World food prices are expected to have fallen in May for a second month, easing inflation and food security concerns, as intensifying worries about a slowing global economy and euro zone debt led to a sell-off in grains and other commodities.
The United Nations’ Food and Agriculture Organisation (FAO) will update its monthly Food Price Index on Thursday. It is also due to update its outlook for crops………………………………………..Full Article: Source

Australia’s economy rocketed to 4.3 per cent growth for the year through March, its fastest expansion since the global financial crisis, as Chinese demand for iron ore and other commodities masked difficulties outside the mining industry.
The Australian Bureau of Statistics said yesterday that the economy grew 1.3 per cent in the January-March quarter from the previous three months, which was double what economists had expected………………………………………..Full Article: Source

Despite an economic reliance on natural resources, Australia has lagged other developed markets in commodities investments, according to S&P Indices.
“We tend to look at the market and think, well, if we’ve got BHP and Rio then we’ve got enough in direct equities for an exposure - our message is about why you would use something like a commodity futures based index,” said Guy Maguire, head of S&P Indices Australia………………………………………..Full Article: Source

India’s commodities market regulator plans to crack down on excessive speculative trading in several agricultural futures after commodity prices soared in recent months, raising concerns about the return of high food price inflation, its chairman said.
“Our main objective is to align futures markets with the physical market and serve the purpose of price discovery and hedging,” Ramesh Abhishek, chairman of the Forward Markets Commission, said……………………………………….Full Article: Source

There was plenty of talk from the eurozone but nothing concrete came of a hastily arranged G-7 meeting. Nice words were spoken and everyone was, of course, polite. Spain demanded more EU help for their bank bailouts and Germany said they were “open” to a euro-wide banking system.
Of course, to accomplish the latter would take time and require more German money. Finance Minister Schaeuble stated Germans were “open to more banking coordination” whatever that might mean………………………………………..Full Article: Source

Bank of America-Merrill Lynch lowered its crude oil price forecasts, citing stronger-than-expected supply growth coupled with weakening European demand and softer growth in emerging markets and the United States.
The bank cut its Brent and West Texas Intermediate crude oil price forecasts by $10 for the second half of the year, to $106 and $97 per barrel, respectively………………………………………..Full Article: Source

Oil-supply constraints amid continued global economic growth mean that crude’s slump to the lowest in eight months may be temporary.
Oil, which has entered a so-called bear market after sliding more than 20 percent since May 1 in New York, is unlikely to collapse as it did in 2008 because long-term fundamentals haven’t changed and supply may not keep up with demand, according to the chief executive officer of Royal Dutch Shell Plc. (RDSA)……………………………………….Full Article: Source

Maria van der Hoeven, director of the International Energy Agency (IEA) has warned the recent moderation in world oil prices remained fragile and that high prices still poised a threat to world economies, AFP has reported.
“We still confront a situation where these near-triple-digit oil prices — and in some cases it’s made worse by local currency weakness — are placing a huge burden on both domestic and national budgets,” van der Hoeven said. The oil market is “well supplied” with Opec releasing extra oil, she said. But she added “Let’s not say victory because that’s too early.”……………………………………….Full Article: Source

Saudi Arabia is poised to rein in oil sales after it achieved a $100-a-barrel target by cutting the price of its crude and pumping at the highest rate in at least three decades.
The world’s biggest crude exporter started to scale back shipments this month, Vienna-based researcher JBC Energy GmbH said, citing tanker fixtures………………………………………..Full Article: Source

A competition between Saudi Arabia and Iran over a prestigious Opec post could pave the way for a compromise candidate from a third-party country to take the job, officials and analysts said.
Iran yesterday confirmed that former oil minister Gholam-Hosain Nozari had been introduced as Tehran’s candidate for the position of secretary general. That follows a previous move by Saudi Arabia to nominate Opec governor Majid Munif to the position, which serves as the group’s official leader and public face. Iraq and Ecuador have also put forward candidates………………………………………..Full Article: Source

Historically speaking, it’s easy to note an inverse relationship between the dollar and the price of gold.
Simply put, while the US dollar strengthens, the price of gold will decrease. In today’s volatile times, investors are seeking safe havens, as evidenced by the relative strength of the USD, and consequently, the falling price of gold………………………………………..Full Article: Source

Gold rose to a four-week high in London as a weaker dollar increased the metal’s appeal as an alternative asset.
The dollar declined versus the euro amid speculation the world’s leading economies will collaborate on a response to Europe’s debt crisis. Federal Reserve Bank of Chicago President Charles Evans said recent U.S. economic data warrant “extremely strong accommodation.”……………………………………….Full Article: Source

Investment diamond prices fell a further 0.8 per cent in May and are down around three percent since the beginning of the year. The easing in investment diamond prices has been driven by the jitteriness in the market resulting from uncertain macro-economic environment and concerns about a stagnation in demand growth from major diamond consuming markets.
This downward price trend in Investment Diamond prices is in alignment with other financial and commodity markets………………………………………..Full Article: Source

Bob Wolf, Alliance LLC vice president, doesn’t believe everything he reads. Manufacturers claim they can swap out rare earth elements for cheaper, more accessible materials, while some miners insist they can fill every gap in the rare earth supply chain.
Wolf explains why rare earth elements are irreplaceable in many applications and outlines the patenting and permitting hurdles that producers must overcome to realize mine-to-magnet production………………………………………..Full Article: Source

Bob Wolf explains why some rare earth metals are irreplaceable and recounts the difficulties faced by miners wishing to produce them. If you look at total supply of all REEs, magnets make up about 5% of the total usage by weight. If you mine 100,000 pounds (lbs) of REEs, 5% might be used in magnets.
REE usage in magnets is a very small, but essential percentage of the total REE supply. For example, without lanthanum, there would be no flat-screen TVs. However, without the REEs in neodymium iron boron (NdFeB) magnets, your laptop would become the size of a small room, because REE magnets are required for small disk drives………………………………………..Full Article: Source

Silver glistened brightest as commodities rallied and the dollar weakened Wednesday on speculation that central banks may print more money to stave off a global slowdown.
IShares Silver Trust (SLV) jumped 3.6% to a one-month high. It still trades below its 10- and 40-week moving averages, which is very bearish. SPDR Gold Shares (GLD) added 0.74%, also hitting a one-month high………………………………………..Full Article: Source

French banking behemoth BNP Paribas has become the latest financial institution to jump into the ETF industry, rolling out an exchange-traded commodity product this week.
The new STREAM S&P Dynamic Roll Global Commodities Fund (BNPC) will seek to replicate the S&P GSCI Dynamic Roll Excess Return Index, a broad-based index of commodity futures that uses a flexible methodology to tilt the portfolio depending on prevailing market conditions………………………………………..Full Article: Source

A dismal jobs report from the U.S. Department of Labor has changed gold’s fortunes in financial markets—both in terms of asset flows and price—ending a period of the yellow metal’s relegation to second-class status as a safe haven behind dollar assets such as Treasurys.
The May jobs report showing 69,000 new jobs were created last month was well below expectations of 175,000 in a Bloomberg News analyst survey—getting everyone talking that the economy might need more help from policymakers, lest the eurozone’s debt problems completely derail global growth………………………………………..Full Article: Source

Despite the credit risk associated with ETNs, they have continued to garner huge inflows in the US. The degree of sophistication they offer has been keeping investors on their toes and while they remain a fraction of the ETF industry, these two markets have started to compete directly with one another.
The exchange-traded note (ETN) industry in North America has gathered an impressive number of new assets since the start of 2012………………………………………..Full Article: Source

The two remaining suitors for the London Metal Exchange (LME) will resubmit proposals on Thursday and are likely to raise their bids in the final stages of a contest to buy the world’s biggest metals marketplace, sources close to the situation said.
The content of bids by InterContinental Exchange and Hong Kong Exchanges and Clearing are similar, the sources have told Reuters………………………………………..Full Article: Source

Morgan Stanley has had talks with private-equity firms including Blackstone Group LP as the bank considers options for its commodities trading unit if the Volcker rule outlaws some activities, according to people familiar with the discussions.
The firm currently has no plans to sell the business or a minority stake in it, said one of the people, who asked to remain anonymous because the talks were private. Mary Claire Delaney, a Morgan Stanley spokeswoman, declined to comment………………………………………..Full Article: Source

Morgan Stanley has been approached by several private-equity firms interested in acquiring its commodities business, but has no interest in selling either a minority stake or the unit itself, according to a person familiar with the situation.
Earlier Wednesday, CNBC reported that the securities firm is considering the sale of a minority stake in the unit and has spoken with potential suitors, including Blackstone Group, citing people familiar with the matter………………………………………..Full Article: Source

We all know why the dollar has just had its best month for the year. As any pundit will tell you, talk of a euro-zone breakup is driving nervous investors into the “safety” and “liquidity” of the world’s dominant reserve and commercial currency.
What is rarely questioned is why the dollar plays this role in the first place. And when you delve into it, it’s hard to come up with much more than self-fulfilling logic: The greenback enjoys this status because it always has………………………………………..Full Article: Source

The ruble’s recent sharp fall against the dollar has left a lot of people talking about the currency as if it’s a uniquely poor performer, an embarrassing laggard and a testament to the country’s economic backwardness.
If only Russia had a “balanced” economy, instead of a “primitive” one largely dependent on the price of natural resources, then its currency would have held up better against the greenback. ……………………………………….Full Article: Source

The value of the Korean won continues to fall and is soon likely to breach the threshold of 1,200 to the U.S. dollar. Hail to the almighty weak won.
Countries once took great pride in having strong currencies. It was seen as a symbol of national vigor. That is no longer the case. Now many nations prefer to see their currencies decline as a means to boost economic growth. A weaker currency usually means bigger sales of their products overseas and more jobs at home………………………………………..Full Article: Source

China will continue to keep electricity prices steady even if its stance complicates efforts to rein in runaway energy consumption and greenhouse gas emissions, an official of the country’s state planning agency said on Wednesday.
China is the world’s biggest emitter of greenhouse gas and its coal-heavy power sector generates more than half of total emissions………………………………………..Full Article: Source

Nearly a third of animal species under threat in developing nations can be linked to global trade of manufactured goods and commodities such as sugar, coffee and cocoa, researchers said on Wednesday.
Policies aimed at curbing threats to species should take into account not only local producers who degrade the land but also foreign consumers who benefit from products at the expense of the habitat, said a study led by the University of Sydney………………………………………..Full Article: Source