Wed, Sep 3, 2014
A A A
Welcome kbr175@gmail.com
RSS
Commodities Briefing 26.Mar 2009

Posted on 26 March 2009 by VRS |  Email |Print

From Reuters: Most big funds that have never touched commodities won’t have the stomach for it now without adequate protection from volatility in the sector since last year’s crash, an advisor to institutional investors said on Wednesday.

“Commodities are quite new to many large institutions and they are going to have to be presented in a format that institutions find digestible and … not too extreme in volatility,” said Carrie McCabe, an industry veteran who works with major investors, including pensions managers……Full Article: Source

Posted on 26 March 2009 by VRS |  Email |Print

From WSJ: Some positive numbers are starting to emerge amid the bleak economic picture, giving commodities investors some hope that they are approaching the end of an eight-month rout.

Sentiment has turned positive recently, triggered by the Federal Reserve’s decision to further ease credit. Oil, copper and cotton all have moved up sharply in the past week, a long-awaited break from the vicious slump starting last summer……Full Article: Source

Posted on 26 March 2009 by VRS |  Email |Print

From Bloomberg: Global Advisors Ltd., a money manager that returned more than 20 percent in 2008, said the $290 million in its commodity fund may double this year as investors refrain from withdrawing cash.

“Investors need to put money back to work,” Russell Newton, co-founder of the Global Commodity Systematic fund, said yesterday in an interview in London. “I’d be surprised if we don’t double the size of our fund this year.” …..Full Article: Source

Posted on 26 March 2009 by VRS |  Email |Print

From Bloomberg: Commodity assets under management expanded by about $20 billion this quarter, according to Paul Horsnell, head of commodities research at Barclays Capital.

Commodity assets under management slid 22 percent to $154 billion last year, Barclays estimated in a Jan. 26 report. After peaking at $270 billion in the second quarter, assets fell to $211 billion in the following three months, the first drop since 2003, and plunged 27 percent in the fourth quarter……Full Article: Source

Posted on 26 March 2009 by VRS |  Email |Print

From News.com.au: Australia’s all-important resources sector has clawed back ground this month, buoyed by the first tentative signs that commodities prices have bottomed out.

BHP Billiton has traded above $33 in recent days from a low of $27.11 at the start of March……Full Article: Source

Posted on 26 March 2009 by VRS |  Email |Print

From Canadian Press: Scotiabank’s Commodity Price Index, tracking 32 of Canada’s major exports, declined by 3.1 per cent last month compared with January.

That’s down 27.1 per cent compared with February 2008 and 40.1 per cent from its peak in July 2008……Full Article: Source

Posted on 26 March 2009 by VRS |  Email |Print

From Istockanalyst.com: The current issue of Money Magazine is quite shocking. I’ve railed against what they’ve been writing for years now about conventional investment advice and, from the looks of the latest issue, you’d think they saw Jim Cramer on the Daily Show and figured they’d better get out ahead of the curve.

As the cover story is not yet on line - The 7 New Rules of Financial Security - there’s something else in the April issue that is online that is well worth sharing, the equally shocking recommendation to buy commodities in this report by senior writer Janice Revell……Full Article: Source

Posted on 26 March 2009 by VRS |  Email |Print

From Reuters: The shake-out in the banking industry from the credit crisis has helped to boost margins in the commodities and energy business, where there are fewer banks competing for business.

“Margins on plain vanilla business have gone to levels not seen in a decade,” David Silbert, global head of commodities at Deutsche Bank, told Reuters in an interview this week……Full Article: Source

Posted on 26 March 2009 by VRS |  Email |Print

From Thestar.com.my: Equity markets over the past two weeks have experienced a rally not seen since before World War Two on hopes that the latest plan by the US to tackle its banking sector’s toxic assets, together with previous stimulus plans, will launch the economy and the rest of the world towards recovery.

That optimism, which was first ignited by Citigroup saying it had posted a profit in the first two months of the year, has also led to global commodities rebounding in tandem with equity markets……Full Article: Source

Posted on 26 March 2009 by VRS |  Email |Print

From Reuters: The chief executive officer of RBS Sempra Commodities, David Messer, has resigned from the post, a spokesman for RBS said on Wednesday.

RBS Sempra Commodities is a joint venture between Royal Bank of Scotland and Sempra Energy Messer became its CEO when the venture was formed last year……Full Article: Source

Posted on 26 March 2009 by VRS |  Email |Print

From Guardian: U.S. crude oil should average nearly $50 a barrel in 2009, as OPEC production cuts establish a floor under prices, but economic weakness will limit gains, a Reuters poll showed on Wednesday.
The consensus forecast in the poll of more than 30 analysts fell to an average for 2009 of $49.73 per barrel of U.S. crude oil, down from $51.52 in the previous poll in February……Full Article: Source

Posted on 26 March 2009 by VRS |  Email |Print

From Mmorning.com: The 12-state Organization of Petroleum Exporting Countries (OPEC), which pumps 40 percent of world oil supplies, opted to refrain from cutting output quotas at a regular meeting in Vienna over the weekend.
Instead, OPEC chose to delay any decision and called an extraordinary meeting for May 28, when ministers will reconvene in the Austrian capital to assess the market situation…….Full Article: Source

Posted on 26 March 2009 by VRS |  Email |Print

From Forbes: The Energy Department will likely report a 1.4 million barrel jump in crude oil reserves on Thursday for the week ended March 20, according to a survey by Platts, the energy information arm of McGraw-Hill Cos.

The Energy Information Administration releases its weekly report at 10:30 a.m. EST. Platts also expects gasoline stockpiles to fall by 900,000 barrels, distillate stocks to slip by 200,000 barrels and refinery capacity to stay at 82.1 percent……Full Article: Source

Posted on 26 March 2009 by VRS |  Email |Print

From Climatechangecorp.com: Rudd’s Carbon Pollution Reduction Scheme proposes a cap and trade system designed to reduce emissions by between 5 and 15 per cent.
The Australian Government has released draft legislation of its proposed emissions trading scheme, but the project faces an uncertain passage through parliament and will likely require significant changes if it is to become law……Full Article: Source

Posted on 26 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 26 March 2009 by VRS |  Email |Print

From IHT: Gold prices advanced Wednesday as investors took advantage of a recent dip in prices to buy up the precious metal. Other commodities, including grains and energy futures, fell.

Gold prices have seesawed in recent days, rising and falling as investors weigh concerns about a weak dollar and the long-term potential for inflation against signs of improvement in the economy. ……Full Article: Source

Posted on 26 March 2009 by VRS |  Email |Print

From Stockhouse.com: Short-term moves in the gold market are generally more subject to sentiment swings, reactions to news events and randomness than to changes in the fundamentals. It is, therefore, impossible to consistently predict, and often difficult to explain, the short-term moves.

However, on a long-term basis the gold price generally does what it should do based on our understanding of its most important fundamental drivers, which is why we rarely devote any space at TSI to gold market manipulation. We’ll use the following long-term chart of the gold/CRB ratio (gold relative to a basket of commodities) to illustrate what we mean. ……Full Article: Source

Posted on 26 March 2009 by VRS |  Email |Print

From Mineweb.com: Base metals have been having a reasonably good run of late - copper in particular - where some heartening Chinese figures have led to a degree of market optimism that could yet prove to be a misjudgment by the investment community.

While indeed base metals prices may have come back too far at their nadir, the fundamentals for sustained or increasing price levels do not look so good in the short term. Longer term, maybe, the impact of closures and new project delays will likely lead to shortages developing, but this may still be some way away…….Full Article: Source

Posted on 26 March 2009 by VRS |  Email |Print

From Reuters: Price breakouts in base metal markets late last week point to more short-term gains, but whether those rallies can push past an initial bout of enthusiasm would first require a sustained sideways pattern around newly achieved peaks.

In copper, though other base metal charts concur, a sharp move up last Thursday to levels last seen in November convinced some analysts that a new leg up had begun…….Full Article: Source

Posted on 26 March 2009 by VRS |  Email |Print

From Mineweb.com: Measured from low points in stock prices seen over the past 12 months, a selection of 100 of the world’s best-performing mining stocks have “bounced” by an average of 342%.

The MSCI Barra dollar index for all global equities, as a broad global benchmark has, by comparison, bounced by a much more modest 21%. This selection of the world’s top performing mining stocks is heavily peppered with gold stocks, supported by gold bullion, which retains its place as the world’s best performing commodity, relatively…….Full Article: Source

Posted on 26 March 2009 by VRS |  Email |Print

From Reuters: India’s capital market regulator has allowed companies to increase their exposure to the currency derivatives market by raising position limits for clients and non-bank trading members.

In a statement on its website on Tuesday, the Securities and Exchange Board of India said the limit on the gross open position of a client across all contracts is now 6 percent of the total open interest or $10 million whichever is higher……Full Article: Source

Posted on 26 March 2009 by VRS |  Email |Print

From WSJ: Currencies in Central and Eastern Europe, already battered by economic woes, have weakened in early trade Wednesday after the Czech government collapsed overnight.

The Czech koruna dropped by almost a percentage point against the euro, dragging other regional currencies down with it too, after the government lost a no-confidence vote……Full Article: Source

Posted on 26 March 2009 by VRS |  Email |Print

From Tradearabia.com: Saudi Arabia still believes the US dollar is the appropriate currency peg at this time and was confident in the US handling of the crisis, the central bank governor of the world’s top oil-exporter said on Wednesday.

“We have confidence that the US is throwing all the available weapons at the problem to stabilise the financial system,” said Muhammed Al-Jasser. …..Full Article: Source

Posted on 26 March 2009 by VRS |  Email |Print

From Commodityonline.com: Currency futures are showing signs of becoming the most attractive alternative asset class in the UAE so far in 2009, led by continued price volatility and a focus on currency risk hedging strategies, said Malcolm Wall Morris, Chief Executive Officer, Dubai Gold & Commodities Exchange (DGCX).

“The ongoing volatility in the currency markets will continue to encourage market participants to hedge their exposure to foreign currencies. From a long-term perspective, currency futures are especially beneficial to both individuals and commercial entities with investments abroad or those who are planning to invest abroad,” added Wall Morris……Full Article: Source

Posted on 26 March 2009 by VRS |  Email |Print

From Indexuniverse.com: Claymore Securities has filed papers for a new ETF tracking the Standard & Poor’s Commodity Trends Indicator, a momentum-based commodities index that aims to outperform the broader commodities market.

The index tracks 16 commodities futures contracts divided into six sectors: Energy, Industrial Metals, Precious Metals, Livestock, Grains and Softs. Rather than simply taking a long position in each commodity, however, the index takes either a long/short or long/flat approach based on momentum trends in each sector……Full Article: Source

Posted on 26 March 2009 by VRS |  Email |Print

From Efinancialnews.com: Eurex, the derivatives market co-owned by the German and Swiss exchanges, may buy a stake in a German agricultural futures market in an effort to expand its small commodities division, which currently extends to only gold and carbon dioxide contracts.…..Full Article: Source

Posted on 26 March 2009 by VRS |  Email |Print

From Financialexpress.com: National Commodities and Derivatives Exchange, which is trying to step up volume in bullion trading, has reduced the open position limits in gold futures for both brokers and individual traders by over 66% to 6 tonne and 2 tonne, respectively.

Earlier on the NCDEX platform, large brokers had exposure in gold up to 18 tonne including all gold contracts, which has now been reduced to 6 tonne, or 15%, of open interest, the NCDEX circular said…….Full Article: Source

Posted on 26 March 2009 by VRS |  Email |Print

From Newsday.com: A federal judge in Central Islip yesterday granted a preliminary injunction against Nicholas Cosmo, the Hauppauge businessman accused of operating a $380- million Ponzi scheme, barring him from engaging in commodities trading and freezing his assets.

U.S. District Court Judge Leonard Wexler granted the injunction against Cosmo, 37, on the basis of a request by the U.S. Commodity Futures Trading Commission……Full Article: Source

Posted on 26 March 2009 by VRS |  Email |Print

From UPI: Zambia’s copper-driven economy has stalled badly, turning a boom into a bust for investments and a hungry population, various sources said.

“We used to eat three meals a day. Now we do one,” said Lucas Ngoma, an electrician with a family of eight in Luanshya, Zambia, The Washington Post reported Wednesday……Full Article: Source

Posted on 26 March 2009 by VRS |  Email |Print

From BBC: The Ethiopian government has revoked the licences of six of the country’s main coffee exporters, accusing them of hoarding supplies.

It also confiscated 17,000 tonnes of stock of around 80 other traders, saying it would auction the coffee……Full Article: Source

Posted on 26 March 2009 by VRS |  Email |Print

From WSJ: China’s sugar reserve grew to 2.8 million metric tons at the end of December after the government raised the ceiling on the reserve from 1.6 million tons, said two people familiar with the situation.

The increase, the first of its kind since China established the sugar-reserve system in 1991, continues……Full Article: Source

Posted on 26 March 2009 by VRS |  Email |Print

From CNNMoney.com: Is this the worst economy since the Great Depression? And what are the chances of the economy falling into another depression?

The answer to the first question is fairly clear. In most ways that matter to economists and average Americans, this is the worst economic crisis since the Depression……Full Article: Source

See more articles in the archive

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