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Commodities Briefing - Archive | December, 2012

Commodities upstart ICE in $8bn takeover of New York Stock Exchange $8bln

Posted on 21 December 2012 by VRS  |  Email |Print

Two centuries of independence for the New York Stock Exchange are set to come to an end after its operator, NYSE Euronext, agreed to sell itself to Inter-continentalExchange, the commodities-focused markets business, in an $8bn (£5bn) deal.
In all, the combined stock market behemoth will own 14 exchanges, along with five clearing houses, giving ICE the heft to go head to head with larger rivals such as CME, which runs derivatives and futures exchanges in New York and Chicago, and the Frankfurt-based Deutsche Börse, whose own gambit to join forces with NYSE Euronext was thwarted by European competition regulators………………………………………..Full Article: Source

Commodities four-year winning streak may be over

Posted on 21 December 2012 by VRS  |  Email |Print

Commodities are on track to halt four years of consecutive gains, despite large bets in related funds. The S&P Goldman Sachs Commodity Index is down 0.03 percent this year, on track for its first annual loss since 2008, when it fell 43 percent.
At the same time, money invested in commodity funds is up 86 percent to $20.8 billion compared to 2011, according to data by EPFR Global. Gold is the big winner in 2012, with nearly 84 percent of the funds invested in physical commodities ($16.7 billion) going towards the metal. Gold has gone up in price for 12 consecutive years, up about 500 percent in that period………………………………………..Full Article: Source

Commodity trader hedge funds outsmart standalone rivals

Posted on 21 December 2012 by VRS  |  Email |Print

Hedge funds owned by commodity giants including Cargill and Louis Dreyfus have outwitted their standalone rivals in a year of market volatility that has disrupted traditional models for oil and metals trading.
They have used their knowledge of agricultural markets to trade products that have been less affected by central bank liquidity injections or heightened tensions in the Middle East as many other funds have had their worst year in a decade………………………………………..Full Article: Source

Commodities price suffer fall but poised for rebound in 2013: Scotiabank report

Posted on 21 December 2012 by VRS  |  Email |Print

Commodity prices are poised for a rebound in 2013 following the declines experienced in many of Canada’s resource sectors this year despite a summer rally, according to a new report from Scotiabank. In a commentary accompanying its Commodity Price Index for November, Scotiabank says prices will get a lift as buyers restock raw materials after liquidating inventories or deferring orders in 2012.
“This is already the case in China, where a pickup in orders from steel producers, after a sharp inventory correction last summer, has boosted spot iron ore and coking coal prices,” writes Scotiabank commodity market specialist Patricia Mohr………………………………………..Full Article: Source

Despite 2012 commodities slump emerging market demand set to fuel higher, more volatile prices

Posted on 21 December 2012 by VRS  |  Email |Print

A new online report from McKinsey & Company claims that commodities prices are destined to rise higher and become more volatile as demand from emerging markets comes more prominently into play.
According to the report the economic growth of emerging markets will lead to prodigious gains in demand for resources, with growth in demand for energy and steel projected to rise 33% and 80% for the period from 2010 to 2030………………………………………..Full Article: Source

Commodities in 2013: 2 ways to cash in on the increasing food demand

Posted on 21 December 2012 by VRS  |  Email |Print

Changing global climate has wrought havoc on the agricultural sector during the past year. Drought in the United States has stunted the yields of many crops, while unusual weather patterns elsewhere in the world led to sharp spikes — and drops — in farm yields across Asia, Latin America and Europe.
Yet it’s unwise to pay too close attention to these near-term events. Instead, focus on the clear long-term trend in place for global agriculture. Millions more people are joining the middle class in fast-growing places such as China, Brazil and India, and there is a global push to ensure crop yields are maximized to meet this rising demand………………………………………..Full Article: Source

Oil to drift lower in 2013, crash unlikely: Analysts

Posted on 21 December 2012 by VRS  |  Email |Print

Slow economic growth and ample supplies are expected to keep a lid on oil next year with crude prices gradually slipping lower. But analysts polled by Reuters say a price crash is unlikely and geopolitical concerns should help support the market.
Reuters monthly survey of 26 analysts forecast North Sea Brent crude oil will average $108 per barrel in 2013, down from an average of $111.71 so far this year. Brent prices are projected to fall further to an average of $105.90 in 2014, the poll showed………………………………………..Full Article: Source

Oil not going to $50 any time soon

Posted on 21 December 2012 by VRS  |  Email |Print

The contrarian walled deep inside newsletter land might want to sell people on the idea that oil prices, trading sideways all year, are heading to the vicinity of 50 bucks a barrel. But the smart money thinks otherwise.
Barring a complete crack up of the eurozone, a China hard landing, and a U.S. recession due to failure in the fiscal cliff talks, oil will likely be another boring commodity in 2013………………………………………..Full Article: Source

OPEC exports drop after winter demand peak, Oil Movements says

Posted on 21 December 2012 by VRS  |  Email |Print

The Organization of Petroleum Exporting Countries will cut crude exports by 2.6 percent as demand during the northern hemisphere winter begins to slacken, according to tanker tracker Oil Movements.
The group that supplies about 40 percent of the world’s oil will export 24.1 million barrels a day in the four weeks to Jan. 5, down 640,000 barrels a day from the previous period, the researcher said in an e-mailed report today. The figures exclude Angola and Ecuador………………………………………..Full Article: Source

2013 oil supplies to be ‘much higher’ than demand: Jefferies

Posted on 21 December 2012 by VRS  |  Email |Print

The interminable budget talks in Washington are causing oil prices to fluctuate this week and oil future contracts are trading lower Thursday morning as fiscal cliff negotiations stall. On Wednesday oil prices were headed higher after government data showed a decline in weekly inventories.
Andrew Lebow, senior vice president of energy derivatives at Jefferies Bache, tells The Daily Ticker that he’s “bearish” on oil prices because supplies will exceed demand in the U.S. and globally next year. He lowered his estimated trading range to $75 to $100 per barrel from roughly $77 to $110 this year………………………………………..Full Article: Source

Oil and gas 2013 outlook: Big winners and losers ahead

Posted on 21 December 2012 by VRS  |  Email |Print

Looking back on 2012, it is hard to discern the biggest story in the oil and gas sector. The reshuffling of assets is certainly a contender, as is the huge growth in U.S. oil production. Here at 24/7 Wall Street, we want to see how the old year might tell us something about the coming year.
Major oil and gas companies spent quite a lot of effort shedding assets for one reason or another. BP PLC has parted with $32 billion in assets as it builds a cash reserve of $38 billion to pay claims resulting from the sinking of the Deepwater Horizon and the deaths of 11 workers in the disaster………………………………………..Full Article: Source

All that glitters in 2013 is gold – PwC predicts soaring prices

Posted on 21 December 2012 by VRS  |  Email |Print

Gold is the favoured commodity of 2013 with more than 80% of gold executives expecting to see a rise in the price of gold, which will drive increased spending on exploration and merger and acquisitions says the latest PricewaterhouseCoopers (PwC) Gold Price Report released Thursday.
After analyzing the 46 largest Toronto-listed gold mining companies, the firm found that more than 20 of these miners have cash reserves greater than $500 million………………………………………..Full Article: Source

Gold prices should rise in 2013 – $2,200 possible

Posted on 21 December 2012 by VRS  |  Email |Print

Gold prices have advanced every year in the last decade and are poised for their 11th straight year of gains in 2012. Next year, gold prices could reach $2,000 an ounce for the first time ever.
As we look forward to 2013 and beyond, I see signs that gold and the entire precious metals complex will remain key components in portfolios of small and large investors alike. Rising volume and open interest on the futures exchanges, ETF markets and over the counter physical market continue to indicate that investment demand for precious metals has never been greater………………………………………..Full Article: Source

Why the gold price MUST go higher

Posted on 21 December 2012 by VRS  |  Email |Print

Markets are made of opinions, some better than others.There are always plenty of opinions about gold. And right now they’re clearly making the market. Just not in the way you would think. “There are too many bulls, including me,” warned hedge-fund and commodities legend Jim Rogers to CNBC overnight. He advises caution if you’re buying gold on this drop. Unlike most everyone else.
Swiss bank UBS last week kept its 2013 forecast for gold to average $1900 per ounce – a rise of 14% from the 2012 average so far – while fellow London market-maker Barclays now sees gold averaging $1815 next year, a snip off its previous 2013 forecast………………………………………..Full Article: Source

Even gold bull Jim Rogers is turning cautious

Posted on 21 December 2012 by VRS  |  Email |Print

With gold prices being hammered in recent weeks, and trading near four-month lows on Wednesday, longtime gold bull Jim Rogers is sounding a word of caution, saying it’s possible the correction in bullion may continue into the new year.
“Just be careful, there’re too many bulls, including me, but I’m very cautious,” Rogers told CNBC. “Gold is having a correction- it’s been correcting for 15-16 months now- which is normal in my view, and it’s possible that [the] correction is going to continue for a while longer.”……………………………………….Full Article: Source

2012 gold price performance really disappoints readers and experts alike

Posted on 21 December 2012 by VRS  |  Email |Print

As the year draws to a close it would appear that very few of the more than 100 of you who entered this year’s Mineweb gold price competition have come anywhere near close to the reality.
Readers are obviously, for the most part, a pretty bullish community as far as precious metals are concerned, and although in past years average predictions have actually been pretty good given the gold price’s good annual rises year on year, the yellow metal’s 2012 performance has not (barring a huge jump in the last week of the year) come up to readers’ expectations – or anywhere near………………………………………..Full Article: Source

2013 will be a huge year for silver — analysts, traders and investors agree

Posted on 21 December 2012 by VRS  |  Email |Print

Prices again crept gradually higher in Asian trading prior to some retrenchment in early European trading but dollar weakness was supporting gold and silver. Further weakness could be seen and it is worth noting that gold and silver saw considerable weakness last December and both bottomed near year end on December 29th prior to strong gains in January 2012.
Support for silver is at $30.67/oz and $30/oz. Gold’s support is at $1,647/oz and below that at $1,600/oz………………………………………..Full Article: Source

Miners’ cost-cutting here to stay in 2013

Posted on 21 December 2012 by VRS  |  Email |Print

The 56 per cent rebound in iron ore prices since the lows of early September has arrived too late to save Labor’s promise to deliver a budget surplus this financial year.
But of more interest here is whether the rapid rebound in prices for the nation’s biggest export earner is going to save us from the seemingly necessary but thoroughly boring approach of the big miners BHP Billiton and Rio Tinto to the coming year — one of capital discipline and cost-cutting………………………………………..Full Article: Source

The guide to broad metals and mining ETFs

Posted on 21 December 2012 by VRS  |  Email |Print

The mining sector encompasses the extraction (mining) as well as primary and secondary processing of metals and minerals. It includes producers of aluminum, gold, steel, precious metals and minerals, and diversified metals and minerals. The sector is highly cyclical and extremely competitive.
Though industrial mining is back on track after a decade given strong growth in emerging markets, in particular China and India, shaky domestic growth, still depressed job numbers and unresolved European problems keep the performance in check……………………………………….Full Article: Source

Nikkei-TOCOM Commodity Index to be renamed in February

Posted on 21 December 2012 by VRS  |  Email |Print

The Tokyo Commodity Exchange, Inc. (TOCOM) and Nikkei Inc. announced today a name change of the Nikkei-TOCOM Commodity Index as of February 12, 2013. This change only applies to the Japanese language name. The two companies have been jointly calculating and publishing the index since 2009.
This coincides with TOCOM’s Japanese-language name, which is scheduled to be updated on February 12 with the launch of Agricultural Product and Sugar Market (pending regulatory approval). TOCOM’s corporate name and the names of the indexes in English will remain unchanged………………………………………..Full Article: Source

Emerging-market currency 2013 cheat sheet: Selective gains

Posted on 21 December 2012 by VRS  |  Email |Print

Emerging-market currencies could go from this year’s laggards to next year’s outperformers, investors and analysts say. Most currencies from the developing world rose slightly against the dollar in 2012, but couldn’t compete with returns from emerging-market dollar-denominated debt.
The MSCI EM Currency (USD) index is up about 5% year-to-date, while emerging-market sovereign dollar-denominated debt has soared to see total returns of 18%, according to a Barclays index………………………………………..Full Article: Source

‘Nifty NAFTA’ Currencies to shine in 2013: Pros

Posted on 21 December 2012 by VRS  |  Email |Print

It’s forecast season again, and the currency strategists are hunched over their crystal balls and chart, busily producing their best calls for 2013.
At Wells Fargo, one group of currencies in favor for the new year is what they call the ‘nifty NAFTA.’ The strategists, led by Nick Bennenbroek, say the Canadian dollar and Mexican peso are poised to outperform other risk-sensitive currencies like the Australian and New Zealand dollars………………………………………..Full Article: Source

Carbon tax global trading market likely by 2020

Posted on 21 December 2012 by VRS  |  Email |Print

It is not expected that a unified global carbon trading market will be established until at least 2020. Although Europe has an active trading market, international agreement to establish a single global trading scheme will be dependent on the establishment of a US Federal trading system.
A global market is dependent on domestic climate change action by the US at a federal level. At the moment this seems unlikely in the near future. As a preferred route, countries are developing their own markets and are trading between countries………………………………………..Full Article: Source

EU carbon market seen shrinking by a third in 2012

Posted on 21 December 2012 by VRS  |  Email |Print

Europe’s carbon market is set to lose a third of its value this year as an oversupply of permits worsened, battering average prices and increasing pressure on European governments to provide support.
The world’s biggest carbon scheme, the European Union’s Emissions Trading System (ETS), was valued at a record $148 billion last year by The World Bank but analysts say that is likely to have fallen to around $100 billion, a level not seen since 2008………………………………………..Full Article: Source

2013: commodities to benefit from global macro turning point?

Posted on 20 December 2012 by VRS  |  Email |Print

The first part of next year could be good for cyclical and risky assets, says ETF Securities in a research note. Signs of improving global growth and continued strong central bank commitment to a highly accommodative monetary policy, the note says, would indicate that commodities could perform well as an asset class.
The more growth-sensitive commodities, such as base metals and the white precious metals, have most potential to outperform. The more cyclical commodities and those most directly related to Chinese demand will likely perform most strongly, in particular if Chinese growth recovers next year………………………………………..Full Article: Source

Money flow into US commodity funds near 18 month low - Lipper

Posted on 20 December 2012 by VRS  |  Email |Print

The money that flowed into US commodity products and funds in November was the smallest in one-and-a-half years and little improvement is expected before the year end as investors worry about a fiscal crisis, according to fund tracker Lipper.
For a fourth straight month, Lipper’s fund flow data, which was released on Wednesday, showed that gold products and gold funds attracted the most money in commodities — over $1-billion — as investors saw the precious metal as a quickly saleable asset to cover losses elsewhere………………………………………..Full Article: Source

Investec’s Cheveley: China will reassert itself in 2013

Posted on 20 December 2012 by VRS  |  Email |Print

Resources managers George Cheveley and Bradley George have been increasing their net market exposure to commodities as they see positive macro signs for equities in gold, iron ore and the energy majors over the next few months.
Cheveley told Citywire Global that he expected an upturn in meaningful Chinese growth in the first two quarters of next year, which would benefit iron ore companies in particular, and said the large diversified miners such as core holdings BHP and Rio Tinto would also be able to surprise the market with better than expected cost savings………………………………………..Full Article: Source

Canadian economy to slow in 2013: CIBC

Posted on 20 December 2012 by VRS  |  Email |Print

Without key domestic economic drivers to shelter Canada from a continued weak global economy, GDP growth will slip to 1.7% in 2013, says CIBC. “Having earlier tapped fiscal stimulus and a housing boom to shelter the economy from sluggishness abroad, the country’s ability to set its own course is now much more limited,” says Avery Shenfeld, chief economist at CIBC.
He adds, “Escaping economic mediocrity will depend on the kindness of strangers, with exports and related capital spending critical to Canada’s fate in 2013-14.”……………………………………….Full Article: Source

Canadian oil sands driving non-OPEC growth

Posted on 20 December 2012 by VRS  |  Email |Print

Non-OPEC crude production is set to outpace OPEC output over the next decade, driven by higher Canadian oil sands and American shale oil production, according to the International Energy Agency (IEA).
While Canadian output is set to rise well past 2020, American and other non-OPEC producers will plateau or start declining. After growing slowly in the next eight years, OPEC production is forecast to power ahead over the next few decades until 2035, to retain its influence as the world’s largest supply block in global markets, says the IEA………………………………………..Full Article: Source

Are IEA oil forecasts unrealistic?

Posted on 20 December 2012 by VRS  |  Email |Print

The International Energy Agency (IEA) has provided an unrealistically high oil forecasts in its new 2012 World Energy Outlook (WEO) according to Gail Tverberg and reported in the Oil Voice Magazine of December 2012.
The IEA claims that the US will become the world’s largest oil producer by 2020 and will become a net oil exporter by 2030. One reason that the WEO 2012 estimates are unreasonable is because the oil prices shown are comparatively low relative to the production amounts forecast in the report. This is mainly because easy –to –produce oil becomes depleted and when more difficult reservoirs are tapped, the cost of extraction will increase………………………………………..Full Article: Source

IEA coal report predicts Australia will again be world’s top exporter

Posted on 20 December 2012 by VRS  |  Email |Print

According to the International Energy Agency’s (IEA) annual Medium-Term Coal Market Report 2012 coal will rival oil as the world’s top energy source by 2017.
Although the growth rate of coal usage will slow from the “breakneck” pace of the last decade, the IEA forecasts global consumption in 2017 at 4.32 billion metric tons of oil equivalent (BTOE). The projection for oil is 4.40 BTOE………………………………………..Full Article: Source

Is gold’s bull-run over?

Posted on 20 December 2012 by VRS  |  Email |Print

Is gold’s extraordinary rally finally about to end as it limps towards the close of its twelfth year of gains? Even a fright over the US budget has failed to revive much interest in a commodity, often treated as a safe investment in troubled times, that has seen its average annual prices climb every year starting in 2001.
Most banks still cling to forecasts for gold to hit record highs in 2013, but the factors they cite - ultra-low interest rates, fears of inflation - have so far failed to propel prices out of the past year’s sideways trading channel………………………………………..Full Article: Source

Gold prices dip sharply; but TDS still sees $2,000 Gold in 2013

Posted on 20 December 2012 by VRS  |  Email |Print

Global gold prices ended sharply lower on the Comex division of the New York Mercantile Exchange and reached a fresh three and half month low on Tuesday, but TD Securities still believes prices will reach new record high in 2013.
The most active February gold contract on the Comex division of the New York Mercantile Exchange last traded down $29.20 an ounce at $1,688.80. Spot gold was last quoted down $30.10 at $1,668.50. The gold market started to sell off in late-morning trading right about the time that U.S. House Speaker Boehner mentioned a “Plan B” on the fiscal cliff negotiations………………………………………..Full Article: Source

See gold in $2300-2500/oz range in 2013: Fat Prophets

Posted on 20 December 2012 by VRS  |  Email |Print

Although gold has gained only 4.56 percent in 2012, Fat Prophets has been its strong supporter for sometime. David Lennox of Fat Prophets says he is very bullish on gold. “We think gold will trade somewhere between USD 2,300-2,500 an ounce through 2013,” he adds.
Also, we think a switch from investors looking into the US and perhaps wanting to reinvest back into the euro would place a lot of pressure on the US dollar. We think that, that will be one of the very good drivers of gold prices in 2013………………………………………..Full Article: Source

Gold will top $2,000 in 2013: Kilburg

Posted on 20 December 2012 by VRS  |  Email |Print

At the beginning of 2012 gold bulls had a straight forward thesis: Central banks around the world will continue to debase their currencies. The virtually unfettered money printing with no set ending would, the thinking went, result in rampant inflation and in so doing drive investors into gold.
Jeff Kilburg, founder and CEO of KKM Financial is among those with a bullish gold thesis. In November he came on Breakout suggesting investors get long the SPDR Gold Trust (GLD) in anticipation of the FOMC’s balance sheet expansion. He got the expansion, but the GLD yawned………………………………………..Full Article: Source

Gold prices expected to rise in 2013; could hit $2,200

Posted on 20 December 2012 by VRS  |  Email |Print

Gold prices have advanced every year in the last decade and are poised for their eleventh straight year of gains in 2012. Next year, gold prices could reach $2,000 an ounce for the first time ever.
As we look forward to 2013 and beyond, I see signs that gold and the entire precious metals complex will remain key components in portfolios of small and large investors alike. Rising volume and open interest on the futures exchanges, ETF markets and over the counter physical market continue to indicate that investment demand for precious metals has never been greater………………………………………..Full Article: Source

Saxo’s outrageous predictions for 2013: Gold will fall

Posted on 20 December 2012 by VRS  |  Email |Print

Saxo Bank, the online multi-asset trading and investment specialist, on Tuesday released its annual batch of ten Outrageous Predictions for 2013. This is Saxo Bank’s annual exercise in rooting out relatively extreme market and political events for which the probability is perhaps low, if still vastly under-appreciated.
Among these predictions is that Germany will move toward accepting the mutualisation of Euro debt, which combined with other strains could cause the DAX to plunge by about a third from near multi-year highs to 5,000. Another is that gold will fall by around $500 to $1,200 per ounce on faster US growth and a stronger US dollar and despite the overhang of Fed’s easy monetary policy………………………………………..Full Article: Source

Jim Roger sees ‘overdue correction’ hitting gold

Posted on 20 December 2012 by VRS  |  Email |Print

Prices to buy gold with dollars rallied from their lowest levels since late August on Wednesday morning in London, recovering 0.7% from yesterday’s drop to $1,662 per ounce. The drop came as Greece was upgraded Tuesday by the S&P ratings agency from “selective default” to “junk” status, following payment of the latest €34.3 billion in new loans from Greece’s euro-zone partners.
Versus the dollar the euro leapt to its highest level since May. The gold price for euro-zone investors sank to €1255 per ounce – a six-month low almost 10% beneath October’s new record high………………………………………..Full Article: Source

Silver in 2013: A pair of catalysts could boost prices

Posted on 20 December 2012 by VRS  |  Email |Print

Gold versus Silver. It’s a long-standing debate among precious-metal investors as to which commodity is a wiser investment. Both are seen as a hedge against inflation, as the prospects of ever-weakening currencies could send investors flocking to these hard assets.
Yet silver has an edge over gold in once crucial aspect: It has a wide range of industrial applications and typically sees rising demand as global industrial activity heats up………………………………………..Full Article: Source

How to buy silver: The best is yet to come in 2013

Posted on 20 December 2012 by VRS  |  Email |Print

While gold, with its sky-high prices, gets most of the media attention, investors should be just as interested in how to buy silver.
Silver turned in a solid performance in the second half of 2012, rising from a June 28 low of $26.13 an ounce to a recent reading above $33.00. And, to steal a line from poet Robert Browning (or, if you prefer, Frank Sinatra), “the best is yet to come.”……………………………………….Full Article: Source

How to profit from the copper turnaround in 2013

Posted on 20 December 2012 by VRS  |  Email |Print

One of the biggest challenges for commodity investors is the state of the global economy, as I stated in this article. Weak economic growth in 2012 has kept a lid on the sector, so most commodities have fallen in price from a year ago. Copper, which is used in a range of economically-sensitive industries such as construction, is especially vulnerable to the vagaries of the global economy.
As has been the case since the Great Recession of 2008, the only bright spot for commodities has been China, and even that country showed signs of slowing in 2012………………………………………..Full Article: Source

Global stainless steel crude steel production rises by 2.9pct YoY in Jan-Sept 2012 : ISSF

Posted on 20 December 2012 by VRS  |  Email |Print

World wide stainless steel crude steel production has increased in the first nine months of 2012 by 2.9% compared to the same period of 2011. Total production for the first three quarters was 26.1 mn metric tons (Mt). This is 0.7 Mt more than in the same period of 2011.
Total production for the quarter was 8.3 Mt – a new all-time high for a third quarter. However, there were big differences in the performance of the individual regions – states a preliminary data released by the International Stainless Steel Forum (ISSF)………………………………………..Full Article: Source

Mining sector showing signs of slow down

Posted on 20 December 2012 by VRS  |  Email |Print

The lowering of the official cash rate from 3.25 to 3 per cent in early December was partly inspired by a belief that the mining boom in Australia is beginning to plateau, according to the Reserve Bank of Australia (RBA).
According to the Central Bank, short-term investment outlook outside of the resources sector is soft enough to prompt supportive measures on interest rates. RBA governor Glenn Stevens forecasts a gap in growth in 2013 if sectors away from mining do not see improvement………………………………………..Full Article: Source

8 sector ETFs for 2013

Posted on 20 December 2012 by VRS  |  Email |Print

With the SPDR S&P 500 up 15.8 percent year-to-date, now is the time to drill down on what sectors have been driving the broader market’s bullish ways and what industry groups have been laggards. It is possible that some old laggards will become new leaders while it is also possible that this year’s outperformers will continue to deliver alpha next year.
There is something else to note about sector ETFs . With bond, dividend and emerging markets ETFs among the leaders in terms of 2012 inflows , many sector funds are suddenly starved for attention………………………………………..Full Article: Source

13 ETF ideas positioned for success in 2013

Posted on 20 December 2012 by VRS  |  Email |Print

This past year shaped out to be quite the roller coaster ride for many investors; equity markets persevered through tumultuous, and seemingly never-ending, eurozone debt drama, while the economic recovery at home remains slow and steady at best.
Heading into 2013, clouds of uncertainty continue to threaten investors’ confidence as the outcome of the much feared “fiscal cliff” has many on edge. Amid this mixed economic environment, we outline 13 ETF ideas that appear to be positioned for success in 2013……………………………………….Full Article: Source

The commodity hedge? Not so fast

Posted on 20 December 2012 by VRS  |  Email |Print

The tepid response of commodities following the latest FOMC release can be viewed as bearish for the general complex. Federal Reserve easing has usually precipitated greater positive action in the commodities complex.
This time, it might be different. Commodities have dropped below their post-August FOMC highs, and without macro data to suggest that global demand will accelerate in the coming months, it appears unlikely that positive momentum will be generated going into the new year………………………………………..Full Article: Source

ICE said to be in talks to merge with NYSE Euronext

Posted on 20 December 2012 by VRS  |  Email |Print

An $8 billion exchange merger is in the works that underscores how the global market for derivatives has eclipsed that for stocks. The owner of the venerable New York Stock Exchange is in talks to be acquired by an upstart commodities and derivatives trading platform, according to people briefed on the matter.
The IntercontinentalExchange is expected to offer about $33 a share, with two-thirds of that in stock, one of these people said. That represents a premium of 37 percent to NYSE Euronext’s closing stock price on Wednesday. A deal could be announced as soon as Thursday morning……………………………………….Full Article: Source

Time to profit from the decline of the Japanese Yen

Posted on 20 December 2012 by VRS  |  Email |Print

Japan’s newly elected president, Shinzo Abe, has signaled his intention to do whatever he can to devalue the Japanese yen in order to provide a boost to the nation’s ailing economy. This virtually assures a lower yen and this article looks at how traders and investors can profit from it.
Last weekend Japan’s Liberal Democratic Party (LDP) led by Shinzo Abe won a clear majority in the country’s general election. Shinzo Abe has said that his top priority is the Japanese economy which has been combating deflation for over two decades………………………………………..Full Article: Source

Will sugar’s price outlook sweeten In 2013?

Posted on 20 December 2012 by VRS  |  Email |Print

Psychologically, Sugar prices have turned bullish for the near-term, as prices rallied off recent lows after a rather bearish surplus estimate failed to draw in short-sellers. Though current momentum is now favoring Sugar bulls, we may not see any major fresh buying by large speculators unless we can see a strong close through the 20-cent per pound level.
After trading at 28-month lows, Sugar futures prices are beginning to rebound, as some traders start to exit bearish trades going into the new year. Sugar futures were one of the worst performing commodities in 2012, as a large supply surplus and average demand sent prices to lows not seen in over 2 years………………………………………..Full Article: Source

Amount of money invested in commodities up 92pct

Posted on 19 December 2012 by VRS  |  Email |Print

Investors almost doubled purchases of commodities this year, at a time when Goldman Sachs Group Inc. and Morgan Stanley are forecasting higher prices and Citigroup Inc. says the best returns are over. Money invested in commodity funds increased by $21.6 billion this year, up 92 percent from the gain in 2011, according to Cambridge, Massachusetts-based EPFR Global, which tracks the flows.
Hedge funds’ bets on a rally are 51 percent bigger than a year ago, U.S. government data show. Precious metals will lead returns in 2013, rising as much as 25 percent, as grains advance 18 percent and industrial metals 16 percent, according to a Bloomberg survey of 131 traders, investors and analysts across 15 raw materials………………………………………..Full Article: Source

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