Commodities may have been the investors asset class of choice in 2009 and 2010, but last year was a different story after the lowest inflows in nearly a decade. Analysts at Barclays Capital, however, believe that this year could see steady gains following a rally at the start of the year.
Data from Barclays Capital’s Commodity Investor report, published last week, shows that net investor inflows into direct commodity investments fell by 77% year on year to only $15bn, the lowest level since 2002………………………………………..Full Article: Source

Standard Bank Focus: Much has been made about the performance of commodities (and other asset classes) during the first month of 2012. Both gold and silver have had the best start to the year since the 1980’s. For base metals, we’ve seen the strongest performance during a January for at least the last four years.
However, the feeling at Standard Bank is that the enthusiasm these numbers have generated is overdone, especially for those metals with industrial applications. In short, January’s commodity performance has not underpinned by real demand………………………………………..Full Article: Source

The Reserve Bank of Australia’s (RBA) index of commodity prices rose by 0.2 per cent (on a monthly average basis) in terms of special drawing rights (SDRs).
That followed a run of falls that brought the index down by 6.7 per cent between August and December, according to the preliminary estimates from the central bank. The RBA said gold and oil prices were the largest contributors to the increase in January, helped along by base metals and most rural commodities………………………………………..Full Article: Source

New Zealand commodity prices rose for the first time in eight months in January, led by aluminium and dairy products, though the high kiwi dollar wiped out the benefits in local currency terms.
The ANZ Commodity Price Index rose 1.2 per cent in January, having fallen 9.8 per cent in the previous seven months. The ANZ NZD Commodity Price Index fell 2.9 per cent to a 14-month low, reflecting the strengthening kiwi dollar………………………………………..Full Article: Source

Commodity shipping costs slumped to the lowest in a quarter century as a glut of new carriers overwhelmed demand at a time of slowing global economic growth.
The Baltic Dry Index (BDIY), a measure of costs across four vessel sizes, retreated 2.6 percent to 662 points today, according to the London-based Baltic Exchange, which publishes rates across more than 50 maritime routes………………………………………..Full Article: Source

In her latest edition of the Scotiabank Commodity Price Index, economist Patricia Mohr noted base metals rallied strongly in January, with copper as the star performer. Chinese imports of copper surged to a record high in December helping prompt hedge funds to switch to a net long position in copper, after shorting the market last September, Mohr observed.
“LME copper climbed as high as US$3.91 on January 27-yielding an exceptional profit margin over average world breakeven costs; prices had fallen as low as US$3.08 in early October,” she said………………………………………..Full Article: Source

Gold was again one of the top performing assets and currencies in January. Its 11% gain in January surpassed the 10% gains seen in all of 2010. It was gold’s best start to the year since the start of the bull market in 2000. There are conflicting media reports as to whether this is the best January performance since 1980, 1983 or 1999.
Gold rose 11% in US dollar terms, 8.6% in GBP terms and 9.8% euro terms or more correctly these fiat currencies fell by this amount against immutable gold……………………………………….Full Article: Source

Gold prices rose slightly in New York Wednesday, making gains for the second consecutive trading session. Gold has been mounting a comeback from a recent trough under $1,600 in mid-December.
On the Comex division of the New York Mercantile Exchange Wednesday, gold gained $9.10 to reach $1,749.50 per troy ounce. Silver added 54 cents to hit $33.80 per ounce………………………………………..Full Article: Source

ADS Securities, the Abu Dhabi-based forex and bullion trading platform, has reported increased demand for gold at the start of the year following the US Federal Reserve decision to keep borrowing cost low for three more years. Investors from around the world are searching for the most competitive prices and are finding some of the very best deals in Abu Dhabi.
Over 50 central banks have cut their interest rates in the past five months and the correction in gold prices at the end of 2011 offers investors the opportunity to buy back into a safe haven asset class, at an excellent price………………………………………..Full Article: Source

Patrick Legland, head of research at Societe Generale SA, discusses hte outlook for European equities, the U.S. housing market and the price of gold. He speaks with Owen Thomas on Bloomberg Television’s “On the Move.”.………………………………………Full Article: Source

Dennis Gartman expects Gold to climb to $1915 per ounce in 2012. That’s the level at which he’d take profits.
Gartman is the author of the widely read The Gartman Letter and an esteemed commodities strategist, said in an interview with CNBC he is getting very bullish on gold………………………………………..Full Article: Source

India, the world’s biggest bullion consumer, has raised the base import price for gold by 5.7 per cent to $556 per 10 grams and that for silver by nearly 12 percent to $1067 per kg, a government statement said on Wednesday.
Last month, India hiked its gold import duty by 90 percent and doubled the tax on silver, sending futures prices higher and hitting shares of jewellers………………………………………..Full Article: Source

After a tough year in 2011, there is definitely a good selection of underpriced junior resource stocks available for astute investors to focus on before the rest of the herd finally wakes up and smells the gold.
Matthew Zylstra, mining analyst at Northern Securities, reviews the gold, Silver and PGM markets and tells us why he believes that better times are ahead for junior miners in 2012, and which ones he particularly likes at current price levels………………………………………..Full Article: Source

2012 may have started off like a bull, but it appears that the bears are lurking in the shadows, waiting to make their move. This week has already seen a disappointing halt to the surge that general markets had enjoyed to start the new year, as drama from overseas as well as lackluster earnings have put a damper on investor confidence.
But commodity investors can take advantage of this lull with a number of different products that have been profiting from these turbulent markets; namely precious metals. These elusive investments have been outperforming most assets in the trailing week, leaving many investors chomping at the bit for juicy returns………………………………………..Full Article: Source

OPEC oil output in January has hit its highest in more than three years, a Reuters survey found on Tuesday, as Gulf Arab producers showed little sign yet of lowering output to make way for rising Libyan supply.
Supply from all 12 members of the Organization of the Petroleum Exporting Countries totalled 30.95 million barrels per day (bpd), up from 30.74 million bpd in December, the survey of sources at oil companies, OPEC officials and analysts found………………………………………..Full Article: Source

Saudi Arabia nominated its Opec (Organisation of Petroleum Exporting Countries) governor, Majid Al Moneef, as a candidate for secretary-general of the oil-producer group, a person with knowledge of the matter said.
Opec’s current secretary-general, Libya’s Abdullah Al Badri, will end his second three-year term at the end of this year, after first taking over the post on January 1, 2007. Al Moneef would be replaced in his current post by Yasser Al Mufdi, who works at the Saudi Ministry of Petroleum and Mineral Resources, the person said, declining to be identified because the change hasn’t been made public………………………………………..Full Article: Source

The European Union (EU) voted last week to ban oil imports from Iran. The EU will immediately ban the signing of any new oil contracts with Iran, while the existing ones will be fulfilled up to July 1. According to EU officials, this gradual approach has been devised so that the oil market can absorb the embargo’s impact.
In response, Iran has said it may cut crude oil shipments to Europe early. Iranian officials have threatened to stop exporting crude to the EU promptly in order to provoke a surge in prices and prevent European countries from finding other supplies at similar costs in the short term………………………………………..Full Article: Source

Lately, oil markets have been jittery over fears that Europe’s new embargo on Iran could spark tensions in the Persian Gulf. So how would the world cope with an Iranian oil crisis, if it came to that? A new paper explores our options — and none of them are pleasant.
In theory, the E.U.’s embargo on Iranian oil imports, set for July, is supposed to cut into Iran’s finances without cranking up the price of crude too high………………………………………..Full Article: Source

Long term readers are well aware of my antipathy towards natural gas, which has been in your worst nightmare of a bear market for the past three years.
Well, the simple molecule finally got some good news last week. First, major producer, Chesapeake Energy (CHK) announced that it was cutting its natural gas production by 50%, taking some immediate pressure off the market. Sure, (CHK) is just one company, but others may follow suit………………………………………..Full Article: Source

NYSE Euronext and Deutsche Börse said on Wednesday that they were in talks to call off their planned merger, after European antitrust regulators formally opposed the deal.
Both exchanges said they fundamentally disagreed with concessions that the European Commission had requested, notably the divestiture of major parts of the combined company’s business………………………………………..Full Article: Source

The failed merger of Deutsche Boerse AG and NYSE Euronext has highlighted their grip on Europe’s futures and options trade, raising the prospect of reform to open the market to new entrants.
European futures and options trading, estimated at some $62 trillion in 2011 by the World Federation of Exchanges, is systemically important to the European financial system………………………………………..Full Article: Source

National commodity bourses are gearing up to launch new products this year on the back of growing interest by small investors. Mumbai-based National Commodity & Derivatives Exchange (NCDEX) is firming up plans to launch two products, most probably in the chemical sector. Indian Commodity Exchange (ICEX), which started operations in late 2009, will soon introduce micro volumes of gold and silver contracts of up to 1 kg each.
Kotak group-anchored Ace Derivatives & Commodity Exchange commenced soya meal futures trading last week and is considering plans to launch a few more in mid-year………………………………………..Full Article: Source

BM&FBovespa SA, the operator of Latin America’s biggest securities exchange, rose to the highest price in eight months on speculation the Brazilian government may stimulate the commodities market.
BM&FBovespa gained 5 percent to 11.54 reais at the close of Sao Paulo trading, the highest since May 13. The benchmark Bovespa index rose 2.4 percent………………………………………..Full Article: Source

Emerging market currencies soared Wednesday, relieved by the strong production figures from manufacturers across the globe. The South African rand breached ZAR7.70 against the dollar Wednesday for the first time since Oct. 28. Similarly, the Hungarian forint and Polish zloty firmed against the euro to levels seen last fall.
Investor sentiment was markedly positive on the back of strong production numbers in China, Europe and the U.S. Emerging market investors say the data helped alleviate fears of a slowdown in developed markets and the spillover into emerging economies, especially those in Europe, Middle East and Africa………………………………………..Full Article: Source

An exchange in Indonesia, the world’s largest tin exporter, started trading a physical contract today to create an alternative to the benchmark on the London Metal Exchange after twice delaying the initiative.
The Indonesia Commodity & Derivatives Exchange, which offers palm oil and gold, had two lots of 5 metric tons each traded before the contract settled at $24,500 a ton. The introduction was delayed from Dec. 15 and Jan. 12 to allow potential users more time to prepare………………………………………..Full Article: Source

Emerging markets are on a hot streak, as investors no longer transfixed by Europe’s sovereign-debt woes are lured by the prospect of strong growth in the developing world.
Many currencies are no longer moving in tandem with the euro, boosting confidence in a sustained rally even as Europe staggers toward a long-term solution to its crisis. The 25 currencies in the MSCI Emerging Markets Currency Index rose 4% in January, outperforming most other assets with the exception of stocks………………………………………..Full Article: Source

The third Global Commodities Forum closed on 24 January 2012 at the Palais des Nations in Geneva, after a productive two-day programme. The Forum’s theme this year was “Harnessing development gains from production and trade”.
As in previous years, the 2012 Forum attracted high-level participants from government, business, international organizations and non-governmental organizations, as well as experts from academia, civil society and the press………………………………………..Full Article: Source