Sat, Apr 19, 2014
A A A
Welcome kbr175@gmail.com
RSS
Commodities Briefing 14.Oct 2011

Posted on 14 October 2011 by VRS |  Email |Print

Gemma GodfreyA sharp sell-off in commodity markets in the past few weeks is wreaking havoc with the track records of some of the biggest-name funds in the sector, many of which now languish near the bottom of the $2 trillion (1.27 trillion pound) industry’s performance tables.
Funds like Mike Coleman’s Merchant Commodity fund and Willem Kooyker’s Blenheim Capital sit on hefty double-digit losses for the year after investors worried about global economic growth recently dumped gold, copper and cocoa for less-risky assets……………………………………….Full Article: Source

Posted on 14 October 2011 by VRS |  Email |Print

JPMorgan trimmed its commodities trading risk in the third quarter while upping its risk in currencies and bonds, as heightened volatility across markets reduced the attractiveness of riskier assets like raw materials.
JPMorgan Chase & Co, the first major U.S. bank to announce results for the period, reported lower third-quarter profits, including a decline in quarterly revenues in its Fixed Income Markets business, which includes commodities……………………………………….Full Article: Source

Posted on 14 October 2011 by VRS |  Email |Print

The latest trade data shows imports holding up in September; the volume of major commodity imports was little changed from August. But standing back from the monthly detail, 2011 isn’t a strong year. Imports of copper and soybeans have fallen from 2010. Growth in oil imports is sharply down.
There could be worse to come. Overcapacity in the real-estate sector at home and fading demand for Chinese goods abroad, with exports falling for a second month in September, suggest tough times ahead……………………………………….Full Article: Source

Posted on 14 October 2011 by VRS |  Email |Print

The world’s biggest consumer of key commodities is dieting, as China is showing restraint from its usual feast on imported copper, soy beans and crude oil. That’s likely to impact agricultural markets, although not as much as industrial materials, some analysts argue.
In a review of the most recent trade data from Asia, Dow Jones’ Tom Orlik suggests that tougher times could be ahead as overcapacity in real estate and falling demand for its goods abroad figure to slow China’s economy……………………………………….Full Article: Source

Posted on 14 October 2011 by VRS |  Email |Print

Gold’s biggest slump in three years means traders and analysts are now the most bullish in three months, speculating that Europe’s debt crisis, slowing growth and a bear market in equities will drive demand for bullion.
Twenty-two of 25 people surveyed by Bloomberg expect the metal to rise next week, the highest proportion since mid-July. Prices rebounded 8.3 percent since reaching a two-month low at the end of September and investors are adding to their holdings in gold-backed exchange-traded products for the first time in a month, according to data compiled by Bloomberg……………………………………….Full Article: Source

Posted on 14 October 2011 by VRS |  Email |Print

BNP Paribas cut its gold price forecasts for 2011 through 2013, following the recent pullback in the precious metal’s prices and said a further correction may be possible in the near term.
The brokerage said another episode of extreme risk aversion in the short term could potentially see gold correct further from its current level, as its sales offset losses in other asset classes. Analyst Anne-Laure Tremblay, however, expects bullion to continue trend higher until 2013……………………………………….Full Article: Source

Posted on 14 October 2011 by VRS |  Email |Print

Europe’s financial health is getting worse and it is likely that the group of nations will need to find as much as $2 trillion in fresh money to stabilise the currency.
And, despite continued resistance to the notion, most recently from Slovakia, a failure to do so could well lead to a 1930s style depression in Europe……………………………………….Full Article: Source

Posted on 14 October 2011 by VRS |  Email |Print

Silver is slowly grinding higher and is expected to move through the $33.50/oz range high, based on technical analysis. The metal could meet selling interest near $35/oz-$36/oz.
Appetite for physical Silver continues to be strong despite the metal’s record of sharp price swings. Sales of U.S. Mint silver eagle coins so far this year are already greater than for the whole of last year, which was itself a record……………………………………….Full Article: Source

Posted on 14 October 2011 by VRS |  Email |Print

Over the past year we have been learning more about the financial situations across the pond in Europe. With international issues on the rise, investors are panicking trying to find a safest haven for their capital. This money has been bouncing from one investment to another trying to avoid the next major crash in stocks, bonds, currencies and commodities.
It seems every six months there is a new headline news issue at hand forcing the smart money to withdraw from one investment class to another hoping to avoid the next meltdown……………………………………….Full Article: Source

Posted on 14 October 2011 by VRS |  Email |Print

Copper is arguably the most useful of industrial metals, as it can be found in a number of household products. Aside from its most evident uses, in wiring and plumbing, copper is a key element in auto parts like brakes and cooling systems, and even the Statue of Liberty, whose brilliant structure is made from over 80 tons of copper.
It seems that today, the only metal investors truly care about is gold, as its volatile price swings and rapid price appreciation in recent years has pushed it into the limelight. But gold’s practical uses are extremely limited, making it more of a speculative investment than one in industry……………………………………….Full Article: Source

Posted on 14 October 2011 by VRS |  Email |Print

As Zinc consumption reaches record levels and inventories decline, prices may shoot by as much as 27% by next year marking the start of a bull market.
LME zinc is currently trading above $1800/tonne and prices could climb 27% to $2450/tonne within next year, a Bloomberg survey of analysts, traders and producers show……………………………………….Full Article: Source

Posted on 14 October 2011 by VRS |  Email |Print

Not long ago, tin ruled the economies of states like Perak and Selangor. Alongside rubber, tin was in fact the darling of the country’s economy then. Those in the thriving tin industry enjoyed a higher income and a better standard of living compared with the rest. Much of the infrastructure investment then was to cater to tin logistics.
This was to feed a growing world demand for the metal. Tin was a much sought after material in the packaging and soldering business. The price was also reasonably high. In a nutshell, tin was highly profitable. But all this changed after 1985……………………………………….Full Article: Source

Posted on 14 October 2011 by VRS |  Email |Print

The rare earth sector has seen astronomical gains in recent years as Chinese export restrictions, short-sighted US policy and investor interest combined to make front page news.
The competition among non-Chinese junior mining companies to successfully mine rare earth elements (REEs) began as a footrace and evolved into a full-on stampede. That race is now unraveling, thanks to slower global economic growth and the sheer number of exploration companies involved in rare earth exploration……………………………………….Full Article: Source

Posted on 14 October 2011 by VRS |  Email |Print

Nickel is less complicated. It has one use-stainless steel. You just have to look at demand for that and things look pretty good there. On the nickel supply side, it is changing radically. The cheap, easy-to-operate nickel mines are being mined out and being replaced by expensive-to-build and operate nickel mines.
So you need high nickel prices to bring into production and sustain those mines. If nickel prices go down, those may be shut down, which will reduce supply and increase prices……………………………………….Full Article: Source

Posted on 14 October 2011 by VRS |  Email |Print

The oil industry has an overwhelmingly gloomy economic outlook, expecting recession in the next year, less demand for fuel and lower oil prices, a survey of delegates to a major industry conference showed this week.
Seventy-seven percent of participants at the annual Oil & Money conference on Tuesday and Wednesday in London said the chances of another recession in the world’s developed economies of the OECD were high with only 23 percent seeing them as low………………………………………Full Article: Source

Posted on 14 October 2011 by VRS |  Email |Print

Oil prices are fluctuating Wednesday, as economists and investors consider how much oil the world will consume in coming months.
Fears of another recession have diminished as European financial leaders take steps to strengthen their banking system. Still, analysts predict tepid economic growth. Overall, research groups say the world is consuming oil at a slower pace than previously expected……………………………………….Full Article: Source

Posted on 14 October 2011 by VRS |  Email |Print

Demand for gold exchange traded funds (ETF) in India is likely to “explode” as investors get accustomed to “click-and-park” mode of investing, shying away from sagging stock markets and as high inflation eats into bank savings, a trade body head told Reuters on Thursday.
“Clearly people are seeing convenience in the form of ETF, going through the same broker which he has for equities,” said Ajay Mitra, managing director - India and the Middle East, World Gold Council (WGC………………………………………Full Article: Source

Posted on 14 October 2011 by VRS |  Email |Print

The impressive pace of expansion in the ETF industry over the last several years has been well documented; continuous product development has resulted in the launch of more than 250 so far in 2011, and there are now more than 1,300 names in the ETF lineup.
But while the depth of the ETF space has increased, the industry remains quite top-heavy; a relatively small number of products accounts for the lion’s share of total assets……………………………………….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