Tue, Sep 2, 2014
A A A
Welcome kbr175@gmail.com
RSS
Commodities Briefing 22.Jan 2013

Posted on 22 January 2013 by VRS |  Email |Print

The Chinese dragon is still feasting on commodities. When the Chinese economy began to slow last year it sent prices for Australian mineral commodities such as iron ore into a tumble and the mining boom was pronounced dead by many.
The good news is the Chinese dragon is firing up and recent economic news out of China confirmed that their economy continues to grow. Chinese spending on new roads, rail and power plants grew by 20.7% in 2012, retail sales rose 14.5% in the 12 months to October and industrial production climbed 9.6%………………………………………..Full Article: Source

Posted on 22 January 2013 by VRS |  Email |Print

Food costs a lot. In fact, after the pernicious drought in 2012 (the worst in 50 years), consumers around the world are faced with the very real possibility of rising food prices. I’ve seen some food industry observers speculate that higher food prices and food shortages could become the norm in 2013. At the same time, global populations continue to rise, as do the number of people in emerging market nations that are now finally able to afford better, more protein rich, diets.
This confluence of events could very well drive up feed stock prices, and that means a nice trading opportunity in a basket of commodities such as corn, soybeans and wheat………………………………………..Full Article: Source

Posted on 22 January 2013 by VRS |  Email |Print

Opec expects demand for its crude to be lower than expected in 2013 because of higher supply from rival producers, indicating inventories could build up substantially even after a cut in output by top exporter Saudi Arabia.
The Organization of the Petroleum Exporting Countries’ monthly report indicated world supply will comfortably outstrip demand in the first half of 2013, even after Riyadh cut output in December by almost 500,000 barrels per day (bpd) to fend off a supply overhang and defend prices well above $100 a barrel………………………………………..Full Article: Source

Posted on 22 January 2013 by VRS |  Email |Print

The price of natural gas (short-term delivery) continued to rise during last week. The larger than anticipated drop in storage may have contributed to the spike in natural gas prices by the end of last week. Is the natural gas market heating up again? Let’s examine the recent developments in the natural gas market.
During last week, the future price of Henry Hub (short-term delivery) spiked by 7.18%. Moreover, United States Natural Gas (UNG) also increased by 7.4%. As of last week, the Henry Hub future prices were still $0.37 per million BTUs above the price for the same week in 2012………………………………………..Full Article: Source

Posted on 22 January 2013 by VRS |  Email |Print

Gold price has risen for 12 consecutive years since the end of 2000, positioning the yellow metal as one of the longest-running bull markets in history. Gold prices started 2012 at US$1,531 per ounce and by December 31st closed the year at US$1,657 per ounce. Despite gold’s lacklustre performance it still delivered a positive gain of 8 per cent from the beginning of 2012.
At the start of 2012, some market participants forewarned that gold’s performance was likely to be more moderate than in the past – and it was………………………………………..Full Article: Source

Posted on 22 January 2013 by VRS |  Email |Print

Gold futures inched higher Monday as U.S. markets were shut for the Martin Luther King Jr. holiday, and as Citigroup analysts cut their price target on the yellow metal for this year and next. In electronic trade, futures for February gold were lately up $2.70 to $1,689.70 an ounce, after having closed last week with a gain of 1.6%.
On Monday, Citigroup cut its outlook on gold prices for this year by 4% to $1,675 a troy ounce, and by 0.2% to $1,653 a troy ounce for 2014. Its silver price forecasts remained unchanged………………………………………..Full Article: Source

Posted on 22 January 2013 by VRS |  Email |Print

If gold is able to firm up here and then it has a good shot to rally back to $1,750-$1,800 over the next few months. If we get the bullish scenario and a fundamental catalyst shift then expect gold to break past $1,800 in Q3. That would mean that gold consolidated for two years which would be its longest consolidation on record. The longer the consolidation, the more explosive the breakout.
Following that editorial, we noted that various sentiment indicators continued to look favorable even as the market began to make some progress. For example, the daily sentiment index for gold touched 6% yet gold didn’t make a new low………………………………………..Full Article: Source

Posted on 22 January 2013 by VRS |  Email |Print

Gold will turn bullish only on a couple of closes above $1695/ounce, although the medium term trend looks bullish, according to Barclays Research. It has revised the price forecast for Q1 at $1710/Oz and 2013 annual average at $1778.7.
“Gold prices have crawled higher over the past week but lag the rest of the complex. Prices have been aided in part by the weaker dollar, ongoing central bank buying, and some signs of life in the physical market. But ETP flows remain lacklustre and are a key downside risk for prices. Upside potential for gold continues to linger toward the end of the first quarter,” Barclays said in their report………………………………………..Full Article: Source

Posted on 22 January 2013 by VRS |  Email |Print

US Gold futures for February delivery closed at $1687 per ounce while silver outperformed the yellow metal having reached the highest levels at 31.93 but both metals aren’t providing any clues about its behaviour-whether it is trading as a safe haven asset or risk asset.
On expectation of further stimulus measures and US debt ceiling talks, gold advanced to a one-month high on Friday. The price of gold in the global markets headed towards $1,700 this week. In India’s Multi Commodity Exchange, gold movement is showing sideways to negative trend trading below 20 day average of Rs 30820.50/10 gram levels………………………………………..Full Article: Source

Posted on 22 January 2013 by VRS |  Email |Print

The price movement of gold and silver often attract much attention. When prices make a noticeable increase, it regularly leads to perma-bulls calling for the next great explosion in precious metals. On the other hand, any dips or corrections lead to critics calling for an end to the 12-year bull market. Both sides are debatable, but there is no denying that physical bullion made impressive moves this past week.
On Wednesday, the Bundesbank confirmed reports and announced it will repatriate a portion of its foreign gold reserves. By 2020, the central bank intends to store half of Germany’s gold reserves in its own vaults within the country, compared to only 31% now. The other half will remain in New York and London………………………………………..Full Article: Source

Posted on 22 January 2013 by VRS |  Email |Print

Silver prices are up nearly 8% in the past couple weeks as investors increasingly load up on the white metal. In fact, the U.S. Mint has temporarily suspended sales of its 2013 American Eagle silver coins because it has none left.
Reuters reported today (Friday) that the Mint plans to restart sales in the last week of January after it has had a chance to restock. The U.S. Mint generally sees a big influx of demand when it releases new coins at the beginning of the year. This year, however, investors seeking a safe haven for their money added to the usual collector demand leaving the Mint’s vaults bare………………………………………..Full Article: Source

Posted on 22 January 2013 by VRS |  Email |Print

Commodity fund managers who performed well over the testing final quarter of 2012 believe metals commodities prices could do better than expected in early 2013 due to a combination of Chinese restocking and continued supply disruption.
Managers at Vescore, Investec and BasInvest, who were amongst the few to make money in the fourth quarter, are relatively optimistic about the outlook for commodities going into 2013, tipping copper, platinum and palladium………………………………………..Full Article: Source

Posted on 22 January 2013 by VRS |  Email |Print

Gold exchange traded funds have remained relatively flat so far this year, but S&P Capital IQ analysts expect the precious metal to strengthen this year as loose monetary policies debase global currencies and low gold supply support prices.
“S&P Capital IQ Equity Research remains positive on the outlook for gold and gold-related investments for 2013,” Leo Larkin, S&P Capital IQ Equity Analyst, writes in a research note. “We expect gold to rise 15% in 2013 and finish the year at about the $1,930 level.”……………………………………….Full Article: Source

Posted on 22 January 2013 by VRS |  Email |Print

The turnover of commodity exchanges fell 5.54 per cent during the April-December period to Rs 1,29,62,447 crore because of decline in bullion trade. “The cumulative value of trade from April 1, 2012 up to December 31, 2012 during the financial year 2012-13 was Rs 129,62,447.62 crore,” market regulator FMC said in its report.
The turnover of commodity bourses was Rs 1,37,22,854 crore in the corresponding period of previous fiscal. Bullion trade declined by 25.30 per cent in the first nine months of 2012-13 to Rs 60,03,141 crore, from Rs 80,36,753 crore in the year-ago period………………………………………..Full Article: Source

Posted on 22 January 2013 by VRS |  Email |Print

The European Parliament may demand a rethink of new rules designed to make derivatives markets safer in the wake of the financial crisis, potentially leading to months of uncertainty for banks that are big users of these products.
Members of the Parliament are discussing a resolution which, if approved next month, would trigger a formal review of the rules, two sources from the European Parliament said………………………………………..Full Article: Source

Posted on 22 January 2013 by VRS |  Email |Print

Development aid campaigners have sharply criticized Germany’s Deutsche Bank for ending a moratorium on trading food commodity products. The lender has insisted its activities do not contribute to rising prices.
Anti-poverty campaigners on Monday criticized Deutsche Bank for abandoning a March 2012 moratorium on trading new food commodity products, saying that financial speculators helped artificially spike prices for vital for vital foods………………………………………..Full Article: Source

Posted on 22 January 2013 by VRS |  Email |Print

The Australian dollar is at risk of losing its status as the top pick amongst the so called commodity currencies. More on this below, but first a look at the most recent rates:
The pound vs Australian dollar exchange rate is unchanged on Friday’s closing rate at 1.5093. The euro vs Aussie is 0.14 pct down at 1.2655. Against the US dollar the Australian currency is 0.14 pct higher at 1.0525………………………………………..Full Article: Source

Posted on 22 January 2013 by VRS |  Email |Print

Carbon prices have fallen to a record low of less than €5 a tonne, pushing the European Union’s eight-year-old emissions trading system into a crisis.
Benchmark EU carbon prices yesterday dropped to a session low of €4.79 a tonne – down nearly 20 per cent over the past week – after Germany’s failure on Friday to sell carbon permits triggered a crisis of confidence………………………………………..Full Article: Source

Posted on 22 January 2013 by VRS |  Email |Print

As world leaders meet in Davos, they should make time to consider what they can do to rescue the collapsing global carbon market and one of its most useful tools – the Clean Development Mechanism (CDM) of the Kyoto Protocol.
The need for huge investment – $10 trillion to 2030 in the energy sector alone, according to the UN – to tackle climate change shouldn’t need to be spelled out………………………………………..Full Article: Source

See more articles in the archive

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