Commodity managers who performed well in the first quarter with tilts to oil and industrial metals remain bullish going into the second quarter but are prepared for rapid repositioning given the uncertainty around China, Iran and strategic oil reserves.
Strong U.S. and Chinese economic data at the start of 2012 encouraged some managers to increase their exposure to growth-sensitive commodities, but indicators have been more mixed in April. Managers are also wrestling with how best to position themselves given tensions with Iran over its nuclear programme………………………………………..Full Article: Source

Commodities were lower in March, despite improving macroeconomic backdrop. Nelson Louie, Global Head of Commodities in Credit Suisse’s Asset Management division, said, “While commodities were generally lower in March, this was due to commodity markets remaining vulnerable to global supply shocks. We believe that the majority of the price increase of oil over recent months was driven by tight fundamentals, with much of the risk premium related to supply risk, such as geopolitical risk.”
“Agriculture remained vulnerable to weather disruptions and has recently been supported by reports of dry weather in South America and a dramatic cooling of temperatures for much of Europe in February. In base metals, new mining capacity proved more difficult and expensive to obtain while labor disputes continue to threaten existing production. This may bode well for component prices as macroeconomic risk subsides.” (Press Release)

A record high gold price above $2,000 an ounce next year could mark the peak of the precious metal’s more-than-decade-long bull run as monetary policy in key economies starts to normalise, the chairman of metals consultancy GFMS said.
The market is expected to rise to new highs by early 2013 after struggling this year against a backdrop of softer demand in key physical markets and slackening investment appetite for bullion, GFMS chairman Philip Klapwijk said………………………………………..Full Article: Source

Thomson Reuters GFMS figures gold potentially could fall below $1,550 an ounce over the next two months but also return to last year’s record highs before 2012 ends.
The consultancy listed its outlook for the precious metal Wednesday in conjunction with the release of its Gold Survey 2012 at events held in London, Johannesburg and Toronto. This was the 46th edition of the report………………………………………..Full Article: Source

“You could have made a lot of money buying platinum and selling gold since Lehman Brothers,” said Philip Klapwijk, executive chairman of GFMS today, answering analyst questions after launching the precious-metals consultancy’s new Gold Survey 2012.
The white metal recovered faster than gold over the next 32 months. But then, it needed to, having dropped two-thirds of its dollar price between March and December 2008. And since last summer, platinum has slipped back below the gold price per ounce – something seen on three brief trading days amid the global meltdown following Lehmans’ collapse………………………………………..Full Article: Source

Why are Turkey’s policymakers suddenly so interested in gold bullion? Turkey’s central bank last month raised the proportion of domestic currency reserves banks can hold as gold bullion – while simultaneously cutting the proportion for foreign exchange reserves to zero.
The move came only months after Turkey’s banks initially received approval to hold some of their reserves as gold – and less than a week after reports that the Turkish government is hoping to encourage people to deposit more gold with the country’s banking system………………………………………..Full Article: Source

After a fairly strong start to 2012, it seems much of exuberance with which silver started the year has dissipated. For Mitsui and Co Precious Metals strategic analyst, David Jollie, there are a number of good reasons why investor sentiment has been tempered.
“We’ve seen some reduction in silver demand this year and there’s a whole range of reasons for that,” he told Mineweb.com’s Metals Weekly podcast………………………………………..Full Article: Source

The third consecutive annual copper shortage and accelerating U.S. growth will drive prices to the highest in a year in the next quarter, according to the most accurate forecasters.
Global supply will fall 323,000 metric tons short of demand in 2012, more than Europe consumes in a month, Barclays Capital estimates. Hedge funds, which were betting on lower prices as recently as January, and are now the most bullish in eight months, Commodity Futures Trading Commission data show………………………………………..Full Article: Source

The current surplus in the Zinc markets are expected to end in 2013 when the markets shifts into deficit, bank of America Merrill Lynch (BofAML) said in their latest report.
A continuous decline in mine supply have resulted in zinc surpluses growing at a slower pace each year since 2009. Zinc surplus for 2009 was 789,000 tonnes, which declined to 699,000 tonnes in 2010, and this again decreased to 561,000 tonnes in 2011………………………………………..Full Article: Source

Iran’s oil production could fall almost 15 percent this year due to reduced foreign investment, the U.S. Energy Information Administration (EIA) said on Tuesday in a report highlighting the growing strain on Tehran’s oil sector even before factoring in the effect of new sanctions, Reuters reported.
The EIA estimated Iran’s oil output would fall about 500,000 barrels per day by the end of 2012, declining from 3.55 million bpd at the end of last year, as many foreign companies have been forced out of the country by existing restrictions………………………………………..Full Article: Source

Oil fell below $120 a barrel on Wednesday to the lowest in almost two months, pressured by rising U.S. inventories and concern about the strength of global demand.
The U.S. Energy Information Administration (EIA) on Tuesday cut its 2012 world oil demand growth forecast and later on Wednesday releases its weekly U.S. supply report, which analysts expect will show a further increase in crude stocks………………………………………..Full Article: Source

India’s Ministry of Commerce & Industry released an updated ‘Consolidated Foreign Direct Investment Policy Document,’ liberalizing norms for commodity exchanges, non-banking finance companies or NBFCs and foreign institutional investors or FIIs.
As per the policy document, foreign investment in commodity exchanges will become easier now, while import of second-hand capital goods getting tougher………………………………………..Full Article: Source

Futures turnover at commodity bourses in India, the world’s biggest buyer of bullion and second largest wheat grower, jumped 51.7% to Rs 181,26,000 crore in the last fiscal year, spurred by gold and agricultural commodities.
Volumes in agricultural commodities jumped 50.79% to Rs 21,96,000 core in the fiscal year that ended in March, while bullion futures volumes jumped 85.33% to Rs 101,81,999 crore, data from the regulator showed………………………………………..Full Article: Source

The Zambia Agricultural Commodities Exchange Ltd. plans to resume trading next month, ending a nine- month halt in which it sought to attract shareholders and asked lawmakers to pass a bill to regulate and boost trading.
The Zambia National Farmers Union, which represents growers, is among those that may invest in the exchange once it has distributed stock to members through demutualization, Executive Director Brian Tembo said………………………………………..Full Article: Source

The Chief Operating Officer of the Ethiopian Commodity Exchange, Mr Ahadu Woushet, has lauded Ghana’s initiative to establish a Ghanaian Commodity Exchange, elaborating the numerous benefits that the exchange platform presents.
He said the commodity exchange platform would connect the various sellers and buyers in the value chain, thereby giving them access to the right market………………………………………..Full Article: Source

If the Productivity Commission really is contemplating monetary union with Australia it can drive that thought from its mind with blows and curses. The gruesome example of the weaker members of the eurozone ought to be a compelling enough argument against this zombie idea.
If not, it could ask exporters and firms competing with imports this question: If an exchange rate of US82c is hard to live with, how would you like US$1.02 (which is where the aussie has been trading)?……………………………………….Full Article: Source

The global market for Maritime Containerization is expected to reach 731 mn TEU’s by the year 2017, driven by increasing sea trade,developments in shipping networks and transhipment hubs, encouraging investments in port terminal facilities and increased frequency of global maritime freight transport, says a new report by Global Industry Analysts,Inc.
Shipping containers represent the core of a highly automated system for transit of goods………………………………………..Full Article: Source

Proposed changes to New Zealand’s carbon trading scheme, the only one of its kind outside Europe, would limit the use of international carbon credits and cap the price for the next three years, officials said on Wednesday.
New Zealand Climate Change Minister Tim Groser said the proposed changes, released on Wednesday as part of a consultation process, were meant to help New Zealand avoid possible market volatility while economic uncertainties remain………………………………………..Full Article: Source

The European Union’s move to make airlines pay for their carbon emissions is a “deal breaker” for international climate negotiations, India’s environment minister said.
“For me, it is a deal breaker,” Jayanthi Natarajan told a conference in New Delhi. “I strongly believe that as far as climate change discussions are concerned, this is unacceptable.”……………………………………….Full Article: Source

European Commissioner Connie Hedegaard, a representative responsible for climate change action, is visiting Qatar to tour the country and meet with key officials, including HE Abdullah bin Hamad al-Attiyah, chairman of the Administrative Control and Transparency Authority, to discuss the upcoming COP 18 climate change summit to be held in Doha in December.
HE Abdullah bin Hamad al-Attiyah will assume the presidency of the summit during the crucial negotiations………………………………………..Full Article: Source