Thu, Jul 31, 2014
A A A
Welcome kbr175@gmail.com
RSS
Commodities Briefing 28.Nov 2012

Posted on 28 November 2012 by VRS |  Email |Print

Speculators raised bullish commodity wagers for the first time since early October as signs of improving economic growth in the U.S. and China pushed prices higher for three straight weeks. Hedge funds and other money managers increased combined net-long positions across 18 U.S. futures and options by 9.6 percent to 846,321 contracts in the week ended Nov. 20, Commodity Futures Trading Commission data show.
That was the biggest gain since mid-August. Corn holdings rose the most since July, and those on silver reached a five-week high………………………………………..Full Article: Source

Posted on 28 November 2012 by VRS |  Email |Print

A new report hails a crucial shift in the global economy. If current trends continue, the United States will surpass Saudi Arabia as the world’s largest oil producer by 2020. This development will not only transform the world’s energy picture, but geopolitics as well.
A new energy landscape has powerful implications for global political and economic power. The International Energy Agency (IEA), the top advisory body for the developed economies, notes in its authoritative annual report, “World Energy Outlook,” that changing U.S. production and consumption patterns will redraw the global energy map. A surge in U.S. production means that “by around 2020, the United States is projected to become the largest global oil producer.”……………………………………….Full Article: Source

Posted on 28 November 2012 by VRS |  Email |Print

Clean tech jobs to power green growth is considered a no-brainer by progressive policy makers, NGOs and businesses, and the idea forms the core of the UN’s Year of Sustainable Energy For All (SE4ALL). But some economists, academics and environmental thinkers increasingly question its central premise.
Critiques of ‘green growth’ have often been articulated by business lobbies opposed to climate action, but also by environmentalists and socialists, who argue that infinite growth is impossible in a finite natural world. One EU official speaking to EurActiv on condition of anonymity said that achieving the emissions cuts needed to contain global warming to the UN’s 2 degrees Celsius target, while maintaining growth was an “outlandish” notion………………………………………..Full Article: Source

Posted on 28 November 2012 by VRS |  Email |Print

OPEC faces a triple dilemma over the short, medium and long term, none of which have good outcomes for the cartel. The short term is simple; prices are likely to correct into 2013 below price bands that are deemed economically and politically comfortable. That strikes on OPEC’s medium term problem; the geological cost of production is now structurally out of sync with the geopolitical cost of survival.
When OPEC doesn’t get the petrodollars they need to appease restive populations, the default position will be tough political repression to tighten their grip on power. Whether that ‘works’ as an effective coping mechanism remains to be seen; political outages might well help to lift interim prices, but this merely highlights OPEC’s long term nadir………………………………………..Full Article: Source

Posted on 28 November 2012 by VRS |  Email |Print

To be sure, rumours of the impending death of oil are exaggerated and anticipate trends - but since 2001 the trend continues. Using IEA data, in 1973 the OECD countries sourced 53% of their total energy supply from oil, underlining that the post-2001 trend is anything but new.
What comes next is the real question. This decline of oil in the global economy easily explains why the weak rebound of global fossil energy demand since the 2008 debt-and-deficit or financial-economic crisis has given wings to, and grown legs along the world’s powergrids. These are increasingly fed by renewable-source power supplies………………………………………..Full Article: Source

Posted on 28 November 2012 by VRS |  Email |Print

Natural gas is a hot topic. Companies around the world are trying to gobble up land in newly discovered shale plays, and some claim natural gas could be a key to North American energy independence.
So as an investor, it is probably a no-brainer that this industry has huge potential upside. If you are determining when to get into the market, here are three reasons why now would be a very good time………………………………………..Full Article: Source

Posted on 28 November 2012 by VRS |  Email |Print

Global steel has a big problem: It’s too big and it’s getting bigger. This year, steel mills around the world have a production capacity of 1.8 billion tons but will take orders for only 1.5 billion tons. And instead of consolidating and becoming more efficient, the industry is building still more capacity.
By 2016, an estimated 100 new mills, with total estimated supply capacity of 350 million tons, are expected to come on stream, according to industry executives and consultants………………………………………..Full Article: Source

Posted on 28 November 2012 by VRS |  Email |Print

We have always put emphasis on the need to diversify while putting together your portfolio. Of various kinds of diversification, one is particularly important at the very beginning, when you decide to commit yourself to the precious metals market. This is the ability to divide your capital into three separate parts, each managed in a different way, and to stick with this structure even when the market is getting hot.
Gold may be perceived as insurance if you believe that, because of psychological reasons, it appeals to investors as a wealth-preservation vehicle. In case of financial turmoil they turn to precious metals, the increased demand causes an increase in the price and gold and silver deliver on their promise to provide an alternative to government bonds……………………………………….Full Article: Source

Posted on 28 November 2012 by VRS |  Email |Print

As the Greek debt deal is clinched by the troika of European Central Bank, IMF and Finance Ministers of Europe, Euro strengthened against Dollar which helped gold prices to climb. Meanwhile a Chinese analyst is of the opinion that gold may test $1,800 levels this week.
“As investors once again gain confidence in Europe after leaders give Greece another chance, that will help the euro and in turn gold,” said Wang Xiaoxi, an analyst at Beijing Capital Futures Co., a unit of the Chinese capital’s investment arm to Bloomberg………………………………………..Full Article: Source

Posted on 28 November 2012 by VRS |  Email |Print

The Gold Price dipped back below $1750 per ounce Tuesday morning, though it remained near to last week’s close, as stock markets recovered losses following news of a deal on Greece’s debt burden. “We continue to be bullish so long as gold holds above the $1705 low from mid-November,” says the latest technical analysis from Scotia Mocatta.
Over in New York, the difference between bullish and bearish contracts held by Comex gold futures and options traders, the so-called speculative net long, rose for the second week running in the week ended last Tuesday, data published last night by the Commodity Futures Trading Commission show………………………………………..Full Article: Source

Posted on 28 November 2012 by VRS |  Email |Print

Silver prices are expected to average $35 an ounce in the first quarter of the next year while gold prices could be at $1850 per troy ounce, said Barclays Capital in a research note.
According to the British bank, silver is the strongest-performing precious metal so far this year but true to form has traded the widest range across the four precious metals. This volatility continues to reflect the lack of support provided by the metal’s fundamentals while sizeable growth in investment demand maintains the necessary scope to plug the gap and drive prices higher………………………………………..Full Article: Source

Posted on 28 November 2012 by VRS |  Email |Print

For those taking close interest today (November 27, 2012) there was an interesting move in gold prices as the below chart shows. A ‘V’ shaped bounce of some $35.00 or so just before the close must have given a few gold bulls a real scare. Gold dropped briefly below $1720.00, so we can only imagine that someone has made a rather fortuitous purchase at this level.
However, if this sudden drop had occurred a few minutes later, then we would have had a dramatic closing price for today’s trading session in New York………………………………………..Full Article: Source

Posted on 28 November 2012 by VRS |  Email |Print

Nickel, this year’s worst-performing metal, is rallying as analysts from Standard Bank Plc to BNP Paribas SA forecast a smaller-than-expected supply glut in 2013. Standard Bank reduced its estimate for the surplus by 17 percent on Oct. 15, citing project delays, and BNP Paribas said Nov. 12 it now expects output to match demand, after cutting its projection three times since April.
Credit Suisse Group AG and Citigroup Inc. also lowered forecasts in the past two months. Nickel will average $19,000 a metric ton in the second quarter, 15 percent more than now, the median of 11 analyst estimates compiled by Bloomberg shows………………………………………..Full Article: Source

Posted on 28 November 2012 by VRS |  Email |Print

As is typical for the commodity world, all eyes have been fixated on gold in recent months. The precious metal has been under a microscope since the announcement of QE3 and the impending fiscal cliff. Some have called for gold to surge to new historical highs, while others are not quite so sure.
But one thing is certain, gold is getting handsomely outperformed by all three of its precious metal counterparts in recent weeks, as the safe haven metal has failed to keep pace as of late………………………………………..Full Article: Source

Posted on 28 November 2012 by VRS |  Email |Print

Agriculture is perhaps the most practical commodity sector, as many of its products enjoy inelastic demand around the world. As such, this segment has always been given a fair amount of investing attention. Because there are so many different futures in the ag world, ETFs have become one of the most effective and popular ways to play this broad commodity sector.
After enduring one of the worst droughts in U.S. history, agriculture ETFs are taking another hit as they have been trending downward since September……………………………………….Full Article: Source

Posted on 28 November 2012 by VRS |  Email |Print

Chile offers investors Latin American and commodity exposure in a single play. The iShares MSCI Chile Index ETF (ECH) allows exposure to the growth in Asian markets indirectly, as Chile is a top exporter of minerals and copper.
The latest data out of Chile indicates that economic activity increased at an annualized rate of 5.7% during the third quarter. A moderation in growth is expected due to a decline in exports because of the global economic slowdown, reports Carolina Pica and Stephen Wisnefski for The WSJ………………………………………..Full Article: Source

Posted on 28 November 2012 by VRS |  Email |Print

Though it’s nothing compared to recent years, this past year has been marked by uncertainty, prompting investors to return in droves from safe haven accounts to the U.S. stock market.
Investors have their eyes fixed on major indexes and other indicators to judge the overall health of our economy, but another way to judge the boom markets is by watching which ETFs have taken off since last year. Needless to say, some industries have evolved with the changing economic climate, while others have fallen far behind……………………………………….Full Article: Source

Posted on 28 November 2012 by VRS |  Email |Print

ETF Securities is launching three new commodity exchange-traded funds (ETFs) on the Hong Kong stock exchange as the firm builds out its footprint in Asia. The three ETFs will provide exposure to gold, silver and platinum via holdings in metals and other ETFs. The new funds will be listed on Wednesday 28 November.
Fred Jheon, managing director and head of Asia Pacific at ETF Securities, said: “We are the first ETP provider to launch a suite of physically backed precious metal products on the Hong Kong exchange.”……………………………………….Full Article: Source

Posted on 28 November 2012 by VRS |  Email |Print

China isn’t a currency manipulator under U.S. law, though the yuan “remains significantly undervalued” and needs to rise further, the Treasury Department said. China “has substantially reduced the level of official intervention in exchange markets since the third quarter of 2011,” the Treasury said in a statement accompanying its semi- annual currency report to Congress.
The yuan has gained 9.3 percent in nominal terms and 12.6 percent in real terms against the dollar since June 2010, the Treasury said………………………………………..Full Article: Source

Posted on 28 November 2012 by VRS |  Email |Print

The Brazilian real dropped to a three-year low last week as President Rousseff and other officials stepped up their public campaign to keep the currency weak . President Rousseff pronounced the currency as, “overvalued,” just a weeks after Central Bank President Tombini promised low rates for a, “prolonged time.”
Fears of further intervention sent the real down almost a percent to BRL 2.0985 against the dollar. The local currency now buys less than two-thirds what it did last year when it reached a multi-year high of BRL 1.54 per dollar………………………………………..Full Article: Source

Posted on 28 November 2012 by VRS |  Email |Print

IntercontinentalExchange, the operator of Europe’s largest carbon trading platform, is to lift a near two-year shutdown of trading in daily emissions futures after regulators improved oversight.
The US futures bourse operator will resume trading on December 10 in the two main daily futures contracts – the EU emissions allowance (EUA) and the United Nations-supervised carbon emission reduction (CER) futures contract………………………………………..Full Article: Source

Posted on 28 November 2012 by VRS |  Email |Print

President Obama signed a law Tuesday to prevent U.S. airlines from contributing to a European carbon-trading scheme, but negotiations for a global compromise will continue at a branch of the United Nations.
U.S. airlines had fought the program as an illegal tax that violates international law, estimating it would add $3.1 billion airfares over the next decade. European Union officials estimated it could add about $30 to each roundtrip ticket across the Atlantic. China, India and Russia also oppose the program………………………………………..Full Article: Source

See more articles in the archive

July 2014
S M T W T F S
« Jun    
 12345
6789101112
13141516171819
20212223242526
2728293031