Mon, Dec 22, 2014
A A A
Welcome preal121
RSS
Commodities Briefing 19.Dec 2008

Posted on 19 December 2008 by VRS |  Email |Print

From The Globe and Mail: Oil markets gave a sharply negative review yesterday to OPEC’s decision to slash production by a further 2.2 million barrels a day, as crude prices fell below $40 (U.S.) a barrel for the first time in more than five years.

At a meeting in Algeria, ministers from the Organization of Petroleum Exporting Countries agreed to cut supplies by a total of 4.2 million barrels a day below September levels. The cartel had already agreed to rein in production by two million barrels at two separate meetings this fall….. Full Article: Source

Posted on 19 December 2008 by VRS |  Email |Print

From Briefing.com: The energy and materials sectors continue to stand out as the session’s worst performers as commodities trade with weakness. Energy is off by 6.2%, while the materials sector has shed 4.9% this session.

January crude oil prices dropped $3.32 to close at $36.74 per barrel. They hit lows of $35.98 per barrel, which is consistent with levels last seen in June 2004….. Full Article: Source

Posted on 19 December 2008 by VRS |  Email |Print

From Reuters: Pension funds and other big investors in commodities are reassessing strategies for 2009 after their huge buildup in commodity index exposure this year backfired as underlying raw material prices imploded.

Institutional investors in commodities have thus far stuck to “long-only” futures indexes, which principally make them buyers of commodities, not sellers….. Full Article: Source

Posted on 19 December 2008 by VRS |  Email |Print

From Commodity Online: It is now taken for granted that commodities are sustaining itself even as returns from equity are falling. But which could be the sector that will provide the highest returns to institutional investors in 2009?

According to Barclays Capital survey, it is energy. Agriculture and industrial metals are the next best investment options in the commodities market….. Full Article: Source

Posted on 19 December 2008 by VRS |  Email |Print

From Commodities Now: Recent data suggest that the health of the global economy deteriorated sharply in November and December. As such, the Economist Intelligence Unit has made further downgrades to its forecasts for all major countries and now expects that, at market rates, the global economy will contract in 2009 by 0.4%.

Although growth will resume in 2010, at 1.5%, expansion will still be slower than in either of the two recent recessions in 1991 and 2001. At purchasing power parity (PPP), the world economy will expand by 0.7% in 2009, the slowest rate of increase since the early 1980s, and by 2.5% in 2010….. Full Article: Source

Posted on 19 December 2008 by VRS |  Email |Print

From Reuters: London-based CF Partners will launch early next year a new 50 million euro (48 billion pound) hedge fund aiming to profit from volatility in carbon markets.

The European Union’s emissions trading scheme may be a surer investment following final EU endorsement on Wednesday of climate goals reaching out to 2020, and recent volatility in commodities markets has opened shorting opportunities….. Full Article: Source

Posted on 19 December 2008 by VRS |  Email |Print

From Eponline.com: The development of a successful global carbon trading market that delivers real and cost-efficient greenhouse gas emission reductions will require an improved market infrastructure.

The report issued Dec. 10 by The Bank of New York Mellon titled, “Towards a Common Carbon Currency: Exploring the Prospects for Integrated Global Carbon Markets.” finds that for a global carbon trading market to allocate capital to the lowest cost carbon reduction projects worldwide it must be based on standardization, liquidity, transparency, and predictability….. Full Article: Source

Posted on 19 December 2008 by VRS |  Email |Print

From Climate Change Corp: The British government claimed a first last month. On 19 November, it sold its first permits to emit CO2 to UK participants in the European Union’s emissions trading system (ETS).

The sale raised £54 million for Alistair Darling’s beleaguered Treasury – or four million allowances at £13.60 each….. Full Article: Source

Posted on 19 December 2008 by VRS |  Email |Print

From Guardian: Recession will not lead to a repeat collapse in European carbon prices, but plunging output means factories and power plants will be able to meet their climate goals for up to 10 years by buying carbon offsets.

The deepening threat of a serious recession has seen carbon analysts scramble to adjust their forecasts, as tumbling manufacturing output will cut carbon emissions, and therefore demand for and the price of carbon emissions permits called EU allowances (EUAs)….. Full Article: Source

Posted on 19 December 2008 by VRS |  Email |Print

From Times Online: Mary Schapiro, the incoming head of the US Securities and Exchange Commission, walked into a storm of controversy less than a day after being nominated to lead the Wall Street regulator when Barack Obama takes office next month.

It emerged yesterday that Ms Schapiro appointed one of Bernard Madoff’s sons to a regulatory body that oversees American securities companies…. Full Article: Source

Posted on 19 December 2008 by VRS |  Email |Print

From Business Week: Years before getting President-Elect Barack Obama’s nod to head the Securities and Exchange Commission, Mary Schapiro did stints on both the SEC and its sometime rival, the Commodity Futures Trading Commission. It’s easy to read that as one of many signs that a merger of the two institutions is looming.

Obama hinted as much this morning, as his press conference announcing Schapiro’s nomination, at which he referred pointedly to “the need to potentially consolidate the regulatory agencies out there, the need to streamline them.” …. Full Article: Source

Posted on 19 December 2008 by VRS |  Email |Print

From Guardian: Recession could fuel a scramble from rich nations to buy cheap emissions rights to help them meet climate targets under the Kyoto Protocol, analysts say.

That would displace trade in wider emissions permits and especially a market in carbon offsets which could be worth $25-30 billion to developing countries by 2012….. Full Article: Source

Posted on 19 December 2008 by VRS |  Email |Print

From Hard Assets Investor: No one denies it’s been one heck of a ride, and it is easy to feel like the best place for your money might be your mattress. But as the ETF Securities Commodities Review 2008 points out, commodities may still be the best diversifier over the long term.

Despite the recent market downturn, the report reminds us, commodities still look pretty great over the long term….. Full Article: Source

Posted on 19 December 2008 by VRS |  Email |Print

From Global Pensions: Total exchange traded fund (ETF) assets under management (AuM) have fallen by more than 20% so far this year, but fell less than global markets, according to Barclays Global Investors (BGI).

The fund management firm said ETF assets declined 20.4% this year – against a wider fall of 43.8% on the MSCI World index….. Full Article: Source

Posted on 19 December 2008 by VRS |  Email |Print

From Smart Money: Investors searched for any bit of positive news Thursday but didn’t find much of it, evidenced by the 219-point drop in the Dow Jones Industrial Average that put that benchmark at 8,605 at the close.

That makes two consecutive losing sessions since the Federal Reserve’s interest rate cut announcement on Tuesday popped the market 360 points….. Full Article: Source

Posted on 19 December 2008 by VRS |  Email |Print

From Mondovisione: On Friday, December 12, the Commodity Futures Trading Commission (Commission) issued an Order granting Natural Gas Exchange, Inc. (NGX) registration as a derivatives clearing organization (DCO) pursuant to Section 5b(b) of the Commodity Exchange Act (CEA).

NGX is a Canadian firm operating an electronic trading and clearing system for contracts in natural gas and other energy sources. NGX is recognized as an exchange and clearing agency by the Alberta Securities Commission and is owned by TMX Group, Inc. which also owns the Toronto Stock Exchange and Montreal Exchange….. Full Article: Source

Posted on 19 December 2008 by VRS |  Email |Print

From Resource Investor: Anglo American yesterday became the latest of the world’s top international resources groups to slash capital spending and defer new projects in response to sharp falls in commodity prices.

Anglo said it would halve its capital spending to $4.5 billion next year, mainly by rescheduling development projects. Output of most of its major products next year would be similar to this year’s….. Full Article: Source

Posted on 19 December 2008 by VRS |  Email |Print

From Forbes: British consumers were feeling decidedly poorer Thursday, as sterling fell to a record low and neared parity with the euro.

Markets closed slightly higher, as gains by the automobile and travel sectors helped offset falls in banking and energy stocks….. Full Article: Source

Posted on 19 December 2008 by VRS |  Email |Print

From Bloomberg: The yen fell against the euro on speculation the Bank of Japan will today lower borrowing costs and say it will buy commercial paper to combat a global recession.

The yen may also weaken for a second day against the dollar on speculation Japanese officials will intervene to stem its surge to a 13-year high….. Full Article: Source

Posted on 19 December 2008 by VRS |  Email |Print

From Guardian: Russians still want to be paid in roubles despite the currency losing almost fifth of its value against the dollar since the summer, polling data showed on Thursday.

Maintaining confidence in its currency is a key plank of Russian financial policy in the global economic crisis and the Central Bank has spent around $100 billion propping up the rouble since early August….. Full Article: Source

Posted on 19 December 2008 by VRS |  Email |Print

From Bloomberg: Sugar rose in New York, joining rallies in cocoa, coffee and orange juice, after Dutch bank Rabobank said it expects prices to increase for the next two years.

Sugar may be pushed higher by a shortage of the sweetener, Rabobank said in a Dow Jones Commodities News story today on the Centre for Energy Web site. Demand is rising because of increased usage in emerging markets including Asia, according to the report….. Full Article: Source

Posted on 19 December 2008 by VRS |  Email |Print

From Bloomberg: Silver may rise to a four-month high of more than $14 an ounce, technical strategists at Citigroup Inc. said, citing charts that indicate future price movements.

The metal climbed above a 55-day moving average last week, a signal to some traders that the advance will continue. A rally and close above the moving average “suggests that silver could test the 200-day moving average currently at $14.49,” London- based Shyam Devani said….. Full Article: Source

Posted on 19 December 2008 by VRS |  Email |Print

From Theaureport.com: The biggest error an investor might make in the burgeoning third phase of the gold bull market is thinking the boat has been missed after new price territory is reached. Limiting your gains by trading in and out of the physical is insanity.

Physical gold should only be considered if you plan to hold on to it for years, not months. Transportation, storage and security issues will chew up short term gains….. Full Article: Source

Posted on 19 December 2008 by VRS |  Email |Print

From Reuters: Cash gold edged down on Friday, extending losses the previous day as the dollar gained some ground against other major currencies after a sell-off on the latest U.S. interest rate cut.

The dollar extended gains versus the yen in early Asian hours on Friday, underpinned by expectations that the Bank of Japan (BOJ) will lower interest rates later in the day…. Full Article: Source

Posted on 19 December 2008 by VRS |  Email |Print

From Mineweb: Belt-tightening by miners as metals prices tumble could mean some projects never see the light of day, leaving supply lagging once demand picks up and paving the way for the next metals rally in two to three years.

The list of companies slashing capital expenditure and delaying projects grows daily. On Wednesday, Anglo American said it would halve its capital spending next year….. Full Article: Source

Posted on 19 December 2008 by VRS |  Email |Print

From Guardian: Copper prices continued to nose dive on Thursday, dropping to their lowest levels in four years, as grim demand prospects for industrial metals stemming from a global slowdown continued to drive bearish sentiment.

A sharply weaker reading in German corporate sentiment in December, coupled with lower seasonally adjusted October imports and exports in the Eurozone and four-year lows in the U.S. Conference Board’s index of Leading Economic Indicators underscored the global reach of the credit crisis….. Full Article: Source

Posted on 19 December 2008 by VRS |  Email |Print

From Mineweb: J.P. Morgan Securities downgraded Joy Global Inc and Bucyrus International Inc to “underweight” from “neutral,” saying the mining equipment makers are likely to face a deeper and longer-than-expected cyclical decline in orders.

“We view mining as classic late cycle–an industry that lags on the way up and the way down. As such, we expect the negative earnings revisions to continue into 2010 and beyond,” analyst Ann Duignan wrote in a note to clients….. Full Article: Source

Posted on 19 December 2008 by VRS |  Email |Print

From Guardian: U.S. crude prices dropped more than 9 percent to $36 a barrel on Thursday as slumping demand and swelling U.S. inventories offset OPEC’s record supply cut agreement.

The Organization of the Petroleum Exporting Countries on Wednesday agreed to cut output by 2.2 million barrels per day from January to counter oil’s collapse from record highs above $147 a barrel in July….. Full Article: Source

See more articles in the archive

banner
banner
December 2014
S M T W T F S
« Nov    
 123456
78910111213
14151617181920
21222324252627
28293031