Sat, Apr 19, 2014
A A A
Welcome kbr175@gmail.com
RSS
Commodities Briefing 05.Apr 2013

Posted on 05 April 2013 by VRS |  Email |Print

Competition for natural resources among Asian nations continues to intensify, bringing the world’s most resource-poor continent to a dangerous crossroads of dependence, geopolitical tension and environmental degradation, writes Professor Brahma Chellaney of the New Delhi-based Center for Policy Research in an article for Project Syndicate.
As Australians, Canadians and Russians well know, severe natural resource constraints in Asian have forced economies outward to secure access to mineral ores, timber and fossil fuels, leading a “commodities supercycle” that has lasted some 15 years………………………………………..Full Article: Source

Posted on 05 April 2013 by VRS |  Email |Print

Commodity ETPs: In 1Q 2013, as global growth and risk appetite picked up, commodity investors rotated out of gold ETPs and into more cyclical commodity ETPs such as silver, copper, palladium, platinum and broad commodity trackers. Gold ETPs saw $9.2bn of outflows during the quarter as improving US growth data drove up US interest rate expectations, increased speculation that quantitative easing might be ratcheted back and boosted the US dollar.
All of these factors were gold negative and caused tactical ETP investors to pare back their positioning. A similar trend occurred in the futures market where net speculative longs in gold futures fell back to end 2008 levels………………………………………..Full Article: Source

Posted on 05 April 2013 by VRS |  Email |Print

As global growth and risk appetite picked up in the first quarter of 2013, commodity investors rotated out of exchange-traded products (ETPs) linked to gold and into more cyclical commodity ETPs such as silver, copper, palladium, platinum and broad commodity trackers.
As an aside, the term ‘ETP’ encompasses exchange-traded funds (ETFs), exchange-traded notes (ETNs) and exchange-traded commodities (ETCs). The latter, ETCs, are typically the preferred vehicle for commodities investment. Gold ETPs saw $9.2 billion of outflows during the quarter as improving US growth data drove up US interest rate expectations, increased speculation that quantitative easing might be ratcheted back and boosted the US dollar………………………………………..Full Article: Source

Posted on 05 April 2013 by VRS |  Email |Print

Barclays steeply cut its oil price forecasts on Wednesday, becoming the last of the big banks active in commodities to abandon its bullish stance in the face of soaring U.S. oil output and sluggish global demand.
The cut from Barclays, which has for several years predicted an oil rally as demand outpaced supply, came as the bank’s long-serving head of commodities research, Paul Horsnell, left the company, two sources familiar with the development said………………………………………..Full Article: Source

Posted on 05 April 2013 by VRS |  Email |Print

OPEC is not seeking to raise oil prices, with the cartel’s chief estimating Thursday that the current level is “comfortable” for both producers and consumers.
“We are not advocating a higher price, we are advocating a reasonable price where we can invest (…) and producers and consumers can live together,” OPEC Secretary-General Abdullah El-Badri said at an oil industry gathering in Paris. “The price as we see it now is comfortable both for producers and consumers,” he added………………………………………..Full Article: Source

Posted on 05 April 2013 by VRS |  Email |Print

The chief executive of French oil company Total SA (TOT) Thursday said he expects the price of oil to move within a range of $105-$115 a barrel. Over the past two years, the oil price average has remained close to $110 a barrel on the world markets, Christophe de Margerie told reporters on the sidelines of a conference held in Paris.
“I have no crystal ball. Don’t ask me for how long the tendency will last,” Mr. de Margerie said. He added the price may move from the range in the coming months in one direction or the other, depending on the market situation in countries such as Venezuela, where instability may contribute to global price increases; or Iraq, where rising production may bring prices lower………………………………………..Full Article: Source

Posted on 05 April 2013 by VRS |  Email |Print

Demand for oil from members of the Organization of the Petroleum Exporting Countries is likely to fall in 2013 as a result of economic weakness in the European Union and reduced demand from the U.S., the group’s secretary-general said Thursday.
Abdalla Salem el-Badri said demand for OPEC oil is likely to fall by between 200,000 and 300,000 barrels a day to 29.7 million barrels a day. Overall global demand for oil should rise by about 800,000 barrels a day led by economic growth in the likes of China and India, he said………………………………………..Full Article: Source

Posted on 05 April 2013 by VRS |  Email |Print

Oil has climbed down more than 4% in two days. At last check, a barrel of West Texas Intermediate fetches a little over $93.
The big factor: Yesterday’s weekly crude inventory report from the U.S. Department of Energy. “The nation’s supply of oil is now 7.2% above year-ago levels,” reports The Associated Press, “and the highest since July 27, 1990, when it was at 391.9 million barrels.”……………………………………….Full Article: Source

Posted on 05 April 2013 by VRS |  Email |Print

The price of gold will rise to over $1 800/oz by the end of the year on the back of economic developments in the US and a recovering global market, the Thomson Reuters GFMS Gold Survey 2013 showed.
Head of the consultancy’s precious metals research and forecasts division Neil Meader doubted that the ongoing debate in the US relating to budget cuts and the further raising of the debt ceiling would be resolved in the near term, which would underpin the gold price this year………………………………………..Full Article: Source

Posted on 05 April 2013 by VRS |  Email |Print

Gold plummeted to its lowest price in 10 months on Thursday morning, hit by the double-whammy of risk-off sentiment across assets broadly and reduced safe-haven demand following the resolution of the Cyprus crisis.
Since the start of the week, spot gold has fallen nearly $60 from peak to trough – it was last down $11.90 or nearly one percent on the overnight close at $1,544.90/1,545.50 per ounce. Earlier in the session, it fell to its lowest since May 30 at $1,539.95.“The precious metals complex continued to be sold aggressively, as investors and physical buyers seem to be sitting on the sidelines thinking they will get a better opportunity with the falling prices,” MKS Capital analyst Alex Thorndike said………………………………………..Full Article: Source

Posted on 05 April 2013 by VRS |  Email |Print

Gold imports by India, the world’s largest bullion buyer, may increase 31 percent this quarter after prices dropped to a 10-month low and festivals and weddings spur sales of jewelry, a trade group said.
Purchases may climb to 200 metric tons in the three months through June from 153 tons a year earlier, Bachhraj Bamalwa, a former chairman and member of the All India Gems & Jewellery Trade Federation, said in a phone interview today. Imports probably were 225 tons to 250 tons last quarter, compared with 228 tons a year earlier, he said………………………………………..Full Article: Source

Posted on 05 April 2013 by VRS |  Email |Print

Global commodity exchange-traded funds recorded multi-billion dollar outflows for the first quarter of 2013, but the near-default of Cyprus last month is expected to increase appetite for gold funds in the second quarter, according to fund provider ETF Securities.
Global commodity ETFs experienced outflows of $8.64bn in the first quarter, fuelled by $9.16bn of outflows in gold, as increased investor risk appetite saw movement into equities, according to ETF Securities. Precious metals and energy accounted for the largest outflows among commodity asset classes, with outflows of $8.09bn and $1.35bn respectively………………………………………..Full Article: Source

Posted on 05 April 2013 by VRS |  Email |Print

Silver prices are plunging, there’s no denying that. The technical picture in silver is indeed ugly, a point expertly made by my InvestorPlace colleague Serge Berger in his piece, “Silver: Ugly, and Getting Uglier.”
Yet I’m a contrarian by nature, so given the latest drop in silver prices, I start to ask myself how I can take advantage of the downtrend. Is there a “blood in the streets” buy here in the space? I suspect so. Earlier this week, I noticed that the Commitment of Traders report in silver continues to signal that there isn’t a risk of an impending washout. Here the “net long” position of speculators in silver is now at just 1k contracts, down from a high of 36k in October………………………………………..Full Article: Source

Posted on 05 April 2013 by VRS |  Email |Print

Copper rebounded from an eight-month low in New York after a Chilean government official said a strike at a port is curtailing shipments from the country, the world’s biggest producer of the metal.
The strike is restricting exports by 60 percent after Angamos port workers in Chile’s north started protests March 16, Chile Mining Minister Hernan de Solminihac told reporters today in Santiago. Copper also rose as the dollar pared earlier gains, boosting the appeal of commodities as an alternative investment………………………………………..Full Article: Source

Posted on 05 April 2013 by VRS |  Email |Print

South African mining shares, which account for 24% of the country’s stock market weighting, fell to their lowest in almost seven months on Wednesday as commodity prices fell on weak demand prospects.
“Continuous uncertainty around labour issues means that generally‚ sentiment around gold and other metals remains negative,” said Ferdi Heyneke‚ a portfolio manager at Afrifocus. “Gold is not attracting any safe haven status at the moment.” The 19-member FTSE/JSE Africa mining index retreated 2.6% and closed at its weakest level since September last year………………………………………..Full Article: Source

Posted on 05 April 2013 by VRS |  Email |Print

Commodity-linked currencies like the Australian and Canadian dollars are “the safest of all havens” as the euro-zone debt crisis wages on, says Dennis Gartman, editor and publisher of The Gartman Letter.
Because of their perceived safety, these currencies have strengthened persistently in recent weeks as the Cyprus crisis came to the fore, despite broader weakness in commodity prices, he said in an interview on the DJ FX Trader podcast Wednesday. In the past, these currencies typically have moved in line with the price of oil and other commodities, because of their economies’ large focus on exporting commodities………………………………………..Full Article: Source

Posted on 05 April 2013 by VRS |  Email |Print

The Bank of Japan’s more aggressive monetary policy causes a big move in the yen and threatens to deepen the losses for unhedged U.S. companies.
Companies with exposure to the yen-U.S. dollar exchange rate have possibly had a wrench thrown into their hedging plans this year as a result of the Bank of Japan’s new, more aggressive policy of monetary easing. After a period of yen strengthening, the Japanese Central Bank’s announcement to buy long-term government bonds to inject $1.4 trillion into the Japanese economy means (foreign exchange) FX rates could move drastically in the other direction………………………………………..Full Article: Source

Posted on 05 April 2013 by VRS |  Email |Print

Shenzhen, a Special Economic Zone designed to promote market policies in China, will start emissions trading on June 17, the first announced start date among the country’s regional carbon exchanges.
Mayor Qin Xu announced the schedule in an interview with the Shenzhen Daily newspaper. While Beijing and Shanghai may also start their carbon markets in June, Shenzhen is the first to set a specific date, according to analysts at Bloomberg New Energy Finance………………………………………..Full Article: Source

Posted on 05 April 2013 by VRS |  Email |Print

Which source of renewable energy is most important to the European Union? Solar power, perhaps? (Europe has three-quarters of the world’s total installed capacity of solar photovoltaic energy.) Or wind? (Germany trebled its wind-power capacity in the past decade.) The answer is neither. By far the largest so-called renewable fuel used in Europe is wood.
In its various forms, from sticks to pellets to sawdust, wood (or to use its fashionable name, biomass) accounts for about half of Europe’s renewable-energy consumption. In some countries, such as Poland and Finland, wood meets more than 80% of renewable-energy demand………………………………………..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