Mon, Apr 21, 2014
A A A
Welcome kbr175@gmail.com
RSS
Commodities Briefing 25.Mar 2009

Commodities rally in big price rout
Russia recalibrates after commodities downturn
Challenge to Russian commodity chiefs
Commodities: Big picture
Commodity markets show signs of rebound
Central banker warns against further stimulus
Are we at a waypoint in the economic crisis?
Can tighter regulation prevent a future crisis?
US$60 oil within reach, officials say
Africa: Opec leaders foresee oil price surging again
Oil price drop has Russian economy over a barrel
Oil prices drift up to new four-month highs
UBS oil economist skips to Macquarie
Japan crude oil imports lowest in Feb for 20 yrs
Oil industry sounds alarm on investment threat
Brazil invited to join OPEC
EU reaches deal to free up energy markets
European nuclear market
Obama says need cap and trade for clean energy
Climate change is a trade issue, too
BP's Browne says UK should support carbon trading
US carbon cap to raise power prices-Moody's
Bear market respite and reflation trade won't push gold past $1,000
Gold stock index ratio analysis
Iron ore benchmark system may be scrapped, Deutsche says
Survey points to further Gold Investment
Miners face $50 bln funding shortfall, Citigroup says
Gulf states delay single currency beyond 2010
China ‘super currency’ call shows dollar concern
EU rejects China's calls for global currency
Vietnam currency slides as inflation eases
Analysis: Exchange traded funds enjoy surge
CFTC approves CME to clear agricultural swaps
CME Group to launch deliverable nonfat dry milk futures and options
New futures exchange to take on political volatility
Commodity bourses record 29% rise in turnover
India to assist Indonesia to set up its first commodity exchange
Oil volatile as metal prices take step back
Julius Baer launches agricultural fund
Opalesque Exclusive: Laven Partners A. M. launches second CTA fund to meet investors` risk appetite, fund to be advised by John Locke Investments

Posted on 25 March 2009 by VRS |  Email |Print

From News.com.au: First signs are emerging that the worst may be over for global commodities markets after the biggest price rout in more than five decades. On overseas markets on Monday night, copper prices hit their highest level since November and oil punched through $US54 a barrel in intraday trade for the first time in four months.

The gains helped push the Reuters/Jefferies CRB Index of 19 key raw materials up 1.5 per cent, as falls in the greenback prompted investors to seek a hedge against inflation and traders took heart from the US Government’s $US1 trillion program to unblock credit markets. ….Full Article: Source

Posted on 25 March 2009 by VRS |  Email |Print

From Nytimes.com: After years of coasting on high commodity prices, the Russian government is now acknowledging it will need to get by on a much diminished revenue stream for the foreseeable future.
At the same time, economic policy officials here are striking an upbeat note, saying declining oil income is likely to spur growth in other areas of the economy…..Full Article: Source

Posted on 25 March 2009 by VRS |  Email |Print

From FT: Igor Shuvalov, Russia’s liberal deputy prime minister, threw down the gauntlet to the country’s powerful energy and metal lobbies on Tuesday, saying several years of low commodity prices would help to create a more modern economy.

“The longer we have low commodity prices, the sooner we will have a new model of our economy,” Mr Shuvalov told the Financial Times. “Even now people say, ‘Don’t worry, in a year all the prices will come up again and you’ll have your annual budget completely full of money and you will carry on’. But that’s not good…..Full Article: Source

Posted on 25 March 2009 by VRS |  Email |Print

From Elliottwave.com: Three months ago, I warned my subscribers that from the January 2009 highs in soybeans, corn and wheat, Elliott wave patterns called for strong selloffs. Markets have indeed fallen since then.

One of the basic questions you need to ask yourself when looking at market move for the first time is this: Do its sub-waves overlap or not?….Full Article: Source

Posted on 25 March 2009 by VRS |  Email |Print

From Thestar.com.my: Commodity markets are beginning to show signs of a turnaround but it is too early to tell if the current uptrend is sustainable, analysts said.

Commodity indices have been showing signs of life in the past week on the back of a rally in global equities in recent days, with crude oil trading above US$53 per barrel and crude palm oil (CPO) closing above RM2,000 per tonne on Monday…..Full Article: Source

Posted on 25 March 2009 by VRS |  Email |Print

From AFP: The governor of the Bank of England, Mervyn King, warned Tuesday against a new fiscal stimulus package to boost the recession-hit economy, suggesting the nation’s finances could not support it.

King said ministers should be wary of increasing the deficit with any repeat of November’s 20-billion-pound stimulus plan in the annual budget next month…..Full Article: Source

Posted on 25 March 2009 by VRS |  Email |Print

From Resourceinvestor.com: Further easing in precious metals prices was noted overnight, as market participants took cues from Monday’s massive Dow rally and exhibited rising degrees of risk appetite.

These two weeks are likely to come to be regarded as the time when the global financial crisis reached a waypoint at which a new heading was charted and adopted. Certainly, the amount of official noise and other signals coming from various quarters should not be classified as “more of the same” any longer…..Full Article: Source

Posted on 25 March 2009 by VRS |  Email |Print

From Socialistworker.co.uk: The governor of the Bank of England, Mervyn King, last week admitted that the regulatory mechanisms of the world’s financial systems “all failed to some degree to prevent the accumulation of risks that finally produced the crisis”.

Bank bailouts and “economic stimulus packages” have not stemmed the economic turmoil. So world leaders are forced to look for new solutions – and the latest one is better regulation of the markets…..Full Article: Source

Posted on 25 March 2009 by VRS |  Email |Print

From UPI: Production cuts from the OPEC oil cartel stabilized oil prices and put $60-per-barrel oil within reach despite falling demand, the Algerian oil minister said.

Production cuts of 2.2 million barrels today enacted in January by the Organization of Petroleum Exporting Countries have stabilized oil prices in the world market. Prices hovered at around $45 since late last year but have spiked more than $50 in recent trading…..Full Article: Source

Posted on 25 March 2009 by VRS |  Email |Print

From Allafrica.com: Top members of the Organisation of Petroleum Exporting Countries (OPEC) rose from its three-day seminar with an alarm over renewed surge in the price of crude oil in the international oil market.

The Saudi Arabian Deputy Prime Minister and Minister of Energy and Industry, Abdullah bin Hamad Al Attiyah, said at the OPEC meeting in Vienna at the weekend that members face a major set-back on the recent recovery indicators in the economic downturn from surging oil prices, citing a sharp drop in investment in the sector…..Full Article: Source

Posted on 25 March 2009 by VRS |  Email |Print

From Theage.com.au: After years of coasting on high commodity prices, the Russian Government is acknowledging it will need to get by on a smaller revenue stream.

At the same time, economic policy officials in Moscow are striking an upbeat note, noting declining income from oil is likely to spur growth in other areas…..Full Article: Source

Posted on 25 March 2009 by VRS |  Email |Print

From AFP: Oil prices rose to fresh four-month peaks on Tuesday amid renewed hopes for economic recovery in the wake of a US government plan to clear toxic assets from bank balance sheets.

New York’s main futures contract, light sweet crude for delivery in May, increased 18 cents to close at 53.99 dollars per barrel, recouping early losses from profit taking…..Full Article: Source

Posted on 25 March 2009 by VRS |  Email |Print

From Financeasia.com: Australia-headquartered investment bank Macquarie announced yesterday that it has poached UBS Securities’ global oil economist. Jan Stuart joins Macquarie in the same position, to strengthen the bank’s specialist equities platform.

Stuart has garnered experience in this field most recently at UBS and before that as head of research for energy futures at Fimat USA, which is part of Societe Generale, and at ABN AMRO…..Full Article: Source

Posted on 25 March 2009 by VRS |  Email |Print

From Reuters: Japan’s crude oil import volumes fell to their lowest February tally in 20 years last month, as OPEC suppliers in the Middle East curbed supplies as part of
efforts to prop up global prices.

The volume of Japan’s customs-cleared crude oil imports fell 13.9 percent in February from a year earlier to 18.946 million kilolitres (4.26 million barrels per day), Ministry of Finance preliminary data showed, as a deepening recession eroded demand…..Full Article: Source

Posted on 25 March 2009 by VRS |  Email |Print

From Tripolipost.com: Weak oil prices are squeezing critical industry investment, threatening to drive up the cost of energy when the global economy recovers, key oil sector players warned Wednesday.

“Current prices threaten the very sustainability of planned industry-wide investments,” OPEC Secretary General Abdalla el Badri told a conference here organised by the producers’ group…..Full Article: Source

Posted on 25 March 2009 by VRS |  Email |Print

From IHT: Brazil’s Mines and Energy minister says Latin America’s largest country has been invited to join the Organization of Petroleum Exporting Countries, or OPEC.

Minister Edson Lobao says the invitation was made last week at the microphone during a meeting of the oil cartel at its headquarters in Vienna. It was unclear who extended the invitation…..Full Article: Source

Posted on 25 March 2009 by VRS |  Email |Print

From IHT: The European Union reached a deal on freeing up energy markets after lawmakers accepted a compromise over breaking up giant utilities in return for action to protect consumers’ rights.

The deal between the European Parliament and E.U. member states late on Monday ended a year-long standoff during which France and Germany battled hard to protect energy companies like Electricité de France and RWE…..Full Article: Source

Posted on 25 March 2009 by VRS |  Email |Print

From Commodities-now.com: The number of aging power plants in Europe has given rise to an increasing need for the construction of new plants. An estimated 300GW of capacity needs to be added in Europe by 2020. Additionally, the EU Emissions Trading Scheme (EU ETS), emissions regulations will tighten in 2013 as it enters Phase III.

Facing these circumstances, nuclear power surfaces as an attractive option in carbon-constrained Europe, and it is expected that nuclear energy will be back on the agenda for many countries which have been quite reluctant to this generating option…..Full Article: Source

Posted on 25 March 2009 by VRS |  Email |Print

From Reuters: U.S. President Barack Obama said on Tuesday that a cap and trade system limiting greenhouse gases is the best way for the country to move to cleaner energy sources.

Obama said in a news conference that Congress must adopt A “serious” energy plan…..Full Article: Source

Posted on 25 March 2009 by VRS |  Email |Print

From Forbes: As part of his sweeping agenda for change, President Obama is seeking limits on carbon emissions. Rightly so. Even in these times of economic peril, there is no more imperative issue facing humanity than climate change.

But largely ignored thus far in the debate over climate change is the fact that climate change is not only an energy and environmental issue. It is also a trade issue. Any action on climate change will affect international trade obligations that bind the U.S. and more than 150 other members of the World Trade Organization…..Full Article: Source

Posted on 25 March 2009 by VRS |  Email |Print

From Reuters: The UK needs to revert to greater state control of energy markets if the UK is to reach its renewable energy targets, former BP head Lord Browne said in an interview in Wednesday’s Guardian.

He said that the carbon trading scheme needs the support of government incentives if it is to produce a low carbon industry in the UK…..Full Article: Source

Posted on 25 March 2009 by VRS |  Email |Print

From Reuters: U.S. electricity prices are likely to rise 15 to 30 percent if a national cap on carbon dioxide emissions is instituted, according to a report by Moody’s Investors Service.

And ‘the vast majority’ of the burden of those higher costs will be borne by residents as large industrial users are likely to be successful in lobbying U.S. lawmakers for special rates and tariffs, the report dated March showed. ….Full Article: Source

Posted on 25 March 2009 by VRS |  Email |Print

From Kitco.com: In the wake of the Fed’s announced record monetization some gold bugs remarked about the significance of the date and decision. Moreover, the airwaves were littered with commodity bulls (not the familiar faces).

There were a few non-gold bug analysts on live television showing currency from Zimbabwe and relating the Fed decision to what has transpired in Zimbabwe. Hyperbole aside, fed policy of currency debasement and inflation of the money supply is hardly anything new. News is important in that it highlights and reinforces trends. It doesn’t create them…..Full Article: Source

Posted on 25 March 2009 by VRS |  Email |Print

From Resourceinvestor.com: Trading without indicators is like running blind and it encourages emotional trading that is the bane of successful investors.

Below are brief descriptions of five of the most popular gold mining company indices and how they should be used in conjunction with the price of gold to determine the future movement of gold bullion and gold mining stocks. ….Full Article: Source

Posted on 25 March 2009 by VRS |  Email |Print

From Bloomberg: The annual iron price benchmark contract system may be scrapped as producers seek individual arrangements, Deutsche Bank AG said.

“The stress on the benchmark system has never been greater,” Deutsche analyst Peter O’Connor said today at a conference in Perth, Australia…..Full Article: Source

Posted on 25 March 2009 by VRS |  Email |Print

From Bullionvault.com: More people believe gold will hold or increase its value than think the price of the commodity will tail off in the near future, suggesting more people will be Investing In Gold than selling up.

Research conducted by Barclays Stockbrokers found 31 per cent of Gold Investors are banking on the yellow metal’s price rising, with 18 per cent predicting the value will stay at or around the same level for the time being…..Full Article: Source

Posted on 25 March 2009 by VRS |  Email |Print

From Bloomberg: The global mining industry faces a $50 billion capital funding shortfall in the wake of the credit crisis, Citigroup Inc. said.

“It’s going to be tough year to get money,” Chris Fraser, Citigroup’s head of metals and mining investment, told a conference today in Perth, Australia. “For the companies with the right projects, capital will eventually become available.” ….Full Article: Source

Posted on 25 March 2009 by VRS |  Email |Print

From Tradearabia.com: The 2010 deadline for a Gulf Arab single currency will be extended and a new timetable set, senior Gulf officials said on Tuesday, in the first official recognition that monetary union plans would be delayed.

Five Gulf Arab states - Saudi Arabia, the United Arab Emirates, Kuwait, Bahrain and Qatar - have been working towards launching a single currency in 2010, a deadline that analysts and even policymakers had long said was untenable…..Full Article: Source

Posted on 25 March 2009 by VRS |  Email |Print

From Bloomberg: China’s call for the creation of a new international reserve currency may signal its concern at the dollar’s weakness and ambitions for a leadership role at next week’s Group of 20 summit, economists said.

Central bank Governor Zhou Xiaochuan this week urged the International Monetary Fund to create a “super-sovereign reserve currency…..Full Article: Source

Posted on 25 March 2009 by VRS |  Email |Print

From Theglobeandmail.com: The European Union’s top economy official said Tuesday that the U.S. dollar’s role as the international reserve currency is secure despite Chinese calls for a global alternative.

EU Commissioner Joaquin Almunia says he didn’t see “major structural changes in the role the dollar plays today as a major reserve currency” following a call by China’s central banker for a new global currency controlled by the International Monetary Fund…..Full Article: Source

Posted on 25 March 2009 by VRS |  Email |Print

From Forbes: Vietnam’s currency fell by as much as 4 percent from its mid-point on Tuesday after the central bank gave it room to depreciate as weak exports and declining foreign investment weigh on the economy.

Fresh data showing inflation continued to moderate in March will give the State Bank of Vietnam more room to spur growth, even as slumping global demand weighs on trade, analysts said. ….Full Article: Source

Posted on 25 March 2009 by VRS |  Email |Print

From Trustnet.com: Assets under management in pan-European ETFs rose 17.05% to €108.42 billion (£101.95 billion) in 2008. Indeed the report - The Growth Pattern of the Pan-European ETF Segment Defies the Rough Market Condition - notes the second quarter of 2008 was the first time that assets under management (AUM) in pan-European ETFs was higher than €100 billion.

They have stayed above this level since…..Full Article: Source

Posted on 25 March 2009 by VRS |  Email |Print

From Reuters: The Commodity Futures Trading Commission said on Tuesday it granted an exemption to clear certain bilateral over-the-counter swap contracts for corn, wheat and soybeans.

The agency said it would allow CME Group Inc, the parent of the Chicago Board of Trade and the Chicago Mercantile Exchange, to clear swap contracts and to allow associated customer funds to be held in accounts segregated for the benefit of customers…..Full Article: Source

Posted on 25 March 2009 by VRS |  Email |Print

CME Group, the world’s largest and most diverse derivatives exchange, announced today the launch of deliverable nonfat dry milk futures and options on futures scheduled to begin April 20. The contracts will be listed with and subject to the rules and regulations of the Chicago Mercantile Exchange Inc.

The new nonfat dry milk listing differs from the existing cash-settled futures because at contract expiration settlement is made by the physical delivery of 44,000 pounds of Grade A or Extra Grade nonfat dry milk per contract…..Full Press Release: Source

Posted on 25 March 2009 by VRS |  Email |Print

From Efinancialnews.com: Investors in the US will soon be able to speculate on potential legislative and regulatory changes, such as increases to the minimum wage, when an innovative political futures market launches next month.

The exchange’s backers hope it will help businesses offset the volatility in their earnings caused by an uncertain political and economic climate…..Full Article: Source

Posted on 25 March 2009 by VRS |  Email |Print

From Myiris.com: The Indian commodity bourses have recorded 29% rise in turnover in the current fiscal contributed by robust increase in bullion trade.

As per the latest statistical data released by commodity market regulator Forward Markets Commission (FMC), the turnover of the commodity exchanges in the country rose by 29% …..Full Article: Source

Posted on 25 March 2009 by VRS |  Email |Print

From RTTNews: India has offered to help Indonesia in setting up its first such bourse. The move is part of the proposed India-Indonesia Comprehensive Economic Partnership Agreement or CEPA, for which the talks are scheduled to begin by this year-end, media reports said.

The Joint Study Group that finalizes the CEPA text has asked the commodity market regulator Forward Markets Commission (FMC) and leading commodity exchanges like National Commodity and Derivatives Exchange (NCDEX) and Multi Commodity Exchange (MCX) to hold talks with Indonesian authorities and companies in assisting the setting up of commodity exchanges…..Full Article: Source

Posted on 25 March 2009 by VRS |  Email |Print

From FT: Oil prices were volatile on Tuesday, while base metals retreated and gold eased as commodity markets staged a correction after gains.

Yingxi Yu, of Barclays Capital, said rallies in commodity markets were likely to be fragile until government measures to support demand gained traction and so provided a solid base for recovery…..Full Article: Source

Posted on 25 March 2009 by VRS |  Email |Print

From Wealth-bulletin.com: Julius Baer, the Swiss private bank, is launching an agricultural and commodities fund in the UK, as the bank sees surging demand for products related to food, fertilisers and biofuels.
The Zurich-based bank said agriculture sector offers a compelling buying opportunity - many stocks are significantly undervalued when taking into account the expected growth estimations for the industry…..Full Article: Source

Posted on 25 March 2009 by VRS |  Email |Print

Laven Partners Asset Management Ltd has launched a second Commodity Trading Advisor (CTA) fund – the Laven Funds Global Systematic ST Plus SPC - in response to investor demand for a CTA product with high liquidity and an enhanced return potential.

The fund is based on Laven Partners Asset Management’s strong performing Laven Funds Global Systematic ST SPC, which launched in May 2008, and uses the same systematic high-frequency CTA/managed futures strategy - investing in liquid futures to generate returns from market inefficiencies across stock, bond and currency markets. The strategy is driven by over 200 market tested statistical arbitrage models that are 2/3 trend following and 1/3 contrarian. However, to offer greater liquidity, the Laven Funds Global Systematic ST Plus SPC offers weekly dealing dates to investors, for both subscriptions and redemptions, subject to 3 days notice. ….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