Sat, Oct 25, 2014
A A A
Welcome kbr175@gmail.com
RSS
Commodities Briefing 25.Feb 2013

Posted on 25 February 2013 by VRS |  Email |Print

Hedge funds cut bets on a rally in gold by the most since 2007 and became the most bearish ever on sugar and coffee as concern that the Federal Reserve will slow U.S. stimulus programs drove prices for raw materials to the biggest loss this year.
Money managers and other large speculators reduced their net-long position in gold futures and options by 40 percent in the week ended Feb. 19 to 42,318, the biggest drop since July 31, 2007, U.S. Commodity Futures Trading Commission data show. Wagers across 18 U.S. raw materials tumbled to the lowest since December 2011 as investors’ net-short positions for sugar and coffee hit record highs. Bullish corn wagers fell the most since June 2010………………………………………..Full Article: Source

Posted on 25 February 2013 by VRS |  Email |Print

Is liquidity-led commodity price boom coming to an end? This is a question everyone with exposure to markets is asking. Last week witnessed broad-based price declines across the global commodity markets, led by the precious and base metals.
Release of FOMC minutes was the trigger. The market participants interpreted the release of FOMC minutes as hawkish and expected liquidity injections to end sooner. An additional factor impacting commodities was the Chinese government announcement of measures to cool property markets………………………………………..Full Article: Source

Posted on 25 February 2013 by VRS |  Email |Print

Commodities as a group have been underperforming equities for about six months now. The correlation between the two groups has been grinding lower. Even more important, I think the underperformance of commodities—and by extension emerging markets—will persist for some time.
Hang on. If the backdrop is improving growth expectations and continued, if not increased, global central bank base money expansion, why have they underperformed and why should it continue?……………………………………….Full Article: Source

Posted on 25 February 2013 by VRS |  Email |Print

The biggest development in global oil markets last year was arguably the spectacular rise of shale oil production in the US and the realisation of how transformational it could be. The oil side of the US shale gas revolution has been building steadily but it was only last year that it dawned on many forecasters that the US is set to overtake Saudi Arabia and Russia as the world’s biggest oil producer by the end of the decade.
Even the Saudi Arabian-controlled OPEC oil cartel was caught offguard. It was forced to revise oil production forecasts in its annual world oil outlook to say developed countries would be producing more oil in 2016 than developing countries………………………………………..Full Article: Source

Posted on 25 February 2013 by VRS |  Email |Print

Global crude oil markets in 2013 are likely to be marked by healthy demand growth to the tune of 1.08 mb/d y/y and a non-OPEC supply profile that continues to lag (+0.51 mb/d y/y), stated London based Barclays in its latest weekly update.
This week the market saw a shift in directional momentum in crude oil. The first half of the week saw a pause in the upward drift, with the front-month Brent contract moving sideways around the $117/bbl range, while the latter half of the week saw prices edge lower. A combination of fading geopolitical headlines and shifts in macroeconomic sentiment has contributed to the weakness at the prompt………………………………………..Full Article: Source

Posted on 25 February 2013 by VRS |  Email |Print

Recent releases from the International Energy Agency tell of moderating growth rate of the global demand for oil - which was based on lower economic growth projections. And promises of “fracking” to boost oil supply are bouncing around cyberspace. Images of supply and demand curves flash in one’s mind.
Yet, the cost of oil today has little to do with supply versus demand - but is more about marginal cost of supply and producers’ ability to manipulate supply. Peak oil and anti-Obama rhetoric notwithstanding, oil production in the USA has been growing……………………………………….Full Article: Source

Posted on 25 February 2013 by VRS |  Email |Print

While other countries may be more reliable and better equipped, Myanmar has emerged as the new promised land for global oil and gas giants unperturbed by a lack of data on its proven energy reserves.
Since political reforms helped Myanmar shed its pariah status and prompted international sanctions to be lifted, the world’s major energy firms have been eyeing the potentially oil-and-gas-rich country tucked between China and India………………………………………..Full Article: Source

Posted on 25 February 2013 by VRS |  Email |Print

After climbing 500% in a decade, perhaps it is time for gold investors to accept that the yellow metal is a spent force. The secular bull cycle that thrust gold into the limelight as the world’s most rewarding investment is finally waning and the metal is finally taking a well-deserved breather, some analysts believe.
Gold is down 6.5% year to date and there is a good chance this could be the year it records its first annual decline in more than a decade.”Gold will have its day in the sun at other points down the road, but the clouds on the horizon could portend still lower gold prices over the next couple of years,” said Avery Shenfeld and Emanuella Enenajor, analysts at Canadian bank CIBC………………………………………..Full Article: Source

Posted on 25 February 2013 by VRS |  Email |Print

Gold prices in the UAE dipped to Dh144.50 ($39.35) per gram (18ct gold) over the weekend as the yellow metal continues to perform poorly in global markets. The yellow metal has seen its price appreciate in each of the 10 preceding years, at least by 5.4 per cent (in 2004) and at most by 30.9 per cent (2007).
However, the start of 2013 hasn’t been good for the gold buff, with the precious metal sinking 6.1 per cent in the first seven weeks, and a majority of analysts predicting further, much steeper declines………………………………………..Full Article: Source

Posted on 25 February 2013 by VRS |  Email |Print

This ought to be a great time for gold. Interest rates are generally low around the world, and major central banks have quantitative easing programs in place. Those conditions mean gold’s lack of yield is less of an issue, and they usually translate to higher gold prices. Just not now.
Amelia Bourdeau, director of foreign exchange at Westpac Institutional Bank, says the Federal Reserve is to blame. The meeting minutes released last week showed a hint of hawkish sentiment at the central bank, and she told CNBC’s Melissa Lee that was enough to spook gold buyers since the Fed is “the mainstay behind the higher gold trade.”……………………………………….Full Article: Source

Posted on 25 February 2013 by VRS |  Email |Print

Gold futures prices are trading near steady in early U.S. dealings Friday. The market is pausing following the recent downside rout in prices that saw gold hit an 8.5-month low Thursday. The bears are still in near-term technical command in gold and silver markets.
The U.S. dollar index is slightly lower early Friday but is hovering near a three-month high. The U.S. dollar bulls have gained strong upside technical momentum recently, to suggest the dollar index has put in a market bottom and that prices can trend sideways to higher in the near term………………………………………..Full Article: Source

Posted on 25 February 2013 by VRS |  Email |Print

With gold and silver bullion there have been a number of changes in the modern landscape. The largest change comes via the Internet. In today’s world one can shop anywhere in the country for the best price possible, but is the best price always the best deal.
Hidden fees are sometimes the culprit in a deal. Often an Internet company will state that they have the best price, but then when one buys the true cost comes out. Commissions are often how this is done. Once the sale is established they add a 1 to 3 percent commission making the actual cost to you higher than that of other options. Shipping is another way that some companies make a hidden fee………………………………………..Full Article: Source

Posted on 25 February 2013 by VRS |  Email |Print

The $28 to $28.50 price levels serve as a maximum extension for this correction using Gann Trend lines. It confirms a major level of support based on the downtrend line support extension starting from the November/December 2012 lows, and connecting the January 2013 low measures almost to the dime (a pre 1964 dime that is!).
The upper end of this trend channel is in the $31.50 area. A weekly close above $31.50 potentially could ignite massive short covering. If this upside breakout occurs, a sharp rally towards the $33.50 to $34 level could rapidly materialize………………………………………..Full Article: Source

Posted on 25 February 2013 by VRS |  Email |Print

Gold and silver prices fell for the third straight week as traders speculated that the Federal Reserve will end its current $85 billion per month money printing program sooner than expected. This bolstered the trade-weighted dollar, a move that often times leads to weaker commodity prices, and important technical support levels were breached for both precious metals.
Along with the rest of the natural resource sector, bullion was already under heavy selling pressure before the release of the Fed minutes due to unsubstantiated rumors of a large commodity hedge fund being forced to liquidate its holdings and a fast-approaching “death cross” sell signal for gold………………………………………..Full Article: Source

Posted on 25 February 2013 by VRS |  Email |Print

Charles Schwab’s exchange traded funds business has reached the $10bn milestone for assets just three years after the US financial services provider launched its first ETF.
Marie Chandoha, president of Charles Schwab Investment Management, said that crossing the $10 billion mark for assets in February was “just the beginning” for Schwab’s ETF business………………………………………..Full Article: Source

Posted on 25 February 2013 by VRS |  Email |Print

The world breathed a collective sigh of relieve when finance ministers of the leading economies declared earlier this month in Moscow that they would refrain from waging a currency war. In a communiqu, they said: “We will refrain from competitive devaluation. We will not target our exchange rates for competitive purposes.”
They also refrained from naming Japan as the culprit for instigating the latest threat of global economic warfare. It has adopted aggressive monetary and fiscal policies that have driven down the value of the yen by 20 percent against the US dollar in the past couple of months. Instead, the communiqu sought to reaffirm the G20’s commitment to move “more rapidly toward more market-determined exchange rate systems and exchange rate flexibility to reflect underlying fundamentals”………………………………………..Full Article: Source

Posted on 25 February 2013 by VRS |  Email |Print

Carbon traders bought the rumour and sold the fact this week and those who got their timing right could have gained up to 86%. On Tuesday, the much anticipated crunch vote by the European Parliament’s environment committee attempted to eradicate some of the chronic oversupply in the market which had sent carbon prices plummeting to historic lows last month.
The committee agreed to allow the so-called backloading of 900 million carbon contracts. Average daily volumes for the most highly traded contract is 20 million on the largest exchange………………………………………..Full Article: Source

See more articles in the archive

banner
October 2014
S M T W T F S
« Sep    
 1234
567891011
12131415161718
19202122232425
262728293031