Sat, Oct 25, 2014
A A A
Welcome kbr175@gmail.com
RSS

Commodities Briefing - Archive | August, 2014

Major banks’ first-half commodity revenue climbs 21 percent

Posted on 29 August 2014 by VRS  |  Email |Print

Commodities revenue at the top 10 investment banks climbed by about a fifth in the first half of the year as a cold winter boosted business in U.S. power and gas and some investors returned to the sector, a consultancy said.
Revenue from commodities for the leading banks rose 21 percent to $3.3 billion in the first six months after falling by a similar percent last year, London-based financial industry analytics firm Coalition said in a report on Thursday………………………………………..Full Article: Source

A Look At Various Commodities And Weather

Posted on 29 August 2014 by VRS  |  Email |Print

In a world captivated, or should I say “cap-sized”, by the exasperating events in Gaza, Ferguson, Ukraine and now most recently by ISIS, it’s almost not worth talking about where the opportunities have been and where they might be in the financial markets. There are far greater concerns about the nature and safety of our planet.
We began the year with one of the most impressive bull markets in natural gas in recent memory, brought on by the polar-vortex, which uncharacteristically made its way south “without” the assistance of a negative AO/NAO index (warm blocks over the arctic and Greenland)………………………………………..Full Article: Source

Oil and gas investment boom ‘fading fast’

Posted on 29 August 2014 by VRS  |  Email |Print

The boom in oil and gas investment that insulated Australia from the Global Financial Crisis is fading fast and there are few signs of new projects on the horizon, EnergyQuest says.
Dr Graeme Bethune - chief executive of the energy economics group – said the level of oil and gas investment is already well below the peak reached in the last quarter of 2013 and will keep falling as new LNG projects are completed………………………………………..Full Article: Source

A New American Oil Bonanza

Posted on 29 August 2014 by VRS  |  Email |Print

Whenever overseas turmoil has pushed energy prices higher in the past, John and Beth Hughes have curbed their driving by eating at home more and shopping locally. But the current crises in Ukraine and Iraq did not stop them from making the two-hour drive to San Antonio to visit the Alamo, have a chicken fried steak lunch, and buy fish for their tank before driving home to Corpus Christi.
“We were able to take a day-cation because of the lower gas prices,” said Ms. Hughes. The reason for the improved economics of road travel can be found 10,000 feet below the ground here, where the South Texas Eagle Ford shale is providing more than a million new barrels of oil supplies to the world market every day………………………………………..Full Article: Source

Falling Oil Prices Could Force Venezuela to Veer off the Chávez Formula

Posted on 29 August 2014 by VRS  |  Email |Print

Venezuela’s embattled Nicolás Maduro has spent most of his 19-month presidency fighting to avoid changing any of the economic policies he inherited from his predecessor, the late Hugo Chávez. Maduro has repeatedly told his countrymen that Chávez’s socialist blueprint is working in spite of mounting shortages, soaring inflation, and two maxi-devaluations in the past two years. Now falling oil prices may force his hand.
The price of Venezuela’s benchmark basket of crude and petroleum products fell on Aug. 22 to $90.89, a two-year low. Since the end of last month, the price has fallen 10 percent, tracking a surprising drop in international prices in spite of Mideast tensions………………………………………..Full Article: Source

OPEC oil output rises in August as Libyan recovery holds

Posted on 29 August 2014 by VRS  |  Email |Print

OPEC’s oil production has risen in August from July, a Reuters survey found on Thursday, as a recovery in Libyan supply held up and Angola and Iran boosted supplies, outweighing a further decline in Iraq.
The survey also found Saudi Arabia and other core Gulf OPEC producers kept output largely flat and have not cut back to prop up prices, which in August dipped to a 14-month low near $101 a barrel, or to make room for higher Libyan output………………………………………..Full Article: Source

Iraq and Libya spark oil production fears

Posted on 29 August 2014 by VRS  |  Email |Print

The world fears an oil crisis will occur if the security situation in oil-producing countries does not improve, especially in Iraq and Libya, two prominent producing countries. Everyone is concerned and is expecting the suspension of the Iraqi oil supply at any time now. If an Iraqi oil disaster occurs — especially if production allocated for export is halted — oil prices will easily hit an average of $130 per barrel and will only cease to fluctuate when Iraq regains calm and stability.
There is an urgent demand on Iraqi oil in both the short and long term. The suspension of production is equivalent to 1 million barrels per day (bpd) of Libyan oil supplies and nearly 3.3 million bpd of Iraqi supplies………………………………………..Full Article: Source

Global green energy growth threatened by policy uncertainty, IEA warns

Posted on 29 August 2014 by VRS  |  Email |Print

Global green energy expansion may stall unless governments can put in place more stable and long-term policies, the International Energy Agency (IEA) warned.
Its third annual Medium-Term Renewable Energy Market Report outlines how renewable sources of energy such as wind, solar and hydropower have made strong progress worldwide to make up around 22 per cent of global power generation, roughly on a par with electricity from gas………………………………………..Full Article: Source

IEA expects $1.7 trillion in clean-energy investments through 2020

Posted on 29 August 2014 by VRS  |  Email |Print

Investments in new clean-energy capacity will total $USUS1.61 trillion ($1.72 trillion) through 2020 even as the expansion of renewables is expected to slow, the International Energy Agency said.
Funding for power generation from wind, solar radiation and biomass will average $US230 billion a year from $US250 billion in 2013 as technology costs fall and growth loses pace, the Paris-based adviser to 29 nations said today in its annual renewables report………………………………………..Full Article: Source

Global renewable energy expansion to slow to 2020: IEA

Posted on 29 August 2014 by VRS  |  Email |Print

Growth in global renewable energy capacity will slow to 2020 if uncertain government policies continue to threaten investment, the International Energy Agency (IEA) said on Thursday.
Last year power capacity from sources such as wind, solar or hydro expanded at its fastest pace to date, putting renewables on a par with natural gas at almost 22 percent of global electricity generation. ……………………………………….Full Article: Source

Top 20 largest gold reserves by country

Posted on 29 August 2014 by VRS  |  Email |Print

After a long bull move gold is at a crossroads. Depending on who you talk to, the 15-year bull market in gold has ended or is taking a breather preparing for its next leg up. The massive inflation predicted from the enormous liquidity poured into the system by central banks around the world has not arrived so gold has pulled back from its 2011 high.
Gold is the most followed and globally traded commodity. But not just by retail investors watching late night TV. While there is no more gold standard, governments maintain a reserve quantity of gold. Although gold has industrial applications, gold is a monetary asset and its prime driver is investment demand. We take a look at the top reported official gold holdings of individual countries (as of June 2014) based on information from the World Gold Council………………………………………..Full Article: Source

Check Out Silver For A View On Gold

Posted on 29 August 2014 by VRS  |  Email |Print

For gold traders, the last few months have been challenging to say the least, with the precious metal lurching higher and lower driven by fear, the US Dollar, a singular lack of any inflation and seasonal supply and demand. At times like this it can help to look at related or associated markets for an alternative view.
One such is silver, which has been more measured in its price action over the last few weeks, remembering as always, that silver is not a precious metal, but an industrial one, and the daily chart for the December futures contract delivers some interesting insights………………………………………..Full Article: Source

Gold demand: Not so hot, not so cold

Posted on 29 August 2014 by VRS  |  Email |Print

As pointed out by the Fed Chairman Janet Yellen, how much slack there is in the U.S. labour market is still up for debate. The Fed uses a Labour Market Conditions Index, which consists of 19 factors. The undertone is that the underuse of the labour force is still big although a few Fed governors have been saying that the interest rates will rise sooner than expected.
The ECB governor surprised the market by saying for the first time that both the fiscal and monetary policies are necessary to stimulate aggregate demand, which means there is room for more asset purchases and possibly QE and more fiscal policy flexibility from the governments………………………………………..Full Article: Source

Let’s talk diamonds

Posted on 29 August 2014 by VRS  |  Email |Print

Let’s talk diamonds for a change. Often it seems that gold gets all the fun when I write and speak about precious metals and minerals. But Vancouver-based Lucara Diamond, which we own in both our Gold and Precious Metals Fund (USERX) and World Precious Minerals Fund (UNWPX), has been turning heads here at U.S. Global Investors lately for a number of reasons, the most notable being that it continues to report stellar returns.
The company reports that, in its second quarter, it achieved tender proceeds, or profits, of $95 million from sales of 111,900 carats of diamonds, amounting to $849 per carat. Compared to last year’s second quarter, profits are up an impressive 93 percent………………………………………..Full Article: Source

Silver Pricing Change Takes Effect; Other Metals to Follow

Posted on 29 August 2014 by VRS  |  Email |Print

With the launch in mid-August of a new system to arrive at the price for silver, precious metals investors are dealing with the first in a series of changes in how the market prices of silver, gold, platinum and palladium are reached.
More change is coming, since the other three metals have yet to go through the process, but what’s happened so far is this: Concerns about price fixing after everything from LIBOR to currency were found to have been manipulated led to accusations about the gold and silver markets, and in January of this year Germany’s financial regulator Bafin said that the manipulation of precious metals prices was worse than that occurring with LIBOR………………………………………..Full Article: Source

Industrial Metals on the Mend

Posted on 29 August 2014 by VRS  |  Email |Print

A rise in the global population, growth in the Chinese economy, urbanization of other Asian countries and the increasing requirements of developed countries have created an unprecedented demand for industrial or base metals given their usage in a wide variety of applications in the construction and manufacturing businesses.
However, of late, tepid global economic growth and a slowdown in the Chinese economy have emerged as major headwinds for the global metal industry………………………………………..Full Article: Source

Goldman Sachs sees nickel price rally continuing into 2015

Posted on 29 August 2014 by VRS  |  Email |Print

US investment bank Goldman Sachs said the refined nickel market has shifted from a major surplus in 2013 to a much smaller surplus in 2014, according to a research note Thursday, adding that prices are likely to continue to rally into 2015.
The bank notes that the buildup of LME warehouse stocks is merely a moving of stock from an Australian stockpile (since the start of 2013) and from Chinese bonded warehouses (following the Qingdao port investigation in Q2, when the authorities launched an investigation into trading companies for allegedly using warehouse receipts multiple times to secure financing from banks)………………………………………..Full Article: Source

Zinc, nickel prices to ‘move dramatically higher’ - Scotiabank

Posted on 29 August 2014 by VRS  |  Email |Print

Scotiabank’s Metal & Mineral Index rallied strong in July as base metal prices jumped higher across a broad front—“pushed up in part by exuberance over better-than-expected results for China’s economy”, observed Scotiabank economist Patricia Mohr in an analysis published Wednesday.
“Firmer potash and sulphur prices and the beginning of a recovery in uranium also contributed to the gain,” she noted. “Spot uranium prices have increased to US$31 per pound in late August alongside stepped-up Chinese buying, after bottoming at a mere US$28 in June………………………………………..Full Article: Source

Gold ETFs Lose Predictive Power

Posted on 29 August 2014 by VRS  |  Email |Print

During the height of gold’s bull run, market observers frequently complained that exchange traded products backed by physical holdings of bullion, including the SPDR Gold Shares, were criticized for being the tail wagging the dog of the gold market.
Said differently, traders and investors were often stumped by what asset class truly moved the gold market: Futures or ETFs. Although investors have put money to work in gold ETFs this year, the predictive power of GLD and rival funds is seen as waning following a 2013 drubbing that saw GLD tumble 28.3%………………………………………..Full Article: Source

3 Reasons Market Vectors Gold Miners ETF (GDX) Could Fall

Posted on 29 August 2014 by VRS  |  Email |Print

A week or so ago, I wrote an article that listed three reasons to buy Market Vectors Gold Miners ETF . It’s important to understand that gold went on an unprecedented bull run from the early 2000s through late 2011, but it has largely been in decline since. Further, gold has historically been an underperforming asset as compared to the stock market.
And while the Market Vectors Gold Miners ETF is made up of stocks, the companies are all in the gold mining business, and this group tends to move with the price of gold. With that said, here are three reasons the Market Vectors Gold Miners ETF could fall. Should you consider limiting your exposure to gold and gold miners? Let’s take a closer look………………………………………..Full Article: Source

Investing In Natural Gas? Eye ETFs, Seasonality

Posted on 29 August 2014 by VRS  |  Email |Print

Investing in natural gas sounds like a winner: demand keeps rising, fracking promises to meet that demand, and prices have jumped in the past several years. Meanwhile it’s touted as an alternative to coal, and to a lesser extent, oil. There’s a lot to like.
But investing in commodities on a futures market is still a complicated business for most retail investors. Taxes and expenses can be complicated to work out. Hence the exchange-traded fund can be a better vehicle. ……………………………………….Full Article: Source

4 Currency ETFs To Watch Right Now

Posted on 29 August 2014 by VRS  |  Email |Print

The U.S. dollar is breaking out and that means a number of currency exchange-traded funds are seeing significant moves right now. Currency ETFs provide a way to access the foreign exchange (forex) market, while using the stock market to do it.
Currencies, like other assets, can spend a lot of time doing nothing, but when a major trend or reversal occurs, the moves can be large and fast-moving. Such a trend is underway now in the U.S. dollar, which affects other currencies as well………………………………………..Full Article: Source

Commodities trading the latest move by Shanghai to talk up free trade zone

Posted on 29 August 2014 by VRS  |  Email |Print

Commodities exchanges the latest idea for city’s free trade zone, and part of its plan to establish itself as a hub for international commerce. In the latest attempt to raise the profile of its Hong Kong-style free port, Shanghai has unveiled ambitious plans to create a clutch of international commodity trading platforms in its free-trade zone (FTZ).
According to an action plan to develop the city into a centre for international commerce, major commodities including iron ore, cotton and copper will be traded on the internationalised markets inside the 28.8 sq km FTZ by 2015. The announcement follows long-heralded plans to establish international boards for crude oil futures and gold trading in the zone………………………………………..Full Article: Source

Egypt in talks with Chicago Merc to build biggest commodities exchange in MENA

Posted on 29 August 2014 by VRS  |  Email |Print

Egypt plans to get benefit from the Chicago Mercantile Exchange (CME)’s wide expertise, seeking to establish its first and biggest commodities exchange in the Middle East. Egypt’s Minister of Supply Khaled Hanafy announced Wednesday that his country, represented in officials from the Armed Forces, Cabinet and Arab Contractors Company, will start a number of meetings with CME chairman and board members.
The meetings aimed to review means of technical cooperation and support between the two countries to build the first commodities exchange in Egypt and the Middle East, dedicated for the grains and wheat………………………………………..Full Article: Source

The dollar’s sterling work

Posted on 29 August 2014 by VRS  |  Email |Print

A forthcoming paper in the Journal of Development Economics looks at the dollar’s ascendancy to global reserve currency. Barry Eichengreen, of the University of California, Berkeley, and two economists from the ECB up-end the conventional history of when the dollar became top dog.
Economic historians have typically believed that until the second world war the British pound sterling remained the leading international currency. The system was geared in favour of sterling, the argument goes: bankers instinctively used the pound because everyone else did. Economists refer to this as inertia. An extension of this logic is that there can be only one major international reserve currency—in the same way that Blu-ray discs, not HD DVDs, came to dominate the high-definition video market. It’s easier if everyone uses the same thing………………………………………..Full Article: Source

Bitcoin Grows As New Businesses Start Accepting Currency

Posted on 29 August 2014 by VRS  |  Email |Print

Bitcoin, an alternative digital currency which is used to purchase goods and services online, is showing staying power, Reuters reported on Thursday, August 28. Though virtually unknown only a few years ago, the electronic currency is now catching on among more and more online vendors, including Expedia, America’s largest online travel agent, and Overstock, an online retailer.
Although bitcoin sales hardly ever represent more than one percent of total sales, Reuters says many of the vendors it interviewed expect that the online currency “will one day be as ubiquitous as the Internet.”……………………………………….Full Article: Source

Chile set to pass Latin America’s second carbon tax

Posted on 29 August 2014 by VRS  |  Email |Print

Chile is set to approve a carbon tax next week, making it the second country after Mexico in Latin America to put a price on polluting. The carbon tax will go before the House of Representatives in the first week of September, as part of a broader package of tax reforms. If approved, Chile will start charging US$5 per tonne of CO2 from 2017, around $2 more than in Mexico.
“Chile is not a great contributor to greenhouse gas emissions, but we are very vulnerable. It is in our national interests to see significant commitments in terms of climate change,” said Gariazzo Rodrigo Pizarro, head of the division of environmental economics in the Chilean government………………………………………..Full Article: Source

Commodity Prices Inch Down in July: Scotiabank

Posted on 28 August 2014 by VRS  |  Email |Print

Scotiabank’s Commodity Price Index edged down by 0.3% month-over-month (m/m) in July, as oil prices lost momentum, partly due to an easing of concern over geopolitical supply risks in Libya and Iraq. “On a more positive note, a cyclical recovery in base metal prices is getting underway, with dramatically higher zinc and nickel prices expected in 2015,” said Patricia Mohr, Scotiabank’s Vice President of Economics and Commodity Market Specialist.
“Zinc led a strong rally in base metals in July, climbing from US$0.96 per pound to almost US$1.05 — an increase of 17% since late 2013. Commodity funds and investors have bid up zinc prices, anticipating tightening supplies over the next three to four years — with mine supplies not keeping pace with demand growth. In our view, zinc prices will climb to US$1.25 in 2015 and a very lucrative US$1.60-1.70 in 2016………………………………………..Full Article: Source

Is the Commodity Data Center Around the Corner?

Posted on 28 August 2014 by VRS  |  Email |Print

The data center is changing. We have new methods of cooling, optimizing the data center and even the utilization of green energy through next-generation geothermal technologies. The insides of the data center and what goes into the rack has been changing as well. New platforms around consolidation, server technology and cloud computing are all impacting how we process and utilize resources.
The conversation around custom-build servers, networking components and now storage has been heating up. The concept of a commodity data center is no longer locked away for mega-data centers or large organizations. Looking at Google as an example, you’ve got an organization which builds its own server platform by the thousands………………………………………..Full Article: Source

Dearth of oil finds threatens long-term supplies, price

Posted on 28 August 2014 by VRS  |  Email |Print

The rate of oil discoveries continues to disappoint after a record low last year and firms could even cut their exploration budgets to save on costs, a risk to long-term supplies and prices, industry executives said.
Explorers are finding so little oil, many are retreating from high-risk frontier areas to safer bets like North American shale, executives at a major Norway oil conference said. This will likely force them to buy expensive discoveries once investor sentiment shifts focus to reserves from cash flow………………………………………..Full Article: Source

Reasons behind oil price stability despite turmoil

Posted on 28 August 2014 by VRS  |  Email |Print

These are really changing times. It is no longer enough to have a coup a plane hijack or violence erupting in one oil producing country to have prices skyrocketing.
The hotspots are all over the map of the Middle East from key producers such as Iraq and Libya to marginal ones like Yemen and the two Sudans to ongoing tightened sanctions against Iran. Brent crude prices that briefly rose in midJune above 115 following the take-over of Iraq’s city of Mosul by IS radicals dropped to 14-month low a few days ago………………………………………..Full Article: Source

U.S. oil surge restrains prices despite heightened global turmoil

Posted on 28 August 2014 by VRS  |  Email |Print

The controversial practice of “fracking” helped keep North American fuel prices from soaring this summer even as supply disruptions in the Middle East and North Africa hit a 23-year high.
The surge in United States oil production – made possible through horizontal drilling and hydraulic fracturing – has more than offset unplanned supply outages in embattled Organization of the Petroleum Exporting Countries (OPEC) member nations, the U.S. Energy Information Administration (EIA) said Wednesday………………………………………..Full Article: Source

Gold-Price Indicator Fading as ETPs Tumble by $71 Billion

Posted on 28 August 2014 by VRS  |  Email |Print

Gold-backed funds that heralded record prices in 2011 and last year’s biggest sell-off in three decades are becoming less useful as market predictors. After a decade of changing mostly in tandem, gold prices and holdings in exchange-traded products backed by bullion have the most-negative correlation since 2004.
Investment in ETPs are headed for a fifth straight week of moving in the opposite direction of New York futures, data compiled by Bloomberg show. That would be the longest stretch since 2012, before investors began dumping gold………………………………………..Full Article: Source

Gold price ‘could have some way to fall yet’

Posted on 28 August 2014 by VRS  |  Email |Print

Investors should ignore the ‘myths’ that surround gold as an investment and not buy at the current level, despite the fact that the asset class is trading at 33 per cent below its peak valuation of just three years ago, according to Brian Dennehy, managing director of FundExpert.co.uk.
Dennehy remarked, ‘Usually, there is a negative correlation between the performance of the dollar and the price of gold. Many people expect the dollar to start performing better now that tapering is coming to an end, and indeed it already has started to perform better, and generally speaking if the dollar is performing better then the price of gold will usually perform poorly.’ ……………………………………….Full Article: Source

The Continued Strive of Market for Gold Bullion

Posted on 28 August 2014 by VRS  |  Email |Print

For a lot of business-minded people and investors, establishing and owning of solid gold bullion stores is considered as one of the best ways to secure finances for future use. With today’s unpredictable and mostly unstable economy, currency has often dealt with weak and vulnerable hand pushing investors alike to invest in gold coins hoping to gain a more stable strength as well as market independence from the currency that is holding their assets.
US Mint, for example, has found a reliable indicator of gold, silver as well as platinum demand in the country. However, sales in here have recently shown diminishing interest from present as well as potential business owners………………………………………..Full Article: Source

Gold shines most in September on seasonal buys

Posted on 28 August 2014 by VRS  |  Email |Print

Gold investors are hurting from prices within 1% of a two-month low can find solace from the historical record and research and showing gold performs best in September.
Our Bloomberg chart of the day shows bullion averaged gains of 3% each September over the past 20 years, beating next best month November, when prices rose an average 1.8% according to Bloomberg based on a market update by GoldCore. We covered gold’s seasonality and gold’s best performing months here………………………………………..Full Article: Source

What does the rare Earth metal market urgently need?

Posted on 28 August 2014 by VRS  |  Email |Print

Those REE deposits in development that have the greatest chances of success (i.e. being developed into a mine, and thus, offering the highest share price appreciation potential no matter if REE prices remain low) are those that host a REE mineralization out of which a >30% TREO mineral concentrate can be produced with an industry standard process that makes economic sense.
Unfortunately for REE investors, today there exist not many undeveloped REE deposits hosting a mineralization out of which a high enough grade mineral concentrate can be produced, and easily processed, which would be saleable to global REE processors (also known as separation or refining facilities), and from which the numerous REE end-products, which are saleable to the industry, could be produced………………………………………..Full Article: Source

Peru to be World 2nd Biggest Copper Producer

Posted on 28 August 2014 by VRS  |  Email |Print

Benefiting from a USD 20 billion Chinese mining project, Peru will be the world second largest copper producer just after Chile , according to Peruvian governmental officials. A Chinese consortium lead by China Minmetals Corporation won bid for Glencore Xstrata’s Las Bambas copper mine in Peru in July. The Chinese side will acquire the USD 20 billion mine with nearly USD 7 billion . This has been China’s biggest overseas mining acquisition.
The Las Bambas project is one of the largest copper mines under construction worldwide; its annual output capacity is predicted to reach 450,000 tons after completion, representing 13% of China’s total copper imports last year. The mine is predicted to come into production in the second half of 2015………………………………………..Full Article: Source

Soft Commodities ETFs Search for Support

Posted on 28 August 2014 by VRS  |  Email |Print

It has been a rough year for some soft commodities exchange traded products. Strip out the stellar performances offered by the iPath Dow Jones-UBS Coffee Total Return Sub-Index ETN and the iPath Pure Beta Coffee ETN, and the agricultural/soft commodities complex looks even more glum.
Despite drought conditions in some parts of the U.S., high crop yields have forced the Teucrium Corn Fund down 19.5% on the year while theTeucrium Soybean Fund is off more than 11%. The government has already predicted record crops and believes exports will drop – Russian counter sanctions against Western countries will diminish overseas demand………………………………………..Full Article: Source

No Bottom in Sight for Silver ETFs

Posted on 28 August 2014 by VRS  |  Email |Print

Precious metals like gold and silver started off the year with much promise after staging a counter trend rally that defied their tremendous fall last year. However, the sellers have re-established downward momentum and are focusing their efforts specifically in the silver market.
According to Bloomberg Businessweek, short bets in silver futures contracts reached a 14-month high last week as prices fell to new August lows. Investors are clearly increasing their net short exposure on the expectation that this hard asset will re-test its June lows………………………………………..Full Article: Source

Zinc and nickel prices to move ‘dramatically higher’ in 2015

Posted on 28 August 2014 by VRS  |  Email |Print

Zinc and nickel prices could move dramatically higher over the next two years as a cyclical recovery takes hold in the base metal sector, says a new report from Scotiabank. Prices for zinc and nickel have been steadily rising this year as global growth continues to rebound, fuelling stronger prices for base metals.
Patricia Mohr, commodity market specialist at Scotiabank, said zinc and nickel are in a good position because they are either in or nearing supply deficit positions………………………………………..Full Article: Source

Wheat crop may fall to smallest since 2010

Posted on 28 August 2014 by VRS  |  Email |Print

South African farmers may produce 4.8 percent less wheat this season than a year earlier, making it the smallest harvest since 2010, the Crop Estimates Committee said as it lowered the area prediction for the cereal to the lowest on record. Growers may reap 1.78 million metric tons in the 2014 season compared with 1.87 million tons last year, Marda Scheepers, a spokeswoman for the committee, said.
It is less than the 1.87 million-ton median prediction by three analysts in a Bloomberg survey. While South Africa is the sub-Saharan region’s biggest producer of the grain after Ethiopia, it’s still a net importer of wheat, according to US Department of Agriculture data………………………………………..Full Article: Source

Ukraine’s Hryvnia Currency Continues Free Fall

Posted on 28 August 2014 by VRS  |  Email |Print

Ukraine’s troubled hryvnia continued its free fall, even as the prime minister called for swift measures to stabilize the national currency. The hryvnia lost 1.7% Wednesday, trading at the weakest level ever of just below 14 against the U.S. dollar after talks between the presidents of Russia and Ukraine failed to offer significant progress on the monthslong crisis in the region.
“We need swift and effective economic steps to stabilize the situation at the foreign-exchange market,” said Prime Minister Arseniy Yatsenyuk at the cabinet meeting, adding that the national economy won’t sustain an exchange rate weaker than 12 hryvnia to the dollar………………………………………..Full Article: Source

Ethiopia considers devaluing currency

Posted on 28 August 2014 by VRS  |  Email |Print

Ethiopia says it’s considering the World Bank’s suggestion to devalue its currency, the Birr, but government says it want to minimise the impact on the wider economy. In July, the World Bank released its third economic report on Ethiopia and advised the country to devalue its currency.
The global lender argues that Ethiopia’s Birr is overvalued and that the country would benefit from making the move, but it wouldn’t be the first time for Ethiopia………………………………………..Full Article: Source

UK to give airlines 26.4 mln free CO2 permits for 2013-2016

Posted on 28 August 2014 by VRS  |  Email |Print

Britain will hand its airlines 6.6 million free carbon allowances a year to help reduce the cost of meeting their obligations under Europe’s Emissions Trading Scheme (ETS) from 2013-2016, the government said on Wednesday.
The European Union’s ETS caps the emissions of over 12,000 power plants, factories and airlines, requiring them to surrender one carbon permit for every tonne of CO2 emitted annually by April of the following year………………………………………..Full Article: Source

New coal power stations threat to EU’s emissions target

Posted on 28 August 2014 by VRS  |  Email |Print

Burning Europe’s lignite reserves would wipe out carbon budget from 2020 until the end of the century, says Greenpeace. New coal power stations designed to burn Europe’s massive deposits of lignite pose a serious threat to the continent’s decarbonisation efforts, according to figures released on Wednesday.
Analysts from Greenpeace’s Energydesk compiled data from the German government that shows burning Europe’s reserves of lignite would wipe out the EU’s entire carbon budget from 2020 until the end of the century………………………………………..Full Article: Source

Warsaw breaks ranks with Poland on 2030 climate goals

Posted on 28 August 2014 by VRS  |  Email |Print

The Mayor of Warsaw has complained to the Polish government that 2030 clean energy goals which Poland believed too radical were in fact unambitious, undemocratically decided, and risk spiking EU decarbonisation moves, in a letter seen by EurActiv.
The letter, which was sent to the deputy Prime Minister, Elizabeth Bieńkowska, on 14 August, will flush faces in the Polish government, not least because Warsaw’s mayor, Hanna Gronkiewicz–Waltz, is a senior member of Prime Minister Donald Tusk’s right-wing Civic Platform party………………………………………..Full Article: Source

Hedge funds continue bearish positions on commodities

Posted on 27 August 2014 by VRS  |  Email |Print

Hedge funds have extended their misfortune on agricultural commodities, as increasingly negative sentiment on sugar and livestock more than offsets a reevaluation of laid-back positioning on wheat.
According to data from the Commodity Futures Trading Commission regulator, managed money cuts its net long position in futures and options in the top 13 U.S.-traded agricultural commodities from coffee to corn by more than 18,000 contracts in the week leading up to last Tuesday. It was the eighth consecutive week in which hedge funds reduced their net long………………………………………..Full Article: Source

Reasons behind oil price stability despite turmoil

Posted on 27 August 2014 by VRS  |  Email |Print

These are really changing times. It is no longer enough to have a coup, a plane hijack or violence erupting in one oil producing country to have prices skyrocketing. The hotspots are all over the map of the Middle East from key producers such as Iraq and Libya to marginal ones like Yemen and the two Sudans to ongoing tightened sanctions against Iran. Brent crude prices that briefly rose in mid–June above $115 following the take-over of Iraq’s city of Mosul by IS radicals dropped to 14-month low a few days ago.
Moreover, and following the downing of the Malaysian Airliner in mid-July, prices rose some 2 percent or $1.99 a barrel in New York Mercantile Exchange, but only to reach $104 a barrel and briefly before retreating again………………………………………..Full Article: Source

Iran’s Oil Minister: Not Alarmed by Crude Price

Posted on 27 August 2014 by VRS  |  Email |Print

Iran’s oil minister said Tuesday he wasn’t alarmed by a recent drop in crude oil futures, reflecting a widely- held view among oil producers that prices are still at an acceptable level and their decline won’t last. The remarks suggest members of the Organization of the Petroleum Exporting Countries–of which Iran is one of the largest–won’t need to alter their production for the time being.
Iran’s oil minister Bijan Zanganeh was quoted by his ministry’s Shana website as saying “crude oil prices on global markets are at an appropriate level and seasonal fluctuations in crude oil prices will not continue.”……………………………………….Full Article: Source

banner
August 2014
S M T W T F S
« Jul   Sep »
 12
3456789
10111213141516
17181920212223
24252627282930
31