Sat, Aug 30, 2014
A A A
Welcome kbr175@gmail.com
RSS
Commodities Briefing 15.Nov 2012

Posted on 15 November 2012 by VRS |  Email |Print

The monthly money flow into U.S.commodity products and funds fell by a fifth in October as investors veered off risk on fears over slowing global growth, but interest in gold funds remained strong, data from funds tracker Lipper showed on Wednesday.
Gold and other precious metals dominated investments in commodities for a third straight month, due to their perceived safe haven status, October figures for Lipper showed. A net inflow of nearly $1.7 billion was noted across some 230 U.S.-regulated commodity products and funds last month, versus a September figure of nearly $2.2 billion, according to Lipper, a Thomson Reuters company………………………………………..Full Article: Source

Posted on 15 November 2012 by VRS |  Email |Print

Citigroup Inc is increasing its commodities and energy team with a new head of corporate sales and other key executives joining from rivals BNP Paribas and Barclays. The move comes at a time when many other banks have been pulling out of commodities after a period of losses and narrowing margins.
Dozens of traders have quit banks such as Barclays, Goldman Sachs, Morgan Stanley and Merrill Lynch to firms such as Glencore, Vitol, Gunvor and Mercuria………………………………………..Full Article: Source

Posted on 15 November 2012 by VRS |  Email |Print

Forecasts of rising U.S. production by the International Energy Agency, if they are not met, could lead to higher prices, the head of the Organization of the Petroleum Exporting Countries said Wednesday.
The IEA predicted Monday that the U.S. will overtake Saudi Arabia as the world’s largest oil producer by 2020 as a result of a shale output boom. “If the [IEA] estimates for U.S. production are not met,” that “could trigger the possibility of oil shortages and higher prices” as producers could have cut their investment based on these forecasts, Abdalla Salem el-Badri said in an interview………………………………………..Full Article: Source

Posted on 15 November 2012 by VRS |  Email |Print

Just hours after the International Energy Agency made its prediction that the U.S. would become the world’s dominant oil producer in eight years, I got an email suggesting that the U.S. should join OPEC.
When I asked the sender if he thought OPEC would have us, he sent me a copy of OPEC’s rules on membership and noted that “we share the same objectives of price stability and return on investment.”
Actually, we don’t. In the U.S., the investment return is for oil companies and their shareholders, while for OPEC countries, the return is for state-owned oil companies and, ultimately, the governments of the member countries………………………………………..Full Article: Source

Posted on 15 November 2012 by VRS |  Email |Print

Crude oil prices held steady above $86 a barrel on the New York Mercantile Exchange despite reports of increased tension in the Middle East.
News of an Israeli assault on targets in Gaza, in which a top Hamas military official was killed, injected tension in the market. Prices had several reasons to go down, but those reasons were balanced out by news from Israel. Equities fell again on Wall Street in the wake of weak economic data………………………………………..Full Article: Source

Posted on 15 November 2012 by VRS |  Email |Print

Gold will probably rally to a record above $2,000 an ounce next year as central banks ramp up stimulus to sustain the recovery, according to Raymond Key, London-based global head of metals trading at Deutsche Bank AG.
“We’ll take out $2,000, we’ll go higher,” Key said in an interview in Hong Kong, where he attended the London Bullion Market Association’s annual conference. “That’s on the view that they’ll continue to print money.”……………………………………….Full Article: Source

Posted on 15 November 2012 by VRS |  Email |Print

Gold prices have got boost after the US election results and having found good support, stabilizing above $1700 levels, the yellow metal may climb to importance resistance level of $1800 again, according to Ole S Hansen, Head, Strategy at Saxo Bank.
Having reached not breached important support levels below US $1670, traders have begun to rebuild speculative longs which has been reduced by one-quarter during the previous weeks………………………………………..Full Article: Source

Posted on 15 November 2012 by VRS |  Email |Print

Hong Kong, sitting China’s on flank and on the route to India, appears to be the nexus for a huge amount of gold moving around the planet, with as much as 60 metric tons of the precious metal crossing through in some months, worth US$3.32 billion at the current price per ounce.
There is so much gold passing through the territory from as far away as Switzerland that, as Asia Sentinel reported on Nov. 12, in July the Israel-based Malca-Amit Global Ltd announced that it had opened a bullion storage facility at Hong Kong International Airport that is capable of holding 1,000 tonnes at any given time – 22 percent of the gold in the fabled US storage facility at Fort Knox, Kentucky……………………………………….Full Article: Source

Posted on 15 November 2012 by VRS |  Email |Print

Financial authorities in China are considering measures which would make it easier for foreign investors to participate in the country’s largely isolated gold derivatives market, a move which would hasten the integration of the local precious metal market with the global market, Xie Duo, general director of the financial market department at the People’s Bank of China, said Monday at the annual London Bullion Market Association conference. Xie did not offer a timeline or further details.
Such a plan, if brought to fruition, could also eventually give the country more control over international gold prices, according to experts contacted by the Global Times………………………………………..Full Article: Source

Posted on 15 November 2012 by VRS |  Email |Print

Gold advanced on concerns that US lawmakers may fail to reach an agreement on the budget by year’s end, risking a recession and boosting the need for a protection of wealth. Platinum rose for a fourth day.
Gold for immediate delivery gained as much as 0.3 per cent to $US1729.25 an ounce and traded at $US1727.80 at 10.06am in Singapore. Prices fell 0.2 per cent yesterday, the third straight drop and the worst run since October 10. Bullion for December delivery climbed as much as 0.3 per cent to $US1729.20 an ounce on the Comex in New York………………………………………..Full Article: Source

Posted on 15 November 2012 by VRS |  Email |Print

The surplus in the global silver market is expected to edge up to 300-million ounces in 2012 from a year earlier, the global head of metals analytics at GFMS, a Thomson Reuters unit, said on Wednesday.
Philip Klapwijk also said demand for silver fabrication had weakened, although some of the decline had been offset by higher silver output in China. “The situation this year is that we see weaker fabrication demand on two main reasons. One is industrial fabrication has slowed quite considerably this year, especially in recent months, and we see weakness especially in the electronics field and photovoltaic end users,” said Klapwijk………………………………………..Full Article: Source

Posted on 15 November 2012 by VRS |  Email |Print

Silver prices may rise as much as 38 percent in 2013 from current levels, as a weak global economy spurs safe-haven demand for the precious metal, the global head of metals analytics at GFMS, a Thomson Reuters unit, said on Wednesday.
Spot silver has gained more than 17 percent so far this year, outstripping a rise of 10 percent in gold, and setting course for its third yearly rise in four. Silver was trading at around $32.50 per ounce by 1020 GMT………………………………………..Full Article: Source

Posted on 15 November 2012 by VRS |  Email |Print

Global platinum production will fall 10% to 5.84m ounces in 2012, helping to move the market from a surplus to a deficit for the year, Johnson Matthey says in its Platinum 2012, Interim Review, released this morning.
While gross demand is expected to remain strong at 8.07m ounces, the 12% fall in supplies from South Africa to an 11 year low of 4.25m ounces and a decline in auto catalyst recycling will “help decidedly shift the market into a deficit of 400,000 ounces.”……………………………………….Full Article: Source

Posted on 15 November 2012 by VRS |  Email |Print

Industrial metals will rally through the middle of next year as the economy strengthens in China, the biggest user of everything from aluminum to zinc, according to the most accurate price forecaster tracked by Bloomberg.
Justin Smirk of Westpac Banking Corp. in Sydney beat as many as 25 others in predicting metals for two consecutive quarters on a rolling two-year basis, data compiled by Bloomberg Rankings show. He expects copper, nickel and zinc to gain through June and forecasts a 21 percent rise in aluminum………………………………………..Full Article: Source

Posted on 15 November 2012 by VRS |  Email |Print

Copper is often referred to as “Dr. Copper,” the metal with a Ph.D. in economics. Yet most analysts don’t view it as a critical metal. In this interview with The Critical Metals Report, Mickey Fulp, author of The Mercenary Geologist, gives his thoughts on why the experts are wrong and why copper should be considered a critical metal.
Critical metals are the major metals that are used globally in industrial applications and are essential for world economic health. They include iron, aluminum, copper, the various iron alloys, zinc, lead, tin and uranium. These are the real “critical metals,” the ones that enable the world’s economy to function………………………………………..Full Article: Source

Posted on 15 November 2012 by VRS |  Email |Print

Gold prices regained their shine Wednesday while gold miner ETFs lost their luster on safe-haven buying in the bullion in the face of rising fears in the stock market.
Spot gold prices added 0.10% to $1,727.70 an ounce. SPDR Gold Shares (GLD), tracking a 10th of an ounce of bullion, rose 0.04% to 167.16. It’s consolidating below its 50-day moving average. But it has pulled back just 3% from its 52-week average, which is considered normal in an uptrend………………………………………..Full Article: Source

Posted on 15 November 2012 by VRS |  Email |Print

First Trust, the money management firm known for niche strategies such as an Internet-focused ETF, filed regulatory paperwork detailing plans to market an active futures-based multicommodity fund, though it will achieve its exposure indirectly by investing in a Cayman Islands-based unit in a strategy that may have positive tax implications for investors in the fund.
The First Trust Global Tactical Commodity Strategy Fund will have no more than 25 percent of its assets invested in the Caymans unit, which itself will have holdings in commodities consisting of futures contracts and “commodity-linked instruments,” including derivatives, that provide net long exposure, the prospectus said………………………………………..Full Article: Source

Posted on 15 November 2012 by VRS |  Email |Print

In the endless search for yield, a covered-call strategy can be an effective tool to supplement portfolio performance. In addition to finding returns from call premium, I’ll try to incorporate higher quality dividend stocks for a little something extra. The guidelines for the covered-call strategy are:
Generating more than 7% per year from the calls and dividends combined is the overall goal. Call should be at least 7% out of the money (OTM) to avoid being called away and to give room for underlying movement………………………………………..Full Article: Source

Posted on 15 November 2012 by VRS |  Email |Print

The past few weeks have been rough on crude oil, as the massive commodity has been seeing a major decline in price. But with a sudden drop, this fossil fuel may be offering in a nice entry point to investors looking to add some energy exposure to their portfolio.
Since peaking in mid-September, crude has suffered losses of nearly 14%, as market turmoil has led to a healthy sell-off. Much of the speculation was sparked by the uncertainty over the presidential election and which candidate would come out on top………………………………………..Full Article: Source

Posted on 15 November 2012 by VRS |  Email |Print

The oil patch is aflutter on news that the U.S. could become the world’s largest oil producer by 2020. That factoid comes courtesy of the International Energy Agency, which said the U.S. will surpass Saudi Arabia as the world’s largest crude producer by 2020. By 2030, North America will be a net oil exporter, something the U.S. was last year, according to IEA.
“The recent rebound in U.S. oil and gas production … is spurring economic activity … and steadily changing the role of North America in global energy trade,” the IEA said in its World Energy Outlook released over the weekend………………………………………..Full Article: Source

Posted on 15 November 2012 by VRS |  Email |Print

Emerging market currencies were mixed Wednesday as global concerns continued to weigh on investors. Poor economic data from Greece and Portugal, which were actually worse than expected, prompted the initial weakening. But emerging market currencies gained a bit on the orderly transition of leadership in China and gained confidence that the new team would focus on stabilizing the country’s rebounding economy.
Also, comments by Federal Reserve Vice Chairwoman Janet Yellen suggesting rates would be held low for a long time and the Federal Reserve’s recent meeting minutes weakened the dollar………………………………………..Full Article: Source

Posted on 15 November 2012 by VRS |  Email |Print

A standard ploy of magicians and politicians is called misdirection. The audience is distracted from the real movement by a feint. “Currency war,” which has become the title of books, articles and conferences, is such a misdirection.
Some officials, notably Brazilian Finance Minister Guido Mantega, have been leading the charge that through pursuing unorthodox monetary policy, the U.S. has sparked powerful forces that destabilize the emerging market economies through capital flows, driving the currencies sharply higher………………………………………..Full Article: Source

Posted on 15 November 2012 by VRS |  Email |Print

The BRICS countries are due to establish a joint currency fund. A formal decision has been made because this reserve is necessary in case of another economic crisis.
Now Brazil, Russia, India, China and South Africa are discussing concrete parameters and conditions of accumulating currency reserves. The size of the fund has also been determined. It is to be $240bln. However, the establishment of the mechanism of mutual lending has an important political aspect as well, say experts……………………………………….Full Article: Source

Posted on 15 November 2012 by VRS |  Email |Print

South Korea, the fastest-growing greenhouse-gas emitter among richer nations, plans to begin trials next year of its cap-and-trade system and will select an exchange in the first half, a top climate official said.
The country, which announced regulatory procedures this week for trading to start in 2015, is following the European Union’s model for emissions trading, Nam Kwang Hee, director general of the Presidential Committee on Green Growth, said……………………………………….Full Article: Source

Posted on 15 November 2012 by VRS |  Email |Print

The European Energy Exchange AG will waive its 5,000-euro ($6,370) annual fee for buyers who register before Dec. 31 to participate only in its European Union carbon permit market next year.
The Leipzig, Germany-based bourse also introduced a new rebate schedule for trading in spot and future carbon permits in its secondary market, it said in an e-mailed statement today. The exchange will charge 60 euro cents a metric ton in exchange and clearing fees for spot monthly trading volume of less than 1,000 lots, or 1 million tons, and as little as 40 cents a ton for monthly spot trade in excess of 5 million tons………………………………………..Full Article: Source

Posted on 15 November 2012 by VRS |  Email |Print

An Obama administration official said Nov. 13 the president will not lead an effort to tax the carbon content of fuel in upcoming talks over avoiding the “fiscal cliff,” saying the onus is on Republicans to first show they could support such an approach.
“I just want to be clear, the administration has not proposed–nor is it planning to propose–a carbon tax,” Gilbert Metcalf, the deputy assistant treasury secretary for environment and energy, said at an economic forum on carbon taxes……………………………………….Full Article: Source

Posted on 15 November 2012 by VRS |  Email |Print

Hopes for a global economic pick-up are being dashed by a range of market movements, most particularly the fall in share prices, the drop in bond yields back towards record lows and the pull-back in commodity prices.
In almost all instances where global economic growth is accelerating or downright strong, share prices, bond yields and commodity prices move higher. When markets start moving in the opposite direction, particularly in unison, there are reasons to be concerned. This uniform negativity in market trends spells problems ahead………………………………………..Full Article: Source

See more articles in the archive

August 2014
S M T W T F S
« Jul    
 12
3456789
10111213141516
17181920212223
24252627282930
31