Tue, Sep 23, 2014
A A A
Welcome kbr175@gmail.com
RSS
Commodities Briefing 06.Nov 2012

Posted on 06 November 2012 by VRS |  Email |Print

Stick, twist or fold? Like card players, the top five banks in global commodities trade have reached the point where they must decide to hold strategy, adapt, or give up and get out.
The boom in resource markets that started 10 years ago attracted many big banks to trade oil, metals and agriculture, but the 2008 financial crisis forced a painful retreat and tighter regulation now means some banks may throw in the towel………………………………………..Full Article: Source

Posted on 06 November 2012 by VRS |  Email |Print

Commodity traders think about the United States for natural gas, Saudi Arabia and other Middle Eastern nations for oil, Africa for gold, and Asia for foods such as rice. In doing so, they sometimes ignore commodity-rich Canada.
Canada has the seventh-largest economy in the world and is the second-largest country by land mass. It has a wealth of natural resources, making it a large energy and minerals exporter. For commodity traders looking to invest primarily in North America, Canada presents a compelling opportunity………………………………………..Full Article: Source

Posted on 06 November 2012 by VRS |  Email |Print

According to the CIA World Fact Book, the United States operates the largest single-country economy in the world. Its gross domestic product for 2011 was estimated at $15.3 trillion, trailing the European Union, which is comprised of 27 different countries, by only $360 billion.
China remains in third place, as the developing economy continues to see rapid growth in recent years due to its build out of industrial capacity and its growing class of individual consumers. Growth in the U.S., however, remains subdued below 2%. The global economic slowdown has certainly hampered the nation’s growth, but there still remain a few economic bright spots, namely the advancement of domestic energy production………………………………………..Full Article: Source

Posted on 06 November 2012 by VRS |  Email |Print

Although the geographical size of China is perhaps not that difficult for North Americans to appreciate, their population is another matter. As China has become the second-largest economy in the world, it is without question transformed into an enormous force in the world’s commodity markets; so much so, in fact, that the recent commodity supercycle is now generally seen as a byproduct of China’s emergence.
China’s mining industry is quite large, but in many respects quite out of date. It is difficult to find specific numbers regarding mining’s contribution to China’s economy, but direct mining activities are likely not much more than 5% of China’s GDP, and the industry employs about 4% of the country’s workers………………………………………..Full Article: Source

Posted on 06 November 2012 by VRS |  Email |Print

OPEC member Kuwait plans to spend some $100 billion on oil projects inside and outside the Gulf state over the next five years, a top oil executive said Monday.
“Around $100 billion has been earmarked for oil projects … 60 percent of it on upstream projects inside and outside Kuwait,” CEO of national oil conglomerate Kuwait Petroleum Corp. Faruq al-Zanki told reporters………………………………………..Full Article: Source

Posted on 06 November 2012 by VRS |  Email |Print

Iranian oil minister Rostam Ghasemi renewed Monday a threat to halt all oil exports if the West imposes more sanctions against Tehran, oil ministry news service Shana reported.
“If the West increases sanction pressures, the Islamic republic, in reaction, will revise the trend of its crude oil exports,” Ghasemi was quoted as saying. “Iran is not willing that such a thing happens in the world.”……………………………………….Full Article: Source

Posted on 06 November 2012 by VRS |  Email |Print

Commuters across the globe may be filling their tanks with gasoline processed in China as the country moves to expand its refining capacity, the IEA said.
The International Energy Agency expects China to increase its refining capacity by as much as 2.9 million barrels within the next five years. The agency said it expected Chinese demand for oil to drop 1 million barrels per day for 2016 when compared to predictions made two years ago………………………………………..Full Article: Source

Posted on 06 November 2012 by VRS |  Email |Print

“Obama is just the man for the job if you’re hoping for a significant increase in the gold price,” writes Jan Skoyles. Full disclosure: Ms. Skoyles is a Brit — but a highly perceptive one, as you’ll soon see: She heads up research at a U.K. bullion dealer called The Real Asset Co.
“The evidence showing Democrats destroying the dollar more than Republicans, and second-term presidents benefitting gold prices even more during their second innings, is overwhelming,” Ms. Skoyles writes………………………………………..Full Article: Source

Posted on 06 November 2012 by VRS |  Email |Print

Morgan Stanley remains upbeat on gold longer term, suggesting more longs could exit in the near term but also saying this may prove to be a buying opportunity.
In a monthly commodities report, the firm describes itself as “still bullish ags and gold, though the former seems to lack any near-term catalysts. We see gold continuing to perform in 4Q12 with no near-term end in sight to the easing cycle, especially given the continuation in central-bank gold buying. We remain bullish ags but do not believe that there will be catalysts in the coming month as the U.S. harvest winds down and South American planting is ongoing.”……………………………………….Full Article: Source

Posted on 06 November 2012 by VRS |  Email |Print

Barclays Capital which was until recently very bullish on its gold outlook has now admitted that they went wrong and not expects market to trade range bound. Barclays has retained its rice forecast for Q4 12: $1810/oz, 2012 annual average: $1691/oz.
It may be recalled that last week Barclays had expressed caution about physical demand for gold emerging in the Asian region in November stating that it would be crucial to sustain prices of the yellow metal head………………………………………..Full Article: Source

Posted on 06 November 2012 by VRS |  Email |Print

The luster of gold and popularity of crude oil are hard to compete with, but iron ore miners are worth a look from long-term investors.
There’s a lot of talk these days about commodity stocks and their potential. The fashionable investment strategies seem to focus on gold — either physically via the SPDR Gold Trust ETF, or via miners like Barrick Gold and Goldcorp — or oil via majors like Exxon Mobil or small-cap energy service stocks like Hercules Offshore………………………………………..Full Article: Source

Posted on 06 November 2012 by VRS |  Email |Print

According to ETFGI US$13.5 billion of net new assets (NNA) flowed into global Exchange Traded Funds (ETFs) and Exchange Traded Products (ETPs) in October which is lower than the US$40 billion of net inflows in September 2012. Investors and investments suffered from growing uncertainty in October over the likely outcome of the US presidential election, the impact of the fiscal cliff in the US, the likely impact of superstorm Sandy and the on-going debt concerns in the Eurozone.
US listed ETFs and ETPs which traditionally account for the majority of NNA saw these uncertainties dampen the inflows into ETFs and ETPs listed in the US to just US$2.7 billion or 20% of NNA in October……………………………………….Full Article: Source

Posted on 06 November 2012 by VRS |  Email |Print

Chinese news source Xinhua has reported that China’s Cabinet, the State Council has proposed revisions to its Futures Trading Regulations which would allow overseas investors to trade within the country’s local market.
Currently, overseas traders are limited in participation to only China’s Equity and Index futures products. The new rules would allow for foreign involvement within the local market’s commodity markets………………………………………..Full Article: Source

Posted on 06 November 2012 by VRS |  Email |Print

The S&P GSCI index, one of two leading commodity indices for investors, will boost the share of U.S. WTI crude oil futures by 6.25 percentage points next year while cutting European benchmark Brent by 4 percentage points, owner S&P Dow Jones Indices said on Monday.
The changes in crude oil weights, the only significant adjustments in this year’s rebalancing of the 24 components, is a reversal of last year’s trends, when many indices added Brent or boosted its share. But production of Brent-type crudes is diminishing, while U.S. oil output is growing swiftly………………………………………..Full Article: Source

Posted on 06 November 2012 by VRS |  Email |Print

Group of 20 finance chiefs pledged to move toward more flexible currency regimes while highlighting policy makers’ commitment to avoid competitive devaluations as global growth sours.
“We reiterate our commitments to move more rapidly toward more market-determined exchange rate systems and exchange rate flexibility to reflect underlying fundamentals,” finance ministers and central bankers of G-20 nations said in a statement yesterday after a two-day meeting in Mexico City………………………………………..Full Article: Source

Posted on 06 November 2012 by VRS |  Email |Print

Take a sputtering U.S. economic recovery. Add in one of the closest presidential elections in history. Top it with a natural disaster that exposes the woefully inadequate state of infrastructure in some of the country’s richest parts.
The question is natural: Where is the U.S. heading? Back to its heyday of financial and political prominence as Barack Obama and Mitt Romney promise? Or toward a slow but inexorable decline, as some economic figures and the effects of superstorm Sandy might suggest?……………………………………….Full Article: Source

Posted on 06 November 2012 by VRS |  Email |Print

So, Fitch has become the first of the ratings agencies to upgrade Turkey to investment grade, giving it its first such rating since 1994. It’s been a while coming and the Turkish lira jumped at the news — up 0.9 per cent at pixel time against the dollar to a three month high.
So far, so rosy… if unsurprising. But there may be an interesting by-product of this overdue upgrade. Namely, it might force the Turkish central bank into a smidgen of FX fiddling. That is, if the upgrade actually matters and inflows really step up………………………………………..Full Article: Source

Posted on 06 November 2012 by VRS |  Email |Print

Morgan Stanley sounded a mixed note for agricultural commodity values, even as data showed many hedge funds giving up on price gains for now, slashing long exposure to corn and cotton futures on particular.
The bank said that it was “bullish” on agricultural commodities, in particular corn, saying it “still” saw the need for prices “to move higher, and possibly trading into the double digits” in terms of dollars per bushel to ration demand following a disappointing US harvest, the world’s biggest………………………………………..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