Hedge funds increased bets on rising commodity prices to the highest since September on mounting confidence that growth in the U.S. will strengthen demand.
Money managers boosted their combined net-long positions across 18 U.S. futures and options by 13 percent to 929,199 contracts in the week ended Feb. 7, Commodity Futures Trading Commission data show……………………………………….Full Article: Source

Where are we in the commodities cycle? Moving into 2012, there has been a degree of reevaluation in key commodities markets about the relative weighting they should give to demand-side fears and supply-side dynamics.
As Barclays Capital note in their latest Commodity Refiner, in general, there has been a shift back to a fuller consideration of the supply side after a year that was dominated by demand-side concerns and fears of macroeconomic discontinuities………………………………………..Full Article: Source

The global economic crisis has seen the price of oil torn in all directions, as poignantly highlighted by the exceptionally 2008-2009 cycle. The current constellation of market drivers promises another installment of volatility.
On the one hand, in spite of some positive signs, the global economy remains fragile and the prospect of fiscal consolidation in many economies has pushed oil demand erosion concerns back to the forefront………………………………………..Full Article: Source

Global oil consumption will rise to 105 million barrels per day by 2015 on increased economic activity across the globe. The major chunk of this is projected to emanate from developing non-OECD countries and the Middle East, according a new report.
While strong economic development is projected to propel demand in developing economies, availability of comparatively inexpensive fuel resources is expected to drive demand for liquid fuels in the Middle East………………………………………..Full Article: Source

Oil prices will likely consolidate around $100 a barrel this week though any move higher will be capped by market uncertainty on what happens next in Greece.
On Sunday night, Greek leaders passed new austerity measures crucial to receiving a second bailout package, but violence in Athens marred the vote………………………………………..Full Article: Source

Last week, the Tehran Times noted that the Iranian oil bourse will start trading oil in currencies other than the dollar from March 20. This long-planned move is part of President Mahmoud Ahmadinejad’s vision of economic war with the west.
“The dispute over Iran’s nuclear programme is nothing more than a convenient excuse for the US to use threats to protect the ‘reserve currency’ status of the dollar,” the newspaper, which calls itself the voice of the Islamic Revolution, said………………………………………..Full Article: Source

The U.S. is the closest it has been in almost 20 years to achieving energy self-sufficiency, a goal the nation has been pursuing since the 1973 Arab oil embargo triggered a recession and led to lines at gasoline stations.
Domestic oil output is the highest in eight years. The U.S. is producing so much natural gas that, where the government warned four years ago of a critical need to boost imports, it now may approve an export terminal……………………………………….Full Article: Source

US media is warning gasoline consumers they are threatened with a possible mega price hike. If the long drawn out Iran crisis moved to war action like closing the Hormuz Straits this could spike barrel prices to $200, nearly doubling average US forecourt gasoline prices to $6 a gallon.
Today in Europe, with the Straits of Hormuz wide open, European gasoline buyers pay an average of around $2.15 or 1.60 euro per litre. This is $8.05 for one US gallon and $335 per barrel………………………………………..Full Article: Source

Tensions between the West and Iran may be escalating and this could be bullish for Gold prices, said HSBC in a research note.
According to HSBC, elections are slated for March 2 in Iran, the first presidential votes since 2009, when Ahmadinejad’s reelection triggered months of riots. Gold prices rose during that time………………………………………..Full Article: Source

It is perfect time to buy Gold coins to take advantage of unusually low gold prices, said Wholesale Gold Group (WSG), an US based gold and Silver investment firm, in a report.
According to the report, gold prices are currently undervalued and may double or triple in the years to come. This is due to the economic crisis unfolding in the EuroZone, which is forcing governments to print money in unprecedented amounts………………………………………..Full Article: Source

While many pundits are predicting gold prices could rise above US$2,000 an ounce this year, it is just as likely that price movements could be sideways and choppy, than onwards and upwards, says Tom Kendall, head of precious metals research at Credit Suisse Securities.
Speaking at the mining indaba, Kendall said the good news is that the global economy is improving and moving in right direction. “Global industrial production is lagging global demand. Global demand for goods and services is improving and that gap has to close. That should be good news for those in the commodities business,” he said………………………………………..Full Article: Source

Over the last year or so, the ‘Gold Problem’ has become ever more serious for investors. What’s the problem, you might ask? Gold has given such wonderful returns for years now, so how can that be a problem? That’s the problem.
It’s hard to believe the gold story can continue in any sustainable, long-term fashion. If you’d like to understand why, then the best thing to do is to Google an article called ‘Why stocks beat gold and bonds’ that Warren Buffett wrote last week………………………………………..Full Article: Source

Seasonality is observable in a wide variety of variables. In business, sales, production, inventory, man hours and the best time to discount can be at least partially predicted by seasonal effects. Gold is no different. In different months price swings occur somewhat predictably year after year. What causes this, to what magnitude does it occur and most importantly – how can we profit?
As we all know, two things affect the price of all things tangible and intangible – supply and demand………………………………………..Full Article: Source

I think gold trades at $2,200 an ounce (oz) this year. I think silver trades at possibly $60/oz this year, but they’re really just stepping stones on the way to higher ground.
This 11-year ascent in both precious metals is only going to change when central bank policy surrounding it changes. I just don’t see that happening in the foreseeable future until they get this debt problem under control………………………………………..Full Article: Source

Gold’s accelerated move to $1900 in the summer of 2011 past overhead resistance indicated the market was waiting for an inflationary QE3. The market got a surprise as Bernanke waited until 2012.
This was no surprise for my readers and precious metals declined lower in the second half depicting a surprise move with gaps lower………………………………………..Full Article: Source

Excess capacity in aluminium smelting will drag on for years to come, even while losses weigh on producers, as political pressures in China and Russia to keep jobs and push self-sufficiency prevent or delay plant closures.
Rio Tinto acknowledged a gloomy outlook for the sector this week, when it slashed the book value of its Alcan unit by $9bn……………………………………….Full Article: Source

Grupo Mexico reported a 12.3% increase in copper production in 2011, although molybdenum, silver and zinc production declined, respectively by 9.5%, 4.5%, and 15.5% during the same period.
Net consolidated earnings for 2011 posted a record high of U.S. $2.44 billion, up 49.9% from the net earnings of $1.63 billion report in 2010………………………………………..Full Article: Source

Indonesian Minister for Energy and Mineral Resources Jero Wacik has signed a ministerial regulation to ban exports of metal ore beginning 2014. The regulation stipulates that all raw metals, including gold, copper, nickel, bauxite and iron will have to be processed in the country, as mandated by the 2009 Minerals and Coal Laws.
The Jakarta Post reported on Saturday that the ban was aimed, among others, to boost the country’s metal production, to utilise the processed products for domestic purposes and by-products as raw material for chemical and fertilizer industries and to increase the country’s revenue………………………………………..Full Article: Source

Commodity exchange traded funds have been a boon to individual investors because they give exposure to certain areas of the market that were once hard to reach. These ETFs are also one of the best ways an investor can diversify their portfolio.
Up until a few years ago, the average individual investor could not invest in gold or currencies with the ease of a simple transaction………………………………………..Full Article: Source

There is a growing regulatory movement afoot aimed at reducing commodities exposure within mutual funds dramatically just as this alternative strategy is gaining popularity.
While this is something financial advisers will want to watch, it is not a reason to cash out of commodities- or managed-futures-based mutual funds just yet………………………………………..Full Article: Source

India’s six national and 18 regional commodity futures exchanges are a crowd and not just pose a regulatory challenge but also raise the prospect of some going bust, although they boast of unprecedented growth.
The total turnover of all these exchanges was a record Rs174 trillion in 2011, up 66% from a year ago, data from industry lobby group Assocham shows, but underneath the surface is a story of stiff competition, undercutting of fees, absence of actual users and the spectre of taxation and curbs………………………………………..Full Article: Source

There is finally a future in the futures market. If 2008 left a deep imprint on the crisis calendar and 2011 went down as a slow haemorrhage, the new year blinks in more optimism and choice for Chinese investors.
As the biggest consumer of various commodities, China has renewed its efforts to strengthen its pricing power and sway commodity prices in the international market. Its tightly regulated futures exchanges, which allow very limited access to foreign firms, have not yet developed muscles to match China’s massive demand and buying volume………………………………………..Full Article: Source

There is a science to market movements and various trends because human nature is consistent over time. Bear markets follow a pattern as do bull markets. In recent weeks we’ve noted the similarities between the past four equity bull markets.
They start off strong for six or seven years before slowing down over the next five years. Then they break to new highs and eventually accelerate into a bubble. As we show in this update, change in valuation explains how bull markets evolve into bubbles………………………………………..Full Article: Source

Fears are rising for the state of the shipping industry after it emerged operators are now paying clients to use their ships.
Global Maritime Investments (GMI) said it would pay Glencore $2,000 a day to lease its vessel the Angelina, which will transport grain on a round trip from South Korea to northern Europe………………………………………..Full Article: Source

The eurozone crisis is not just about political deals or high finance. It is also about confidence in the cash in people’s pockets. The euro was meant to symbolise a more united and stable continent for every eurozone citizen.
But if the single currency begins to fragment, if a country or countries reintroduce national currencies, everyone in the eurozone could be affected………………………………………..Full Article: Source

The analytic team of Commerzbank anticipates 95 cents per pound in Q1 2012. They expect cotton prices to grow up to 105 cents per pound in Q2. It should be noted that in 2011 cotton depreciated by 37%. However, in December, China managed to initiate a slight rally in the market of cotton by showing higher demand for its.
The experts of Rabobank have another opinion. They assume that cotton won’t appreciate due to overproduction. By the end of Q1 2012 the price will decline down to 85 cents per pound. In Q3 it will go 5 cents down, thus making 80 cents per pound. The expert team of Morgan Stanley suggests that the average price on cotton will be equal to $1 per pound this year while next year it will decline down to 80 cents per pound………………………………………..Full Article: Source