Tue, Sep 2, 2014
A A A
Welcome kbr175@gmail.com
RSS
Commodities Briefing 06.Jan 2009

Beware, commodity index rebalancing ahead
China considers allowing fund management cos to invest in futures
Steinhilber: Sticking with commodities
James Mound's commodities year in review & 2009 forecast
Commodities falling under mainland tax net
Agricultural commodities take hit in 2008
China holds one-third of the total global carbon reduction credits
Oil to hit $60 in December futures contracts
What explains the oil price decline
Falling oil prices a "double-edged sword" for economy
Oil prices likely to increase as offensive escalates
Oil prices rise as OPEC 'eyes' special meeting
Kuwait denies emergency OPEC meeting
Europe faces energy crisis as Vladimir Putin cuts Russian gas supply
EU plays down impact of gas row
The rising costs of UK nuclear energy
China consolidating position as world No.1 gold producer
Gold sinks to 2-week low
Platinum spot and futures prices again take lead over gold
Fitch's Global Base Metals Outlook: Demand weak worldwide
Phosphate now the new sparkler for Bonaparte Diamond Mines
Russia rouble moves weighs on regional currencies
Dollar mixed against major currencies
Sell Singapore dollar as Government supports exports, UBS says
Coffee falls most in a month on dollar’s rally, cooling demand
Standard Chartered appoints commodity trading heads
Futures trade value sets record in China, rising 76% in 2008
CBOT to limit ag receipts held by non-grain firms
ICE achieves record volume in 2008; Futures volume rises 21%
Commodities look around for inflation
Gold leads precious metals slide on firmer dollar
Oil rises on Mideast; gold and metals down
Markets stumble into the black

Posted on 06 January 2009 by VRS |  Email |Print

From FT Alphaville: The major commodity indices rebalance their respective asset weightings once a year (or occasionally more) — and with that comes a mass dose of buying and selling. The 2009 rebalancing is expected to start sometime this week.

Luckily, JP Morgan has produced its best guess of how the 2009 reweightings of the DJ AIGCI and the S&P GSCI indices will impact the market….. Full Article: Source

Posted on 06 January 2009 by VRS |  Email |Print

From Forbes: The China Securities Regulatory Commission is soliciting comment on draft rules allowing more institutional investors, particularly fund management companies, to invest in Chinese futures markets, the official China Securities Journal reported, citing a regulatory source.

The newspaper said the mechanism for expanding institutions’ investment destinations is the so-called Commodity Trading Advisor (CTA) scheme, under which a firm receives compensation for giving advice on options, futures and the actual trading of managed futures accounts….. Full Article: Source

Posted on 06 January 2009 by VRS |  Email |Print

From Hardassetsinvestor.com: Commodities are an unconventional asset class, and it has only been in the relatively recent past that investors have gotten comfortable with the idea of allocating a percentage of their portfolio on a long-term basis to commodities.

Just as many abandoned stocks in the fall, a greater percentage probably abandoned commodities….. Full Article: Source

Posted on 06 January 2009 by VRS |  Email |Print

From Insidefutures.com: Why did 2008 go down in history as one of the most volatile collapses in both stocks and commodities? You can point fingers at economic cycles, banking regulation, the housing collapse and questionable accounting but there is only one real reason this all happened the way it did - the bursting of commodity bubble.

A massive influx of fund and institutional investor interest in commodities sparked what was perhaps the biggest industry price surge in history in the first quarter of 2008….. Full Article: Source

Posted on 06 January 2009 by VRS |  Email |Print

From Thestandard.com.hk: Price reforms will finally be implemented in commodities other than crude oil as Beijing eyes expanding the scope of resources tax and changing the calculation method during the year.

Although massive tax cuts and reforms have been the theme of this year’s fiscal picture, the resources tax was the only one expanding in coverage, and the commodity sector may be the only one that would be affected negatively, economists said….. Full Article: Source

Posted on 06 January 2009 by VRS |  Email |Print

From Foodproductdesign.com: Commodities sealed their worst year on record with accelerating losses in the fourth quarter of the year, data showed Jan. 1. Industrial metals, crude oil and even grains stumbled as the world fell into recession, wiping out six years of nearly unbroken gains in the space of months.

Commodities led the charge lower over the second half of the year with more than 50-percent plunge since July, double the decline in the U.S. Dow Jones stock index, and some analysts predict a lag in recovery until the second half of 2009….. Full Article: Source

Posted on 06 January 2009 by VRS |  Email |Print

China is reported to be the world’s second-largest carbon dioxide producing country, and as such has become a hot spot for foreign carbon credit buyers and traders.

However, the current lack of transparency and immature market in China has created a murky environment with many unknowns, such as the extent of market openness, where to find the best projects, how to keep on top of trading risks and future carbon trading trends in the country….. Full Press Release: Source

Posted on 06 January 2009 by VRS |  Email |Print

From Gulfnews.com: The steepest plunge in crude prices on record may be setting up oil investors for a rally this year, if history is any guide.

The so-called forward curve of futures contracts traded on the New York Mercantile Exchange suggests oil will rise 28 per cent to $60.10 a barrel by December. …. Full Article: Source

Posted on 06 January 2009 by VRS |  Email |Print

From Indiatimes.com: In these bad economic times, there is a small cheer on the oil front. Just when ‘experts’ thought it was safe to make wild forecasts (remember, earlier last year, Goldman Sachs predicted that crude price would hit $200), and just when energy guzzlers began to respond to wallet pinching at petrol pumps by curtailing consumption…

and just as it appeared that alternative renewable energy may have a small chance of becoming an economically viable option, international price of oil fell by over 70%….. Full Article: Source

Posted on 06 January 2009 by VRS |  Email |Print

From Londonstockexchange.com: Plummeting global oil prices could provide a vital boost to the UK economy over the next three years, but their decline may still prove a “double-edged sword”, a new report has warned.

The forecast from the Ernst & Young Item Club says a fall in the cost of the commodity will be “one of the few bright spots” for British consumers this winter, as it will lead to lower production costs for industry and eventually, lower prices on the high street….. Full Article: Source

Posted on 06 January 2009 by VRS |  Email |Print

From FT: Israel’s escalating ground offensive inside the Gaza Strip is expected to push up oil prices further this week. Concern the conflict could disrupt supplies from the region was one of the factors cited by analysts who expect a modest rise of oil prices, which on Friday jumped $1.74, or 3.9 per cent, to settle at $46.34 a barrel.

An Iranian military commander called on Islamic countries to cut oil exports to Israel’s supporters, the official Irna news agency said yesterday….. Full Article: Source

Posted on 06 January 2009 by VRS |  Email |Print

From Zawya.com: Oil prices rose back above 47 dollars on Monday as the Israeli-Palestinian conflict raged on and major crude producer Iran said OPEC would hold a special meeting next month.

Brent North Sea crude for delivery in February climbed 78 cents to 47.69 dollars a barrel in late morning trade on London’s InterContinental Exchange….. Full Article: Source

Posted on 06 January 2009 by VRS |  Email |Print

From UPI: Kuwaiti officials Monday denied Iranian allegations the Organization of Petroleum Exporting Countries was planning additional quota meetings for February.

Mohammed Ali Khatibi, the Iranian governor to OPEC, said the cartel may meet Feb. 19 to discuss the market effects of the latest round of production cuts announced December in Algeria….. Full Article: Source

Posted on 06 January 2009 by VRS |  Email |Print

From Telegraph: Europe has been plunged into an energy crisis after Vladimir Putin ordered Russia’s state-run gas company to cut supplies by 20 per cent.

As temperatures dropped below zero across much of Europe, the Russian prime minister instructed the head of Gazprom: “Cut it - starting today.” The cut was ordered to punish neighbouring Ukraine, which Russia accuses of topping up its own gas supply by siphoning off energy meant for European consumers and sent through its pipelines….. Full Article: Source

Posted on 06 January 2009 by VRS |  Email |Print

From Newsvote.bbc.co.uk: There has been “no substantial disruption” to European gas supplies due to a dispute between Russia and Ukraine, the European Union says.

Several EU countries had reported a drop in supplies after Russia cut off gas to Ukraine on New Year’s Day over unpaid bills and a new price contract. …. Full Article: Source

Posted on 06 January 2009 by VRS |  Email |Print

From Guardian: The UK government’s enthusiasm for the construction of nuclear power stations is based on a May 2007 consultation document published by the Department of Trade and Industry (now BERR).

This paper argued that nuclear offered a financially viable way of generating electricity, broadly competitive with fossil fuels….. Full Article: Source

Posted on 06 January 2009 by VRS |  Email |Print

From Mineweb.com: China’s gold output is still rising, but probably at an insufficient rate to counter the falls in production elsewhere in the world. China’s Ministry of Industry and Information Technology has released figures for the country’s gold output in November showing that production for the year to end-November reached 246.51 tonnes.

With South African output continuing to decline, this will have consolidated China’s position as the world No. 1…. Full Article: Source

Posted on 06 January 2009 by VRS |  Email |Print

From CNNMoney.com: The price of gold fell to a two-week low Monday as the U.S. dollar rallied on new details about President-elect Barack Obama’s fiscal stimulus plan.

A stronger dollar undercuts the appeal of gold for investors looking to hedge against inflation. And a more robust greenback makes commodities priced in dollars more expensive for overseas buyers….. Full Article: Source

Posted on 06 January 2009 by VRS |  Email |Print

From Platts: After regaining superiority over gold prices recently, platinum prices are made headway on the New York futures exchanges Monday by remaining relatively firm in the wake of sharply declining gold prices.

Platinum, which normally trades at a premium to gold because of its relative scarcity and strong industrial demand, slipped below gold on a few occasions in recent months due to the overall weakness in industrial demand….. Full Article: Source

Posted on 06 January 2009 by VRS |  Email |Print

Fitch Ratings has released its 2009 Global Base Metals Outlook which reports that while demand is off substantially, the Rating Outlooks on the majority of the companies in Fitch’s base metal coverage are Stable.

Fitch notes that severe demand declines for most metals in the second half of 2008 have resulted in rising stocks and falling prices. Producers have been taking production off-line and slowing expansion spending, but not enough to increase prices. In some cases, spot prices are lower than the marginal cost of production. The desire to conserve cash results in a focus on working capital management, and Fitch expects destocking to take some time in this lower demand environment….. Full Press Release: Source

Posted on 06 January 2009 by VRS |  Email |Print

From Mineweb.com: A change of name could be in the wind for Australian explorer Bonaparte Diamond Mines now that it has a tangible marine phosphate resource off the Namibian coast.

West Perth-based Bonaparte Diamond Mines NL announced today it has a JORC compliant inferred mineral resource of 196.1 million tonnes grading 15.8% phosphate at its Meob maritime project and projected it would have a resource update early this year following further “higher grade” sampling, including deeper core drilling….. Full Article: Source

Posted on 06 January 2009 by VRS |  Email |Print

From Forbes: The quickening pace of Russia’s rouble devaluation is piling pressure on the currencies of its neighbours and putting those without Moscow’s sizeable reserves at risk of foreign debt default and further capital flight.

Investors are in any case shying away from currencies such as Ukraine’s hryvnia as the world economic slowdown crushes demand for its exports, global risk aversion shines a harsh light on Kiev’s turbulent politics and Russia demonstrates its stranglehold on the country’s energy supplies….. Full Article: Source

Posted on 06 January 2009 by VRS |  Email |Print

From Xinhua: The dollar rose against the euro but fell against the pound on Monday amid the latest U.S. construction spending report and the tax cut plan of President-elect Barack Obama.

Obama met with top lawmakers Monday to push for quick action on a broad economic stimulus package. The proposal includes tax cuts of up to 300 billion dollars for individuals and businesses. The total value of the tax cuts would be significantly higher than had been signaled earlier. …. Full Article: Source

Posted on 06 January 2009 by VRS |  Email |Print

From Bloomberg: Investors should sell Singapore’s currency against the dollar, euro and yen as the government will favor depreciation to support exports amid a deepening recession, according to UBS AG.

The trade ministry last week said the economy in 2009 may shrink more than previously forecast after gross domestic product contracted for a third straight quarter….. Full Article: Source

Posted on 06 January 2009 by VRS |  Email |Print

From Bloomberg: Coffee prices fell the most in a month as the rallying dollar reduced the appeal of U.S. commodities and reports signaled slowing demand growth.

The dollar rose to a three-week high against a basket of six major currencies, pushing down prices of commodities including coffee and cotton. …. Full Article: Source

Posted on 06 January 2009 by VRS |  Email |Print

From Financeasia.com: Standard Chartered Bank is showing its faith in the commodity industry with the recent appointment of three new country heads for its commodity trading and agribusiness (CTA) – in China, Indonesia and the United Arab Emirates.

The UK-headquartered bank says the appointments, which come at a time of slumping commodity prices, will strengthen its position to support customers active in the commodity sector. The move is also in line with its strategy to deepen the focus in its core markets of Asia, Africa and the Middle East….. Full Article: Source

Posted on 06 January 2009 by VRS |  Email |Print

From Rednet.cn: China’s futures trading volume reached a record high of 71.9 trillion yuan ($10.5 trillion) in 2008, up 76 percent year-on-year, the China Futures Association (CFA) said on Saturday.

It said 1.36 billion contracts were traded, up 87 percent. The most active contracts were for sugar in Zhengzhou, soybeans and soybean meal in Dalian and copper and natural rubber in the Shanghai….. Full Article: Source

Posted on 06 January 2009 by VRS |  Email |Print

From Reuters: The Chicago Board of Trade requested approval from its regulator, the Commodity Futures Trading Commission, to limit the number of grain shipping
certificates and warehouse receipts that a non-grain firm can hold, an exchange advisory said.

The rule change is designed to reduce the large number of delivery instruments held by non-grain firms and increase the hedging effectiveness of CBOT’s corn, wheat, oat, rice, soybean, soyoil and soymeal contracts, the advisory said….. Full Article: Source

Posted on 06 January 2009 by VRS |  Email |Print

IntercontinentalExchange, an operator of regulated global futures exchanges and over-the-counter (OTC) markets, today reported record annual futures volume and record OTC commissions for 2008.

ICE operates three regulated futures exchanges: ICE Futures Europe(R), ICE Futures U.S.(R) and ICE Futures Canada(TM), in addition to its global OTC markets for energy and credit derivatives….. Full Press Release: Source

Posted on 06 January 2009 by VRS |  Email |Print

From WSJ: With inflation an open question for 2009, the market will hear this week from two companies that thrived when prices rose in 2008.

Fertilizer maker Mosaic is due to report quarterly earnings after the closing bell on Monday and confer with investors and analysts Tuesday morning. Seed maker Monsanto’s results are due before Wednesday’s open….. Full Article: Source

Posted on 06 January 2009 by VRS |  Email |Print

From Forbes: Gold tumbled Monday, briefly breaking below the $850-an-ounce level as investors took profits on the back of a dollar rally and signs of slowing physical demand in India, the world’s top bullion consumer.

Other precious metals tumbled in gold’s wake, with silver falling as much as 8 percent and palladium as much as 6 percent. However, platinum turned higher on expectations that automakers could rebound after receiving emergency funding from the U.S. government….. Full Article: Source

Posted on 06 January 2009 by VRS |  Email |Print

From Reuters: Oil and gold surged 3 percent and 1 percent respectively on Monday, before giving up early gains, as investors snapped up safe haven assets following Israel’s offensive against Hamas militants in the Gaza Strip.

Crude found support from an Iranian military commander’s call for an oil boycott over Israel’s offensive, a Russian gas supply row and evidence of OPEC’s compliance with output cuts, while gold traders watched the dollar, which held near a three-week high against the yen….. Full Article: Source

Posted on 06 January 2009 by VRS |  Email |Print

From Iii.co.uk: London markets were on sluggish form on Monday, amid the possibility of further Government support for the beleaguered banks and potential tax cuts in the US and Germany.

The FTSE 100 (UKX) ended the day up 0.39% at 4579, as rising commodity prices giving the mining sector a welcome boost….. Full Article: Source

See more articles in the archive

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