Thu, Apr 24, 2014
A A A
Welcome kbr175@gmail.com
RSS
Commodities Briefing 07.Mar 2013

Posted on 07 March 2013 by VRS |  Email |Print

This year’s commodity rally has ended and magically restarted in just five days, and it’s all because of China. Commodity prices dropped on March 1, with London copper hitting a three-month low of $7,659.50 a tonne, on concern that industrial production in China, the world’s biggest buyer of the industrial metal, was losing momentum.
This was because both the official and HSBC Purchasing Managers’ Indexes fell to five-month and four-month lows respectively. The gloomy feeling was amplified by Chinese authorities saying they will take steps to cool property prices, which was interpreted by the market as bearish for construction and, by implication, both copper and iron ore demand………………………………………..Full Article: Source

Posted on 07 March 2013 by VRS |  Email |Print

New bike race? Not really. Commodities are anything that can be bought and sold. They can be split into two broad categories: hard and soft. Hard commodities are materials which are mined or extracted; soft commodities might include crops like oranges or wheat.
What’s the cycle? A commodity cycle is the fluctuation of price that occurs. Although trends are difficult to predict, prices rise and fall over time. To give an example, the price of wheat will change depending on the quality of the harvest, and demand from consumers. A good harvest will push the price down………………………………………..Full Article: Source

Posted on 07 March 2013 by VRS |  Email |Print

Saudi Arabia’s crude oil output this year may average 400,000 barrels a day less than in 2012 as the kingdom curbs supply to help meet OPEC’s production target, according to a National Commercial Bank forecast.
The world’s largest crude exporter may pump 9.5 million barrels a day on average in 2013, Saudi Arabia’s biggest lender by assets said today in an e-mailed note. NCB reduced its estimate for Saudi production this year from its previous forecast, in November, of 10.1 million barrels………………………………………..Full Article: Source

Posted on 07 March 2013 by VRS |  Email |Print

Oil prices climbed in Asian trade yesterday on uncertainty following the death of Venezuelan President Hugo Chavez, the leader of the major Latin American crude producer, analysts said. New York’s main contract, light sweet crude for delivery next month, added US$0.26 to US$91.08 a barrel and Brent North Sea crude for delivery next month rose US$0.32 to US$111.93 in mid-afternoon trade.
“The impact of the news seems to be minimal at this point in time, but some speculation and risk has been priced into oil futures,” Ker Chung Yang, senior investment analyst at Phillip Futures in Singapore, told reporters………………………………………..Full Article: Source

Posted on 07 March 2013 by VRS |  Email |Print

In February 2013, Exchange Traded Funds (ETFs) and Exchange Traded Products (ETPs) globally had net inflows of $11.4 billion, according to new research published in the latest ETFGI Global ETF and ETP industry insights. ETFGI won the Best ETF Research award in 2012 in the ETF Express awards announced on February 28th in London.
Equity ETFs and ETPs gathered the largest net inflows with $11.6 billion, followed by fixed income ETFs and ETPs with $1.3 billion, and active ETFs and ETPs with $1.1 billion, while commodity ETFs and ETPs experienced net outflows with $4.9 billion………………………………………..Full Article: Source

Posted on 07 March 2013 by VRS |  Email |Print

Silver has been quite volatile over the past couple of years. The price of the white metal has been declining moderately as of late despite the monetary easing measures of the Federal Reserve to stir up growth in the economy.
Currently, silver bullion is trading in the range of $27–$31 per ounce. It is expected to go up to $33 per ounce this year and again revert to $31 per ounce in the next, according to HSBC. This means that investors could get a decent return of 6%–9%, if they buy and hold the metal for one year, and possibly more if global trends continue………………………………………..Full Article: Source

Posted on 07 March 2013 by VRS |  Email |Print

Exchange traded funds have transformed the gold market. Since the first fund was launched nearly a decade ago, the products have become so successful in offering a simple way for investors to buy physical gold that they have acquired the nickname “the people’s central bank.”
But what happens when the people’s central bank decides to sell? That is the question now haunting the bullion market. Since the start of January, gold ETFs have dumped 140 tonnes of gold. February saw the largest monthly outflow of gold from ETFs on record………………………………………..Full Article: Source

Posted on 07 March 2013 by VRS |  Email |Print

U.S. dollar prices to buy gold hovered around $1,575 per ounce Wednesday morning in London, in line with last week’s close, as dealers in Asia reported an increase in demand for physical bullion, in contrast with exchange traded funds, which have continued to see selling, in what one analyst calls a “tug of war” between physical buying and ETF selling.
“Short-term, gold should drift lower to the short-term support line at $1,569/65 or even to the previous low at $1,555,” say technical analysts at Societe Generale. “Initial support is at $1,564.88,” adds UBS. “A break below [that level] would expose $1,556.50, the June 28 low and then $1533.70, the May 16, 2012 low.”……………………………………….Full Article: Source

Posted on 07 March 2013 by VRS |  Email |Print

In the investing world, you can take a three-month view, a three-year view or a 30-year view. One person looking at one asset class might have a different forecast depending on the time horizon he is considering. In this article, I will look at gold through a 30-year lens.
I believe that structural forces will support gold and other hard assets over the long term. While current forces may be bearish for gold in the intermediate term, there are a number of underlying currents that demand a strategic allocation to the metal (either bullion or via an ETF such as (GLD), (IAU) or (SGOL))………………………………………..Full Article: Source

Posted on 07 March 2013 by VRS |  Email |Print

Hedge funds held overall returns in positive territory this month, however, good performance from equity, credit and volatility strategies was overshadowed by losses from macro, managed futures and commodity funds. According to monthly performance data from eVestment, hedge funds were up +0.28% for the month and are up +6.87% for the year. Macro, managed futures and commodities strategies were down - -0.01%; 1.49%, and -3.01% respectively.
Directional equity is leading the industry early in 2013, with correlation with the S&P near all-time highs. Credit fund returns continued to be led by mortgage funds in February, but the group’s percentage of winners during the month dipped to the lowest level since May 2012, the last month in which credit funds posted an aggregate loss………………………………………..Full Article: Source

Posted on 07 March 2013 by VRS |  Email |Print

NYSE Euronext, which operates the New York Stock Exchange, is selling its 4.79% stake in MCX, the country’s largest commodity exchange. The sale, likely to take place on Thursday, will be at a 3-5% discount to Wednesday’s closing price of Rs 1,058 a share, said a person aware of the development.
Goldman Sachs Fund is expected to be the buyer, he added. The size of the deal would be in the region of Rs 250 crore and comes after a one-year lock in period since the listing of the bourse in March last year. At this price, NYSE will make a small gain of 4-5% on its investment of Rs 240 crore in MCX in 2008………………………………………..Full Article: Source

Posted on 07 March 2013 by VRS |  Email |Print

M&G’s Graham French has been selling down his exposure to commodities after falling prices and a ‘poorly managed’ sector hit the performance of his Global Basics fund last year. French, who has run the £5.2bn fund since 2000, apologised to investors for his performance last year after lagging the sector substantially.
Global Basics has returned just over 1% over the past 12 months, leaving it bottom quartile of the IMA Global sector over that timeframe, as the majority of funds posted more significant gains. ……………………………………….Full Article: Source

Posted on 07 March 2013 by VRS |  Email |Print

The euro lagged gains in growth-linked currencies on Wednesday, held back by concern that the European Central Bank could flag future interest rate cuts after its monthly policy-setting meeting on Thursday.
European stocks rose, mirroring the record high hit on the Dow Jones industrial average and lending support to commodity currencies like the Australian dollar. But the euro still has some way to go before it breaks above its downtrend since early February………………………………………..Full Article: Source

Posted on 07 March 2013 by VRS |  Email |Print

Despite slow Asian and European sessions, the US and Australian dollars have assumed leadership roles, while the British pound and euro both struggle beneath the weight of political and economic uncertainty. It was a very quiet night of FX trading as currencies traced out very narrow ranges in listless dealing with no fresh news to move the markets.
The euro once again failed to clear the 1.3080 level and then quickly fell into the 1.3030’s after the release of Eurozone GDP showed exports posted the biggest decline since Q1 of 2009. Furthermore, comments from Italy’s Pier Luigi Bersani offered no hope of a solution to the Italian election quagmire………………………………………..Full Article: Source

Posted on 07 March 2013 by VRS |  Email |Print

China will wait until after this year to introduce a tax on carbon, deferring to concern that economic growth might suffer, a government researcher said.
The nation eventually expects to introduce a levy of 5 yuan to 10 yuan (80 cents to $1.61) per ton of carbon, Jia Kang, head of research at the Ministry of Finance, said in Beijing yesterday. The tax, proposed in China’s latest five-year plan, was intended to apply to carbon emissions from fossil fuels, KPMG International said in a May 2011 report………………………………………..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