Thu, Oct 23, 2014
A A A
Welcome kbr175@gmail.com
RSS

Commodities Briefing - Archive | July, 2014

Reuters: Commodities assets under management rise $8 bln in June - Barclays

Posted on 31 July 2014 by VRS  |  Email |Print

Total global commodity assets under management (AUM) rose to $325 billion in June 2014 from $317 billion in May 2014, Barclays Capital said on Wednesday. “We estimate that there was a small net inflow of around $300 million into commodity investments during June,” the bank said.
The investment bank said in a research note on the sector that investors have continued to withdraw assets from commodity investments on a quarterly basis despite a marked improvement in the health of commodities as an asset class………………………………………..Full Article: Source

Investors not enthused by improving health of Commodities: Barclays

Posted on 31 July 2014 by VRS  |  Email |Print

A Barclays report says the current year witnessed an improvement in the health of commodities but investors have continued to withdraw assets from commodity investments on a quarterly basis. The slow pace at which institutional investors are able to take and implement the kind of long-term investment decisions and make allocations to commodities is the major reason for this trend. But the situation is expected to improve gradually, the report said.
The report maintains key recommendations as: long crude oil; short gold (due to weak fundamentals); and long nickel – the base metal with the best short-term fundamentals and a sector likely to benefit from better global growth in this quarter………………………………………..Full Article: Source

World oil demand in 2015 forecast to grow 1.2 mb/d

Posted on 31 July 2014 by VRS  |  Email |Print

Despite some weakness in the first half of the year, the world economy continues to recover, OPEC Monthly Oil Market Report for July 2014 said. Global GDP growth in 2014 is now forecast at 3.1 percent, slightly higher than the estimated 2.9 percent for 2013. The US experienced a surprisingly large contraction in economic activity in the first quarter due to severe winter weather, leading to a downward revision in US GDP growth to 1.6 percent from 2.4 percent previously.
However, with the US economy expected to rebound and continued large monetary stimulus in the Euro-zone and Japan, the OECD is seen growing by 1.7 percent in 2014 and 2.0 percent in 2015………………………………………..Full Article: Source

PwC: 2Q oil and gas M&A activity strongest in 5 years

Posted on 31 July 2014 by VRS  |  Email |Print

The US oil and gas industry experienced a substantial rise in mergers and acquisitions during the second quarter, according to a quarterly report by PwC US Energy Practice.During the 3-month period ending June 30, 54 oil and gas deals took place with values greater than $50 million, accounting for $42.2 billion, compared with 47 deals worth $30.3 billion during last year’s second quarter.
The upward movement is largely attributed to an increase in megadeals, with 12 occurring worth a combined $30.8 billion—73% of total deal value—due to larger oil and gas companies divesting more valuable assets. There were just five megadeals during the first quarter. “Over the past 3 months, we continued to see companies looking to realign their portfolios and divest noncore assets, which provided opportunities for acquirers with cash and access to capital,” said Doug Meier, PwC’s US energy sector deals leader………………………………………..Full Article: Source

Oil prices drive projected carbon dioxide enhanced oil recovery

Posted on 31 July 2014 by VRS  |  Email |Print

In its 2014 Annual Energy Outlook (AEO2014), the US Energy Information Administration (EIA) projects that the price of oil will largely determine whether to use carbon dioxide enhanced oil recovery (EOR) technologies to extract additional crude oil from existing producing fields. The OPEC oil output rises in July on fragile Libyan reboundinjection of CO2 gas into oil reservoirs at high pressure forces the CO2 to mix with oil. This reduced the oil’s viscosity and causes the oil to increase in volume.
The result is an increase in the total cumulative volume of oil produced and in the percentage of oil-in-place that is recovered. The decision by a producer whether or not to employ this technique depends on a number of factors, including the geophysical properties of the reservoir, the oil within that reservoir, the cost of applying CO2 EOR and the revenue received from the additional production………………………………………..Full Article: Source

OPEC oil output rises in July on fragile Libyan rebound

Posted on 31 July 2014 by VRS  |  Email |Print

OPEC’s oil production rose in July from June, a Reuters survey found on Wednesday, as a fragile recovery in Libyan supply outweighed fighting in Iraq and reduced output from Angola.
Despite the increase, unrest in Africa and the Middle East is still weighing on supply. That could hinder OPEC’s ability to boost output later in the year, when the International Energy Agency expects demand for OPEC crude to rise………………………………………..Full Article: Source

Infographic: Oil Prices and the Middle East Crisis

Posted on 31 July 2014 by VRS  |  Email |Print

In terms of the oil market, tension and unrest in the Middle East is a driving factor that investors should consider. As Visual Capitalist Notes, Ernst and Young has reported that prices for oil were up in the second quarter, largely as a result of geopolitical tensions.
In the infographic below, Visual Capitalist takes a look at how conflicts in the Middle East are affecting the oil price………………………………………..Full Article: Source

Coal Bed Methane market to reach $17.31 billion by 2020

Posted on 31 July 2014 by VRS  |  Email |Print

The Global CBM (Coal Bed Methane) market is expected to reach $17.31 billion by 2020, growing at a CAGR of 5.9% from 2014 to 2020, according to a new report by GrandView Reseach. Asia Pacific region will become most dynamic regional market with China, India and Indonesia are likely to lead the Asian CBM industry, th e report said.
Global CBM production was 2,920.3 Bcf in 2013 and is expected to reach 4,667.4 Bcf by 2020, growing at a CAGR of 7% from 2014 to 2020. US and Canada are the largest CBM producers, accounting for over 70% of global volume in 2013. US CBM market revenues were estimated at USD 7.22 billion in 2013 and are exoected to grow at a CAGR of 5.4% from 2014 to 2020………………………………………..Full Article: Source

US growth, inflation numbers drop gold price through $1,300

Posted on 31 July 2014 by VRS  |  Email |Print

The gold price fell below the psychologically important $1,300 an ounce level on Wednesday after strong economic data outweighed safe haven buying on geopolitical concerns. On the Comex division of the New York Mercantile Exchange, gold futures for August delivery in early morning trade exchanged hands for $1,294.60 an ounce, down $5.60 from Tuesday’s trading session.
US gross domestic product grew at a 4% annual pace in the second quarter, according to government data released Wednesday. First quarter number were also adjusted, showing a smaller contraction………………………………………..Full Article: Source

Hold some gold. Better safe than sorry

Posted on 31 July 2014 by VRS  |  Email |Print

The one sided drivel which passes for objective news reporting in the West never ceases to amaze me. On Ukraine, and in particular on the shooting down of Malaysian airlines flight MH17, the western media seem to promote one agenda, and one agenda only, without any recognition at all that there might be an alternative argument viewed from the ‘other side’.
Now whether it is proven that the anti-Russian rhetoric thus encompassed is correct or not surely a wholly impartial news organisation should at least recognise that there could perhaps be another side to the story………………………………………..Full Article: Source

Robust copper price prompts switch to aluminum

Posted on 31 July 2014 by VRS  |  Email |Print

In New York trade on Wednesday copper rallied after much stronger than anticipated US GDP figures, reaching a high of $3.2625. Defying market expectations, the copper price dug itself out of a near four-year low struck mid-March of $2.92 a pound and has gained more than 7% since early June. The metal is now down only 4% in 2014.
The copper price is highly correlated with economic growth thanks to the widespread use of the metal in the construction, transport and power industries, and the robustness of the red metal is prompting industry to switch to much cheaper aluminum for some applications………………………………………..Full Article: Source

Shrinking mining professional ranks may impact investors - HSBC

Posted on 31 July 2014 by VRS  |  Email |Print

“A well-established feature of the precious metals market is the apparent inability for producers to raise production levels when demand and prices rise,” said HSBC analysts James Steel and Howard Wen.
“The paucity of trained professionals’ expertise helps explain—along with other factors—the weak supply response by producers to the surge in precious metals prices in 200-2012,” observed HSBC. “This is important to investors because it arguably contributed to the height and longevity of the precious metals rally; it also implies that future rallies are unlikely to be cut short by a rapid increase in mine output.”……………………………………….Full Article: Source

Exchange-traded fund an internation passport to global treasure

Posted on 31 July 2014 by VRS  |  Email |Print

There was a time when you effectively needed a financial passport to invest in overseas share markets. You had to find a broker who dealt in offshore markets or had a relationship with a foreign broker, research offshore companies and even arrange currency transfers. Now it is as simple as buying an exchange-traded fund that is listed on the Australian market.
There are still some odd wrinkles — you shouldn’t expect much in the way of dividends and what does come through will usually have some withholding tax deducted………………………………………..Full Article: Source

Avoid These Global Energy ETFs on BP Warnings

Posted on 31 July 2014 by VRS  |  Email |Print

Europe’s third largest oil company, BP plc, reported second-quarter 2014 results before the opening bell on July 29. The company missed our earnings estimate and warned of potential losses in its Russian business in the wake of tough sanctions imposed by the Western powers.
This is especially true as BP owns a nearly 20% stake in Russian oil giant Rosneft. The threat of more sanctions by the U.S. or European Union against Russia could worsen BP’s relationship with Rosneft and hamper its production, reserves and reputation. Notably, Russian sanctions so far had no impact on the company’s business but new measures could dilute its profits in the upcoming quarters……………………………………….Full Article: Source

Hedge funds: An industry reborn?

Posted on 31 July 2014 by VRS  |  Email |Print

As a less daunting new breed of fund-of-funds comes to the fore, Charles Stanley’s Kris Barclay examines the pros and cons of their underlying strategies. Markets ebb and flow, as do new investment ideas. Sometimes, the setting of a new trend might seem a new precedent but, all too often, it is just an old idea reinvigorated. Hedge funds are of that order.
These abstract vehicles have been around for many a year and, of course, the basic and original premise was to hedge one’s assets against the stock market falling………………………………………..Full Article: Source

Commodity Hedge Funds Continue Building Momentum In 2014

Posted on 31 July 2014 by VRS  |  Email |Print

Newedge, a global leader in multi-asset brokerage and clearing, announced the performance for its suite of hedge fund indices for the month of June. Commodity funds, as represented by the Newedge Commodity Trading Index, were the best performers in June, finishing the month up 0.63%. The Newedge Trading Index continues to build on 2014 gains, leading the Newedge Index performance year-to-date with a return of 3.55%.
The Commodity Equity sub-index extends the positive performance achieved in 2013 and is up 4.85% year-to-date with a return of 1.62% for the month of June. James Skeggs, Global Head of Advisory Group Alternative Investment Solutions at Newedge said: “The Newedge Commodity Trading Index has had its best performance since 2012 so far this year and many managers are positive about the opportunities in the near future. As a result, we have seen a pickup of investors reconsidering investing in commodities.”……………………………………….Full Article: Source

CME Group to Acquire Trayport and FENICS from GFI Group

Posted on 31 July 2014 by VRS  |  Email |Print

CME Group, the world’s leading and most diverse derivatives marketplace, and GFI Group Inc., a leading intermediary and provider of trading technologies and support services to the global OTC and listed markets, today announced that they have entered into definitive agreements to create value for their respective stockholders through a two-step transaction through which:
CME Group will acquire Trayport and FENICS. CME Group will purchase these businesses by first acquiring all of the outstanding shares of GFI Group in exchange for $4.55 per share in CME Group Class A Common Stock which represents a 46% premium above yesterday’s closing price of $3.11 per share of GFI Group common stock………………………………………..Full Article: Source

World’s Worst Currency Drops as Ghana Pulls Back From IMF Aid

Posted on 31 July 2014 by VRS  |  Email |Print

Ghana’s cedi, the world’s worst-performing currency this year, weakened as the government ruled out an International Monetary Fund bailout, stoking concern it will miss targets to narrow a budget deficit.
The currency retreated for the first time in five days against the dollar, dropping as much as 6.4 percent, after Deputy Finance Minister Mona Quartey said the government of the world’s second-biggest cocoa producer plans to sell a third Eurobond next month rather than take IMF aid. Returns on Ghana’s dollar debt are the lowest in Africa this year, according to Bloomberg indexes………………………………………..Full Article: Source

Currency union ‘deception’ blasted

Posted on 31 July 2014 by VRS  |  Email |Print

Alex Salmond has been accused of a “huge deception” over his plans for a currency union after a Yes vote. Two leading figures from the banking industry have hit out at Scotland’s First Minister following his insistence that Westminster will agree to a deal to allow an independent Scotland to continue to use the pound.
Chancellor George Osborne and his Labour and Liberal Democrat counterparts have already stated that they would not agree to such an arrangement - but this has been dismissed as “bluff and bluster” by the SNP leader. Now, Sir Martin Jacomb, the former chairman of Prudential, and Sir Andrew Large, a former deputy governor of the Bank of England, have said that a currency union is “not compatible with Scotland being politically independent and is therefore not on offer”………………………………………..Full Article: Source

California Joins Mexico in Clean-Energy Pact

Posted on 31 July 2014 by VRS  |  Email |Print

California and Mexico have signed a bilateral pact aimed at advancing cross-border investments in clean energy. Signed July 29 by California Gov. Jerry Brown (D) and Mexico’s Secretary of Energy Pedro Joaquin Coldwell during the governor’s trade visit to Mexico City, the agreement calls for the two governments to work together in developing and deploying renewable energy, biofuels and other clean energy technologies.
The agreement also includes a commitment to explore integrating Baja California Norte into the California energy market and to support expanded markets for clean and energy-efficient technologies, including manufacturing and transportation………………………………………..Full Article: Source

Washington State Is Gearing Up A System To Cut Its Carbon Emissions

Posted on 31 July 2014 by VRS  |  Email |Print

Washington State is poised to join California and several Canadian provinces in a carbon trading system, according to a Monday memoranda from the governor’s office. The Western Climate Initiative (WCI) is an agreement between California, British Columbia, Ontario, Quebec and Manitoba to develop and implement coordinated systems to cut their collective greenhouse gas emissions.
California already has its cap-and-trade plan, for instance, and British Columbia has sported a carbon tax since 2008. Washington had been poised to also join the WCI, but the midterm elections 2010 upended much of the political momentum………………………………………..Full Article: Source

Global economy to expand above trend in H2 2014: PIRA Energy

Posted on 31 July 2014 by VRS  |  Email |Print

NYC-based PIRA Energy Group believes that the global economy will expand at above trend pace in the second half of 2014. In the U.S., products increased and crude stock declined. In Japan, crude stocks built as imports rebounded from storm impacts. Specifically, PIRA’s analysis of the oil market fundamentals has revealed the following:
World Oil market forecast: After a sub-par first half, the global economy will expand at above trend pace in the second half of 2014, led by manufacturing. First half weakness in the economy undermined global oil balances with inventories building back to year ago levels………………………………………..Full Article: Source

Goldman Sees Nickel Rising With Palladium to Beat Soy

Posted on 30 July 2014 by VRS  |  Email |Print

Nickel and palladium are set to outperform iron ore and soybeans as supply outlooks for commodities diverge amid a tentative acceleration in global economic growth, according to Goldman Sachs Group Inc.
The bank kept its 12-month recommendation for commodities at neutral, analysts including Jeffrey Currie wrote in a report dated yesterday. They expect the total return for the Standard & Poor’s GSCI Enhanced Commodity Index to be 0.1 percent in 12 months helped by positive roll yields………………………………………..Full Article: Source

Commodity Prices Edge Down in June: Scotiabank

Posted on 30 July 2014 by VRS  |  Email |Print

Scotiabank’s Commodity Price Index inched down by 0.7% month-over-month (m/m) in June, but has climbed 8.9% from last December’s low — led by stronger oil and gas prices. “The Metal and Mineral sub-Index retreated in June, but will rally sharply in July amid a spurt in base metal prices and steadier gold prices,” said Patricia Mohr, Scotiabank’s Vice President of Economics and Commodity Market Specialist.
“Exuberance over a moderate pick-up in China’s economy in the second quarter partly accounts for the recent surge in investor interest in base metals, as does a second year of record global auto production, with strength in China (+9.7% YTD), North America (+4.3%) as well as Germany and Spain (+7.9% — the two biggest auto manufacturers in Western Europe).” (Press Release)

Commodities: Probability of El Nino developing falls to 50%

Posted on 30 July 2014 by VRS  |  Email |Print

The commodities complex saw few changes on Monday, although geopolitical concerns buoyed gold prices while oil futures traders stayed on the sidelines ahead of weekly supply data scheduled for release on Wednesday.
President Barack Obama was expected to meet with four of his European counterparts, with the possibility of new sanctions being levied on specific sectors of the Russian economy a distinct possibility. Gold futures for delivery in December ended trading $3.4 lower at $1,305.8/oz. on COMEX. Front month West Texas crude futures slipped by 20 cents to $101.67/barrel on NYMEX………………………………………..Full Article: Source

Commodity finance being done by Trading Houses

Posted on 30 July 2014 by VRS  |  Email |Print

A story recently in Reuters talked about how the biggest trading houses are filling the traditional banks (and mostly European banks role) of funding traders. This got particular attention, especially in light of the Obama administrations sanctions on Rosneft and other big Russian commodity producers.
If you look at the big trading houses, do they really want to take over the role of banks (who have access to historically cheap deposits?). Or is it really a question of providing these large trading houses with huge credit lines to further provide upstream finance to their smaller counterparties?……………………………………….Full Article: Source

Is The Most Important Commodity About To Break Down?

Posted on 30 July 2014 by VRS  |  Email |Print

Is Crude Oil about to follow in the footsteps of the yield on the bell weather bond and break support? The left chart above highlights that the yield on the 30-year bond is breaking down, below a two-year support line. The right chart highlights that Crude Oil and the yield on the 30-year bond have correlated a little bit over the past couple of years, with the 30-year breaking support.
Could crude oil follow yields and break lower? If they both break support and head lower, what would the macro message be coming from them? If Crude would break 5-year support, traders would expressing some concern about the prospects of global growth………………………………………..Full Article: Source

Energy Economist: The amount of oil the world uses, seen through different eyes

Posted on 30 July 2014 by VRS  |  Email |Print

How much oil does the world consume? You’d think this would be a fairly straightforward question, given its economic importance to the world economy, and indeed answers are not hard to find. The problem is those answers differ significantly. Even with the development of the Joint Organisations Data Initiative–an evolving beast designed to bring improved transparency to oil markets–oil market data remains messy, inaccurate and opaque.
For 2013, a year which by now should be transitioning from estimate to a matter of historical record, OPEC puts world demand at 90.00 million b/d, the International Energy Agency at 91.40 million b/d and the US Energy Information Administration at 90.49 million b/d. The difference is large in absolute terms–1.4 million b/d between the IEA and OPEC–but small if viewed in percentage terms, about 1.5% of the total market………………………………………..Full Article: Source

US & Russia Dominating The Natural Gas Sector

Posted on 30 July 2014 by VRS  |  Email |Print

The US continues to dominate both natural gas production (and consumption). In 2013, the US set a new all-time high production record for the third straight year, with gas production rising to 66.5 Bcfd to lead all countries. In fact this was once again more natural gas than any country has ever produced in one year.
Natural gas production in Russia reached 58.5 Bcfd, good for 2nd place globally. The US and Russia cumulatively produce 38% of the world’s natural gas. Far behind in third place was Iran at 16.1 Bcfd — good for 4.9% of global gas supplies. Rounding out the top five were Qatar at 15.3 Bcfd and Canada at 15 Bcfd………………………………………..Full Article: Source

Saudi Arabia oil and gas market to 2023

Posted on 30 July 2014 by VRS  |  Email |Print

Business Monitor International has released a new report, ‘Saudi Arabia Oil & Gas Report Q3 2014’, in which it indicates the view that crude production in the country will remain elevated by historical standards in 2014 and 2014.
This view is based on continued OPEC outages, a mediocre global supply picture, a continued increase of domestic consumption from the power generation and transport sectors, strong demand from the refining sector and a recovering global demand picture………………………………………..Full Article: Source

China oil demand rises 2.7% vs year ago

Posted on 30 July 2014 by VRS  |  Email |Print

China’s apparent oil demand* in June turned directions from May and climbed 2.7% versus the same month a year ago to 41.94 million metric tons (mt) or an average 10.25 million barrels per day (b/d), according to a just-released Platts analysis of Chinese government data. On a month-over-month basis, apparent oil demand was up 8.6% from May.
“Analysts attributed the June increase to stronger fuel demand by the farming and agricultural sectors for the summer planting season,” said Song Yen Ling, Platts senior writer for China. “It’s also interesting to note that June marked the second month that China’s apparent oil demand crossed the 10 million b/d this year, following February’s 10.62 million b/d.”……………………………………….Full Article: Source

Energy Regulators Say EPA’s Climate Rule Poses Grid Challenges

Posted on 30 July 2014 by VRS  |  Email |Print

President Barack Obama’s proposed rule to curb carbon emissions from the nation’s power plants could raise costs and affect reliability in the U.S. electricity system, federal regulators told Congress.
But the commissioners of the Federal Energy Regulatory Commission, the government agency charged with overseeing the electric grid and other parts of the nation’s energy infrastructure, also said at a House hearing the government has a responsibility to act on climate change………………………………………..Full Article: Source

Why Coal Deserves Your Attention Right Now

Posted on 30 July 2014 by VRS  |  Email |Print

Fossil fuels have had a banner year so far. Both prices for oil and natural gas have surged on the backs of higher demand and a dose of geopolitical tension. Likewise, oil and gas stocks – as represented by the Energy Select Sector SPDR ETF (XLE) – have also produced some hefty returns this year.
The same can’t be said for old king coal, however. A host of issues from lower demand to emissions regulation have sent prices for both the underlying commodity and the companies that extract it down into the basement………………………………………..Full Article: Source

Gold price holds above $1,300, focus on Fed policy meeting

Posted on 30 July 2014 by VRS  |  Email |Print

Gold was little changed just above USD 1,300 an ounce on Tuesday, supported by geopolitical tensions in the Middle East and Ukraine, with investors also focusing on U.S. jobs data and a Federal Reserve policy meeting this week.
The Fed kicks off its two-day meeting later on Tuesday, with markets watching for clues as to when the U.S. central bank will begin increasing interest rates. The Fed will make a statement on Wednesday at the end of the meeting. “Gold is going to be range-bound until the Fed meeting and economic data later this week,” said Mark To, head of research at Hong Kong`s Wing Fung Financial Group………………………………………..Full Article: Source

We’re Ready to Profit in the Coming Gold Price Correction—Are You?

Posted on 30 July 2014 by VRS  |  Email |Print

Sometimes I see an important economic or geopolitical event in screaming headlines and think: “That’s bullish for gold.” Or: “That’s bad news for copper.” But then metals prices move in the opposite direction from the one I was expecting. Doug Casey always tells us not to worry about the short-term fluctuations, but it’s still frustrating, and I find myself wondering why the price moved the way it did.
As investors we’re all affected by surges and sell-offs in the investments that we own, so I want to understand. Take gold, for example. Oftentimes we find that it seems to tease us with a nice run-up, only to give a big chunk of the gains back the next week. And so it goes, up and down………………………………………….Full Article: Source

Who will run the gold fix next?

Posted on 30 July 2014 by VRS  |  Email |Print

The banks that conduct the century- old gold fixing and the London Bullion Market Association will seek proposals next month for a new administrator to run a revamped process for the benchmark by year-end.
The London Gold Market Fixing Ltd., which manages the procedure, and the LBMA will open a market consultation in late August and plan to announce a third-party administrator by the end of September, the association said in a statement today. The process will be open and not restricted to firms who pitched to run a mechanism that will replace the silver fixing on Aug. 15………………………………………..Full Article: Source

Can We Trust Silver’s Leadership Over Gold?

Posted on 30 July 2014 by VRS  |  Email |Print

While gold has been nabbing the bulk of the recent commodity headlines, investors have missed what has been — and will likely continue to be — the better long-term, safe-haven holding. Surprise! Silver has actually outpaced gold since both hit a short-term bottom on June 2. Specifically, even with last week’s tumble, the iShares Silver Trust (SLV) is still up 10% since that point, while the SPDR Gold Trust (GLD) is only up 4.9% for the nearly-two-month timeframe.
In fact, SLV has outpaced the SPDR S&P 500 ETF Trust (SPY), the iShares Barclays 20-Year Treasury Bond ETF (TLT), and a whole slew of other asset classes over the past couple of months………………………………………..Full Article: Source

HK expected to stay ahead as Asian precious metals hub

Posted on 30 July 2014 by VRS  |  Email |Print

Hong Kong will maintain its status as an Asian precious metals hub in the face of competition from Shanghai and Singapore, according to Brink’s Co, which is opening a new vault in the city. The Richmond, Virginia-based maker of surveillance systems and armored trucks should finish the vault early in the fourth quarter, Guy Bullen, senior vice-president for Asia Pacific, said in an interview last week. That will double Brink’s gold and silver handling capacity in the city, Mr Bullen said, without elaborating.
China overtook India as the largest gold consumer last year, according to the World Gold Council. Singapore Exchange Ltd will introduce a physical gold contract this year while Shanghai will start international gold trading in the fourth quarter, a government official had earlier said………………………………………..Full Article: Source

Zinc, lead buoyed as value hunters tune into global growth story

Posted on 30 July 2014 by VRS  |  Email |Print

Zinc prices matched three-year highs hit the session before on Tuesday and lead inched to a new 17-month top as investors ploughed into metals that have lagged this year and appear undervalued on prospects of reviving global growth.
Manufacturing growth in the world’s top metals user China expanded at its fastest clip in 18 months in July, an initial survey showed, while in general the U.S. economy has gathered pace, with a brightening picture seen in its labour market………………………………………..Full Article: Source

Aluminium gains industrial lustre

Posted on 30 July 2014 by VRS  |  Email |Print

When it comes to conductivity, copper is king of the industrial metals. Thanks to its low level of resistivity – how strongly a material opposes the flow of current – the red metal’s main use is in electrical applications.
Aluminium is copper’s closest rival, albeit an inferior one by most measures. When the prices of the two metals were similar, as at the start of 2002, the choice of copper for cabling in everything from power lines to automotive wiring was a no-brainer………………………………………..Full Article: Source

Global mining sector on the way up, but recovery still slow

Posted on 30 July 2014 by VRS  |  Email |Print

Global mining activity showed steady signs of improvement in the first half of the year, but recover is still expected to be slow, the latest study by SNL Metals Economics Group published Tuesday shows.
Its closely watched Pipeline Activity Index (PAI)— one of the most trusted indicators of the global exploration sector’s overall health — recovered a bit in May after an all-time low in April, but still sits at low levels, SNL notes………………………………………..Full Article: Source

Mining industry confidence at five year low

Posted on 30 July 2014 by VRS  |  Email |Print

As the mining boom ends, confidence in the industry has hit a new five year low. An annual study of mining bosses has found they think the industry is out of their control, raising the prospect of a big shake up. Commodity prices and Chinese demand are expected to keep falling.
The mining executives that we have been interviewing have extremely low confidence in their future, and particularly when they look at the main factors that are going to affect their businesses in the next one to three years………………………………………..Full Article: Source

Goldman unit eyes foray into China amid metals financing scandal

Posted on 30 July 2014 by VRS  |  Email |Print

Goldman Sachs Group Inc’s metals warehousing unit is exploring its first foray into China, and privately held C Steinweg has expanded capacity there, sources said, as a financing scandal in a major Chinese port fuels a scramble for market share.
The alleged scam - in which a Chinese trading firm is suspected by local authorities of fraudulently using a single cargo of metal as collateral for multiple loans - has shaken the confidence of banks and merchants in Western metals storage firm that rely on local agents to oversee warehouse operations………………………………………..Full Article: Source

Navigating an Uneven Market for Commodities ETFs

Posted on 30 July 2014 by VRS  |  Email |Print

Commodity exchange traded funds help diversify an investor’s portfolio, but traders can also dive into the market to pick and select potential opportunities while avoiding duds. According to the Goldman Sachs Group, nickel and palladium are set to outperform in an uneven global economy, reports Glenys Sim for Bloomberg.
“While cyclical recovery tends to see rising commodity demand, prices will likely largely be determined by more structural supply factors,” Goldman Sachs analysts wrote in a note. “Accordingly, not all boats are expected rise with the tide created by continued improvement in global macroeconomic data.”……………………………………….Full Article: Source

5 Most Popular New ETF Launches

Posted on 30 July 2014 by VRS  |  Email |Print

Issuers have brought to market 110 new ETFs so far this year, offering exposures that run the gambit—and few resemble what we would consider “plain vanilla” strategies. But only a handful of these new funds have gathered any traction with investors.
Among the most popular newcomers, there is no common denominator when it comes to a theme that is resonating with investors. Instead, there’s evidence of demand for minimal exposure to interest-rate risk, as well as appetite for value and momentum opportunities, and gold………………………………………..Full Article: Source

Shanghai FTZ will launch a commodities exchange; will debut with copper

Posted on 30 July 2014 by VRS  |  Email |Print

The Shanghai free trade zone (FTZ) will get a physical commodity trading exchange towards the end of this year, and copper will be its first product, market sources told Metal Bulletin.
“This new platform is likely to debut towards the end of this year,” a source with government connections said. “With this new exchange, investors will be able to trade cargoes in the bonded zone - for example, copper warehouse receipts - more freely, transparently and efficiently.”……………………………………….Full Article: Source

Brazil Real Intervention Out of Sync With Slowdown, IMF Says

Posted on 30 July 2014 by VRS  |  Email |Print

The International Monetary Fund said Brazilian central bank President Alexandre Tombini shouldn’t shore up the real as Latin America’s largest economy stalls and inflation accelerates.
Adjusting for inflation, Brazil’s currency was 5 percent to 15 percent stronger than “implied by fundamentals and desirable policies” in 2013, IMF economists wrote in a research report published today. The real has appreciated 5.9 percent this year against the dollar while inflation accelerated to a 13-month high and economic growth slowed………………………………………..Full Article: Source

How to Blend In a Currency Hedge

Posted on 30 July 2014 by VRS  |  Email |Print

Looking across developed markets today, a common thread is that central bank policies have pushed interest rates to very low levels to support their economies. Looking at the major central banks—the U.S., the European Central Bank (ECB) and the Bank of Japan (BOJ)—it appears that Europe and Japan are still expanding their accommodative policies, while the U.S. is reducing and is anticipated to be the first among these banks to raise interest rates.
This change has important implications for currencies that play a role in international equity returns. We believe it is important to maintain a globally diversified international equity portfolio, but we question the rationale of being fully exposed to foreign currencies………………………………………..Full Article: Source

California eyes southern border for ETS expansion

Posted on 30 July 2014 by VRS  |  Email |Print

California Governor Jerry Brown and Mexican environmental officials signed a pact on Monday aimed at reducing greenhouse gas emissions, an agreement that could eventually expand the market for carbon credits.
The six-page memorandum of understanding calls for cooperation in developing carbon pricing systems and calls on the partners to explore ways to align those systems in the future. “California can’t do it alone and with this new partnership with Mexico, we can make real progress on reducing dangerous greenhouse gases,” said Governor Brown………………………………………..Full Article: Source

Combet urges ‘climate war’ to continue

Posted on 30 July 2014 by VRS  |  Email |Print

The man Julia Gillard wanted to become her successor as prime minister, Greg Combet, says Labor must again go to war with Tony Abbott on carbon - but this time win the politics. Speaking at the launch of his book The Fights of My Life, the former climate change minister said Mr Abbott’s abolition of the carbon tax was only a temporary setback.
“Ultimately, all of the work that we did will return because if you are making a reform of that nature, you’ve got to find the most economically efficient, environmentally effective and socially fair way of enacting it - and that is the reform that we made,” he said………………………………………..Full Article: Source

banner
July 2014
S M T W T F S
« Jun   Aug »
 12345
6789101112
13141516171819
20212223242526
2728293031