Fri, Oct 31, 2014
A A A
Welcome kbr175@gmail.com
RSS
Commodities Briefing 23.Dec 2008

Posted on 23 December 2008 by VRS |  Email |Print

From FT: Commodities prices were mixed on thin pre-Christmas trading yesterday, with crude oil prices in London and New York dropping, tracking a fall in equities.

Nymex February West Texas Intermediate, from yesterday the US market benchmark, fell $1.35 to $41.03 a barrel…… Full Article: Source

Posted on 23 December 2008 by VRS |  Email |Print

From Guardian: Britain was given a sharp reminder of the dangers to its energy supplies today when Gazprom warned western Europe could be hit by gas shortages. The Russian gas provider said a long-running row with Ukraine could disrupt supplies to Europe this winter.

The fears were raised just 24 hours before Russia hosts a meeting of the world’s major gas suppliers to set up an Opec-style production cartel that could also push up the price of energy in the UK and elsewhere…… Full Article: Source

Posted on 23 December 2008 by VRS |  Email |Print

From Theglobeandmail.com: UBS is selling its Canadian-based commodities and energy business to JPMorgan Chase & Co. as part of its plan to refocus on its core securities and advisory functions.

JPMorgan will acquire UBS Commodities Canada Ltd., the Canadian energy operations of UBS AG, Switzerland’s biggest bank, as well as the firm’s global agriculture business. The affected employees will transfer to JPMorgan…… Full Article: Source

Posted on 23 December 2008 by VRS |  Email |Print

From Marketoracle.co.uk: From a fundamental perspective US consumers had come to rely on borrowing against growing asset prices to sustain their lifestyles. Most of today’s globally-interconnected economy was based upon growth in the US consumption. This game has ended badly.

Asset dependency will eventually be replaced by living off of income and savings, but not after we escape from this disastrous period…… Full Article: Source

Posted on 23 December 2008 by VRS |  Email |Print

From Investorschronicle.co.uk: The dramatic fall in commodities prices in the second half of 2008, exacerbated by rapid economic contraction, has raised serious doubts about the ’supercycle’ theory in global commodities, producing little cheer in forecasts for 2009.

Oil, having fallen from $147 a barrel to less than $40 a barrel, is not expected to recover in the short term, at least until some impact from the Opec production cuts begins to be felt. Analysts at Goldman Sachs, which at one point this year predicted oil would hit $200 a barrel, have revised their forecasts for 2009 sharply downwards, predicting an average of $45 a barrel for the year ahead…… Full Article: Source

Posted on 23 December 2008 by VRS |  Email |Print

From Investorschronicle.co.uk: The commodities boom is dead - long live the commodities boom! Because if there is one thing that seems clear even now, as key industrial inputs such as metals and energy plumb depths that ’supercycle’ advocates thought would never be revisited.

It is that this carnage has occurred before the classic supply-side response to the elevated prices of recent years could properly emerge, thereby guaranteeing at least one more round of elevated prices in the offing as the world emerges from the current recession…… Full Article: Source

Posted on 23 December 2008 by VRS |  Email |Print

From Usatoday.com: It may come as a surprise, given all the bad news of late, but the U.S. economy is expected to emerge from the recession sometime around mid-2009.

Until that happens, the economy will remain mired in one of the deepest and longest downturns the nation has seen in decades…… Full Article: Source

Posted on 23 December 2008 by VRS |  Email |Print

From Indexuniverse.com: There is no “commodities market” in the way there is a “stock market.” And there’s no literature that I’m aware of showing that commodity indexes offer the best approach for investors.

Consider that the two most popular commodity indexes in the world—the S&P GSCI and the DJ-AIG—differ wildly in their makeup and performance. The S&P GSCI is 70% Energy, while the DJ-AIG is just 31% Energy…… Full Article: Source

Posted on 23 December 2008 by VRS |  Email |Print

From AP: Gold prices advanced moderately Monday as investors went in search of safety after more signs of weakening global demand for all kinds of products. Energy prices faltered while agriculture futures rose.

As the economy worsens, investors have been fleeing stocks for the more traditionally safe investments of government bonds and gold. The belief is that gold has more potential to advance than other investments…… Full Article: Source

Posted on 23 December 2008 by VRS |  Email |Print

From Commodityonline.com: Gold prices started the week on a slightly firmer footing and rose for the first time in three days, as a small advance in oil and marginally softer dollar attracted buyers.

Although volatility could manifest itself amid thinning trading conditions, few expect significant new positions to be established or sharp trend changes in either direction to take place as the winding down of trading for the year will be well under way. Spot prices opened with a $7 gain quoted at $845 (that old, familiar number) after recording lows near $835 overnight…… Full Article: Source

Posted on 23 December 2008 by VRS |  Email |Print

From Chicagobusiness.com: Chicago 2016, the group behind the city’s bid to host the 2016 Summer Olympic and Paralympic Games, is going green. The non-profit organization has joined the Chicago Climate Exchange, which operates a greenhouse gas-emissions registry and a greenhouse gas-reduction and trading system.

The Chicago-based Climate Exchange claims to have been the first of its kind in the world and the only such organization in North America. The cost of Chicago 2016’s membership was not disclosed. ….. Full Article: Source

Posted on 23 December 2008 by VRS |  Email |Print

From Reuters: The U.S. Commodity Futures Trading Commission said on Monday it approved International Derivatives Clearing Group LLC (IDCG) to clear and settle interest rate derivative contracts.

As a derivatives clearing organization, the agency said IDCG is authorized to clear futures contracts, options on futures contracts, commodity options and over-the-counter derivative contracts where interest rates or currencies constitute the underlying commodity…… Full Article: Source

Posted on 23 December 2008 by VRS |  Email |Print

From Sovereignsociety.com: Managed futures funds or Commodity Trading Advisors (CTAs) rank as the second best performing alternative index in 2008, according to Credit Suisse-Tremont.

This year, the CSFB/Tremont Hedge Fund Index has declined 19% through November compared to a 15.6% gain for the CSFB/Tremont Managed Futures Index. Only dedicated short-sellers have outpaced CTAs, up 16.8% in 2008…… Full Article: Source

Posted on 23 December 2008 by VRS |  Email |Print

From Examiner.com: You don’t exactly need to be Jesse L. Livermore to make big profits in a down market these days, although it certainly wouldn’t hurt.

Livermore, of course, made massive fortunes betting against the markets, along with what became his ultimate claim to fame. Livermore went short the market in 1929 earning himself $100 million in short-selling profits…… Full Article: Source

Posted on 23 December 2008 by VRS |  Email |Print

From Busrep.co.za: The global financial crisis and nosediving commodity prices have dealt a major blow to mining-based African economies, where a recent boom is set to wither, setting back the fight against poverty.

Analysts say the economic downturn and its impact on commodity prices pose a possible disaster for resource-rich countries that have failed to diversify beyond the mineral wealth that fills government coffers…… Full Article: Source

Posted on 23 December 2008 by VRS |  Email |Print

From Seekingalpha.com: With only a few days left until Christmas, you have to believe that Santa has already purchased the coal he’s going to need for all those naughty children around the world. If he bought earlier this year, it probably cut into the big guy’s budget: Coal prices were sky-high until early fall.

But you’d better watch out - coal is predicted to be a lot cheaper for Santa next year - which could mean more coal in people’s stockings in 2009…… Full Article: Source

Posted on 23 December 2008 by VRS |  Email |Print

From Theaustralian.news.com.au: Demand concerns led copper to pare early gains, inspired by the weaker US dollar and rising Chinese imports.

China imported 141,728 tonnes of refined copper last month, 37.7 per cent more than in November 2007, official customs figures showed…… Full Article: Source

Posted on 23 December 2008 by VRS |  Email |Print

From Newswire.ca: For the fourth consecutive month, Scotiabank’s Commodity Price Index, which measures price trends in 32 of Canada’s major exports, lost ground in November, tumbling 9.4 per cent month-over-month (m/m).

2008 has been a tumultuous one for commodity prices, with the All Items Index first soaring to a new record high in July and then plunging by 35.4 per cent through November…… Full Article: Source

Posted on 23 December 2008 by VRS |  Email |Print

From Businessgreen.com: Environmental finance firm CF Partners is to start a hedge fund targeting the carbon market. Due to start by the end of January, the fund will exploit the volatility in the carbon markets to make profits, say executives.

The London-based company will run the hedge fund using arbitrage trading, which exploits mismatches in pricing. ….. Full Article: Source

Posted on 23 December 2008 by VRS |  Email |Print

From Seekingalpha.com: With investment advisors like the former NASDAQ Chairman Bernard Madoff being prosecuted for fraud, it is natural for people to begin to seek stores of wealth that are not subject to counterparty risk. The precious metals have been relatively safe stores of wealth for the past 10,000 years.

Many people are going back to basics, turning back to the precious metals, as places to put their money, in these uncertain times…… Full Article: Source

Posted on 23 December 2008 by VRS |  Email |Print

From Npr.org: Investors who have endured a year of negative returns — and lost their faith in the markets, thanks to an alleged $50 billion Ponzi scheme — can be forgiven for wanting to stuff their mattresses with cash instead of investing it.

Still, Knight Kiplinger, editor in chief of Kiplinger’s Personal Finance, says there are better solutions…… Full Article: Source

Posted on 23 December 2008 by VRS |  Email |Print

From Financial-planning.com: This was a tough year to launch any new product, and exchange-traded funds were no exception. While ETFs were anticipated by many to overtake mutual funds due to their ability to trade like stocks, the crippling global economic crisis of 2008 put a halt to that growth for now, forcing dozens of new ETFs to close and hundreds more to delay launching until conditions improve.

Approximately 70% of the 730 U.S.-based ETFs opened in the last three years, but that pace has slowed significantly this past fall. ….. Full Article: Source

Posted on 23 December 2008 by VRS |  Email |Print

From Financialexpress.com: “Go long commodities, short the dollar” rang the battle cry that pushed oil, copper and wheat to record highs earlier in 2008. That trade unwound with fury over the past five months, as the dollar rebounded from record lows and commodities lost 60% or more.

Now the greenback is once again in decline, but analysts say that they don’t expect that to rekindle interest in an inverse correlation trade that, for some, was dubious to begin with. ….. Full Article: Source

Posted on 23 December 2008 by VRS |  Email |Print

From Abc.net.au: A leading resource analyst at ANZ Bank says almost half of all mining companies in Australia are currently operating at a loss. ANZ’s head of commodities research Mark Pervan says contract prices for coal have dropped significantly since last year and further drops are forecast when contracts are renegotiated in early 2009.

Pervan says smaller miners will be hardest hit and coal is the most vulnerable resource…… Full Article: Source

Posted on 23 December 2008 by VRS |  Email |Print

From Moneycontrol.com: Shreekant Jha of PJ Commodities feels crude still remains weak. “We feel it may go down to USD 30 per barrel, which is the next support. If it moves up at all, there is a resistance at USD 45 per barrel or USD 52 per barrel,” he said.

The agro commodities are doing a little better. Edible oil was down for a while but now even things like RM seed have started to move up and trade on the upside. So we are looking at it to be a little bullish now. Soya, too, has been moving up…… Full Article: Source

See more articles in the archive

banner
October 2014
S M T W T F S
« Sep    
 1234
567891011
12131415161718
19202122232425
262728293031