Sat, Sep 20, 2014
A A A
Welcome kbr175@gmail.com
RSS
Commodities Briefing 28.Nov 2011

Posted on 28 November 2011 by VRS |  Email |Print

Tom AlbaneseGlobal miner Rio Tinto warned on Monday that further cracks may be emerging in global commodities markets as the economies of Europe and the United States waver, with its customers increasingly cautious on the outlook.

Still, the world’s second largest miner of iron ore and a large producer of copper, coal, aluminium and other industrial staples, said it was able to sell all the commodities it could produce……………………………………….Full Article: Source

Posted on 28 November 2011 by VRS |  Email |Print

James PaulsenCommodities are beating equities for a fifth consecutive year, a sign that demand from developing economies is sustaining global growth that drove prices up almost fourfold in a decade.

While the MSCI All-Country World Index of equities dropped 15 percent this year and yields on Treasuries fell to near- record lows, the Standard & Poor’s GSCI Index of 24 commodities rose 0.7 percent. Goldman Sachs Group Inc. expects commodities to return about 15 percent in the next 12 months. The last time there was a recession, raw-material prices slumped 43 percent……………………………………….Full Article: Source

Posted on 28 November 2011 by VRS |  Email |Print

The CARBS are the major commodity producing countries – Canada, Australia, Russia, Brazil and South Africa – according to a report published last week by Citigroup’s equity strategists. They argue that “CARBS make you strong” and these countries should be considered a distinct asset class in their own right.

Between them the CARBS control commodity assets worth almost $60 trillion (£38.7 trillion) and 29pc of the world’s landmass. They produce between a quarter and a half of most major commodities……………………………………….Full Article: Source

Posted on 28 November 2011 by VRS |  Email |Print

A sharp slowdown in commodities revenues generated by leading investment banks between July and September suggests the boom is beginning to subside after a promising first half of the year, according to figures from data provider Coalition.

In the first nine months of 2011, total commodities revenues for the top 10 investment banks, according to Coalition, rose 16% to $5.49bn compared with the same period a year earlier……………………………………….Full Article: Source

Posted on 28 November 2011 by VRS |  Email |Print

Gold traders are more bullish after investors accumulated the biggest-ever hoard of the metal, with Europe’s deepening debt crisis driving them to protect their wealth with this year’s second-best performing commodity.
Eighteen of 26 surveyed by Bloomberg expect bullion to rise next week. Holdings in exchange-traded products backed by gold reached a record 2,350.8 metric tons on Nov. 23, now valued at $127.6 billion, according to data compiled by Bloomberg. Hedge funds and other speculators increased their net-long position, or bets on higher prices, for four weeks, the longest stretch since March, Commodity Futures Trading Commission data show………………………………………Full Article: Source

Posted on 28 November 2011 by VRS |  Email |Print

I have always stood firmly against a gold standard, but I remain a long-term commodity bull (yes that includes gold). I believe that while individuals should hold some precious metals or precious metal linked investments in their portfolios as a hedge against asset inflation, a gold standard introduces too many unnecessary rigidities in the system which creates economic volatility.
I came out against a gold standard back in December 2008, and I stand by my previous comments. There are numerous problems with a gold standard, which is another form of fixed exchange rate regime………………………………………Full Article: Source

Posted on 28 November 2011 by VRS |  Email |Print

Gold traders are more bullish after investors accumulated the biggest-ever hoard of the precious metal, as a hedge to Europe’s deepening debt crisis. The turmoil in Europe drove investors to protect their wealth with this year’s second-best performing commodity, which is up 19 percent, right behind the 24 percent gain in oil.

Hedge funds increased their long positions in gold, on bets that prices in the short term will go higher, Commodity Futures Trading Commission data shows……………………………………….Full Article: Source

Posted on 28 November 2011 by VRS |  Email |Print

The euro-zone’s sovereign default risks and the interlinked banking crisis should have spurred gold prices on safe-haven buying. But from the high of $1,921.15/ounce in September, gold price has fallen by 13 per cent as the crisis in Europe escalated.
Silver has also had significant price correction. We explain the reasons for the correction and also what rupee depreciation means to Indian gold and silver investors………………………………………Full Article: Source

Posted on 28 November 2011 by VRS |  Email |Print

Precious metals prices have remained under pressure this week as the dollar has strengthened, equity markets have weakened and economic insecurity has heightened over the US, Europe and China, said Barclays Capital in a briefing.

Gold prices slipped below $1700/oz and although physical demand responded to lower prices it has failed to provide a solid floor as yet. Instead investment demand has strengthened with ETP flows for November to date doubling flows recorded in October and taking total metal held to a new record high, while central bank net buying continues………………………………………Full Article: Source

Posted on 28 November 2011 by VRS |  Email |Print

The Gold-Silver ratio: Throughout history the ratio between gold and silver has been in the range of 12:1 to 16:1. What this means is that for every ounce of gold you would be able to exchange it for 12 to 16 ounces of silver. This was generally the case because there is approximately 12 to 16 times more silver in the earth’s crust than there is gold.

Although this ratio has remained quite constant, the current ratio is 50:1. With one ounce of gold you can currently buy a whopping 50 ounces of silver………………………………………Full Article: Source

Posted on 28 November 2011 by VRS |  Email |Print

Silver imports into India may be lower in 2011 as higher prices keep buyers at bay, an official of Scotia Mocatta said on Thursday. 2010 imports had stood at around 3030 tonnes.
Scotia Mocatta was chosen as the “Best Bullion Bank” for 2010-2011 by the Bombay Bullion Association. “Silver business is not that significant (by volume)…couple of months ago it was very good when prices had tapered off”, Rajan Venkatesh , Managing Director of Scotia Mocatta said………………………………………Full Article: Source

Posted on 28 November 2011 by VRS |  Email |Print

While the world remained focused on Tahrir Square — another revolution of its kind has been in the making — impacting, changing and altering the global energy dynamics.

The issue of global energy security seems changing nexus now, resulting in uncertain call on Saudi and OPEC oil in medium term. Large new, conventional and unconventional reserves in North America, and elsewhere, are questioning the dominant role of OPEC in meeting the global oil thirst. These new developments have also sapped the urgency to develop the Kingdom’s own reserves — further — at this stage……………………………………….Full Article: Source

Posted on 28 November 2011 by VRS |  Email |Print

Iran’s oil and gas reserves are so vast they cannot be excluded from the world market as France is urging the West to do, Mehr news agency Friday quoted the National Iranian Oil Company head as saying.
“Iran possesses massive oil and gas reserves… Thus ignoring Iran in oil and gas exchange will not be acceptable (by the international community),” said Ahmad Qalebani, who is also a deputy oil minister. France’s announcement that it would soon stop importing oil from Iran was hollow, he added………………………………………Full Article: Source

Posted on 28 November 2011 by VRS |  Email |Print

The next meeting of the Organization of Petroleum Exporting Countries due Dec. 14 is set to look into an expected drop in oil demand early next year, a top Iranian oil official said Saturday.

Muhammad Ali Khatibi, Iran’s OPEC governor, told Dow Jones, “In the second quarter of 2012, demand will be lower; it is seasonal demand.” “Usually, ministers look at it [demand] and decide what the ceiling should be,” he added……………………………………….Full Article: Source

Posted on 28 November 2011 by VRS |  Email |Print

The representative of Iran to the Organization of Petroleum Exporting Countries (OPEC) has said that any surplus of oil will be harmful for the global market. Mohammad-Ali Khatibi added that a balanced market will be beneficial for all the member states. “So, we should not allow any oil surplus to exist in the market.”
On November 21, Khatibi said in Riyadh he foresees a “positive” OPEC meeting next month. OPEC should be wary of a possible drop in demand next year, he added, Bloomberg reported……………………………………….Full Article: Source

Posted on 28 November 2011 by VRS |  Email |Print

Saudi Arabia, OPEC’s largest crude producer, will seek to ensure climate talks starting this week in Durban, South Africa, won’t unfairly limit the exporter group’s income, the kingdom’s envoy to the negotiations said.

Saudi Arabia and its OPEC partners are being asked to bear too much of the burden of cutting greenhouse-gas emissions because their economies depend on oil and natural-gas revenue, Mohammed al-Sabban, said in a speech at the Energy Dialogue conference in the capital Riyadh on Nov 21……………………………………….Full Article: Source

Posted on 28 November 2011 by VRS |  Email |Print

It is perfectly understood that no one renewable energy source will replace our dependence on fossil fuels. It will take an energy system mix where we rely on the combined input of many different renewable sources.
One such source is Biomass, the energy created by all living organisms. Biomass has always been relegated to the back of the queue of renewable energy sources because it requires large amounts of land and therefore would compete with food production and forests……………………………………….Full Article: Source

Posted on 28 November 2011 by VRS |  Email |Print

Frenetic speculation on ever more opaque and complex, intensely rigged energy and commodity markets has generated a contango-dominated context where only high prices now, and higher prices further out can save the day - for market operators and players.
This applies almost across the board and with few exceptions. The so-called market neutral change-on-a-dime flexibility does not apply for pure and basic financial reasons: equities have taken a solid beating and the loss has to be made up somewhere else in the “seamless asset space”………………………………………Full Article: Source

Posted on 28 November 2011 by VRS |  Email |Print

The Australian, Canadian and New Zealand Dollars – the so-called “commodity bloc” – have been the worst performers against their US namesake among the majors so far this year.
The outcome reflects the group’s sensitivity to global economic growth expectations and investors’ risk appetite at a time when the post-2008 crisis faces its most considerable headwinds yet, with output expansion increasingly expected to slow worldwide while the Euro Zone sovereign debt crisis threatens to unleash another credit disaster onto financial markets……………………………………….Full Article: Source

Posted on 28 November 2011 by VRS |  Email |Print

When the deadline for the introduction of a GCC single currency came and went last year, few were surprised. The project — much lauded on its launch in 2001 — has in many ways been doomed from the start. First there were the initial rows between Saudi Arabia and the UAE over the location of the central bank, then Oman and the UAE’s withdrawal from the project.

Even if that wasn’t enough, the dire straits that the euro finds itself in at the end of 2011 certainly hasn’t done much to restore faith in single regional currencies………………………………………Full Article: Source

Posted on 28 November 2011 by VRS |  Email |Print

Brazil’s real whipsawed in afternoon trading on Friday, as further negative developments in the euro-zone debt crisis and low trading volumes kept volatility high. Pressure has continued to build on the euro zone as talks by the heads of Germany, France and Italy on Thursday failed to find a solution as Germany opposed a joint euro-zone bond and a bigger role for the European Central Bank to stem the crisis.

Adding to that pressure, Italy paid a record 6.5 percent to borrow over six months on Friday and its longer-term borrowing costs soared far above levels seen as sustainable for public finances………………………………………Full Article: Source

Posted on 28 November 2011 by VRS |  Email |Print

For several months, India has suffered the double misfortune of a slowing economy and high inflation. Now, it has another problem: a rapidly depreciating currency.

The value of the rupee has fallen nearly 14 per cent, to 52.21 against the dollar, since the end of August as investors have stepped back from the Indian economy and many traders have stepped up bets against the currency. Less than three months ago, the rupee was trading at 45.79 to the dollar. ……………………………………..Full Article: Source

Posted on 28 November 2011 by VRS |  Email |Print

“Hold on, I’m in the middle of a Twitter war with Nouriel Roubini,” author James Rickards says as he answers the phone from his Manhattan office.

The martial metaphors come easily for Rickards, who argues in his new book, “Currency Wars,” that government attempts to devalue their currencies and inflate away their debts could set the stage for the mother of all financial crises, complete with a dollar collapse and the breakdown of all civil order……………………………………….Full Article: Source

Posted on 28 November 2011 by VRS |  Email |Print

As world leaders and scientists assemble next week for COP 17 in Durban, the main the focus of discussion, in the early sessions at least, will be the Kyoto protocol and the need for a binding international agreement on climate change. This is a redundant exercise.
The real driver for change in climate negotiations is the call for voluntary national commitments that was issued in 2009 at COP 15 in Copenhagen. Indeed, more has been achieved post-Copenhagen and Cancún through voluntary and nationally agreed carbon emissions reductions than in the 15-year circus of negotiations since Kyoto……………………………………….Full Article: Source

Posted on 28 November 2011 by VRS |  Email |Print

To grasp the almost suicidal state of unreality our Government has been driven into by the obsession with global warming, it is necessary to put together the two sides to an overall picture – each vividly highlighted by events of recent days.

On one hand there is the utterly lamentable state of the science which underpins it all, illuminated yet again by “Climategate 2.0”, the latest release of emails between the leading scientists who for years have been at the heart of the warming scare (which I return to below). On the other hand, we see the damage done by the political consequences of this scare, which will directly impinge, in various ways, on all our lives………………………………………Full Article: Source

See more articles in the archive

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