Mon, Apr 21, 2014
A A A
Welcome kbr175@gmail.com
RSS
Commodities Briefing 01.Oct 2010

Posted on 01 October 2010 by VRS |  Email |Print

From Praguepost.com: Recent volatility in wheat prices and a push for tighter EU market reform have put a spotlight on speculative commodity trading, a practice EU Internal Market Commissioner Michel Barnier called “scandalous” in January.
Agricultural commodities have been traded on markets for centuries, but in the past two decades, bankers and financial institutions have created instruments that push the trading into futures and hoard contracts on grains and other commodities such as coffee, sugar and pork……………………………………….Full Article: Source

Posted on 01 October 2010 by VRS |  Email |Print

From Indiatimes.com: Worldwide, trading companies have often found themselves embroiled in controversies — whether it is ‘Oil for Food’ (Masefield), government tenders (AWB) or violation of environment laws (Vedanta). Politics and commodity trading make a heady mix — names like Marc Rich (pardoned by Bill Clinton on the last day of presidency) and (Bofors) have not been able to keep distance from infamy. The reason: Pricing in commodities is inherently speculative.
Commodities generate no direct income. Instead, one can only sell a barrel of oil or a shipload of wheat to produce cash flow. The problem is that it’s forever unclear how much cash the commodity is likely to generate until the day of transaction arrives……………………………………….Full Article: Source

Posted on 01 October 2010 by VRS |  Email |Print

From Businessweek.com: It’s one expensive breakfast menu: Wheat futures up 70 percent since June. Corn at a 24-month peak. Coffee at a 13-year high. And lunch? Forget about burgers. Futures on cattle are at a 24-month high. Tofu and edamame? Soybeans are at their highest level since June 2009.
Extreme price volatility in commodities of all kinds is forcing companies to rethink their strategies—not just for managing the risk to earnings, but for making sure they can get the raw materials they need to meet growing global demand for their products……………………………………….Full Article: Source

Posted on 01 October 2010 by VRS |  Email |Print

From Mineweb.co.za: The latest Quarterly Commodities Review from Société Générale argues that, while the house view is that a double-dip in the United States is unlikely, the market is focusing on the possibility of a slide back into recession. Is the market unduly pessimistic about nickel?
The bank notes that commodity investment inflows have been moderate during the first half of 2010, with net flows of between $4 Bn and $5 Bn per quarter; these inflows are expected to slow until the macro outlook has cleared, which should be around the middle of 2011. Thereafter, inflows should increase substantially, taking commodity prices higher, but at a moderate pace……………………………………….Full Article: Source

Posted on 01 October 2010 by VRS |  Email |Print

From Reuters: Macro hedge funds should find themselves able to profit from strong emerging market currencies and commodity opportunities, while staying nimble enough in changing market conditions, said fund firm Permal.
Omar Kodmani, senior executive officer at Permal Investment Management Services, which runs funds of hedge funds, told Reuters such funds are well suited to current market conditions, where investor sentiment can quickly swing between economic optimism and fear……………………………………….Full Article: Source

Posted on 01 October 2010 by VRS |  Email |Print

From Miningweekly.com: Gold producers added a net 160 000 oz of hedging in the second quarter of this year, marking a shift from an extended period of sharp hedge cuts, consultancy GFMS said on Thursday.
In its quarterly global hedge book analysis, published with Societe Generale, GFMS said the figure represented a two percent addition to the total global hedge book, which stood at 7,19-million ounces at mid-year……………………………………….Full Article: Source

Posted on 01 October 2010 by VRS |  Email |Print

From Theglobeandmail.com: Gold’s at $1,300 (U.S.) an ounce and climbing, the world’s a confusing mess and you want the security that the fabled metal promises. Yet everyone has a different idea how to do so.
Bullion finds: These are mutual funds or exchange-traded funds (ETFs) whose underlying assets are either physical gold itself, or certificates or futures that are directly exchangeable for gold………………………………………..Full Article: Source

Posted on 01 October 2010 by VRS |  Email |Print

From Miningmx.com: Gold is headed rapidly higher – perhaps to $1 400/oz – according to both Paul Walker, CEO of GMFS, and Martin Murenbeeld , chief economist at DundeeWealth Economics. However, they disagree vehemently over how long it will stay there.
The two gold gurus squared off in a verbal shootout during a lunchtime debate at the Denver Gold Forum, held recently in Denver, Colorado……………………………………….Full Article: Source

Posted on 01 October 2010 by VRS |  Email |Print

From Hardassetsinvestor.com: Six trading days and counting. That’s how long the SPDRs Gold Shares Trust has been overbought. Not that this condition hasn’t cropped up before. Since its debut in 2004, trust shares have tipped the needle into the overbought red zone 18 times. (Make that 19, counting the current market.)
So, what does “overbought” mean?………………………………………Full Article: Source

Posted on 01 October 2010 by VRS |  Email |Print

From Mineweb.co.za: Billionaire John Paulson, whom the Financial Times considers the second most successful hedge fund manager ever, predicted recently that gold could hit $2,400 to $4,000 per ounce as double-digit inflation coming by 2012 kills the bond market and restores strength to gold.
Speaking before a SRO crowd at New York City’s University Club, Paulson said 80% of his assets are in gold. His investment is spread out between ETFs, physical bullion and shares of gold mining stocks……………………………………….Full Article: Source

Posted on 01 October 2010 by VRS |  Email |Print

From Resourceinvestor.com: Analysis of the long-term relationships of gold with other assets shows that, in most instances, physical gold and silver and the shares of the companies that mine those metals have “truly major” upside potential in coming years.
The Dow/gold ratio suggests a possible future $10,400 price for gold. At 8.5x the Dow/gold ratio is currently slightly above the long-term median of 8x. This means that gold is still relatively inexpensive in comparison with the Dow Jones. Bull markets tend to end in euphoria and excess, however, which is why we expect substantially lower values………………………………………Full Article: Source

Posted on 01 October 2010 by VRS |  Email |Print

From CNN: The price of gold seems to have no limit, but recent movement in the price of silver points to a potential end to gold’s rally. For a peek into the future of the price of gold, look no further than its precious metal sibling, silver.
The poor man’s gold has been on the same streak as the yellow metal, but recent moves have some of the most bullish players wondering if precious metals might be headed toward the end phase of their rally — a point where prices might not get much higher……………………………………….Full Article: Source

Posted on 01 October 2010 by VRS |  Email |Print

From Economist.com: At the first Olympic games of the modern era in 1896, winners were awarded silver medals. Since then the metal has had to get used to second-class status. But for some time now silver prices have been outpacing those of gold, its flashier neighbour on the periodic table.
On September 29th silver exceeded $22 an ounce, a price not seen since 1980 when the Hunt brothers, a pair of Texan oil barons, unwisely attempted to corner the market. Then silver spiked as high as $50 an ounce before the strategy unravelled, sending the price crashing and the Hunts back to the oil business……………………………………….Full Article: Source

Posted on 01 October 2010 by VRS |  Email |Print

From Resourceinvestor.com: Every man, woman and canine following the rare earths space will be aware of the ongoing saga of China’s alleged unofficial ban on rare earth exports to Japan.
We’ve been told that China got uppity with Japan over its arrest of a fishing trawler captain, and the next thing you know China was apparently telling rare earth exporters, to quietly yank on Japan’s chain, through the temporary cessation of exports [because of course doing it quietly in this way, would mean that no-one would put two and two together, right?]……………………………………….Full Article: Source

Posted on 01 October 2010 by VRS |  Email |Print

From Reuters: The United States wants more countries to boost production of so-called rare earth metals used in clean energy technology products to break China’s monopoly on the supplies, a top Energy Department official told Congress on Thursday.
Diversifying supplies of the rare metals is important to the Obama administration, because they are used in electric cars, solar panels and wind turbines, all of which the White House is promoting in its overhaul of U.S. energy policy……………………………………….Full Article: Source

Posted on 01 October 2010 by VRS |  Email |Print

From Wallstreetpit.com: Base metal prices took a big hit from the financial crisis but many of the metals are now seeing their shine return. Since late 2008, copper has experienced the strongest rebound (up 137 percent through mid-September) followed by nickel and lead.
The outperformance is simply a factor of supply and demand. Stimulus from China, the U.S. and other countries helped demand outstrip supply as mines have struggled to raise output……………………………………….Full Article: Source

Posted on 01 October 2010 by VRS |  Email |Print

From Reuters: China’s greenhouse gas emissions may hit levels in the next two years beyond which the world will struggle to ward off dangerous global warming, unless rich nations make deep cuts, say climate scientists.
Beijing next month hosts for the first time long-running U.N. negotiations seeking to agree a new global regime to rein in greenhouse gases……………………………………….Full Article: Source

Posted on 01 October 2010 by VRS |  Email |Print

From Independent: China has warned US lawmakers they are playing with fire by promoting a new law to impose trade sanctions on the country over their currency dispute. The Chinese authorities yesterday lashed out at Congressional moves they said amounted to protectionism, raising the temperature ahead of several important international summits.
The latest developments in the dispute over the value of the renminbi, which US politicians say is being held artificially low to give Chinese exporters a competitive edge, comes in the same week that Brazil’s finance minister said countries were engaged in a dangerous “international currency war”, designed to boost their own economies with undeclared, gradual, beggar-thy-neighbour devaluation……………………………………….Full Article: Source

Posted on 01 October 2010 by VRS |  Email |Print

From Reuters: A currency and commodities exchange in Mauritius will launch trading on October 18, offering trades in gold, silver and five currency pair derivatives, the exchange’s operating group said.
The Global Board of Trade (GBOT) said it would offer Mauritius rupee/U.S. dollar, dollar/rand, euro/dollar, British pound/dollar and Japanese yen/dollar pairings……………………………………….Full Article: Source

Posted on 01 October 2010 by VRS |  Email |Print

From Reuters: Deutsche Bank has hired Sander Stuijt as director to expand its structured commodity trade finance team, the bank said on Thursday.
“This appointment is part of our team’s concerted growth agenda and testimony to our success and ambitions in the commodities business,” Deutsche Bank’s global head of structured commodity trade finance John MacNamara said……………………………………….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