Wed, Sep 3, 2014
A A A
Welcome kbr175@gmail.com
RSS
Commodities Briefing 30.May 2011

Posted on 30 May 2011 by VRS |  Email |Print

The power or (the lack of it) of ‘sell-side research’ (undertaken typically by brokerage houses, investment banks and others who give ‘buy’, ‘sell’ or ‘hold’ calls) was briefly demonstrated in global commodity markets last week.
Early in the week Goldman Sachs and Morgan Stanley raised their forecast of Brent crude prices by the end of the year to $115 per barrel for a 3-month horizon, $120 per barrel for a 6-month horizon and $ 130per barrel for a one year horizon thereby sending a ‘buy’ signal to the market……………………………………….Full Article: Source

Posted on 30 May 2011 by VRS |  Email |Print

Boone PickensMany investors strongly feel that if interest rates rise, gold will automatically fall. But is that going to be true?
There’s a great deal more involved in this story than just interest rates. I think that all commodities are set to rise further this year with prices peaking in 2012 or 2013 when the dollar crisis is likely to hit. The dollar has lost 50% of its value in the last 27 years against major currencies globally……………………………………….Full Article: Source

Posted on 30 May 2011 by VRS |  Email |Print

Despite a recent significant drop in commodity prices that may be the beginning of a longer slump, Fidelity Investment Management has argued the structural case for commodities remains strong.
The recent drop was the result of growing concern about the strength of global demand, on the back of rising interest rates in emerging markets which triggered a monetary tightening cycle that would hold back developing economies, according to Fidelity investment director Tom Stevenson……………………………………….Full Article: Source

Posted on 30 May 2011 by VRS |  Email |Print

JPMorgan chase plans to expand its physical trading activity in China’s oil market, Indonesia’s coal sector and across Asian metals to cash in on what it sees as a long-term bull market, the head of the bank’s Asian commodities unit said.
Despite a sharp fall in commodities prices in the first-half of May, JPMorgan is bullish on the sector’s future prospects as developing economies consume more raw materials, said Ray Eyles, chief executive of the bank’s Asian commodities business………………………………………Full Article: Source

Posted on 30 May 2011 by VRS |  Email |Print

Glencore, the world’s biggest commodities trader, located about 30 kilometres outside Zurich, Switzerland, has not been a big name in the public domain, because it has been in private hands for almost 40 years.
But now it represents 2011’s biggest sharemarket listing, or IPO, and in floating on the London and Hong Kong stock exchanges, Glencore has almost instantly opened itself up to all sorts of criticism……………………………………….Full Article: Source

Posted on 30 May 2011 by VRS |  Email |Print

When such a large scale IPO hits the market, there are some concerns as whether this is a sign of the commodity cycle peaking. The Glencore IPO is the largest since General Motors sold shares in November, and will give Glencore a value of $61 billion if priced at the midpoint of its offer range.
There are signs of market over-heating with the IPO demand having been enough to sell the shares on offer in Glencore more than twice over……………………………………….Full Article: Source

Posted on 30 May 2011 by VRS |  Email |Print

U.S. oil prices were well off early highs on Friday after data showed U.S. home sales plunged in April, adding to the latest crop of weak economic signals, and wiping away most of the day’s early gains sparked by a weaker dollar.
Industry data showed pending sales of existing U.S. homes fell more than expected in April to hit a seven-month low, dashing hopes for a recovery in the vital housing market……………………………………….Full Article: Source

Posted on 30 May 2011 by VRS |  Email |Print

Relations between Qatar and the UK are as strong as they have ever been, according to a visiting British government official, who praised Qatar’s efforts in brokering peace throughout the wider region and warned against the effects of a rise in the price of oil as the world emerges from a global financial crisis.
Minister of State of the Foreign and Commonwealth Office Lord David Howell called for more dialogue between Opec and consumer countries, and having worked on such discussions for some 30 years as part of his role as the former minister of state for energy, he said that the need for talks and closer ties was as pressing as ever……………………………………….Full Article: Source

Posted on 30 May 2011 by VRS |  Email |Print

U.S. dollars for OPEC oil help fund terrorists and the Taliban, T. Boone Pickens said. “I am trying to get away from the terrorists,” he said. “I think the money we pay to OPEC gets in the hands of the Taliban.”
The U.S. is sitting on top of a huge supply of natural gas, he said — so much that American companies are selling it to China and other countries. “So here we are, we’re exporting our clean-burning fuel and importing dirty oil from the enemy,” he said. “We’re gonna go down as the dumbest crowd in history that’s ever come to town.”………………………………………Full Article: Source

Posted on 30 May 2011 by VRS |  Email |Print

When it comes to commodity investing, most of us are familiar with the different types of commodities that we can invest in. Popular choices are energy commodities, such as oil and natural gas, or the agricultural or “soft” commodities like corn, wheat and cotton.
Metals are also popular investments, and many people use gold as a type of currency in times of economic uncertainty. Another group of less recognisable metals has also joined the investment conversation – the rare earth metals (REM)……………………………………….Full Article: Source

Posted on 30 May 2011 by VRS |  Email |Print

The front page headline in the Wall St. Journal a couple of weeks ago read, “Goldman Sachs (GS) warns of surplus with rare earths(REMX), rare earths seen growing less rare.” If there was ever a case of journalistic malfeasance or in the least clumsy misinformation, this article had to be it.
To begin with the analyst may have been wrong. In my opinion the headline should have read, “Rare Earths Seen Growing Rarer-Possible Mass Buying Explosion Straight Ahead.”………………………………………Full Article: Source

Posted on 30 May 2011 by VRS |  Email |Print

Steel demand in China, the world’s biggest consumer, may rise by as much as a quarter by 2015 compared with demand last year, according to a projection from the China Iron & Steel Association, which represents producers.
Consumption may increase between 12 percent and 25 percent from the level in 2010 to as much as 750 million metric tons in 2015, Luo Bingsheng, deputy party secretary of the association, which is known as CISA, said……………………………………….Full Article: Source

Posted on 30 May 2011 by VRS |  Email |Print

One of the contributors to the low gold prices of the 1970s was substantial hedging of forward output by mining companies, either as corporate policy, or at the insistence of lending institutions who wished to protect their positions should the price fall further.
Conversely, a contributor to the rise in gold prices over the past few years has been very substantial de-hedging by, in particular, the gold majors, which has effectively soaked up some gold demand, as belief grew that the run up in the gold price had much further to go……………………………………….Full Article: Source

Posted on 30 May 2011 by VRS |  Email |Print

Silver is the volatile precious metal. For example, a few weeks before the collapse of Lehman Brothers in September 2008, it took 51 ounces of silver to buy one ounce of gold. At the height of the market turmoil one month later, it took 84 ounces of silver to buy that same ounce. What makes silver so volatile?
The demand for silver is ”elastic” – to put it into economic terms – while the demand for gold is ”inelastic”……………………………………….Full Article: Source

Posted on 30 May 2011 by VRS |  Email |Print

When researching last week’s column on the differences between exchange traded funds (ETFs) and exchange traded notes (ETNs), I ran into some confusion in the industry over whether Absa’s NewGold ETF is, in fact, an ETF or whether it should be classified as an ETN, particularly since Standard Bank’s commodity products are ETNs.
Clarification on this issue is important because:………………………………………Full Article: Source

Posted on 30 May 2011 by VRS |  Email |Print

They started as a cheap and easy way for investors to track stock markets. But as the range and complexity of exchange-traded funds has grown, so have the fears that some savers may be getting in over their heads.
The Financial Services Authority has voiced concerns and last month the Financial Stability Board, an international body charged with guarding against bank failures, warned that the growth in these funds could destabilise the financial system……………………………………….Full Article: Source

Posted on 30 May 2011 by VRS |  Email |Print

Funds boosted bets on rising agricultural prices for the first time in four weeks, led by rebounds in holdings of wheat and soybeans, as extreme weather threatened to limit output as global demand increases.
Speculators raised their net-long positions in 11 U.S. farm goods by 8.9 percent to 723,658 futures and options contracts in the week ended May 24, government data compiled by Bloomberg show……………………………………….Full Article: Source

Posted on 30 May 2011 by VRS |  Email |Print

As part of the efforts to deepen the Nigerian capital market and widen its products offerings, the Securities and Exchange Commission (SEC) and the Central Bank of Nigeria (CBN) are championing the revival of the Abuja Securities and Commodities Exchange (ASCE).
The ASCE, which was established as the Abuja Stock Exchange, was converted to a commodity exchange to facilitate trade in commodities as opposed to shares and bonds. Although it commenced operations in 2006 as a commodity exchange trading in sorghum, maize, cowpea, Soya beans, sesame seeds and millets, it has not been as active as expected……………………………………….Full Article: Source

Posted on 30 May 2011 by VRS |  Email |Print

Exchanges say it’ll help trade in illiquid commodities; FMC weighs pros, cons and own monitoring ability. The commodity derivatives market regulator, the Forward Markets Commission (FMC), is considering a proposal to allow market makers in commodity futures.
Market makers both buy and sell quotes, ensuring liquidity in the contract being traded. This provides an opportunity to hedgers and investors to buy or sell the commodity, as someone is always there to complete the transaction……………………………………….Full Article: Source

Posted on 30 May 2011 by VRS |  Email |Print

It is no surprise to anyone that oil and other commodities are big business; few other resources are as vital to everyone’s day-to-day life as oil. The markets and traders that are brought to the commodities markets are often deeply enmeshed in the politics therein, and use this knowledge to profit from speculation.
When a commodity such as oil goes up in price dramatically it can cause change in the value of the USD on the online forex exchange. The power of oil is all-too apparent to many who do not hesitate to manipulate the price of the substance in an effort to profit……………………………………….Full Article: Source

Posted on 30 May 2011 by VRS |  Email |Print

China’s yuan has hit a record high against the US dollar after the US Treasury department said the Chinese currency was undervalued but not manipulated.
The People’s Bank of China (PBOC) fixed the yuan’s mid-point at an all time high of 6.4856 against the US dollar on Monday……………………………………….Full Article: Source

Posted on 30 May 2011 by VRS |  Email |Print

Greenhouse gas emissions increased by a record amount last year, to the highest carbon output in history, putting hopes of holding global warming to safe levels all but out of reach, according to unpublished estimates from the International Energy Agency.
The shock rise means the goal of preventing a temperature rise of more than 2 degrees Celsius – which scientists say is the threshold for potentially “dangerous climate change” – is likely to be just “a nice Utopia”, according to Fatih Birol, chief economist of the IEA……………………………………….Full Article: Source

See more articles in the archive

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