Sun, Apr 20, 2014
A A A
Welcome kbr175@gmail.com
RSS
Commodities Briefing 10.Oct 2011

Posted on 10 October 2011 by VRS |  Email |Print

Mark PervanThe rout in commodities prices is nearly over, according to ANZ Bank, which says fear of Western countries’ financial ailments infecting China is overstated. ANZ commodity research head Mark Pervan said metal and energy markets looked to be oversold but big rebounds were unlikely.
“We think prices are close to the bottom and will start to improve as the investment fund focus swings from Western-world concerns to emerging market opportunities,” Mr Pervan said……………………………………….Full Article: Source

Posted on 10 October 2011 by VRS |  Email |Print

Did you miss the old commodity bull market? Well its back! Back by popular demand the commodity bulls are coming back out of hiding. We saw a dramatic key reversal bottom on oil that was egged on by some very surprising drops in supply. Crude Oil has jumped 10% in last 2 days from $75 to $82.5.
A bottom not only in oil but across the commodity spectrum. Copper rebounded from deep in bear market territory rising 10% from lows of $6700 to $7350 and Gold seemed to rebound sharply from its low of $1600 per once to $1650 area……………………………………….Full Article: Source

Posted on 10 October 2011 by VRS |  Email |Print

In the view of Barclays Capital, the failure of European politicians to deal with debt issues in the region means another financial crisis has become more likely than it appeared even a few weeks ago. This suggests the risks of a global recession are increasing.
In the previous financial crisis that began in 2008 all commodity markets suffered but there was a wide range of performance between different markets and sectors. As examples, Barclays notes precious metals gained during the GFC and livestock and agricultural markets lost little in relative terms. In contrast, the base metals and energy markets saw the biggest falls in prices……………………………………….Full Article: Source

Posted on 10 October 2011 by VRS |  Email |Print

When the International Energy Agency (IEA) was established in 1974, it was the energy club of the rich OECD countries, accounting for 75 per cent of oil demand, but it is now less than half due to the rising requirements of the developing countries.
Therefore, the IEA is seeing its base of existence narrowing though more members have joined since. Nobuo Tanaka, the former executive director of IEA, told the Financial Times in March 2010; “Our relevance is under question because half of the energy consumption already is in non-OECD countries. And for oil it is soon coming that the majority of consumption is happening in non-OECD countries.”………………………………………Full Article: Source

Posted on 10 October 2011 by VRS |  Email |Print

If the status quo continues, global subsidies for fossil fuel consumption will reach $660 billion in 2020 - 0.7% of global gross domestic product, says the International Energy Agency (IEA).
In 2010, governments and taxpayers spent $409 billion propping up production and consumption of fossil fuels, up from $312 billion in 2009 - the year when G-20 Leaders agreed to phase them out, saying they “encourage wasteful consumption, reduce our energy security, impede investment in clean energy sources and undermine efforts to deal with the threat of climate change.”………………………………………Full Article: Source

Posted on 10 October 2011 by VRS |  Email |Print

Get ready for the Americas to pass OPEC as the dominant force in world oil production — and, yes, that includes the United States.
The Arab Spring has swept largely democratic sentiment throughout much of the Mideast this year. This, of course, is a great development for millions of people who have for far too long lived under oppression. But the upheavals are also reducing the region’s oil production……………………………………….Full Article: Source

Posted on 10 October 2011 by VRS |  Email |Print

The Iranian OPEC Governor, Mohammad-Ali Khatibi, says the organization’s members will probably keep their target oil output unchanged. “Oil producers and consumers are satisfied with the current price level for crude,” the Organization of Petroleum Exporting Countries’ chairman was quoted on Saturday by the Oil Ministry’s official website, Shana, as saying.
“It is predicted that most of the OPEC members agree to maintain the current level of oil production” during the organization’s next meeting, he added……………………………………….Full Article: Source

Posted on 10 October 2011 by VRS |  Email |Print

Saudi Arabia sees neither a decline in global oil demand nor a reduction in the kingdom’s exports due to increased output from Libya, Oil Minister Ali al-Naimi said on Sunday.
“I don’t think it will decline because, even with the global economic situation, the expectation for 2011 is still 1 million barrels more than 2010 and expectations for 2012 it is between 1.1 million barrels and 1.3 million barrels,” Naimi said in an interviewed on television channel Al Arabiya……………………………………….Full Article: Source

Posted on 10 October 2011 by VRS |  Email |Print

Gold has taken quite a beating lately, along with just about every other widely-traded investment product you can think of–barring the U.S. dollar and U.S. Treasury securities, that is.
The rise in price of the latter two and sharp, protracted drops in stocks, real estate and commodities shows just how much fear exists among traders and investors that an even more significant downturn is in the offing……………………………………….Full Article: Source

Posted on 10 October 2011 by VRS |  Email |Print

Gold is a non-national asset which becomes protection against inflation, deflation, and stagflation across the globe and it’s these qualities that will force the monetary system to bring gold back into the global, monetary system.
A situation arises where the quantity of money is not as important as how far its circulation reaches. It slowly becomes insufficient to buy the needs and wants of the population at the periphery of the economy……………………………………….Full Article: Source

Posted on 10 October 2011 by VRS |  Email |Print

It now looks like we were a little too bullish in the last update, for the way gold has acted over the past week suggests that another sharp drop is imminent before the dust finally settles on this reactive phase, that it likely to take it to or some way below its recent panic lows.
On gold’s 4-month chart it is now apparent that a bear Pennant has been forming since the panic bottom, with the weak upside volume portending an imminent breakdown and steep drop……………………………………….Full Article: Source

Posted on 10 October 2011 by VRS |  Email |Print

Gold may witness bullish trend and prices are expected to cross Rs 29,000 per 10 gram by Diwali, according to the Bombay Bullion Association.
“We expect gold prices to shoot up to Rs 29,000-30,000 per 10 gram by Diwali due to local demand,” Bombay Bullion Association President Prithviraj Kothari said……………………………………….Full Article: Source

Posted on 10 October 2011 by VRS |  Email |Print

Natixis Commodity Markets Ltd. Monday raised its 2011 and 2012 spot gold forecasts but revised its platinum group of metal prices slightly lower.
In its quarterly metals review Natixis raised its 2011 spot gold price forecast by 6% to $1,600 a troy ounce, from $1,510/oz in its July review. It also increased its 2012 gold price by 11.5% to $1,450/oz from $1,300/oz……………………………………….Full Article: Source

Posted on 10 October 2011 by VRS |  Email |Print

Dr Copper’s diagnosis for the global economy looks pretty dire. Futures prices for the economically sensitive metal are down by almost a third since their high earlier this year.
The metal is regarded as a leading indicator of the global economy. It is used in the construction of buildings, power generation and transmission and the manufacture of consumer electronics……………………………………….Full Article: Source

Posted on 10 October 2011 by VRS |  Email |Print

Three months ago there was some hope that policy makers would find ways to steer developed economies away from recession. Now it is clear they are floundering and that the threats of low growth have become more acute, with consequential prospects for metals markets.
That is the view of analysts at Natixis Commodity Markets in its latest overview of the major metals……………………………………….Full Article: Source

Posted on 10 October 2011 by VRS |  Email |Print

One of the fastest-growing financial products in the past 20 years, the exchange-traded fund, isn’t getting the traction it could be getting in Europe.
The problem is twofold: over-the-counter trades whose volume far exceeds that of ETF trading on exchanges, and an absence of reporting requirements, which limits the transparency of ETF trading volumes and pricing……………………………………….Full Article: Source

Posted on 10 October 2011 by VRS |  Email |Print

Speculators cut wagers on higher commodity prices to the lowest since July 2010 just as raw materials had the biggest three-day rally of the year.
Money managers cut combined net-long positions across 18 U.S. futures and options by 8 percent to 655,056 contracts in the week ended Oct. 4, data from the Commodity Futures Trading Commission show. The Standard & Poor’s GSCI gauge of 24 commodities rose 5.3 percent in the following three days, rebounding from a 10-month low……………………………………….Full Article: Source

Posted on 10 October 2011 by VRS |  Email |Print

Saudi Arabia could become the second Gulf country to have an official commodities bourse when but oil will not be traded in the new market to avoid any speculation, a Saudi newspaper said on Sunday.
A company with a capital of around SR one billion ($266 million) could be established in the near future to operate that bourse, which will be the second major commodities exchange in the region after Dubai’s commodities bourse……………………………………….Full Article: Source

Posted on 10 October 2011 by VRS |  Email |Print

One of the country’s leading bankers, Chris Goromonzi, is working on setting up a pan-African commodity spot and derivatives exchange where commodities would be traded in a move set to bring fairness in prices. Goromonzi’s Botswana-headquartered Bourse Africa is working with Financial Technologies Group, an Indian firm, to set up a pan-African bourse.
This comes at a time the government promoted Commodity Exchange of Zimbabwe (Comez) is still to take-off since its launch in January……………………………………….Full Article: Source

Posted on 10 October 2011 by VRS |  Email |Print

It’s going to be a pivotal year for the world’s financial exchanges. For years, the exchanges enjoyed soaring volume as they shifted their trading operations to computer systems from crowded trading floors. Now that boom is petering out—and the financial crisis has dented the turnover in stocks and derivatives.
So exchanges are seeking a new way forward. They’re looking to grow by sealing mergers, investing in more profitable businesses and capturing segments of trading that have long remained out of their grasp, everything from exotic derivatives to bonds……………………………………….Full Article: Source

Posted on 10 October 2011 by VRS |  Email |Print

A sudden wave of volatility in the Indian rupee has increased the degree of risk for companies and the financial system as a whole. Over the past three months, the rupee has fallen 12 percent against the dollar and could even slip to the 52 mark if European debt worries persist. Though many analysts foresee the currency clawing back to around 46, they believe that will take a while.
Many analysts think this volatility can be linked to jittery investors taking flight from emerging markets and moving to US government bonds………………………………………Full Article: Source

Posted on 10 October 2011 by VRS |  Email |Print

Increasing numbers of people are opening foreign currency deposit accounts to take advantage of the yen’s historically high levels. If the yen’s value against the U.S. dollar, euro and other major foreign currencies falls, depositors can earn profits by exchanging their foreign currency deposits into yen.
However, the accounts carry a degree of risk. Losses may balloon if the yen appreciates further and may even cause a loss of principal……………………………………….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