Wed, Dec 17, 2014
A A A
Welcome preal121
RSS
Commodities Briefing 29.Dec 2008

Analysts expect tough year for commodities in Australia
Indian commodities market set to touch USD one trillion mark amid oddities
Outlook for energy bleak, but gold may sustain performance
Commodities deflated
Oil prices may average $47-50 a barrel in 2009
Demand for oil will fall by largest margin in 25 years
Iron ore price rebound maybe short lived
Slippery path awaits black gold in 2009
Japanese gold exports doubled this year
Australian, New Zealand dollars advance on firmer equities
Thin trading over Christmas, commodities rally
Indian regulator studying proposal to extend currency futures trading hours
Commodity costs expected to soar from climate change
Cocoa prices hit a 23-year-high
Canadian miners could go bankrupt
Oil looks cheap, but is it time to buy?
International port traffic seen to drop in 2009
A recent history of oil prices
China to boost oil and gas imports amid oil slump
Oil prices risk tumbling further in 2009
ONGC approaches 90% acceptance in bid for Imperial Energy
The flip side to lower crude oil prices
Myths and facts of futures market trading
GCC summit eyes common currency
Euro currency turns 10; seen fulfilling promise
Japanese Yen: An excessively strong currency spells recession
Sterling hits record low vs euro, Swiss franc rises
Gold may rise for fourth week as investors seek store of value
Soybeans, Corn touch 7-week highs as dry weather stresses crops
Mixed gas outlook
Crude Oil rises after Israeli attacks on Gaza roil Middle East
Metals fatigue
Gold glitters while silver drops during 2008
Carbon trading - smoke and mirrors?

Posted on 29 December 2008 by VRS |  Email |Print

From Theage.com.au: Prices for Australia’s most valuable export commodities including iron ore and copper are expected to tumble next year as demand for the metals contracts in line with slowing global economic growth.

Analysts unanimously agree commodities demand and prices will remain weak in the first half of 2009 - prompting further mine closures and sector consolidation - as the world-wide financial crisis continues…… Full Article: Source

Posted on 29 December 2008 by VRS |  Email |Print

From Economic Times: The commodity futures market is set to end 2008 with a record turnover of $ 1 trillion (Rs 50,00,000 crore) an impressive 40 per cent surge despite draggers like political opposition, high inflation levels and ban on trading in a number of commodities.

Enthused by the continuing boom in this market, which experts believe is still in its nascent stage, the year saw many new players entering the fray, including the corporate giants Anil Ambani and Kotak groups, emerging conglomerate Indiabulls and also the public sector entity MMTC….. Full Article: Source

Posted on 29 December 2008 by VRS |  Email |Print

From Indiatimes.com: The unprecedented surge in commodity prices since late ’04 was due to strong demand from emerging economies, especially China. Another factor was abundant liquidity, which coupled with weak dollar, increased market participation.

As global economic outlook brightened, commodities turned into an alternative asset class and began to mirror the boom cycles of equity or bond markets…… Full Article: Source

Posted on 29 December 2008 by VRS |  Email |Print

From FT: C is for commodities, one of the last bubbles to burst during 2008. And what a pop. Oil was first to go, in July, followed by anything dug from the earth. From its peak, the global mining index has fallen 70 per cent, scattering debris from Russia to Australia and sundering deals such as BHP Billiton’s takeover of Rio Tinto.

What to learn? First, the mining industry has a long history of irrationality and this was a classic speculative “rush”. As for all bubbles, there was a new paradigm, in this case demand from emerging markets, particularly China….. Full Article: Source

Posted on 29 December 2008 by VRS |  Email |Print

From Livemint.com: Oil prices, which hit record highs above $147 (Rs7,041.30 at today’s rate) a barrel this year before plunging under $33, risk slumping more in 2009 as recession curbs world’s appetite for energy, analysts say.

Oil prices have tumbled by about 57% since the start of 2008 when they traded at about $95 per barrel. The market had doubled in value over the course of 2007 from a low point of just under $50 per barrel….. Full Article: Source

Posted on 29 December 2008 by VRS |  Email |Print

From Guardian: Gloibal demand for oil in 2009 will fall by the largest amount for 25 years, according to the chief energy economist of Deutsche Bank.

Adam Sieminski said oil prices could hit a low of $30 a barrel next year, a fall of a quarter from today’s price, because of the sickly global economy. He forecast an average price of $47.5 for the whole year for oil traded in New York….. Full Article: Source

Posted on 29 December 2008 by VRS |  Email |Print

From Steelprices-china.com: It is reported that China’s imported iron ore stockpiles sitting at major seaports reduce to 59.99 million tonnes on December 19th a massive drop of 14 million tonnes from the month before.

Hectic buying has also pushed up spot ore imports price at the moment, however, the price rebound may be short lived. 63.5% Indian ore fine has risen to USD 80 per tonnes from USD 67 per tonnes in early November, while 66% ore concentrate price also gained 14% to CNY 722 per tonnes in Tangshan, Hebei…… Full Article: Source

Posted on 29 December 2008 by VRS |  Email |Print

From The Herald: Crude oil prices, which fluctuated wildly in 2008, will remain volatile during the new year, trading in a range of $40 to $65, according to forecasts from oil traders, economists and the International Energy Agency.

Black gold soared to a record peak of $147.27 in July, 2008, and then fell steeply to levels below $50 as the global credit squeeze and recession took hold….. Full Article: Source

Posted on 29 December 2008 by VRS |  Email |Print

From Mine Web: Japan’s gold exports have doubled this year, largely due to individual investors seeking to lock in profits after gold prices soared earlier in the year.

In the eleven months to November, Japan’s exports of unwrought solid gold, gold bars and sheet totalled 393.9 tonnes, Ministry of Finance data showed….. Full Article: Source

Posted on 29 December 2008 by VRS |  Email |Print

From Bloomberg: The Australian and New Zealand dollars rose after equity markets advanced, prompting speculation investors will buy the nations’ higher-yielding assets.

The currencies gained before reports this week that economists expect will show U.S. manufacturing shrank at the fastest pace since 1980. The Australian dollar slid 20 percent against the greenback this year and New Zealand’s currency lost 23 percent amid concern about an extended global recession….. Full Article: Source

Posted on 29 December 2008 by VRS |  Email |Print

From Fxstreet.com: U.S. Dollar Trading (USD) very quiet trading with Europe away and thin equity markets in Japan and US. Most of the action was reserved for the commodity front with Oil and Gold rising on fresh geopolitical concerns out of the Middle East and India/Pakistan.

In U.S. share markets, the NASDAQ was up 5 points (0.35%) and the Dow Jones was up 47 points (0.56%). Crude Oil closed up $2.36 ending the New York session at $37.71 per barrel….. Full Article: Source

Posted on 29 December 2008 by VRS |  Email |Print

From Business-standard.com: The Securities and Exchange Board of India (Sebi) is studying a proposal submitted by exchanges to extend trading hours of the currency futures segment in line with commodities as both are linked closely with each other.

If Sebi approves the demand, trading hours of currency futures will be extended to 11.30 pm from the existing 9 am to 5.30 pm. International trading in futures continues for nearly 23 hours a day….. Full Article: Source

Posted on 29 December 2008 by VRS |  Email |Print

From Businessmirror.com: After the global economic meltdown, extreme weather events rooted on climate change will drive up costs of certain commodities including oil and rice, endangering the bottom lines of companies and the pockets of millions of consumers by 2018, according to a publication recently released by international think tank A.T. Kearney Inc.

According to the study, titled “Rattling Supply Chains: The Effect of Environmental Trends on the Fast Moving Consumer Goods Industry,” which assessed certain commodities, prices can increase up to 45 percent and cut earnings before interest and taxes by as much as 47 percent by 2018….. Full Article: Source

Posted on 29 December 2008 by VRS |  Email |Print

From Macedoniaonline.eu: London cocoa futures have hit a 23-year-high as cocoa turned out to be the most lucrative commodity in 2008. Cocoa for delivery in May peaked at $3,320 per tonne in London, which was its highest price since October 1985.

Cocoa traded in the US has also been rising, although not as strongly because of the strength of the dollar….. Full Article: Source

Posted on 29 December 2008 by VRS |  Email |Print

From Steelguru.com: Few Canadian resource industries fared well in what turned out to be a dismal year for commodities in 2008, as base metal miners were hit particularly hard as credit markets tightened, global demand slumped and prices for everything from zinc and copper to iron ore and aluminum plummeted.

As per report some analysts have now predicted that some of Canada’s big mining companies will go bankrupt before conditions start to improve….. Full Article: Source

Posted on 29 December 2008 by VRS |  Email |Print

From Moneyweb.co.za: A flight into cash during the credit crisis has helped drive oil and other commodity prices down so steeply that they are a potential “buy” for pension funds with a longer view. But timing is everything.

“People are sitting on cash — big lumps of it,” said Mark Mathias, chief executive of commodity fund manager Quantum Asset Management. “Everyone is worried about when to go back in. Long-term, oil is cheap, but who knows where it goes in the short term.”….. Full Article: Source

Posted on 29 December 2008 by VRS |  Email |Print

From Etaiwannews.com: The Baltic Dry Index, a measure of shipping costs for commodities, is down 93 percent from a record in May, a sign that traders expect export volumes to stay depressed.

Slowing trade is both a cause and an effect of the first simultaneous contraction in the world’s largest economies since World War II. Throughout this decade, trade grew by 12 percent a year to US$13.6 trillion in 2007, propelling growth in nations from Germany to China and Chile…… Full Article: Source

Posted on 29 December 2008 by VRS |  Email |Print

From Scitizen.com: The price of oil has oscillated from an all-time hike of almost $150 a barrel to a low of $30, hand in hand with the credit-crunch and the inextricable economic connection between money and oil.

In January 1999 the price of a barrel of oil reached a low point of $16 when Iraq increased its oil production at the time of the Asian Financial Crisis when demand for oil fell….. Full Article: Source

Posted on 29 December 2008 by VRS |  Email |Print

From Reuters: China will take advantage of falling oil prices to boost oil and gas imports, Zhang Guobao, the head of the National Energy Administration, said in remarks published on Monday.

It would actively push forward the construction of the second phase of state strategic oil reserves after having largely completed the first phase, Zhang said in a report in the official People’s Daily….. Full Article: Source

Posted on 29 December 2008 by VRS |  Email |Print

From Business.inquirer.net: Oil prices, which hit record highs above $147 a barrel this year before plunging under $33, risk slumping more in 2009 as recession curbs the world’s appetite for energy, analysts say.

“We expect oil prices in early 2009 to remain under pressure given the weakening demand outlook and as global economies continue to slow,” said Nimit Khamar, analyst at the Sucden brokerage in London….. Full Article: Source

Posted on 29 December 2008 by VRS |  Email |Print

From FT: Imperial Energy is closing in on the 90 per cent level of acceptances it needs to seal its takeover by ONGC Videsh, part of the state-owned Indian oil company, as a deadline approaches.

Shareholders have until 1pm London time tomorrow to accept ONGC’s offer of £12.50 a share for Imperial, an energy explorer with most of its assets in Russia….. Full Article: Source

Posted on 29 December 2008 by VRS |  Email |Print

From Hindu.com: At a time of low petroleum prices, there will be fewer incentives to step up production or save the environment. Once this is realized, oil prices may start climbing again.

The global petroleum scenario has confounded analysts and the most proactive policy makers alike. Until Last July, crude prices were on a relentless upward march touching a high point of $147 a barrel that month against $60 a year earlier….. Full Article: Source

Posted on 29 December 2008 by VRS |  Email |Print

From Theborneopost.com: Futures trading originated in Chicago as early as the 1840s among a group of businessmen and agricultural suppliers who needed to transact soft commo-dities everyday for a living.

At that time, these trading counterparts felt the complications from too many traded prices and dishonesty, as practiced by different merchants, hence suggested a unique way to deal in a fair way without discrepancies….. Full Article: Source

Posted on 29 December 2008 by VRS |  Email |Print

From AP: In a gathering marred by Israeli attacks on Gaza and pressured by the ailing world economy, leaders of the six Gulf Arab nations are gearing up for a summit in which they are expected to tackle head-on a long-elusive monetary union agreement.

The two-day meeting, beginning Monday in the Omani capital, Muscat, has been touted as a key step in helping the Gulf Cooperation Council’s six member states realize a goal of a common currency and broader economic unity. The push is made all the more relevant by the global economic crisis that has hit hard even these oil rich nations….. Full Article: Source

Posted on 29 December 2008 by VRS |  Email |Print

From AP: Ten years ago, Europe launched its grand experiment with a shared currency — and watched it plunge so far it needed a bailout from central banks.

But as the anniversary approaches of the Jan. 1, 1999, arrival of the euro, economists say the new currency is finally fulfilling its promise as a way to lower borrowing costs, ease trade and tourism, boost growth and strengthen the European community….. Full Article: Source

Posted on 29 December 2008 by VRS |  Email |Print

From Seekingalpha.com: Japan saw its industrial output falling 8.1 percent from October. Another 8 percent decline is expected in December. The chief economist at Macquarie Securities in Tokyo says, “Exports and industrial production are falling so extraordinarily quickly that it almost defies analysis.”

The Yen is extraordinarily strong this year, having appreciated close to 25-30% against a basket of currencies….. Full Article: Source

Posted on 29 December 2008 by VRS |  Email |Print

From Guardian: Sterling hit a record low against the euro on Monday, hurt by its yield disadvantage against the single European currency and inching closer to parity.

Hurt by fears about the bleak outlook for the UK economy and expectations that euro zone interest rates are likely to stay higher than British rates in coming months; sterling hit a low of 96.315 pence on the Reuters dealing system….. Full Article: Source

Posted on 29 December 2008 by VRS |  Email |Print

From Bloomberg: Gold may rise for the fourth straight week on speculation the recession will deepen in 2009, boosting the appeal of the precious metal as a store of value.

Eighteen of 25 traders, investors and analysts surveyed from Mumbai to Chicago from Dec. 24 through Dec. 26 advised buying gold, which rose 4 percent last week to $871.20 an ounce in New York. Four said to sell, and three were neutral….. Full Article: Source

Posted on 29 December 2008 by VRS |  Email |Print

From Bloomberg: Soybean and corn prices climbed to the highest in more than seven weeks on speculation that dry, hot weather will increase stress on young plants in Brazil and Argentina, the two biggest exporters of the crops after the U.S.

The lack of rain may last through the next week, DTN Meteorlogix LLC said in a report. A ridge of dry, warm air over western Argentina may develop after Jan. 1 and settle over the main growing regions, the private forecaster said….. Full Article: Source

Posted on 29 December 2008 by VRS |  Email |Print

From Commodities-now.com: Power generation is likely to be the only driver for increased natural gas demand this winter as warmer weather and a sluggish economy dampen retail and industry demand, the Natural Gas Supply Association forecast in its annual winter outlook for 2008-2009.

“Gas-fired generation is an area where gas demand is expected to increase as a result of gas generating capturing most of the new power generation capacity,” says Patrick Kuntz, vice president at Marathon Oil and current NGSA chairman, at a presentation of the forecast in Washington in October….. Full Article: Source

Posted on 29 December 2008 by VRS |  Email |Print

From Bloomberg: Crude oil rose a second day in New York on supply concerns after Israeli air strikes in the Gaza strip killed more than 285 people, heightening geopolitical tensions in the Middle East, the world’s largest producing region.

Oil gained as much as 5.6 percent as Israel called up 7,000 reservists after two days of air attacks on the Hamas-controlled region….. Full Article: Source

Posted on 29 December 2008 by VRS |  Email |Print

From Thechronicleherald.ca: Few Canadian resource industries fared well in what turned out to be a dismal year for commodities, but base metal miners were hit particularly hard as credit markets tightened, global demand slumped and prices for everything from zinc and copper to iron ore and aluminum plummeted.

And one analyst predicted some of Canada’s big mining companies will go bankrupt before conditions start to improve….. Full Article: Source

Posted on 29 December 2008 by VRS |  Email |Print

From Asianage.com: Gold as an investment option glittered like never before this year, which saw the global financial markets going topsy-turvy, with other investment options such as the dollar and the equities going into a tail-spin amid crude prices soaring to record high levels.

The prices of gold, the all-weather investment option, peaked to the all-time high of Rs 14,105 ($291) per 10 gram during intra-day on October 10 in Mumbai bullion with investors running for cover in the precious metal amid stocks spiralling downwards and dollar losing its sheen….. Full Article: Source

Posted on 29 December 2008 by VRS |  Email |Print

From Bendigoadvertiser.com.au: Dr Peter Martin of the Centre for Excellence in Outdoor and Environmental Education at La Trobe University writes: The science and economics behind a carbon trading scheme are complex, but the basic ideas are not.

As the Government moves to convince Australians it has taken appropriate action on climate change, it’s tricky to unravel the facts from the political spin - where facts can get twisted….. 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