Chiefs of top mining companies worldwide are bullish about demand from China and India, which is expected to boost global commodities market worldwide. Global consultancy PwC in its latest report on mining industry has also said that India would require huge increases in coal import to meet its growing power generation and for industrial needs.
“Mining CEOs remain bullish about demand from emerging economies, led by China and India, which are anticipated to continue to drive demand for commodities,” it noted………………………………………..Full Article: Source

Barclays Capital said investors withdrew $8.2 billion from commodity investments in May, the largest in eight months. “A ‘perfect storm’ of downgrades, lackluster macroeconomic data and the ongoing eurozone debt crisis transformed a retreat by investors into something approaching a stampede during May, evoking memories of 2008,” Barclays said.
Barclays said May ended with total assets under management of $394 billion in commodities, down $35 billion from the previous month………………………………………..Full Article: Source

Global oil prices have been on a free fall during the second quarter of this year. Both Brent and WTI crude are down to yearly lows, with Brent trading at $93 per barrel while WTI hovers around $81 per barrel.
One of the driving forces behind these sharp price drops (remember that earlier this year Brent was trading close to $125 per barrel) is increasing global inventories, especially in the US, still the world’s largest oil market………………………………………..Full Article: Source

Crude oil prices have slumped 23% in this quarter on Eurozone debt crisis, China slowdown and an uncertain US economic recovery. US Crude Oil traded below $80 for a third day amidst a weak demand outlook for Oil.
Hedge funds have reduced their bullish bets to a 19-month low for the week ended June 19, according to Commodity Futures and Trading Commission (CFTC) data………………………………………..Full Article: Source

The U.S. government published its first official forecast for booming “tight oil” production on Monday, estimating that shale formations such as the Bakken in North Dakota will more than double output in the next two decades.
The projections, one small part of the Energy Information Administration’s updated long-term forecasts, shed light on the agency’s take on the role of the oil found in low-permeability reservoirs such as shale and chalk formations, the largest new source of U.S. supply since offshore Gulf of Mexico………………………………………..Full Article: Source

Saudi Arabia is showing no sign of changing its policy of high oil output to support global economic growth, despite a fall in crude prices below $90 a barrel for the first time in 18 months.
Gulf and Western government sources in contact with Saudi officials said the OPEC power can tolerate oil at $90 or below for months, price levels that hurt Iran and Russia as they face off against Riyadh over the conflict in Syria………………………………………..Full Article: Source

Slow growth in the US and China and the recession in Europe is dramatically reducing Western demand for oil. Inventories in the US are at a 22-year high.
The US Federal Reserve’s quantitative easings that pumped paper money into the economy and drove up the nominal price of oil have come to an end. And the 12 OPEC oil-cartel members, which together supply 40 per cent of the world’s oil, are producing 1.6 million barrels above the agreed daily quota of 30 million barrels………………………………………..Full Article: Source

Europe’s producers and users of industrial metals are scrambling to find alternate sources of funding as regional banks, hurt by the debt crisis and tougher global capital rules, become increasingly reluctant to lend.
The squeeze in lending is also affecting small to mid-size metals merchants, who are turning to global commodity traders for loans to help them trade their goods around the world………………………………………..Full Article: Source

The next real gold rush won’t be on a far flung asteroid. It will be under the sea. In fact, The Wall Street Journal said earlier this month that underwater mining could be a $500 trillion business someday.
That means underwater mining stocks, which are cheap now, could be headed for monster gains. Scientists now project there are over 10 million tons of gold to be found by sifting through the seas - but don’t go out with your shovel and sifter. Most of the gold is buried under a mile of water. And that is just the gold………………………………………..Full Article: Source

According to Investec Securities, while it may be too early to suggest the bullion-equities relationship has been restored, recent movements do bode well for gold stocks in the second half of the year.
Equities are bought for two reasons, capital appreciation and/ or dividends. But, in traditional investing theory, equities are risky, or at least more so than cash and bonds………………………………………..Full Article: Source

Gold prices tumbled below $1600 to a new low for the month on dollar-strength and weaker than expected maco data. Gold/Silver ratio, which measures the number of silver ounces needed to buy an ounce of gold has risen above 57 last week. Barclays Research said that gold/silver ratio is set to widen further on weakness in silver prices.
Barclays pointed out that macro-economic environment remains bullish for gold but market fears about the Euro area’s problems may keep Euro depressed against the dollar………………………………………..Full Article: Source

The government is planning to bring electronic commodity spot exchanges under Forward Markets Commission(FMC) regulations, Food Minister K V Thomas said.
“The Department of Consumer Affairs Ministry wants FMC to regulate spot exchanges. We have received the draft regulation and hope it will be cleared soon,” the Minister said………………………………………..Full Article: Source

Pakistan Mercantile Exchange (PMEX), the country’s first commodity exchange in Pakistan, has signed an agreement with Catalyst IT Solutions to provide them with a technology platform whereby PMEX brokerage houses will be able to offer online trading platforms, mobile trading platforms and SMS alert services to their clients.
Under this agreement, Catalyst IT Solutions – a company that provides similar platforms to equity brokerage houses in Pakistan – has integrated its own front office trading software Kinetic with the Electronic Trading System (ETS) of PMEX in a manner that would enable brokers of PMEX to use this software as well as offer it to their clients………………………………………..Full Article: Source

Fresh after securing a deal to buy the London Metal Exchange earlier this month, Hong Kong’s ambitious bourse is now trying for another goal–a dual-currency stock on its exchange.
A year ago, Hong Kong Exchanges & Clearing Ltd. released details of how a company could list in both local Hong Kong dollars and the Chinese yuan, and in January added facilities so investors without access to enough yuan can still trade yuan stocks listed on the bourse………………………………………..Full Article: Source

Wall Street traders making big bets on derivatives would receive relief from regulation only if they met certain standards under a rule proposed on Monday. The Commodity Futures Trading Commission voted to introduce a draft rule that limits how firms can qualify for exemptions through so-called block trades.
Banks and brokerage firms place the trades, large private transactions typically negotiated outside the scope of an exchange, as a service to investors that want to purchase a big bulk of derivatives………………………………………..Full Article: Source

The largest emerging markets, whose economies grew more than four-fold in the past decade, are making losers out of everyone from central bankers to Procter & Gamble Co. (PG) as their currencies post the biggest declines since at least 1998.
For the first time in 13 years, the real, ruble and rupee are weakening the most among developing-nation currencies, while the yuan has depreciated more than in any other period since its 1994 devaluation………………………………………..Full Article: Source