Sat, Aug 30, 2014
A A A
Welcome kbr175@gmail.com
RSS
Commodities Briefing 18.Feb 2013

Posted on 18 February 2013 by VRS |  Email |Print

Commodities revenue at the 10 largest banks slumped 24% in 2012, the first drop since at least 2008, according to analytics company Coalition. The total fell to $6 billion from $8 billion in 2011, London-based Coalition said in a report on Friday. The lenders’ investment banking revenue rose 10% to $159 billion, the first gain in three years, it estimated.
The Standard & Poor’s GSCI Spot Index of raw materials rose 0.3% last year, the smallest annual change since 1985 and its worst performance in four years. The gauge’s 100-day historic volatility last year reached the lowest level since at least 2002, when Bloomberg data started………………………………………..Full Article: Source

Posted on 18 February 2013 by VRS |  Email |Print

Investors cut wagers on a rally in commodities by the most since November as signs of improving U.S. growth reduced demand for gold and rains in South America added to signs that crop harvests will be bigger.
Hedge funds and other large speculators reduced net-long positions across 18 U.S. futures and options in the week ended Feb. 12 by 15 percent to 757,060 contracts, the largest decline since Nov. 13, U.S. Commodity Futures Trading Commission data show. Bets on higher gold prices fell to the lowest since December 2008, while a measure for 11 farm goods slumped the most since November 2011………………………………………..Full Article: Source

Posted on 18 February 2013 by VRS |  Email |Print

Multi-asset managers are considering increasing their exposure to commodities as global growth indicators point to a positive outlook for the asset class. Managers cited positive indicators of Chinese economic growth as a key reason for reconsidering commodity holdings.
China’s economic output increased by 7.9 per cent in the fourth quarter of 2012, ending a run of seven consecutive quarters of falling growth………………………………………..Full Article: Source

Posted on 18 February 2013 by VRS |  Email |Print

Calpers, the influential $244bn Californian state pension scheme, caused a stir last month when it revealed it had slashed its exposure to commodities from 1.5 per cent of its portfolio to just 0.6 per cent, pumping the surplus cash into inflation-linked bonds instead.
The move comes after a poor two years for commodities, with investors in the major indices nursing losses on a total return basis, rather than the inflation-plus returns many had hoped for………………………………………..Full Article: Source

Posted on 18 February 2013 by VRS |  Email |Print

Chinese commodity futures are positioned to fall Monday when the markets reopen following a broad drop in prices on international markets over the week-long holiday. The Thomson Reuters-Jefferies CRB index, which tracks prices across 19 commodity markets across the globe, fell about 1 percent last week, Reuters reported Friday.
The losses were especially heavy in the precious metals and crude oil markets. The most traded Comex gold contract fell about 1.6 percent Friday to settle the week down about 3.5 percent at $1,609.50 per ounce. The March silver contract lost 1.6 percent Friday to finish the week down about 5 percent at $29.85 per ounce………………………………………..Full Article: Source

Posted on 18 February 2013 by VRS |  Email |Print

An in-depth insight into what has been going on in the gold market – and what may follow – emerges in the form of the latest report from the World Gold Council (WGC), the industry body.
On one level, it was the same old story: the “safe haven” metal attracts investment to preserve wealth in a low interest rate, gloomy economic environment. After all, demand for gold hit an all-time high of $236.4bn (£152bn) for 2012 as a whole………………………………………..Full Article: Source

Posted on 18 February 2013 by VRS |  Email |Print

Gold is now the cheapest in six months. After steadily advancing almost the whole of last year, gold has suddenly halted in its tracks. At below $1,600 an ounce on Friday, prices are down almost 3% in February. The fifth straight monthly drop is gold’s worst run since 1997.
Gold peaked to $1,921 in September 2011. If you have been following gold’s progress (and in India, who doesn’t), this unexpected change raises two questions. One, since jittery investors seeking risk-free assets love gold, do falling gold prices mean a rising world economy? Two, is it a good time to buy? The short answer to both is no………………………………………..Full Article: Source

Posted on 18 February 2013 by VRS |  Email |Print

Gold, the worst-performing precious metal this year, may drop below $1,600 an ounce in the next couple of weeks after breaking a key support level, according to technical analysis by Commerzbank AG.
Bullion for immediate delivery has fallen below the 2012- 2013 support line of $1,641.83 and will then test the January low of $1,625.85, Karen Jones and Axel Rudolph wrote in a weekly report dated Feb. 13………………………………………..Full Article: Source

Posted on 18 February 2013 by VRS |  Email |Print

Chinese consumers’ insatiable longing for gold is set to provide a strong push for local mines, as the country’s demand for the precious metal is expected to surpass supply by at least 550 metric tons by 2015, data from China Gold Association showed Saturday.
According to the latest statistics released by the organization, the nation bought a total of 832.18 tons of gold, 71.13 tons, or 9.35% more than in 2012……………………………………….Full Article: Source

Posted on 18 February 2013 by VRS |  Email |Print

The financial backdrop to the current prices of precious metals like silver and gold is that trillions of dollars and other currencies have been created to reflate stock markets and attempt to create a recovery in the property market, which will only serve to re-inflate real estate prices back to their former unsustainable levels once again. This seems so utterly obvious, and yet it is rarely discussed.
Furthermore, far too many investors continue to rely on and even hope for the continuance of the status quo, despite the fact that their futile wishes for the financial alchemy to prevail — so that the “free lunch” creation of money from nothing but paper and ink will lead to more jobs and economic growth — have been increasingly frustrated………………………………………..Full Article: Source

Posted on 18 February 2013 by VRS |  Email |Print

Talk of a so-called currency war has been heating up, and it might finally light a fire under gold, too. Efforts by countries such as Japan to boost growth with massive stimulus programs — which in turn have devalued their currencies, an aid to exports — can benefit prices for gold.
These have started to alter the precious metal’s relationship with the foreign-exchange market and expand its role as a safe-haven asset. “We are now moving irrevocably to a time when gold will measure currencies, not currencies measure gold,” said Julian Phillips, a South Africa-based contributor and founder at GoldForecaster.com………………………………………..Full Article: Source

Posted on 18 February 2013 by VRS |  Email |Print

Barclays forecast a 1.8Mt market surplus for aluminium in 2013, which would drive the stock-to-consumption ratio to more than nine weeks over the course of the year. There is more diversity in perspective on the aluminium market this year, they said.
The standout performer over the past week has been aluminium, where LME cash prices have risen to a six-week high just below $2,150/t. Barclays believe the move has largely stemmed from technicals and some subsequent CTA buying, with underlying fundamental conditions firmly in a surplus dynamic………………………………………..Full Article: Source

Posted on 18 February 2013 by VRS |  Email |Print

Crude oil production from the Organization of the Petroleum Exporting Countries (Opec) fell to 30.45 million barrels per day (bpd) in January from 30.65 million bpd in December, led by a further drop in volumes from Saudi Arabia, said a just-released Platts survey of Opec and oil industry officials and analysts.
Saudi Arabia reduced output to 9.25 million bpd in January from 9.45 million bpd in December, the report stated. The January level was the lowest since an estimated 9.05 million bpd in May 2011, it added………………………………………..Full Article: Source

Posted on 18 February 2013 by VRS |  Email |Print

A reduction in crude oil supply from non-OPEC countries due to disruptions is estimated at 875 thousand b/d for February, around 256 thousand b/d less than the previous month, stated a recent market outlook from London based Barclays.
However, ongoing outages in Brazil, Syria and Sudan are expected to disrupt the smooth moving of the commodity, the report added. In Yemen, an average of 50 thousand b/d of production might have been reduced in February as a result of yet another rebel attack on its main pipeline, Marib, last week………………………………………..Full Article: Source

Posted on 18 February 2013 by VRS |  Email |Print

Coal’s share of the global energy mix continues to rise, and by 2017 coal will come close to surpassing oil as the world’s top energy source, the International Energy Agency concludes in its latest annual Medium-Term Coal Market Report (MCMR), covering the period 2012-2017.
Although the growth rate of coal slows from the breakneck pace of the last decade, global coal consumption by 2017 is estimated to be some 4.32 billion tonnes of oil equivalent (btoe), versus around 4.4 btoe for oil, based on IEA medium-term projections. The IEA expects that coal demand will increase in every region of the world except in the United States, where coal is being pushed out by natural gas………………………………………..Full Article: Source

Posted on 18 February 2013 by VRS |  Email |Print

The expected launch of exchange traded funds (ETFs) tied to commodities in China later this year will be a major milestone for the country’s capital market and one that will likely prove popular with investors, according to analysts. At present, there are 12 ETFs trading on the Shanghai Stock Exchange (SSE) with 40.8 billion yuan ($6.54 billion) in combined net assets, data from the exchange show.
According to analysts, China’s ETF market is set to become more diversified this year as new products, including bond-backed and gold-backed ETFs, are expected to make their debuts over the coming months. All of the ETFs currently trading on the Chinese mainland are tied to publicly-traded equities and stock indices………………………………………..Full Article: Source

Posted on 18 February 2013 by VRS |  Email |Print

Commodity assets under management rose to $430 billion last month, as prices climbed and withdrawals from funds slowed, Barclays Plc said.
The commodity sector “appears reasonably healthy” as it topped $400 billion for the seventh straight month, analysts Suki Cooper, Sha Luo, Kevin Norrish and Marco Corsi said today in a report. Assets under management tracked by commodity-index swaps rose to $136.7 billion in January, the highest since September 2012, report said………………………………………..Full Article: Source

Posted on 18 February 2013 by VRS |  Email |Print

Jim Rogers was my market hero of sorts, having founded the Quantum Fund with George Soros. He has explored the world by motorcycle and automobile, all while writing about his adventures and being a fixture on financial news TV shows. I have met some quirky characters in the financial markets, but he was the first to chat with me while jogging on a treadmill.
Rogers is known as being a huge proponent of commodities. His new book, Hot Commodities, lays out the case for commodity investments extensively………………………………………..Full Article: Source

Posted on 18 February 2013 by VRS |  Email |Print

Wall Street legend offers investing insights and economic, political and social analyis, drawing on lessons and observations from his lifetime in the markets. So, Jim Rogers, tell us what you really think. …
No problem there: Candor is the trademark of this former hedge fund titan, world traveler and inveterate memoirist and investor. Rogers is a showman. And his latest book, Street Smarts: Adventures on the Road and in the Markets, exuberantly excoriates the “overconfident incompetents” he believes dominate the U.S. government and Wall Street………………………………………..Full Article: Source

Posted on 18 February 2013 by VRS |  Email |Print

Big declines in both the yen and crude oil may be giving the market a sneak peek at a near-term correction. But whether or not you believe a correction would be healthy at this stage, MoneyShow’s Tom Aspray shares his market analysis and what you should watch for this week.
The action Friday in the stock market was overshadowed by the sharp declines in crude oil and gold in early trading. The widely watched SPDR Gold Trust (GLD) dropped to its lowest level since last August, and the nearby crude oil contract was down close to 2% during the day. Both did close above the early lows………………………………………..Full Article: Source

Posted on 18 February 2013 by VRS |  Email |Print

What world currencies does one of the world’s biggest investment banks like the most right now? Well, some background information first. This weekend’s G20 meeting is framed by concerns of competitive exchange rate devaluations, with investors recalling late 2010 and early 2011 as a recent example of emerging market central bankers acting to combat currency appreciation. The currency war was in full swing.
But this time around at the G20 in Moscow, economic growth-inflation dynamics are not conducive to material emerging market currency appreciation………………………………………..Full Article: Source

Posted on 18 February 2013 by VRS |  Email |Print

The world’s largest economies took a step toward common global guidelines for exchange-rate policies with a pledge Saturday to refrain from targeting their currency policies to gain a competitive trading advantage.
The pledge, in a statement produced by finance ministers and central bankers from Group of 20 nations following two days of meetings here, marked the first time the group had agreed to such an explicit guideline on the issue. It came as officials sought to defuse global tensions over volatile exchange rates………………………………………..Full Article: Source

Posted on 18 February 2013 by VRS |  Email |Print

The world economy faces a new threat. Instead of a banking collapse or too much debt, fears are growing that countries are using their currencies as an economic weapon. History suggests that’s never a good thing.
If too many countries try to weaken their currencies for economic gain - sparking a “currency war” - that could stifle business confidence and investment, sow turmoil in financial markets and derail a fragile global economy………………………………………..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