Fri, Dec 19, 2014
A A A
Welcome preal121
RSS
Commodities Briefing 13.Jan 2009

A wave of buying hits commodity funds
BlackRock warns over commodities supply
Oil price economics the 60 minutes way
Don't be conned into thinking there will be a recovery in '09
Carbon trading can fetch Gulf $5bln annually
Google debunks search energy usage claims
Plugging Britain's green energy gap
Americans seeing the light on carbon tax
The outlook for corn
Selecting the right fund matters
A strange problem: rampant price volatility
Brady Plc acquires Commodities Software
Currency ETFs - How to profit from a rising Dollar, Yen or Euro
A new high at the silver ETF
Time to buy market vectors gold miners ETF?
Direxion launches latest leveraged ETFs
Global gold and silver trading at record levels in 2008
‘Gold's been naughty but now it'll be nice-CIBC'
CIBC - silver will offer lower returns than gold
The gold and platinum connection
CIBC - silver will offer lower returns than gold
Gold falls to one-month low on dollar, tumbling oil
Gold pressured - strong USD - economic weakness
"Too early to buy metals and mining stocks" - Numis
Producers seek record cut in iron ore price
Base metals begin the year on a bullish note in India
Uranium use must be efficient
Gloom over global economic performance hits oil prices
Forex trading forecast: Australian dollar
Volatile greenback, commodities reverse trends
US demand data hits grain prices
Fertiliser prices expected to continue falling
Copper futures in Shanghai slump as economic woes damp demand
Wheat, corn, soybeans plummet as U.S. predicts larger supplies
Commodities slump on firm dollar, demand concerns
Commodities dent European shares on economy fears

Posted on 13 January 2009 by VRS |  Email |Print

From WSJ: In recent weeks, commodity funds have seen an influx of several billion dollars, a stark reversal from the brutal forced selling that dominated the second half of last year.

Most of the money has flowed into long-only vehicles — funds that bet on prices to rise — suggesting a combination of investors’ revived confidence and portfolio rebalancing. This wave of fresh buying is partly behind the rally in some commodities that petered out a few days ago, and could bring more liquidity into the market….. Full Article: Source

Posted on 13 January 2009 by VRS |  Email |Print

From FT Adviser.com: Commodities could face supply shortages when demand picks up again as companies make hard decisions against a backdrop of low demand and falling prices in 2009, according to fund manager Richard Davis.

Mr Davis, who manages the BlackRock Commodities Income investment trust, said companies were being forced to cut back on spending, which could cause shortages further down the line….. Full Article: Source

Posted on 13 January 2009 by VRS |  Email |Print

From Seekingalpha.com: 60 Minutes just ran a comically slanted story on the rise in oil prices. I know that the price of oil is now down by $100 a barrel over the past few months, but that doesn’t seem to matter when you’re in the alarmism business.

The 60 Minutes story is wretched, incoherent and it engages in the worst form of scapegoating. It’s hard to believe that this made it to air…… Full Article: Source

Posted on 13 January 2009 by VRS |  Email |Print

From Marketwatch.com: Wall Street’s praying for new bull, but wishful thinking not enough for ‘09. Investors never learn. And Wall Street knows it. That crafty 1720 ancestor of today’s Wall Street investment bankers and Bernie Madoffs devised what we’d call an “IPO:”

He “opened his office to crowds of investors at 9 a.m. the next morning … closed at 3 p.m. after taking in a fortune … then left that evening for the Continent … never to be heard from again.”…. Full Article: Source

Posted on 13 January 2009 by VRS |  Email |Print

From Business24-7.ae: The global carbon market is currently growing rapidly. Trading volume in the first half of 2008 at $59 billion (Dh217bn) reached the levels for all of 2007 at $63bn.

This growth is predominantly attributable to the European Union Emissions Trading Scheme (EUETS) and to increasing interest in global Kyoto credits from the Clean Development Mechanism (CDM) and Joint Implementation (JI)….. Full Article: Source

Posted on 13 January 2009 by VRS |  Email |Print

From Vnunet.com: Google has denied claims that just two searches on its site uses the same amount of energy as boiling a kettle. Recent research by Harvard University physicist Alex Wissner-Gross suggested that each Google search produces around seven grams of CO2, roughly half that produced by boiling a kettle.

“Google operates huge datacentres around the world that consume a great deal of power,” said Wissner-Gross. “A Google search has a definite environmental impact.”…. Full Article: Source

Posted on 13 January 2009 by VRS |  Email |Print

From Timesonline.co.uk: The Government will be on stronger ground today when the focus turns to the potential for creating thousands of “green collar” jobs.

Britain’s ageing energy infrastructure is falling apart. Replacing our crumbling, dirty power stations with modern nuclear reactors, wind and tidal power schemes will be a huge challenge. It also represents a great opportunity. …. Full Article: Source

Posted on 13 January 2009 by VRS |  Email |Print

From Thestar.com: It’s the “green shaft,” a “stupid” idea that would “screw everybody” and “siphon” money out of our wallets. “We must never let it happen to our country,” Prime Minister Stephen Harper said during the fall election campaign.

He was talking about Stéphane Dion’s demonized Green Shift plan, which would tax carbon emissions and use the revenues to lower income taxes. Of course, Harper never mentioned the latter part in his radio and TV attack ads, or when giving public speeches. That would be telling the truth….. Full Article: Source

Posted on 13 January 2009 by VRS |  Email |Print

From Hardassetsinvestor.com: While still not exactly cheap, corn under $4 does have its positives. First off, ethanol plants will see their costs come down, assuming there are any ethanol companies around to take advantage of the prices - the largest, VeraSun, is currently in Chapter 11.

With gasoline prices back near 2005 levels, demand for ethanol has (unsurprisingly) fallen off. Even though corn prices have dropped to almost half of their record high, ethanol manufacturers are closing plants and cutting production, as the price for their product is dropping faster….. Full Article: Source

Posted on 13 January 2009 by VRS |  Email |Print

From Asiaone.com: 2008 has turned out to be a year that most would rather forget, although even that is hard to do given the scale of the losses.

Based on Lipper data for the year up to Dec 26, nearly every fund category fell into the red, some more deeply than others. Practically the only segments to tread water are conservative protected and guaranteed funds, as well as certain money market funds….. Full Article: Source

Posted on 13 January 2009 by VRS |  Email |Print

From Theglobeandmail.com: Inflation and deflation are two sides of the same coin – and that coin is price volatility. The rampant volatility in the world’s commodity markets over the past several months has not been seen in 30 years.

Since typical business careers span about three decades, many executives have never encountered volatility like this before. And they’re no doubt pondering key questions: What’s going on in our supply markets? Will the increased prices and volatility be temporary or permanent? …. Full Article: Source

Posted on 13 January 2009 by VRS |  Email |Print

From Mandadeals.co.uk: Brady Plc, an international supplier of trading, risk management and settlement tools to the metals and commodities sectors, has acquired Commodities Software (UK), a supplier of raw material services, for an undisclosed sum.

The company said the transaction makes Brady the “only provider of sophisticated trading and risk management services for refined and unrefined metals”. It also announced that more deals could be on the cards this year….. Full Article: Source

Posted on 13 January 2009 by VRS |  Email |Print

From Etfguide.com: Index ETFs cover all sorts of asset classes: equities, bonds, real estate, commodities and currencies. Currency ETFs are probably the least talked about class of ETFs.

According to ETFguide’s database, there are 32 currency ETFs available. The ETFs track the performance of single currencies or the exchange rate between two currencies. The ETF might be pegged to something familiar like the Canadian currency or exotic like the Russian ruble or Swedish krona….. Full Article: Source

Posted on 13 January 2009 by VRS |  Email |Print

From Istockanalyst.com: If only the futures price would catch on to what has been happening over the last year or so at the world’s largest silver ETF, the iShares Silver Trust.

With a massive addition of 218 tonnes on Friday, inventory reached a new all-time high of 7,063 tonnes….. Full Article: Source

Posted on 13 January 2009 by VRS |  Email |Print

From Seekingalpha.com: Food for thought: I was reading an article by John Hussman from 2007 detailing the Gold/XAU ratio. Since 1974, when the ratio is above 5, the XAU has followed with annualized gains of 89.6%.

When the ratio is above 5 and the economy is weak as signaled by an ISM Purchasing Managers Index below 50 (indicating a contracting manufacturing sector), gold miner shares have appreciated 125.6%. The XAU index can be followed somewhat using an ETF - GDX. Otherwise, one could purchase each individual security in the XAU index….. Full Article: Source

Posted on 13 January 2009 by VRS |  Email |Print

From Structuredproductsonline.com: Direxion, a US-based provider of alternative investment strategies, has unveiled two three-times leveraged exchange-traded funds (ETFs) in its range. The Direxion Mid Cap Bull 3x Shares and Direxion Mid Cap Bear 3x Shares ETFs provide 300% of the daily performance, or inverse daily performance, of the Russell MidCap Index.

The index, which is a subset of the Russell 1000 index, measures the performance of the mid-cap sector of the US equity universe….. Full Article: Source

Posted on 13 January 2009 by VRS |  Email |Print

From Xinhua: Global gold and silver trading has posted record activity since the start of the credit crisis, according to the Bullion Markets 2009 report published here on Monday by the International Financial Services London (IFSL).

Gold turnover increased 58 percent in 2008 to a record 20.2 trillion U.S. dollars. Silver trading increased 39 percent during the year to a record 2.6 trillion dollars. …. Full Article: Source

Posted on 13 January 2009 by VRS |  Email |Print

From Mineweb.com: CIBC World Markets has increased its 2009 gold price prediction from $900/oz to $950/oz and introduced a 2010 gold price of $1,050/oz.

In a recent report, CIBC metals analysts Barry Cooper, Brian Quast, and Cosmos Chin said, ‘We further expect pure gold plays will outperform gold/base metal mixed plays in the current environment especially since the latter has not suffered full adjustments to the lower pricing regime for copper and zinc.”…. Full Article: Source

Posted on 13 January 2009 by VRS |  Email |Print

From Mineweb.com: While 2008 was supposed to be a banner year for silver, CIBC Global Markets suggested that “events later in the year have tarnished silver’s performance.

In a recently published analysis, CIBC metals analysts Barry Cooper, Brian Quast and Cosmos Chiu maintained their 2009 and 2010 silver price forecasts of $12/oz and $11/oz respectively, advising, “We believe that holding gold is better than holding silver through what we think will be a tumultuous 2009 and possibly longer….. Full Article: Source

Posted on 13 January 2009 by VRS |  Email |Print

From Thestreet.com: Back then, the Commodity Exchange was an independent exchange trading primarily metals located in the northwest quadrant of the massive 4 World Trade Center trading facility.

Nymex occupied the southwest, the Coffee, Sugar and Cocoa Exchange was in the southeast, and the Cotton Exchange was in the remaining northeast quad….. Full Article: Source

Posted on 13 January 2009 by VRS |  Email |Print

From Mineweb.net: While 2008 was supposed to be a banner year for silver, CIBC Global Markets suggested that “events later in the year have tarnished silver’s performance.

In a recently published analysis, CIBC metals analysts Barry Cooper, Brian Quast and Cosmos Chiu maintained their 2009 and 2010 silver price forecasts of $12/oz and $11/oz respectively, advising, “We believe that holding gold is better than holding silver through what we think will be a tumultuous 2009 and possibly longer.”…. Full Article: Source

Posted on 13 January 2009 by VRS |  Email |Print

From Marketwatch.com: Gold futures fell 4% Monday to end at the lowest level in one month, pacing sharp losses in crude oil and other commodities, with a stronger U.S. dollar also reducing the metal’s investment appeal.

Gold for February delivery finished down $34 at $821 an ounce on the Comex division of the New York Mercantile Exchange, the lowest closing level since Dec. 12. It dropped to $817.10 earlier. The metal ended last week’s trading down for the first week in five, falling 2.8%. …. Full Article: Source

Posted on 13 January 2009 by VRS |  Email |Print

From Insidefutures.com: The precious metals were under pressure today due to continued strength in the USD and general commodity weakness. More comments regarding the weakness in both the US economy and continued slowdown in China added to the weak tone and was enough to take all commodities lower.

2009 Gold Outlook - In order to look ahead to 2009, it is important to understand the environment that has shaped the gold market in 2008. As of this writing, the gold market looks to end 2008 in the same mid $800 price range in which it entered the year….. Full Article: Source

Posted on 13 January 2009 by VRS |  Email |Print

From Mineweb.com: Numis Securities says although the mining and metals sector is tempting at sharply lower prices, it’s still too early to buy into the sector as key commodity prices hold significant further downside.

The company said in a note today current prices and analysts’ forecasts of key commodity prices including copper, thermal coal, coking coal and iron ore remain above the majority of cost structures of those commodities, despite the fact that the market is over-supplied….. Full Article: Source

Posted on 13 January 2009 by VRS |  Email |Print

From FT: Chinese and Japanese steelmakers have demanded a record 40 per cent cut in iron ore prices in annual benchmark pricing negotiations, but are facing resistance from mining groups.

Vale, Rio Tinto and BHP Billiton, which account for more than 70 per cent of the world’s seaborne-traded ore, privately acknowledge that annual contract prices are likely to drop for the first time in seven years. But they are delaying negotiations because they believe ore demand will improve in the next few months….. Full Article: Source

Posted on 13 January 2009 by VRS |  Email |Print

From Indiatimes.com: Metals have kicked off 2009 on a fairly upbeat note despite fundamentals being weak. Nickel has led the way, rallying almost 40% over the turn of the year. The rallies were mainly driven by short covering and some speculative anticipation due to buying activity after the re-weighting of some commodity indices in the first few weeks of January, said analysts.

But, in the short-term, most analysts aver that the gains may be given up just as quickly as they were accrued. In the long-term, however, there is some cautious optimism. Demand is not expected to ‘get any worse’ and a recovery is expected by the next year….. Full Article: Source

Posted on 13 January 2009 by VRS |  Email |Print

From Financialexpress.com: Experts, like the principal scientific advisor to the government, R Chidambaran, are of the view that the costly commodity, uranium, should be efficiently utilised for producing nuclear power.

Expressing his views on the issue at the 96 th Indian Science Congress he said, “To produce nuclear power it is essential to adopt 3-stage close cycle reactors which may allow to produce about 50 times more energy from the same amount of uranium than in case of one stage reactors presently being deployed.”…. Full Article: Source

Posted on 13 January 2009 by VRS |  Email |Print

From Guardian: Oil prices fell by nearly two and a half dollars to reach $38.40 today amid rising gloom about future demand due to the faltering state of the global economy.

The price of light US crude for February delivery was only $6 away from the five year low seen one day in December despite Middle East tensions and strong signs that OPEC is fulfilling its threat to cut output….. Full Article: Source

Posted on 13 January 2009 by VRS |  Email |Print

From Forexhound.com: The forex trading forecast for the Australian dollar is not looking kind. The Aussie is likely to struggle in currency trading on the FX market in 2009 as the global recession continues, and as commodities find it difficult to make a comeback.

The Australian dollar is a commodity currency. It relies on the export of its natural resources to support the currency. With the global recession cutting demand for commodities, the Aussie is having a difficult time in currency trading….. Full Article: Source

Posted on 13 January 2009 by VRS |  Email |Print

From Theglobeandmail.com: The currency and commodity markets are extremely choppy as investor psychology swings from optimism to pessimism.

Late last week both the U.S. dollar and the Japanese yen rose strongly against the euro and the Canadian dollar, reflecting the return of risk aversion and the drop in commodities. The loonie was down almost 1 per cent and the euro 2 per cent against the greenback….. Full Article: Source

Posted on 13 January 2009 by VRS |  Email |Print

From FT: US grain prices fell sharply on Monday after the latest update from the US Department of Agriculture suggested that weaker demand would leave stocks of corn, soyabeans and wheat at comfortable levels at the end of the current crop year.

CBOT March corn dropped 30 cents to $3.80¾ a bushel while CBOT March wheat lost 57 cents to $5.72½ a bushel and CBOT March soyabeans fell 54 cents to $9.81¾ a bushel….. Full Article: Source

Posted on 13 January 2009 by VRS |  Email |Print

From ABC: A report forecasts the cost of farming inputs such as fertilisers will continue to fall this year. Agribusiness lender Rabobank says prices are being forced down by the global financial crisis.

Report author Adam Tomlinson says it is good news for farmers who were hit by record-high fertiliser prices last year during the commodities boom. …. Full Article: Source

Posted on 13 January 2009 by VRS |  Email |Print

From Bloomberg: Copper futures tumbled the exchange- imposed 5 percent daily limit in Shanghai, tracking overnight losses in London, as the slumping global economy slashed demand for raw materials.

Copper for April delivery on the Shanghai Futures Exchange, the most active contract, fell 1,410 yuan from the previous settlement price to 26,790 yuan ($3,919) a metric ton. …. Full Article: Source

Posted on 13 January 2009 by VRS |  Email |Print

From Bloomberg: Wheat, corn and soybeans plunged the most allowed by the Chicago Board of Trade after the U.S. Department of Agriculture projected bigger supplies than forecast in December.

World wheat inventories may rise to 148.4 million metric tons by the end of the marketing year on May 31, up 0.7 percent from a December estimate, the USDA said today in a report….. Full Article: Source

Posted on 13 January 2009 by VRS |  Email |Print

From IHT: An advance in the dollar, compounded by heightened concerns about a sharp drop in demand for raw materials, sent commodities prices plunging Monday.

Gold prices dipped below $820 an ounce for the first time in a month, while oil prices sank below $40 a barrel as investors’ were gripped by fears about the economy and a subsequent downward spiral in prices….. Full Article: Source

Posted on 13 January 2009 by VRS |  Email |Print

From Guardian: European shares were lower midday on Monday, with commodity stocks the biggest fallers on the index as crude oil dipped below $40 a barrel on concerns about the global economic slowdown.

By 1149 GMT, the FTSEurofirst 300 index of top European shares was down 0.9 percent at 859.01 points, on course for its fourth day of retreat….. 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