Wed, Sep 3, 2014
A A A
Welcome kbr175@gmail.com
RSS
Commodities Briefing 18.Nov 2008

Posted on 18 November 2008 by VRS |  Email |Print

From Bloomberg: Commodities will be under pressure for as long as 18 months, with UBS AG predicting lower prices next year for all bar four of the 28 raw materials it forecasts following a collapse in credit for industry.

Commodities are headed for their worst annual drop in more than a quarter-century. The U.S., the world’s biggest consumer of oil, has fallen into a recession, followed by the U.K., Japan, Germany and the 15 European nations that use the euro….. Full Article: Source

Posted on 18 November 2008 by VRS |  Email |Print

From ABC: A leading commodities analyst has warned the prices for base metals, oil and iron ore will fall even further as China’s manufacturing sector slows. Returning from a two week tour of the country, the ANZ’s Mark Pervan says the slowdown is worse than first thought.

He says massive share market losses have reduced the wealth of China’s top 20 per cent and they’ve stopped spending on homes and cars….. Full Article: Source

Posted on 18 November 2008 by VRS |  Email |Print

We pinpointed the dot-com crash at its peak, in a March 20, 2000 column: “Next crash? Sorry, you won’t see it coming.” Bulls-eye: The dot-com bubble popped. The economy went into a 30-month recession. The stock market lost $8 trillion. And today, over eight years later, the market is still roughly 40% below its 2000 peak.

Factor in inflation and the average stock has lost well over 50% of its value. Stocks have proven to be a very big loser, a bad investment for Americans, thanks to Wall Street’s selfish greed, plus the complicity and naiveté of politicians, press and public….. Full Press Release: Source

Posted on 18 November 2008 by VRS |  Email |Print

From Indiatimes.com: Brokerages are hoping that commodity prices may start recovering from the first quarter of next year with the global coordinated approach to beat a global recession. But, for this year, there is still some room for prices to go down by another 5-10% as demand may weaken further, feel analysts.

The credit crisis that originated in the US has spilled over to the real economy as reflected in falling commodity prices across the board. The meltdown in credit and capital markets world-wide raised fears of a slowdown in the demand for commodities….. Full Article: Source

Posted on 18 November 2008 by VRS |  Email |Print

From Japantimes.co.jp: An initiative to fight deforestation in developing economies by tapping emissions trading markets will soon go into full swing, involving a World Bank-managed facility financed in part by Japan, officials said.

The Forest Carbon Partnership Facility to finance projects to curb slash-and-burn farming and other forms of forest degradation will begin in Vietnam, Madagascar and 23 other countries that were formally selected at the facility’s first meeting in the U.S. in late October, the officials said….. Full Article: Source

Posted on 18 November 2008 by VRS |  Email |Print

From Guardian: In other circumstances, the Federal Reserve’s decision to flood the banking system with excess liquidity would be the precursor to higher growth, inflation and a recovery in commodity prices over the next 2-3 years.

But at the moment it looks more like an act of desperation - a belated response after the global economy has fallen off a cliff. Rather than presaging a sharp rise, it highlights there could still be more cyclical downside to commodity prices even after recent steep losses….. Full Article: Source

Posted on 18 November 2008 by VRS |  Email |Print

From Rigzone.com: It seems the only people using more oil these days are OPEC ministers jetting off to crisis talks about tumbling global oil demand and collapsing prices.

OPEC ministers will hold emergency talks in Cairo on Nov. 29. Confirmation of the rumored talks came Friday as OPEC also said the price of its reference basket of crudes fell to $47.73 a barrel, the lowest since May 2005….. Full Article: Source

Posted on 18 November 2008 by VRS |  Email |Print

From Indexuniverse.com: During the next four years, exchange-traded funds should continue to have the fastest growth rate among the three major fund types used by retail investors, according to a new study.

That follows similar growth patterns forecasted in the past for ETFs over active mutual funds and index mutual funds. The latest, done by Financial Research Corp., also projects that by 2012, ETFs will represent 6.8% of the retail investment marketplace’s total assets….. Full Article: Source

Posted on 18 November 2008 by VRS |  Email |Print

From Bangkokpost.com: Oil will continue to play a major part in meeting the energy needs of the world to 2030 and beyond, according to the projection of the International Energy Agency (IEA).

The IEA estimates that meeting its forecast will require around $3 trillion worth of global investment in finding, producing, transporting and refining the oil required by 2030….. Full Article: Source

Posted on 18 November 2008 by VRS |  Email |Print

From Commodities-now.com: Demand for steel in the EU has collapsed. Current price levels are, however, hard to verify because very few forward orders are being placed. Buyers are afraid to purchase because selling values are dropping on a daily basis. Moreover, customers’ orders books have reduced dramatically - leaving OEM’s and distributors with excessive inventories.

Such is the decline in real consumption, that existing stocks through the supply chain will be sufficient to meet market requirements for several weeks and even months ahead. Recently announced savage cuts in steel production are not just required to rebalance the market in the short term….. Full Article: Source

Posted on 18 November 2008 by VRS |  Email |Print

From Bloomberg: A European proposal to spend 11 billion euros ($14 billion) testing how to pump greenhouse gases underground is itself getting buried.

The plan to subsidize 12 pilot plants that capture and store carbon dioxide blamed for global warming won initial approval by a European Parliament committee on Oct. 7. Germany, Spain, Poland and at least three more countries have since decided to oppose the project, officials said in interviews. Chris Davies of the U.K., who sponsored the proposal in parliament, said it needs to be changed to win a final vote that’s not yet scheduled….. Full Article: Source

Posted on 18 November 2008 by VRS |  Email |Print

From Mineweb.com: Average prices for prized Letšeng diamonds have fallen 45% from USD 2,512/carat in first-half 2008 to an average USD 1,382/carat, so far, in the fourth quarter. But is this yet the bottom?

London-listed Gem Diamonds has announced painful trading and operational updates, including the jarring news that the company may even post losses for the year to 31 December 2008….. Full Article: Source

Posted on 18 November 2008 by VRS |  Email |Print

From Business-standard.com: Five years after the start of commodities futures trading in India, the markets have become vibrant, with exponential growth in volumes, Forward Markets Commission member Rajeev Agarwal said.

The trade volumes in commodity futures have increased to Rs 40 lakh crore 2007-08 (April-Mar) from Rs 6,60,000 crore five years earlier. The quality of markets has also improved, with three national-level commodity exchanges trading in over 100 commodities, spread acr-oss farm goods, bullion, base metals, and energy products, he said….. Full Article: Source

Posted on 18 November 2008 by VRS |  Email |Print

From Structuredproductsonline.com: Db x-trackers, the exchange-traded fund arm of Deutsche Bank, has launched its commodity ETF on the London Stock Exchange (LSE) tracking the Deutsche Bank Liquid Commodity Index - Optimum Yield (DBLCI OY Balanced).

The db x-trackers DBLCI OY Balanced ETF is Ucits III compliant and can be traded in multiple currencies. The ETF was initially launched in July 2007 in Europe and has accrued assets of over £150 million….. Full Article: Source

Posted on 18 November 2008 by VRS |  Email |Print

From Guardian: Iran signed a memorandum of understanding (MoU) with Turkey on Monday for the development of two phases of its South Pars gas field in the Gulf and on transferring gas to Europe, Iran’s oil minister said on Monday.

The two sides had signed a deal last year on joint gas production and export of Iranian gas via Turkey to Europe. But since then they have been working to finalise the deal, such as hammering out investment terms. The report on the Iranian oil ministry’s web site SHANA about Monday’s MoU gave few details….. Full Article: Source

Posted on 18 November 2008 by VRS |  Email |Print

From Nzherald.co.nz: A modified emissions trading scheme (ETS) is seen as the most likely outcome of a special select committee review of climate change policy.

The review, and associated deferment of the emissions trading scheme passed into law in the last Parliament’s dying days, is part of National’s confidence and supply agreement with Act….. Full Article: Source

Posted on 18 November 2008 by VRS |  Email |Print

From Bloomberg: Aluminum fell to a three-year low and copper declined in London on speculation more metal will be shipped out of China, adding to global supplies as demand falters. Zinc also fell.

China will lower export tariffs on some aluminum to 5 percent from 15 percent as of Dec. 1, the Ministry of Finance said Nov. 14. Shipping costs, measured by the Baltic Dry Index, have plunged more than 90 percent since the end of May….. Full Article: Source

Posted on 18 November 2008 by VRS |  Email |Print

From AFP: The dollar traded mainly lower Monday as financial markets saw renewed caution after a summit of world leaders failed to deliver specific measures to boost the global economy.

The euro rose to 1.2645 dollars at 2200 GMT from 1.2591 dollars reached late in New York on Friday. The dollar was at 96.35 yen on Monday from 97.06 yen on Friday….. Full Article: Source

Posted on 18 November 2008 by VRS |  Email |Print

From Commodities-now.com: Two weeks ahead of the UN Climate Change Conference in Poznan, Poland, the UN Climate Change Secretariat in Bonn has reported that greenhouse gas emissions in industrialized countries continue to rise.

Data submitted to the United Nations Framework Convention on Climate Change (UNFCCC) shows that emissions of 40 industrialized countries that have greenhouse gas reporting obligations under the Convention remained in 2006 below the 1990 level by about 5%, but rose by 2.3 percent in the time-frame 2000 to 2006….. Full Article: Source

Posted on 18 November 2008 by VRS |  Email |Print

From Resourceinvestor.com: Despite throwing heaps of money at the problem, so far there’s no sign that the U.S. and Europe can avert recession, which could lead to depression. Last week, we heard that China was doing something similar, but rather than bailing out troubled banks it’s concentrating on infrastructure, the sorts of thing that helped reduced unemployment in the 1930s Great Depression.

China’s $586 billion package will be spent on affordable housing, rural infrastructure, railways, water provision, environmental protection and its power grid, things that will boost domestic consumption. To do this it will have to import resources found in Africa, which could be of some comfort to our ailing resources sector….. Full Article: Source

Posted on 18 November 2008 by VRS |  Email |Print

From Bloomberg: Dubai Multi Commodities Centre, a tax-free business park in the United Arab Emirates, said it had contributed $50 million as seed money to an Islamic fund that will invest in global resources and mining companies.

The fund, BalckRock Global Resources & Mining Fund on Al Safi, will be managed by U.S.-based asset manager BlackRock, Inc. and buy stakes in companies exploring, developing and producing global resources, Dubai Multi Commodities said in an e-mailed statement today. Small companies with market values from $25 million to $2 billion will be a special focus….. Full Article: Source

Posted on 18 November 2008 by VRS |  Email |Print

From News.com.au: Federal Environment Minister Peter Garrett says he will not speculate on whether Australia will boost the number of uranium mines. The West Australian cabinet lifted a ban on uranium mining with immediate effect today, and its decision makes way for dozens of deposits across the state to be exploited if capital can be raised.

But Mr Garrett said the Federal Government’s responsibility was to ensure proper regulatory issues were applied….. Full Article: Source

Posted on 18 November 2008 by VRS |  Email |Print

From Reuters: A new standard for carbon trading will help link forestry and agriculture projects into a million-dollar market to help fight global warming, backers said on Tuesday.

Under rules set by the Voluntary Carbon Standard (VCS), projects such as reducing the rate of tropical deforestation could get tradable credits for a voluntary market aimed at companies and individuals and worth $330 million in 2007, they said….. Full Article: Source

Posted on 18 November 2008 by VRS |  Email |Print

From Canada.com: Stock markets around the world - already deeply depressed - sank further Monday as investors appeared unconvinced that vague commitments agreed to by world political leaders will prevent a global recession.

“Failure of the G20 meeting to produce any concrete measures to deal with the global recession has caused markets to continue to trade with a sell bias to start this week,” Paul Lennox, corporate treasurer at Custom House, a Victoria-based international payments firm, said in an analysis…. Full Article: Source

Posted on 18 November 2008 by VRS |  Email |Print

From Bloomberg: Cotton users are halting orders from the U.S., the world’s biggest exporter, at the fastest pace in at least a decade as the economic slowdown erodes demand from China and sends prices to a six-year low.

Delays, cancellations and order reductions of U.S. upland cotton by foreign buyers rose almost sevenfold from a year earlier to 329,600 running bales (74,752 metric tons) in the first 13 weeks of the marketing year that started in August, data from the U.S. Department of Agriculture show. The level is the highest since at least 1998. A bale weighs 500 pounds….. Full Article: Source

Posted on 18 November 2008 by VRS |  Email |Print

From IHT: Gold and other precious metals prices fell Monday, as investors digested fresh signs of economic weakness, including a lackluster report on industrial production and more layoffs in the financial sector.

Energy prices also slumped, while grain prices mostly rose. Investors have fled commodities in recent weeks in the wake of a worsening economy. The fear is that a prolonged downturn will sharply curb demand for raw materials….. Full Article: Source

Posted on 18 November 2008 by VRS |  Email |Print

From FT: Oil prices slipped on Monday, while base metals also continued to retreat, as two investment banks downgraded their forecasts for commodity markets in 2009.

UBS warned that the demand environment for commodities had deteriorated at an unprecedented rate, as producers and consumers struggled to find financing for purchases, working capital, and investment amid the global credit squeeze….. Full Article: Source

Posted on 18 November 2008 by VRS |  Email |Print

From Reuters: The Canadian dollar ended higher against the U.S. currency on Monday, rebounding from morning lows as the greenback retreated broadly following weak U.S. manufacturing data.

Canadian bond prices rose alongside U.S. treasuries as the weak U.S. manufacturing data and gloomy economic news from Japan fueled fears of a global recession, driving safe-haven buying of government debt….. Full Article: Source

See more articles in the archive

September 2014
S M T W T F S
« Aug    
 123456
78910111213
14151617181920
21222324252627
282930