cycle.”………………………………………Full Article: Source
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From Marketoracle.co.uk: The price of physical gold continued to surge in London on Tuesday, taking out fresh all-time highs for US, Canadian and UK investors as European stock markets reversed yesterday’s drop and the Euro rallied from a 1-week low on the currency market.
Commodity markets added up to 1.5%, while German Bunds rose but US and UK debt slipped, nudging the 10-year gilt yield back above 3.0%……………………………………….Full Article: Source
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From Smartinvestor.in: Price ratio hints at a peak for silver, while gold may rise more. A sudden spurt in silver prices have narrowed its price ratio with gold, which indicates consumers may cautiously shift to gold if they require to invest in precious metals any more.
The price ratio is now 51, a level not seen since 2007, which means people should abstain from fresh investment in silver, while gold has potential……………………………………….Full Article: Source
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From Usatoday.com: It’s easy to get blinded by soaring prices of precious metals such as gold and silver, but some less-glamorous metals are glittering in their own way.
Prices of industrial metals such as tin, nickel and copper are surging this year as investors look for commodities of value to shield themselves from inflation as well as bet on growth in emerging nations……………………………………….Full Article: Source
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From Cpifinancial.net: Over the medium-term, support will continue to be derived from growing economies in developing countries and increasing industrialisation. “We expect continued price volatility as global economic recovery remains uneven and China has taken deliberate steps to slow its growth,” said Carol Cowan, Moody’s Vice President.
Moody’s stable outlook for the global base metals industry reflects the view that fundamentals in the industry to remain supportive of price levels that will allow for continued recovery in the industry’s earning power over the near-term, said the ratings agency in its latest report on the sector……………………………………….Full Article: Source
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From Reuters: An all-day G20 planning session grew so intense that officials had to leave the door open to keep the room from overheating, underscoring deep tensions over global economic rebalancing one day before the start of a summit.
Deputies drafting a final statement to be released after the two-day Group of 20 summit concludes on Friday remained far apart on pivotal issues including currency exchange rates, G20 spokesman Kim Yoon Kyung said on Wednesday……………………………………….Full Article: Source
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From WSJ: U.S. soybean futures surged to a 26-month high Tuesday as federal forecasters cut estimates for this year’s harvest in a crop report that showed tightening supplies across agricultural commodities.
The closely-watched monthly report from U.S. Department of Agriculture, or USDA, sent futures for cotton, corn and wheat higher. Cotton futures hit an exchange-imposed trading limit as the report noted lower production and higher exports of U.S. cotton……………………………………….Full Article: Source
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From Hardassetsinvestor.com: Water: It’s the most precious commodity on Earth, without which we or any other species couldn’t survive. Yet as the human population expands, safe, accessible sources of potable water have become increasingly difficult to find. So it doesn’t take a market whiz to realize that “blue gold” could become the world’s next great commodity market.
While we’re still a long way from water futures, water sector equities are freely available, and these days investors have more options than ever to play the space……………………………………….Full Article: Source
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