Sat, Nov 29, 2014
A A A
Welcome kbr175@gmail.com
RSS
Commodities Briefing 07.Jan 2013

Posted on 07 January 2013 by VRS |  Email |Print

After the New Year party, the hangover begins. And so it was for those in the commodities markets, after Congress last week reached a deal to avoid the US falling off a “fiscal cliff”.
The last-minute agreement to avert the automatic slashing of spending and painful tax rises in the world’s biggest economy removed a major threat to global activity and, as a result, to demand for raw materials. Commodities markets rallied alongside everything else………………………………………..Full Article: Source

Posted on 07 January 2013 by VRS |  Email |Print

Hedge funds and other big speculators held just over $70 billion worth of bullish bets on U.S. commodities as the year began, barely changed from 12 months ago, after two weak quarters offset price gains from the rest of 2012, data showed.
Holdings in oil saw some of the most dramatic shifts in value over the year. Open interest in U.S. crude held by money managers fell from 77,717 lots worth about $8 billion to just around 13,391 lots valued at less than $1.3 billion, according to data from the U.S. Commodity Futures Trading Commission………………………………………..Full Article: Source

Posted on 07 January 2013 by VRS |  Email |Print

Speculators increased their bullish commodity wagers for the first time since November as signs of accelerating growth in China and the U.S. drove prices higher for a fourth consecutive week. Hedge funds and other money managers raised their net-long positions across 18 U.S. futures and options by 2.4 percent to 691,832 contracts in the week ended Dec. 31, the first gain since Nov. 27, U.S. Commodity Futures Trading Commission data show.
Cotton holdings climbed to the highest since September 2011, and those for sugar reached a nine-week high. Gold wagers rose for the first time in three weeks………………………………………..Full Article: Source

Posted on 07 January 2013 by VRS |  Email |Print

Commodities mostly rallied in the first week of the New Year on investor relief as US lawmakers clinched a last-gasp deal to avoid the fiscal cliff of tax hikes and spending cuts in the United States, stoking optimism over demand.
“The commodities markets have started the new year with a bang,” said Commerzbank analyst Eugen Weinberg. “The main reason cited for this is the agreement achieved in the fiscal dispute in the US, though growing economic optimism and risk appetite, a weaker US dollar and the expansionary monetary policy pursued by central banks are likely to lend additional support to the upswing………………………………………..Full Article: Source

Posted on 07 January 2013 by VRS |  Email |Print

Iran has spent almost $25 billion on upstream oil and gas projects since last March but needs to keep investing to keep its influence in OPEC, Iran’s oil minister said on Sunday.
Iranian oil production fell sharply last year, as Western nations tightened sanctions to starve Tehran of funds for its disputed nuclear programme, allowing Iraq to overtake Iran as the oil exporting group’s second-largest producer………………………………………..Full Article: Source

Posted on 07 January 2013 by VRS |  Email |Print

OPEC oil output fell in December to its lowest in more than a year as Iranian exports dipped again because of sanctions, top exporter Saudi Arabia cut output and supplies from Iraq eased, according to a Reuters survey.
Crude supply from the Organization of the Petroleum Exporting Countries averaged 30.62 million barrels per day (bpd), down from a revised 30.71 million bpd in November, the survey of sources at oil companies, in OPEC and consultancies found. OPEC output is now down by 1.13 million bpd from its April 2012 peak of 31.75 million before the European Union implemented an oil embargo on Iran and as Saudi Arabia lifted output to bring prices down from a year-high $128 a barrel………………………………………..Full Article: Source

Posted on 07 January 2013 by VRS |  Email |Print

Why is the world’s most harmful fossil fuel being burned less in America and more in Europe? In a high-tech world, dirty black lumps of coal might seem like an anachronism. Yet coal is far from a thing of the past. However whizzy your iPad, your wall-mounted television or your electric car, the chances are that it is powered by the stuff. Coal-fired power stations provide two-fifths of the world’s electricity, and there are ever more of them.
In the doubling of the world’s electricity production over the past decade, two-thirds of the increase came from coal. At these rates, coal will vie with oil as the world’s largest source of primary energy within five years. As recently as 2001, it was not much more than half as important as oil……………………………………….Full Article: Source

Posted on 07 January 2013 by VRS |  Email |Print

Iron ore prices have surged more than 70 per cent in the last four months, restrengthening projects in Western Australia and sending miners back to work on major projects. The spot price fell to lows of around $90 in the second half of 2012, but the market has taken back almost all of the lost ground and the price currently sits at almost $150 a tonne.
Ernst & Young global mining and metals leader Mike Elliott said while costs remained an issue for Australian miners, the sector would see a renewal in investment as commodity prices rebounded………………………………………..Full Article: Source

Posted on 07 January 2013 by VRS |  Email |Print

On the surface, gold is not often seen as a convenient financial instrument. It is old fashioned, requires a place for storage and is not easily obtainable for the average American at current prices. However, the precious metal continues to evolve as the worldwide financial crisis motivates individuals to seek protection.
Gold may be old fashioned, but only because it has stood the test of time extremely well. For thousands of years, gold has satisfied the three common requirements of money. First, it is a medium of exchange, as gold can easily be bought or sold in the market without causing a large movement in price or a loss of value………………………………………..Full Article: Source

Posted on 07 January 2013 by VRS |  Email |Print

The temptation is unassailable but affordable only to those who have disposable income. Eventually this temptation is forcing even those under poverty line to forcibly buy this material. In turn the greed and the need of this material is creating not only a big divide socially but also putting the government into a big dilemma.
Your guess is as good as mine if not better. Yes, I am talking about a yellow metal called Gold. It is both loved and hated. Loved by those who are in their fantasy world as well as those who believe it is an instrument for the future and at the same time hated by those who see it as an evil for all their social problems mainly marital issues………………………………………..Full Article: Source

Posted on 07 January 2013 by VRS |  Email |Print

A major theme in gold over the course of this bull market has been the metal’s tendency to rise in sync with “risk assets,” or economically sensitive assets.
The thesis for holding gold has been clear: exceptional expansion of the base money on behalf of the Fed (i.e., balance sheet expansion) adds financial liquidity to the system and pumps equities and commodities higher as interest rates on fixed income securities become negligible. ……………………………………….Full Article: Source

Posted on 07 January 2013 by VRS |  Email |Print

HSBC, the global bank, has lowered its gold price forecast for 2013 to $1760 an ounce from the previous forecast of $1850/Oz.
The bank expects a volatile market for yellow metal in the current year and estimates a wide trading range of 1,575/oz to 1,950/oz . The forecast for 2014 has been unchanged at 1,775/oz and introduced a 2015 forecast of 1,675/oz. Forecast for long term has been left unchanged at 1,500/oz………………………………………..Full Article: Source

Posted on 07 January 2013 by VRS |  Email |Print

Gold gained, rebounding from the worst run of weekly losses since 2004, as a drop to the cheapest in more than four months lured buyers amid record low interest rates in the U.S. Silver, platinum and palladium advanced.
Spot gold rose as much as 0.3 percent to $1,660.50 an ounce, and traded at $1,660.25 at 10:20 a.m. in Singapore. Bullion tumbled to $1,625.85 on Jan. 4, the lowest price since Aug. 21, after minutes from the U.S. Federal Reserve indicated that its bond-buying program may end this year………………………………………..Full Article: Source

Posted on 07 January 2013 by VRS |  Email |Print

Silver prices to average $24 an ounce this year, as per HSBC Holdings PLC 2013 predictions. According to HSBC’s macroeconomic forecasts indicate that industrial purchases of silver will increase substantially in 2013, countering the new mining surplus. Electronic and electrical industries, such as solar panels, are expected to produce much of the demand.
Electronic cameras should have a distinct impact as lower demand for silver products for use in photography means fewer recycled silver nitrates will enter the supply chain………………………………………..Full Article: Source

Posted on 07 January 2013 by VRS |  Email |Print

The minutes of the Federal Open Market Committee’s December meeting “sucked all of the oxygen out of the room for gold bulls - and if not for the reversal in silver, I believe the sell-off in gold would be more pronounced,” said Steve Roy, Chief Technical Analyst for Equity Management Academy.
Gold’s weakness was set off by Thursday’s release of the minutes from the Fed’s last meeting, which showed that several Fed officials thought the central bank would be able to slow or stop its bond purchases - a method of increasing monetary stimulus that goes beyond low interest rates - well before December 2013………………………………………..Full Article: Source

Posted on 07 January 2013 by VRS |  Email |Print

Copper, the king of base metal complex for the last 3 years on the MCX was unable to hold no. 1 position in 2012 and finished this year at no. 3 position in terms of yearly return followed by lead and zinc.
Lead and zinc gave a return of 18.30% and 14.88% respectively in the year 2012, while copper gave a return of 9.30%………………………………………..Full Article: Source

Posted on 07 January 2013 by VRS |  Email |Print

The Singapore Exchange’s derivatives and commodities markets achieved record highs in 2012. However as in most global markets, trading activities declined. Turnover dropped 12 per cent in 2012 to S$321.5 billion.
However securities market performance, as measured by the Straits Times Index, was up 20 per cent last year. In December, turnover was up 39 per cent from a year earlier at S$23.2 billion. Meanwhile, derivatives volume in 2012 reached a new high of 80.2 million contracts, up 11 per cent………………………………………..Full Article: Source

Posted on 07 January 2013 by VRS |  Email |Print

U.S. common stocks convincingly outperformed Treasury bonds by 14 percentage points in 2012, and are still advancing on balance as the yield on the 10 year Treasury has risen to 1.92%.
Be advised that the best performing group in the U.S. last year the real estate investment trusts that gained over 20% while the broad market indexes were a tad below 20%. Only Chinese equities– in a slump since 2007, acted better, coming from a lower base, after the U.S. REIT performance………………………………………..Full Article: Source

Posted on 07 January 2013 by VRS |  Email |Print

In a move that could see a gradual shift of the onshore currency market to offshore, two leading global exchanges — Intercontinental Exchange (ICE) and CME Group — will launch foreign exchange futures contracts on the Indian rupee on January 22 and 28, respectively.
Already, an over-the-counter (OTC) USD-INR non-deliverable forward (NDF) offshore market for trading in currencies that have no full convertibility, such as the Indian rupee, is in existence, but experts reckon that the launch of standard rupee futures contracts on the two American exchanges will lure foreign investors, who are now prohibited from participating in the Indian OTC and exchange-traded markets………………………………………..Full Article: Source

See more articles in the archive

banner
November 2014
S M T W T F S
« Oct    
 1
2345678
9101112131415
16171819202122
23242526272829
30