Sun, Aug 31, 2014
A A A
Welcome kbr175@gmail.com
RSS
Commodities Briefing 15.Jan 2009

Commodity prices key to recession and hopes for recovery: economists
Commodities investors hit as oil benchmarks diverge
Commodities add to economic woes
OECD and BRIC slowdown bad sign for commodities
Coal demand will continue rising
Coal industry digs itself out of a hole in the Capitol
Fall in oil prices to help economic recovery -Saudi Oil Minister
Qatar oil min says $70 right price for oil
Mexico sees oil output at 3 mln bpd in 2015
China to cut fuel prices after global oil declines
Traders profit as ship-stored oil doubles
Global Carbon Market Up Massive 83% on Previous Year
Carbon trading soars in 2008 at ECX and CCFE
Obama energy pick says will fight global warming
Advanced nonsense: The politics of alternative energy
Government accused of "blackmailing" firms over emissions trading scheme
Biofuel producers hope to rebound after tough year
ETF Securities says gold ETC performed best in 2008
Gold prices decline on dismal retail sales report
South African platinum merger collapses
China to halt steel mill expansions to help stabilise markets
Brazil real gains as rising commodities boost investor appetite
Australia, New Zealand dollars fall on global economic concern
Brazil pushes into Asia's sugar market
Corn, wheat rise on rebound after early week slide
Orange juice falls as consumers cut back, freeze less likely
India: Good harvest keeps food prices stable
Dollar about to lose its special status
Barings launches Global Agriculture fund
ED&F Man's $900 mln loan refi heralds wave of deals
Steely minor metals to lead recovery -JPMorgan
Dubai gold, commodity exchange misses trading volume target
Efficient access to commodities
India commodity futures trade jump 36 pct in Apr-Dec
Copper drops nearly 4 per cent
Back to basics: So you want to trade commodity futures?

Posted on 15 January 2009 by VRS |  Email |Print

From Canadian Press: Canadians have long ceased being primarily hewers of wood and drawers of water, but there is growing appreciation among economists that resources remain the driving force behind both the current economic slump and prospects for a recovery.

TD Bank’s Don Drummond, one of the country’s leading private-sector economists, says he has little doubt that Canada is undergoing a commodity-price recession….. Full Article: Source

Posted on 15 January 2009 by VRS |  Email |Print

From FT: The price difference between the world’s two main oil price benchmarks – West Texas Intermediate and Brent – widened on Wednesday to a record as inventories at the delivery point of WTI, in Cushing, Oklahoma, surged to an all-time high.

ICE February Brent traded at a record intra-day premium of $8.46 a barrel over Nymex February WTI, well above a previous peak of $6.60 a barrel set in May 2007….. Full Article: Source

Posted on 15 January 2009 by VRS |  Email |Print

From Financialpost.com: The Conference Board of Canada forecasts the Canadian economy contracted an annualized 3.6% in the fourth quarter of 2008 and will contract 2% in the first quarter of 2009 and another 0.4% annualized in the second quarter as the U.S. recession slams trade. Overall, the economy will contract by 0.5% in 2009 after 0.6% growth in 2008.

“Export volumes have been on a downward trend since the second half of 2007,” the Conference board in its winter outlook. …. Full Article: Source

Posted on 15 January 2009 by VRS |  Email |Print

From Nationalpost.com: Leading indicators in the major seven economies and major non-OECD economies, particularly China, India and Russia, point to deep slowdowns. And this does not bode well for commodity prices.

The data released by the OECD earlier this week indicates a synchronized decline in industrial production, with widespread softness among the BRIC economies, which also includes Brazil….. Full Article: Source

Posted on 15 January 2009 by VRS |  Email |Print

From Hardassetsinvestor.com: There are two fairly distinct markets: the Atlantic market and the Pacific market. And we’ll talk in a moment about how they interact one with another. If we take the Atlantic market first, then the Atlantic market, as conventionally defined, accounts for something like 225 million metric tonnes.

If we go back to the Pacific, then we have roughly 115 million tonnes being exported from Australia, about 180 million tonnes from Indonesia, and smaller amounts from China, Russia going east, South Africa going east, and so on….. Full Article: Source

Posted on 15 January 2009 by VRS |  Email |Print

From WSJ: Big Coal is on a roll in the nation’s capital, winning early rounds this week in what promises to be a long fight over fossil fuels and climate change.

Despite a well-funded ad campaign by environmentalists attacking the industry, and a huge coal-ash spill in Tennessee that has led to calls for more regulation, the industry has received positive assurances this week from President-elect Barack Obama’s nominees that the new administration is committed to keeping coal a big part of the nation’s energy source….. Full Article: Source

Posted on 15 January 2009 by VRS |  Email |Print

From Reuters: The steep fall in oil prices in recent months does not reflect market fundamentals but will help economic recovery, Saudi Oil Minister Ali al-Naimi said on Wednesday.

“The price of oil … has declined in recent months by more than 70 percent since reaching their highest level in July — a drop that will play a major role in aiding economic recovery,” he told the Petrotech conference in New Delhi….. Full Article: Source

Posted on 15 January 2009 by VRS |  Email |Print

From Guardian:Oil at $70 a barrel is the right price to keep companies and producers investing in new resources, Qatar’s oil minister said on Wednesday.

“Low oil prices will reflect a freeze in investment in new resources. When growth comes back, we will have another shock, as resources will not be there to meet demand,” Abdullah al-Attiyah said on the sidelines of Petrotech, India’s biggest oil and gas conference….. Full Article: Source

Posted on 15 January 2009 by VRS |  Email |Print

From Reuters: Mexico’s faltering crude oil output should recover to 3.0 million barrels per day in 2015, Energy Minister Georgina Kessel said on Wednesday.

Kessel told senators in a presentation that state oil monopoly Pemex expected to be producing between 2.7 million and 2.8 million bpd over 2009 and 2010, around the same level as today….. Full Article: Source

Posted on 15 January 2009 by VRS |  Email |Print

From Bloomberg: China, the world’s second-biggest energy user, cut fuel prices for the second time in a month to reflect the decline in global oil prices and reduce costs for factories as the economy slows.

The gasoline price will be reduced by 140 yuan ($20.5) a metric ton, or 2 percent, and diesel by 160 yuan a ton, or 3.2 percent, starting tomorrow, according to a statement by the National Development and Reform Commission today and the official Xinhua News Agency….. Full Article: Source

Posted on 15 January 2009 by VRS |  Email |Print

From FT Alphaville: Oil companies and traders are storing enough oil in supertankers to supply the world for one day, in one of the most striking signs of supply outstripping demand as the impact of the economic crisis overshadows a string of Opec production cuts, the FT reported.

According to Deutsche Bank’s oil trading desk “over 80m barrels of oil is now on floating storage”, double the industry assessment of about 40m-50m last month…… Full Article: Source

Posted on 15 January 2009 by VRS |  Email |Print

The global carbon market in 2008 grew faster both in terms of volume and value than estimated, dramatically bucking the current downturn which has depressed most global commodity trading. Overall, 2008 saw 4.9 billion tonnes (gigatonnes or Gt) of carbon dioxide equivalent (CO2e) change hands, up 83% on 2007, according to a recent report—Carbon Market Monitor —released by Point Carbon. Point Carbon is a world-leading provider of market intelligence, analysis, forecasting and advisory services for the energy and environmental markets.

“Even Point Carbon did not fully predict the extent of the dramatic expansion in global carbon trading. This overshoot of our original forecast is largely due to brisk EU allowance (EUA) trading in the fourth quarter and to high activity in the secondary CER market,” said Endre Tvinnereim, Senior Analyst and author of the report….. Full Press Release: Source

Posted on 15 January 2009 by VRS |  Email |Print

From Fointelligence.com: Climate Exchange, owner of two leading carbon trading exchanges, said volume at its European Climate Exchange subsidiary rose 171% in 2008, while its Chicago Climate Futures Exchange unit reported new daily and annual records as well.

ECX volume in 2008 hit 2.8m contracts, up from 1.03m in 2007. Average daily volume on the top carbon exchange in the European Union Emissions Trading Scheme was 10,900 contracts, up from 4,040. Over the last six months of the year, ECX volumes rose 185% to 1.7m contracts….. Full Article: Source

Posted on 15 January 2009 by VRS |  Email |Print

From Reuters: The Obama administration will tackle the threat of global warming by seeking a cap-and-trade system to cut greenhouse gas emissions, Steven Chu, President-elect Barack Obama’s pick to be U.S. energy secretary, told lawmakers on Tuesday.

“Climate change is a growing and pressing problem. It is now clear that if we continue on our current path, we run the risk of dramatic, disruptive changes to our climate in the lifetimes of our children and grandchildren,” Chu said at his confirmation hearing before the Senate Energy and Natural Resources Committee….. Full Article: Source

Posted on 15 January 2009 by VRS |  Email |Print

From Resourceinvestor.com: We have “global warming” used to describe not only any rise in average temperature anywhere in the world for a time period selected carefully to illustrate whatever point of view is being professed, but, astonishingly, the same phrase is also used to note cooling and record cold anywhere as somehow predicted by the very existence of “global warming.”

I note today that we now have wide use of the wonderfully non-informative and non-descriptive phrase, “advanced batteries”, to describe experimental and frequently peripheral science, i.e., inquiries that are not uniformly reproducible-sometimes it works sometimes it doesn’t-that cannot and do not in fact result in an advance over the practical technology in place. …. Full Article: Source

Posted on 15 January 2009 by VRS |  Email |Print

From Businessgreen.com: A number of the UK’s leading firms have accused the government of blackmailing them into accepting conditions within the forthcoming Carbon Reduction Commitment (CRC) carbon trading scheme that will effectively punish those firms that procure green energy.

A BusinessGreen.com investigation has learned that a number of the UK’s most high-profile firms, including Asda, BT, B&Q, the Co-operative Group and Morrisons, are concerned about rules introduced as part of the CRC that will ensure that much of the renewable energy they use will be measured as having the same carbon footprint as electricity from the national grid….. Full Article: Source

Posted on 15 January 2009 by VRS |  Email |Print

From Nytimes.com: Cellulosic ethanol, the next big hope for a biofuels industry hampered during the past year by volatile commodity price swings and shrinking profit margins, is continuing its slow march toward commercialization.

Poet LLC, the nation’s top ethanol producer, has opened the spigots on an $8-million pilot-scale biorefinery at its Scotland, S.D., research center that will produce 20,000 gallons of fuel each year from the corn cobs and fiber normally left behind in fields….. Full Article: Source

Posted on 15 January 2009 by VRS |  Email |Print

From Reuters: ETF Securities said its physical gold exchange-traded commodity PHAU.L was its best performing long ETC in 2008, posting a 4 percent rise in U.S. dollar terms at a time when most assets were falling.

Gold was top of the company’s list of top-performing long ETCs, outstripping its closest rival, the Precious Metals DJ AIGCI ETC AIGP.L, which declined 4 percent….. Full Article: Source

Posted on 15 January 2009 by VRS |  Email |Print

From AP: Gold prices fell for a third straight session Wednesday after a dismal retail sales report further raised investors’ concerns about a sharp drop in demand for a variety of commodities and raw materials.

While investors already knew that the holiday shopping season had been particularly weak, the Commerce Department said retail sales dropped 2.7 percent last month, more than double the decline analysts expected. …. Full Article: Source

Posted on 15 January 2009 by VRS |  Email |Print

From FT: A potential $2.6bn deal to create a ”platinum champion” by combining two of the world’s biggest producers of the metal collapsed on Wednesday, adding to the gloom surrounding a sector that has been among the hardest hit by the global slowdown.

Johannesburg-listed Impala Platinum, the second largest platinum producer, spent the best part of last year in talks to acquire Northam Platinum, the fourth biggest, and its major shareholder, Mvelaphanda Resources, which is controlled by a leading South African black investment group. …. Full Article: Source

Posted on 15 January 2009 by VRS |  Email |Print

From Mineweb.com: China vowed on Wednesday to stop its steel mills from expanding further as industry figures showed the sector carrying massive overcapacity which risks swamping domestic and foreign markets.

The State Council, which also agreed measures to support its carmakers, said it would allow no new steel capacity expansion projects and would adopt a flexible tax policy on steel exports to “stabilise” China’s share of the global steel market….. Full Article: Source

Posted on 15 January 2009 by VRS |  Email |Print

From Bloomberg: Brazil’s real strengthened as rising commodity prices increased demand for assets in the largest exporting country in Latin America.

“The price of commodities is the main factor moving the real because our currency market is so dependent on trade flows,” said Francisco Carvalho, head of currency trading at Liquidez Corretora in Sao Paulo….. Full Article: Source

Posted on 15 January 2009 by VRS |  Email |Print

From Bloomberg: The Australian and New Zealand dollars fell after a drop in U.S. retail sales increased concern the global slowdown will worsen, reducing demand for higher- yielding currencies.

New Zealand’s dollar slipped to the lowest level in more than a month as sales at U.S. retailers fell 2.7 percent in December, more than twice as much as forecast….. Full Article: Source

Posted on 15 January 2009 by VRS |  Email |Print

From WSJ: Brazilian sugar’s quality and plummeting shipping costs are helping the world’s largest sugar producer push into the Asian market, grabbing market share from Thailand, the region’s biggest supplier.

Brazil has won contracts to supply as much as 600,000 metric tons of the sweetener — roughly 20% of Thailand’s raw-sugar exports last year — to India and China, the world’s biggest and second-biggest consumers, respectively….. Full Article: Source

Posted on 15 January 2009 by VRS |  Email |Print

From Guardian:U.S. corn and wheat rose slightly on Wednesday, trying to recover from Monday’s big sell-off which followed bearish supply data from the government.

“With ideas that fund rebalancing may still bring in the funds to the buy side and the sharp losses we had since the report was issued on Monday, the markets are just catching their breath to see if any demand develops,” said analyst Shawn McCambridge of Prudential Bache Commodities in Chicago….. Full Article: Source

Posted on 15 January 2009 by VRS |  Email |Print

From Bloomberg: Orange-juice futures declined for the fourth time in five sessions on signs that the yearlong recession is forcing U.S. consumers to cut back purchases of non-staple foods.

Sales of orange juice by U.S. retailers fell 3 percent in the four weeks ended Dec. 20, compared with a year earlier, according AC Nielsen data published on the Florida Department of Citrus Web site Jan. 12. Since Sept. 28, sales dropped 2.6 percent from a year earlier, the data show. Orange-juice futures have plunged 45 percent in the past year….. Full Article: Source

Posted on 15 January 2009 by VRS |  Email |Print

From Financialexpress.com: With the rate of inflation declining below 6% last week and expectation of a record foodgrains harvest this year, the prices of essential food items such as rice, sugar, potato, mustard oil remained largely stable during last three months.

However, the prices of onion and wheat has risen in the last four months. Sugar prices shows a rising trend because of fall in production and low inventories with millers….. Full Article: Source

Posted on 15 January 2009 by VRS |  Email |Print

From Bdafrica.com: The crisis marks the passing of an era in which the US dollar has been the world’s undisputed reserve currency for making international payments and storing wealth.

The dollar is not about to lose its reserve status completely. But it is set to become less “special”. In future, it will increasingly have to share its reserve status with the euro, the yen and perhaps the currencies of the other advanced economies. In time, it may even have to share its status with China’s yuan….. Full Article: Source

Posted on 15 January 2009 by VRS |  Email |Print

From Investmentweek.co.uk: Baring Asset Management is launching a Global Agriculture fund proving its belief in the long-term case for soft commodities.

The portfolio aims to provide long-term capital growth by investing in companies where the majority of earnings are derived from activities relating to agriculture or where they have the potential to benefit from this theme….. Full Article: Source

Posted on 15 January 2009 by VRS |  Email |Print

From Guardian:UK commodities merchant ED&F Man is seeking a $900 million loan refinancing as the sector tries to extend the maturity profile of its debt and lock in liquidity, banking sources said on Wednesday.

ED&F Man is the first commodities trader to tap the European loan market in 2009, to replace an existing $1.27 billion facility, but sector peers are also expected to refinance the short-term tranches in existing loans shortly, they added….. Full Article: Source

Posted on 15 January 2009 by VRS |  Email |Print

From Guardian: Minor metals used for steel production are in pole position to lead an industrial metals recovery due to infrastucture projects in emerging markets, a JPMorgan (JPM) fund manager said.

Ian Henderson of JPM’s Global Natural Resources Fund, said that demand from China and India will support metals such as ferro chrome and molybdenum, already hit by falling demand from steel mills….. Full Article: Source

Posted on 15 January 2009 by VRS |  Email |Print

From Btimes.com.my: Dubai Gold & Commodities Exchange, a futures market in the Persian Gulf emirate, posted a 26 per cent advance in contract volumes last year, falling short of a target to double trading.

A total of 1.14 million contracts valued at US$57.5 billion (US$1 = RM3.50) changed hands, buoyed by new products including oil and Indian rupee futures, the bourse said in an e-mailed statement yesterday. chief executive officer Malcolm Morris in May said he was targeting volume of as much as two million contracts for 2008….. Full Article: Source

Posted on 15 January 2009 by VRS |  Email |Print

From 123jump.com: Only a couple of years ago, investing in commodities was a complicated matter involving a futures account or an indirect approach through equities. Invesco PowerShares and Deutsche Bank now provide a more efficient access to an area that’s not correlated to equities.

Investors can choose between diversified, leveraged, or inverse exposure, depending on their view, or lack of such, in each of the major commodity sectors….. Full Article: Source

Posted on 15 January 2009 by VRS |  Email |Print

From Reuters: Indian commodity futures trade rose 35.62 percent to 36.84 trillion rupees during the first nine months of financial year 2008/09, helped mainly by the surging trade in bullion, official data showed.

Turnover rose 37.85 percent to 1.76 trillion rupees in the fortnight ended Dec. 31, data from the regulator Forward Markets Commission (FMC) showed on Wednesday….. Full Article: Source

Posted on 15 January 2009 by VRS |  Email |Print

From Theglobeandmail.com: Copper led a bearish charge in the broader industrial metals complex on Wednesday after data showing much-worse-than-expected U.S. retail sales deepened fears about the global economy and its effect on demand for metals.

Copper for March delivery on the New York Mercantile Exchange’s Comex division sank 5.95 cents (U.S.), or 3.9 per cent, to settle at $1.4875 a pound….. Full Article: Source

Posted on 15 January 2009 by VRS |  Email |Print

From Dollarseeds.com: An old commodity broker friend who was only half joking once told me that if you are thinking that it is a good idea to trade commodity futures you should have a nice glass of wine, go to bed, and take a long nap until the urge has disappeared. For most people who want to jump into the frenzied world of commodity trading that would be good advice.

However, for those who take the time to learn as much as they can about the commodity trading business before trading real money there is the possibility of starting out with a modest amount of risk capital and trading your way to a fortune….. Full Article: Source

See more articles in the archive

August 2014
S M T W T F S
« Jul    
 12
3456789
10111213141516
17181920212223
24252627282930
31