Thu, Apr 17, 2014
A A A
Welcome kbr175@gmail.com
RSS
Commodities Briefing 01.Mar 2013

Posted on 01 March 2013 by VRS |  Email |Print

Nicholas Brooks, head of research at ETF Securities, said investors may only be mid-stage in a bull market for commodities. This is primarily because the world’s two largest economies, China and the US, are recovering, he said. In the US, housing starts have improved and consumer confidence is high.
Unemployment is still at 7.8% but the Fed wants to reduce this to 6.5%, he noted. Meanwhile, business spending and retail sales are up in China, while the government has loosened its fiscal stance………………………………………..Full Article: Source

Posted on 01 March 2013 by VRS |  Email |Print

West Texas Intermediate oil dropped to the lowest price this year and headed for a second weekly decline as OPEC production rose for the first time in six months and Chinese manufacturing expanded less than forecast.
Futures slid as much as 0.7 percent to $91.43 a barrel in New York, the lowest intraday price since Dec. 31. Output in the Organization of Petroleum Exporting Countries gained 97,000 barrels to an average of almost 30.7 million a day last month, a Bloomberg survey survey of oil companies, producers and analysts showed………………………………………..Full Article: Source

Posted on 01 March 2013 by VRS |  Email |Print

OPEC crude output rose for the first time in six months as rising Libyan production outpaced a cut by Saudi Arabia, which has implemented a program aimed at curbing excess supply and supporting prices, a Bloomberg survey showed.
Output in the 12-member Organization of Petroleum Exporting Countries increased 97,000 barrels, or 0.3 percent, to an average 30.699 million barrels a day this month from a revised 30.602 million in January, the survey of oil companies, producers and analysts showed. The January total was revised 123,000 barrels a day higher, mostly because of a change to the Kuwaiti production estimate………………………………………..Full Article: Source

Posted on 01 March 2013 by VRS |  Email |Print

Vitol, the world’s largest oil trader, is forecasting another year of elevated energy costs, saying that oil prices are unlikely to fall from their current level of more than $110 a barrel. The global benchmark Brent crude averaged a record $111.50 a barrel in 2012, providing the Opec cartel of producers with more than $1tn in revenues.
The oil market has since started this year even more strongly with Brent futures trading above $119 in early February as sentiment towards the global economy improved………………………………………..Full Article: Source

Posted on 01 March 2013 by VRS |  Email |Print

Gold traders are divided on the outlook for prices, balancing central bank concern that more economic stimulus is needed against signs of recovering growth that spurred the longest run of monthly losses since 1997.
Fifteen analysts surveyed by Bloomberg expect prices to gain next week, while 14 were bearish and three were neutral. They were mostly negative the previous two weeks and evenly split the week before that. Bullion fell for a fifth straight month in February as investors sold the most metal ever from exchange-traded products, data compiled by Bloomberg show………………………………………..Full Article: Source

Posted on 01 March 2013 by VRS |  Email |Print

The gold market is all smoke and mirrors. But now the bankers’ house is on fire, the smoke is getting thicker, the mirrors are cracking and the screams of the trapped will soon be heard.
Like most truisms, the old adage, ‘connecting the dots’, is easier said than done. Choosing the correct dots is far more difficult than merely connecting them. If you connect the right dots, you are called a soothsayer. Connect the wrong dots, you look like a fool………………………………………..Full Article: Source

Posted on 01 March 2013 by VRS |  Email |Print

It was not exactly a lovely February for gold bugs. Between talks of a great rotation into risk-on assets, and confusing language from the Federal Reserve, the precious metal experienced heavy-selling pressure to reach new multi-month lows. However, gold investors may not be sweating the decline like some expect.
In late February, the price of gold dropped below $1,600 an ounce to its lowest level since July, and even trigged the headline-grabbing death cross status, a bearish technical term for when the 50-day moving average crosses below the 200-day moving average………………………………………..Full Article: Source

Posted on 01 March 2013 by VRS |  Email |Print

Only a week ago, the price of gold plunged below $1600 due to the US Federal Reserve’s Federal Open Market Committee minutes from its latest meeting at the end of January. Although prices began to slip ahead of the release of the minutes, the selling accelerated after the minutes hinted that the Fed could possibly end its QE3 debt-monetization campaign sooner rather than later.
On Tuesday, the price of gold soared by nearly 2% in the biggest one-day percentage gain since 6 November, 2012. The gold price reacted to comments made by the U.S. Federal Reserve chairman Bernanke in a Senate hearing………………………………………..Full Article: Source

Posted on 01 March 2013 by VRS |  Email |Print

The price of silver futures contracts have been regularly flirting with a state of backwardation ever since the 2008 financial crisis, which is a sign of a growing physical silver shortage. A state of backwardation occurs when the front month silver futures contract commands a price premium to the subsequent months’ contracts.
On one hand, this situation could actually provide larger traders who own the physical silver with an opportunity to simultaneously sell it and purchase futures contracts to recover their metal holdings for a net profit………………………………………..Full Article: Source

Posted on 01 March 2013 by VRS |  Email |Print

Rhodium, the scarcest precious metal used in making catalytic converters, is outperforming platinum and palladium for the first time in seven years as global car sales rise to a record.
The metal, used with palladium and platinum in pollution- control devices, rose 16 percent this year, about three times the increase of the other two ingredients and 20 times more than the benchmark commodities index. (MXWD) Output will trail demand for four more years after the first deficit since 2007 last year, eroding inventories, Standard Bank Plc’s SBG Securities (Pty) Ltd. unit forecasts………………………………………..Full Article: Source

Posted on 01 March 2013 by VRS |  Email |Print

One of things all investors should know for 2013 is how to invest in commodities, as the prices of many of these products head for huge gains. One of the reasons they will soar is because institutional investors have quickly abandoned them in the current risk on/risk off investment climate. There is right now roughly $424 billion invested in commodities, but that is a mere fraction of 1% of all global investment assets.
When all that money comes pouring back in, those commodity-related investments will skyrocket. The few institutions that jumped into the market were disappointed because the commodities “super-cycle” did not generate spectacular gains for them in a year or two. Also, with inflation appearing to be nonexistent in the government-reported numbers, institutions are bailing on commodities………………………………………..Full Article: Source

Posted on 01 March 2013 by VRS |  Email |Print

India, the world’s largest user of gold, will tax commodities futures contracts for the first time after trading surged five fold in five years.
The levy will be 0.01 percent of the value of trade of all non-farm commodities, Finance Minister Palaniappan Chidambaram said today while presenting the annual budget for 2013-2014. “There is no distinction between derivative trading in the securities market and derivative trading in the commodities market, only the underlying asset is different,” he said………………………………………..Full Article: Source

Posted on 01 March 2013 by VRS |  Email |Print

Commodities billionaire Richard Elman highlighted the benefit of financial restraint at a time when “funding is pulling out of the sector” as the Noble Group he founded unveil a rise in earnings despite a slump in agriculture.
Mr Elman, worth $1.8bn according to Forbes, blamed the “uncertainty” caused by elections and government changes in the likes of China and the US, as well as “echoes of the financial crisis” for causing “huge volumes of investment money to drain out of the commodity space” last year………………………………………..Full Article: Source

Posted on 01 March 2013 by VRS |  Email |Print

Foreign Institutional Investors (FIIs) will now be allowed to trade in the exchange-traded currency derivative segment. They will be able to participate to the extent of their Rupee exposure in India.
Besides presence in equities, FIIs engagement in India has also been growing in the debt market. FIIs have invested Rs 1.42 lakh crore in Indian debt instruments in the last five years (CY2008-12). In CY2013 so far, they have invested Rs 6,500 crore. So, they need to more avenues to hedge their currency risk………………………………………..Full Article: Source

Posted on 01 March 2013 by VRS |  Email |Print

On Wednesday, Brazilian Finance Minister Guido Mantega, the poster child of the so-called “currency war”, said his country is no longer on the battle field. Bloomberg reported Mantega saying Brazil was abandoning policies to weaken the local currency, the real, even though Japan is depreciating the yen and the U.S. continues with the free money policies that started the currency war in the first place after the 2008 finance crisis erupted.
Brazil’s real is hovering around two to the dollar. Not too long ago, it was closer to R$1.65. And at the height of the Brazilian bubble in mid-2008, it was as strong as R$1.55………………………………………..Full Article: Source

Posted on 01 March 2013 by VRS |  Email |Print

Last month two Egyptian banks refused to give Ahmed El-Rifai the dollars he needed. His company, Egyweb, sells ads locally for Facebook (FB), and he had to pay the U.S. company its share of the revenue in greenbacks.
Frustrated, El-Rifai turned to a more reliable source: the black market, which sold him dollars at an 8 percent markup to the official exchange rate of 6.7 pounds to the dollar………………………………………..Full Article: Source

Posted on 01 March 2013 by VRS |  Email |Print

When California held its first-ever auction of greenhouse gas emission allowances last fall, allowances sold for $10.09, just pennies above the $10 floor price set by state regulators. Some observers warned that the low price meant the state’s new cap-and-trade program wouldn’t work and was a sign that companies were not participating.
But in the second auction last week, the allowances sold for $13.62 each, higher than many analysts had expected………………………………………..Full Article: Source

See more articles in the archive

banner
banner
April 2014
S M T W T F S
« Mar    
 12345
6789101112
13141516171819
20212223242526
27282930