Sun, Apr 20, 2014
A A A
Welcome kbr175@gmail.com
RSS
Commodities Briefing 09.Feb 2009

In commodities, cleaning up after flood
A hint of spring for commodity markets
Industrial commodities to recover in 2010: EIU
It's no time to dump diversified portfolios
Wharton: A good time to update market regulations
Commodities may be turning the recovery curve
"Holes in the ground" – the end of the commodity super cycle
OPEC likely to cut output: Iraq
Oil is little changed amid doubts over impact of stimulus plans
Oil exporters expected to have a sharp slowdown in growth
Profiting from trading volatility in Oil
Oil steady at $40, U.S. stimulus and OPEC support
Scottish Energy 'in takeover talks'
Mixed energy forecast
How carbon caps will affect utilities sector
Jupiter predicts rise in green investment
China’s power consumption grows 5.23% in 2008
Positive on gold near term, copper and specialty metals long term
A golden investment in 2009 and beyond
Gold investment demand surging but high price volatility likely
Gold slips before stimulus, ETF stays at record
Meltdown drives Gold ETFs investments in 2009
Dubai looks to play key role in global pearl trading
Copper- upside breakout imminent, implications for commodities
First Uranium says price of the fuel to stay ‘under pressure’
Credit squeeze hits mining sector
China keeping Aussie miners afloat
BarCap hopes fund launches resume soon
CME Group names Yue (Nina) Chen as director, financial research and product development
Case for change heard loud and clear
Eur10bln bailout for wheat-growing regions gripped by severe drought
Back to basics: Explaining CFDs for dummies

Posted on 09 February 2009 by VRS |  Email |Print

From WSJ: The reckoning is at hand. Coming off a commodities boom, the world’s drillers and diggers are moving quickly into the inevitable bust. With much of the industrialized world in recession already, much depends on China. However, some 40% of China’s economy is linked to exports.

Recent sharp falls in road-traffic volume and electricity generation don’t bode well. Most industrial commodity prices will likely remain subdued this year and possibly well into 2010. This “cash is king” environment favors the large, integrated resource companies. Not all will be winners, though….. Full Article: Source

Posted on 09 February 2009 by VRS |  Email |Print

From FT: Hopes for a rapid revival in the Chinese economy brought an early hint of spring to commodity markets this week, with gains for base metals and a dramatic rebound in shipping costs.

The Baltic Dry Index, the benchmark for freight costs for dry bulk commodities such as iron ore, coal and grains, jumped 53.5 per cent over the week, helped by signs of a pick-up in Chinese demand for iron ore as steelmakers depleted their inventories….. Full Article: Source

Posted on 09 February 2009 by VRS |  Email |Print

From Business-standard.com: The free fall in industrial commodities is likely to continue in 2009 with the average raw material price index expected to decline 41 per cent this year, the latest forecast by Economist Intelligence Unit (EIU), said.

In 2010, however, the London-based research agency expects a limited rebound in the prices of most of the industrial raw materials. Although the global economy will remain weak, investors will become more optimistic about longer term prospects….. Full Article: Source

Posted on 09 February 2009 by VRS |  Email |Print

From FT: Before the credit crisis, institutional investors believed if their portfolios were diversified across a range of assets they were protected against the onslaught of plunging markets.

Many were encouraged to diversify from traditional investments, notably equities and bonds, in favour of alternative assets, including commodities, hedge funds, private equity and real estate. The argument was that diversification reduced risk without necessarily reducing returns as asset classes were unlikely to all fall in value at once….. Full Article: Source

Posted on 09 February 2009 by VRS |  Email |Print

From Delawareonline.com: As the global economic crisis continues, politicians and investors are escalating calls for new regulatory scrutiny of financial markets. After decades of a cat-and-mouse game between the industry and regulators,

Wharton faculty say, it is clear a dramatic overhaul of the United States’ Depression-era regulatory system is needed. At the same time, they warn that meaningful reform will be enormously complex and require long and careful consideration, not a quick fix to appease voters looking to place blame for the meltdown….. Full Article: Source

Posted on 09 February 2009 by VRS |  Email |Print

From Seekingalpha.com: The Baltic Dry Index has been a relatively accurate gauge for commodity prices. According to Bloomberg, the index is off at -94% from its May peak, but has rebounded at +70% since the beginning of this year.

Below is a weekly chart which shows the Baltic Dry Index trading above its 4 (i.e. 20-day) and 10 (i.e. 50-day) week moving averages. Another bullish signal is the 4 week sma’s recent crossing above the 10 day sma. Right now the index shows no signs of turning back as its relative strength (RSI) is moving up from oversold levels….. Full Article: Source

Posted on 09 February 2009 by VRS |  Email |Print

From Rgemonitor.com: The commodity “super cycle” proved super short. The commodity “boom” is now officially a “bust”. So what happened? The rise in commodity prices was driven by the confluence of a number of factors.

Debt driven growth in major developed countries drove strong growth (both export and domestic) in emerging markets, such as China and India. …. Full Article: Source

Posted on 09 February 2009 by VRS |  Email |Print

From Tehrantimes.com: The Iraqi oil minister says OPEC is likely to cut output further when it meets in March in a bid to help prices gradually rise. “The year 2009 will be a tough economic year. It is expected demand for crude oil will drop,” Hussain al-Shahristani told a Baghdad oil industry conference on Saturday.

“In March, OPEC (the Organization of Petroleum Exporting Countries) will meet and there is an intention to decide a further cut to shore up prices.” …. Full Article: Source

Posted on 09 February 2009 by VRS |  Email |Print

From Bloomberg: Crude oil traded little changed in New York amid doubts a $780 billion stimulus plan in the U.S. will lead to a rapid recovery in global energy demand.

Senate and Congress lawmakers due to vote on the plan today and tomorrow are more than “90 percent” agreed on its contents, Lawrence Summers, director of the National Economic Council, said yesterday. U.S. crude inventories have climbed in 17 of the past 19 weeks, leaving them 15 percent higher than the five-year average for the period, the Energy Department said. …. Full Article: Source

Posted on 09 February 2009 by VRS |  Email |Print

From IHT: The combined economic growth of the six Gulf Arab oil-exporting countries is expected to fall to 3.5 percent this year from 6.8 percent in 2008, according to the International Monetary Fund.

Masood Ahmed, director of the IMF’s Middle East and Central Asia department, said Sunday in Dubai that the countries - Saudi Arabia, the United Arab Emirates, Kuwait, Qatar, Oman and Bahrain - were expected as a whole to post a fiscal deficit representing 3.1 percent of gross domestic product, compared with a surplus of 22.8 percent of GDP in 2008….. Full Article: Source

Posted on 09 February 2009 by VRS |  Email |Print

From Midasletter.com: Few investors realize it, but the oil ETF’s give investors a monthly opportunity to make day trading profits on senior oil stocks. The United States Oil Fund is now so large, it contains more than 20% of the outstanding March crude oil futures contracts (West Texas Intermediate, or WTI).

Now, being an ETF, it does NOT want to take physical delivery of that oil. So at some point each month – and that would be the 5th, 6th and 7th business days of the month – they roll over their entire set of contracts to the next month – putting undue, abnormal pressure on the oil price those days….. Full Article: Source

Posted on 09 February 2009 by VRS |  Email |Print

From Reuters: Oil paused from its decline and steadied around $40 a barrel on Monday, as hopes that the United States would act swiftly to approve a economic stimulus package this week outweighed demand concerns.

Tough talk from the Organization of Petroleum Exporting Countries (OPEC) that it would cut output again if needed at its March meeting, violence in Nigeria and renewed tensions between Iran and the West also lent support….. Full Article: Source

Posted on 09 February 2009 by VRS |  Email |Print

From Ukpress: Scottish and Southern Energy is reported to be in £11 billion takeover talks with a state-owned Swedish power giant. The firm, which is the UK’s second biggest power company, is understood to be holding talks with Vattenfall, according to the Mail on Sunday.

The move follows years of speculation linking the two groups, but the talks are thought to be at an early stage, and any takeover is understood to be depend on the outcome of an auction of Dutch energy firm Nuon….. Full Article: Source

Posted on 09 February 2009 by VRS |  Email |Print

From Chinadaily.com.cn: Support for China’s non-thermal energy industries appears to have gone up last year, not down, contrary to the assumption that the global credit crunch would dampen investment as well as energy demand.

However, many observers believe the picture may not stay as rosy this year if the government fails to lend official support to solar power and establishes global standards when it comes to wind power. Nuclear energy, however, is getting a big green light….. Full Article: Source

Posted on 09 February 2009 by VRS |  Email |Print

From Seekingalpha.com: Over the last several months, I have indicated that utilities will be facing significant new challenges as they adjust to the new green initiatives from the new administration and Congress.

About 56% of the electricity generated in the United States is from coal, a significant contributor to carbon emissions. Natural gas generates about 27% of the electricity, wind generates about 1% and solar generates about 0.1% of the electricity used in the United States….. Full Article: Source

Posted on 09 February 2009 by VRS |  Email |Print

From FT Adviser.com: US policy changes have made an unprecedented case for green investment and may encourage other nations to follow, according to the managers of the Jupiter Green investment trust.

US president Barack Obama aims to produce 10 per cent of US energy from renewable sources by 2012 and 20 per cent by 2025….. Full Article: Source

Posted on 09 February 2009 by VRS |  Email |Print

From Commodities-now.com: China consumed 3,426.8 billion kWh in 2008, 5.23 per cent more than the previous year. Power output also rose year-on-year, by 5.18 per cent to 3,433.4 billion kWh, according to the China Electricity Council (CEC).

The country added 90.51 million kilowatts to its total capacity last year, of which almost 25 million was renewable sources such as hydro and wind power….. Full Article: Source

Posted on 09 February 2009 by VRS |  Email |Print

From Mineweb.com: Fundamental Research Corp. focuses on companies not widely followed by brokerage firms. FRC forecast the primary driver of base metal prices in 2009, the future of gold and copper and the upside of investing in finite resources.

In terms of our focus, we focus on small and micro cap companies that aren’t widely followed by brokerage firms. We think by focusing on companies that no other analysts are following, we can add value by discovering these undervalued companies….. Full Article: Source

Posted on 09 February 2009 by VRS |  Email |Print

From Seekingalpha.com: When previously writing about where I would invest $50,000 in the year ahead, I had discounted gold as an investment because in essence it is a speculative commodity with little utilitarian purpose beyond that of jewelry.

I may have been wrong as gold was one of the few “investments” that held up amid all the economic turmoil. But will the trend continue in 2009 and beyond? …. Full Article: Source

Posted on 09 February 2009 by VRS |  Email |Print

From Mineweb.com: With totally contrasting factors in play the gold market seems to be in a state where investors don’t know whether to buy or sell.

ETF holdings continue to rise with the SPDR Gold Trust - the world’s largest gold ETF - again reporting record levels on the positive side, while on the negative side there is a firm, but perhaps vulnerable, dollar and a total collapse in demand from the world’s largest gold consumer, India….. Full Article: Source

Posted on 09 February 2009 by VRS |  Email |Print

From Reuters: Gold slipped on Monday as players took profits after a recent rally to a near four-month high above $930 an ounce, with expectations rising for the U.S. government to act quickly on its fiscal stimulus package.

Gold was trading at $906.65 an ounce, down $5.05 from New York’s notional close on Friday….. Full Article: Source

Posted on 09 February 2009 by VRS |  Email |Print

From Commodityonline.com: There is no end to the world’s appetite for gold. If you want proof for that just check out the details on Gold Exchange Traded Funds (ETFs).

Following the new found status of gold as a safe haven for investors, the prices of the yellow metal soared and the demand for gold ETFs too skyrocketed….. Full Article: Source

Posted on 09 February 2009 by VRS |  Email |Print

From Business24-7.ae: Pearl trade was one of the mainstays of the economy of the Middle East before the region discovered oil or the black gold. For thousands of years, some of the finest pearls in the world were harvested from the warm waters of the Arabian Gulf.

The pearl became a symbol of power and love and everyone from royalty to wealthy merchants eagerly sought those of the highest quality – the Arabian Pearl….. Full Article: Source

Posted on 09 February 2009 by VRS |  Email |Print

From Marketoracle.co.uk: Although copper may seem like a sideshow it is actually very important, for it is a barometer of changes in the world economy.

It remains wildly oversold, as shown by the huge gap between the 50 and 200-day moving averages….. Full Article: Source

Posted on 09 February 2009 by VRS |  Email |Print

From Bloomberg: First Uranium Corp., the company that plans to begin production of uranium in South Africa this year, expects prices for immediate delivery to stay “under pressure” this year, adding that it plans to diversify outside of Africa.

“Spot prices will be under pressure for some time as its based on thin trading,” Bob Tait, vice president of investor relations, said in an interview in Zambia today. …. Full Article: Source

Posted on 09 February 2009 by VRS |  Email |Print

From Theglobeandmail.com: Already bloodied by the crash in commodity prices, Canada’s mining sector is now being hit by rising borrowing costs charged by the major banks, making it even tougher for miners to obtain sorely needed capital.

FNX Mining Co. Ltd., which extracts copper, nickel and precious metals in Sudbury, said yesterday that it is cancelling a $100-million (U.S.) line of credit facility with a syndicate of banks because they are charging too much in interest and fees….. Full Article: Source

Posted on 09 February 2009 by VRS |  Email |Print

From Abc.net.au: With world equity markets in a slump, China is emerging as the saviour of Australia’s mining industry. Chinese Government-owned companies are investing in iron ore, coal and base metal miners across the country.

Chinese aluminium Chinalco wants to acquire a 20 per cent stake in Rio Tinto….. Full Article: Source

Posted on 09 February 2009 by VRS |  Email |Print

From Asianinvestor.net: Barclays Capital’s investor-solutions division, which provides mutual funds, listed and OTC structures to retail investors, is keen to launch new index funds in jurisdictions such as Hong Kong and Singapore as soon as securities regulators relax an unofficial freeze on new product launches.

Peter Hu, managing director and head of investor solutions for Asia ex-Japan at BarCap, says regulators in these and other markets have blanket concerns over mis-selling of investment products, in the wake of street protests in September over losses from Lehman Brothers-backed structured notes….. Full Article: Source

Posted on 09 February 2009 by VRS |  Email |Print

From Dbusinessnews.com: CME Group has named Yue (Nina) Chen as Director, Financial Research and Product Development.

In this newly created position, Chen, 31, will be responsible for identifying and developing new product and clearing opportunities in the over-the-counter (OTC) markets. Her primary focus will be on credit markets, but will also extend into other asset classes including equities, commodities and fixed income….. Full Article: Source

Posted on 09 February 2009 by VRS |  Email |Print

From FT: When Chris Concannon, an executive at Nasdaq OMX, testified at a congressional hearing in early February on credit default swaps and clearing, he knew US lawmakers would wonder why an exchange famous for trading technology stocks had anything to say on the subject.

So he pointed out that Nasdaq OMX operated eight clearing houses round the world. That week, the group bought a 22 per cent stake in EMCF, a clearer that acts for Turquoise, one of the new entrants in European share trading….. Full Article: Source

Posted on 09 February 2009 by VRS |  Email |Print

From Irishtimes.com: With the global economic crisis producing unrest in rural areas, Chinese authorities have taken emergency action in wheat-growing regions suffering their worst drought in 50 years.

The three eastern provinces that account for more than half of the country’s wheat production have experienced winter rainfall levels as much as 80 per cent lower than normal, the National Meteorological Centre reported….. Full Article: Source

Posted on 09 February 2009 by VRS |  Email |Print

From Dashboardarticles.com: Contracts for Difference (CFDs) are contracts between a trader and a CFD Provider , who will at the close of the contract, exchange the difference between the opening price and the closing price of the underlying index, share, commodity, per the number of specified CFD contracts.

A CFD differs from the traditional trading methods as it is not a purchase of the nominated investment, but trading on its speculated price movement. The main idea of CFDs is the ability to be able to trade higher volumes than traditional trading while using less initial capital….. Full Article: Source

See more articles in the archive

banner
banner
April 2014
S M T W T F S
« Mar    
 12345
6789101112
13141516171819
20212223242526
27282930