Posted on 21 May 2012 by VRS | Email |Print
Hedge funds reduced wagers on a rally in commodities to the lowest this year on mounting speculation that Greece will leave the euro, slowing global growth and curbing demand for everything from copper to soybeans.
Money managers reduced net-long positions across 18 U.S. futures and options by 15 percent to 616,841 contracts in the week ended May 15, the lowest since Dec. 27, Commodity Futures Trading Commission data show………………………………………..Full Article: Source
Posted on 21 May 2012 by VRS | Email |Print
Commodities continued to remain weak on the back of uncertainty in the euro zone. The possibility of Greece’s exit from the euro zone, the strengthening dollar, economic slowdown and the chance of further downgrades are keeping the sentiment bearish for most commodities.
Gold, silver, crude oil, base metals, palm oil, rubber, soy oil, sugar and cotton fell through the week. The grain basket comprising of corn, wheat and soybean registered gains due to weather concerns in the US ahead of the harvest………………………………………..Full Article: Source
Posted on 21 May 2012 by VRS | Email |Print
This past week saw a plethora of information affecting the various markets we follow and report on — not the least of these was concern that China. The world’s largest consumer of raw materials and products was reportedly experiencing an economic slowdown.
Another factor was the ongoing Greek debt crisis which developed into the question of whether or not Greece would leave the euro currency. This would create serious problems for the Eurozone as billions were already pumped into Greece to forestall or, in our opinion, delay the inevitable default………………………………………..Full Article: Source
Posted on 21 May 2012 by VRS | Email |Print
Chinese consumers of thermal coal and iron ore are asking traders to defer cargos and defaulting on their contracts, the Financial Times reported on Monday. The newspaper cites traders as saying the deferrals and defaults, which have only emerged in the last few days, have contributed to a drop in iron ore and coal prices.
“We have some clients in China asking us this week to defer volumes,” a senior executive with an unnamed global commodities trading house is quoted as saying………………………………………..Full Article: Source
Posted on 21 May 2012 by VRS | Email |Print
Iran’s economy minister said oil prices will “certainly” rise if the European Union moves ahead with an embargo in July and that sanctions will backfire on those who impose them.
The European Union is preparing for a total embargo on the purchase of Iranian crude oil in July. The United States has also imposed sanctions targeting Iran’s energy and banking sectors………………………………………..Full Article: Source
Posted on 21 May 2012 by VRS | Email |Print
Leaders of the Group of Eight major economies raised the pressure on Iran on Saturday, signaling their readiness to tap into emergency oil stockpiles quickly this summer if tougher new sanctions on Tehran threaten to strain supplies.
“We remain united in our grave concern over Iran’s nuclear program,” the G8 leaders said in a statement summing up the results of their meeting in Camp David in rural Maryland………………………………………..Full Article: Source
Posted on 21 May 2012 by VRS | Email |Print
On February 22, the commodities team at Goldman Sachs initiated a long trading recommendation on WTI crude at $107.55 a barrel.
It’s been a rough few weeks for anyone who took that advice – oil closed out this past trading week at $91.48, down 15 percent from the time of the recommendation as uncertainty in Europe has stoked fears of a significant slowdown in global growth looming ahead………………………………………..Full Article: Source
Posted on 21 May 2012 by VRS | Email |Print
Commodities prices, including gold, have fallen as world markets get the jitters over what might happen if Greece is forced out of the eurozone. Gold has dropped below $US1,600 an ounce, down from the highs of nearly $US1,900 last year.
Analyst Peter Wright says gold is known as a safe investment during financial difficulty and the price drop is significant. “Gold continues to weaken, which is at odds with the broader investment view that in times of uncertainty and upheaval you might normally expect gold to be rallying,” he said………………………………………..Full Article: Source
Posted on 21 May 2012 by VRS | Email |Print
Gold demand in China may surge as much as 30 percent this year as rising incomes boost consumption, helping the country topple as the world’s largest bullion market on an annual basis, according to the World Gold Council.
Demand, which rose to a record in the first quarter, may gain to between 900 metric tons and 1,000 tons this year, from 769.8 tons in 2011, , Far East managing director at the producer-funded group, said in an interview. Indian usage may drop to 800 tons to 900 tons, from 933.4 tons, he said………………………………………..Full Article: Source
Posted on 21 May 2012 by VRS | Email |Print
Gold has had a history of being over 5,000 as money to enable trade. As a precious metal, it is durable. As a result, wise investors tend to incorporate gold into their portfolio. The U.S. Money Reserve has sought to provide a strategic service for investors who seek both financial returns and security.
Gold has been a part of fashion. Many individuals have considered it trendy to brandish gold jewellery with stylist attire. However, in today’s milieu of financial instability and uncertainty which is spreading into global markets from Europe, gold is becoming perhaps more important than ever before………………………………………..Full Article: Source
Posted on 21 May 2012 by VRS | Email |Print
A key for gold will be whether it can maintain the momentum from Friday’s sharp rally, said Union Bank of Switzerland (UBS), in a commodities briefing.
According to Zurich based bank, Gold surged–supported by a weak Philadelphia Fed index, with buy stops triggered–despite a stronger dollar and weaker equities………………………………………..Full Article: Source
Posted on 21 May 2012 by VRS | Email |Print
Platinum’s sliding price stands at the mercy of competing “swing factors” that make forecasting prices and the market’s balance between physical supply and demand particularly challenging.
As the curtain fell on last week’s Platinum Week—an annual gathering of industry members in the City of London—the prevailing view among market participants is that global supply of platinum will outstrip demand this year………………………………………..Full Article: Source
Posted on 21 May 2012 by VRS | Email |Print
With about half of platinum producers facing losses at the current price, something has to give. Platinum futures are now trading at $1,459.30 an ounce, down from a high of $19.16 in August last year.
Nick Moore, a metals analyst at RBS, argued that the industry needs to make production cutbacks at high cost mines in order to reduce overall unit costs, but notes that companies are reluctant to make the first move………………………………………..Full Article: Source
Posted on 21 May 2012 by VRS | Email |Print
Australia’s mining boom is faltering, with market watchers forecasting a continuing slowdown in response to weaker Chinese demand, soaring plant costs, questionable decision making, stumbling Europe and overseas competition.
Mark Lennox, of Halifax Investment Services, is particularly bearish, forecasting the mining boom is drawing to a close on the back of thinner export margins. In response, Lennox expects share prices of the big miners to continue tumbling, while explorers and debt-laden companies will struggle to survive. He says investors have voted with their feet and headed for the exit………………………………………..Full Article: Source
Posted on 21 May 2012 by VRS | Email |Print
Tin prices to reach $25,000 a metric ton in the second half of the year and reach $27,000 in the first half of 2013, said BNP Paribas in a commodities briefing. LME Tin prices are currently trading around $19445/ton.
Tin prices have been the worst performing across the complex over the past month, down almost 10% but a bullish bias might develop in the coming months………………………………………..Full Article: Source
Posted on 21 May 2012 by VRS | Email |Print
When metals warehouses in top consumer China are so full that workers start stockpiling iron ore in granaries and copper in car parks, you know the global economy could be in trouble.
At Qingdao Port, home to one of China’s largest iron ore terminals, hundreds of mounds of iron ore, each as tall as a three-storey building, spill over into an area signposted “grains storage” and almost to the street………………………………………..Full Article: Source
Posted on 21 May 2012 by VRS | Email |Print
There are nearly 30 ETFs oriented to the energy sector. The following analysis features a fair representation of ETFs available. We believe from these investors may choose an appropriate ETF to satisfy the best index-based and “enhanced” linked index offerings individuals and financial advisors may utilize.
The energy sector remains volatile and politically controversial given the recent higher spikes in prices in 2008 and 2011. In early 2012 the situation with Iran kept crude oil and some distillate prices high………………………………………..Full Article: Source
Posted on 21 May 2012 by VRS | Email |Print
The euro started the week on a subdued note and commodity currencies remained mired at multi-month lows as investors found little comfort in a pledge by world leaders to take all steps necessary to combat financial turmoil.
The single currency last stood at $1.2786, a touch firmer than its New York close on Friday as markets saw Saturday’s comments from a summit of the G8 leading industrialised nations as short on details and long on rhetoric………………………………………..Full Article: Source
Posted on 21 May 2012 by VRS | Email |Print
South Korea’s won rebounded from a five-month low and government bonds fell on speculation European leaders will come up with a strategy to ease the region’s debt crisis when they meet this week.
German Finance Minister Wolfgang Schaeuble will discuss the 17-nation currency with his French counterpart, Pierre Moscovici, today before European Union leaders meet for a summit meeting in Brussels on May 23………………………………………..Full Article: Source
Posted on 21 May 2012 by VRS | Email |Print
A reserve currency is a national currency held by many other governments around the world as part of their foreign exchange reserves. Reserve currency status indicates a powerful economy as other governments depend on the reserve currency’s stability to manage their own monetary policies.
A reserve currency provides many advantages to the country that issues it………………………………………..Full Article: Source
Posted on 21 May 2012 by VRS | Email |Print
In order to re-establish confidence in Europe’s power sector as an actor in the European quest to cut carbon emissions, a few conditions need to be met. These include concrete intermediate reduction targets and an emissions trading scheme capable of delivering a clear CO2 price signal, writes Giuseppe Montesano.
Giuseppe Montesano is head of European regulation for the Italian energy company. “Recently there have been a number of international and European commitments for ambitiously reducing emissions to combat climate change………………………………………..Full Article: Source
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