Sun, Dec 21, 2014
A A A
Welcome preal121
RSS
Commodities Briefing 06.May 2013

Posted on 06 May 2013 by VRS |  Email |Print

The wreckage caused by China’s great, juddering slowdown continues to spread far beyond the country’s shores. Although most commodities enjoyed a bounce on May 3, after better-than-expected U.S. employment data, the plunge in their prices over the past few months suggests the past decade’s rally is truly broken.
For those of us not in the mining industry, this is actually good news — one of the best signs yet that the global economy is returning to normal. China’s voracious demand for every conceivable raw material — oil, steel, soybeans, gold, to name a few — once seemed to spell a future of endlessly rising commodity prices and falling living standards in developed nations………………………………………..Full Article: Source

Posted on 06 May 2013 by VRS |  Email |Print

Gold has cratered into bear market territory. Ditto for silver and copper. Aluminum is in a big downtrend too, along with its metallic cousin nickel. The price of oil has been moving sideways and agricultural commodities are well off last year’s drought-induced highs.
Glance at a list of commodities, and just about everything other than natural gas has been doing nothing or heading south. Sure, there are occasional counter trend rallies, like Friday’s nice move upward for oil and copper on the back of stronger-than-expected U.S. payroll figures, but the overarching trend doesn’t look good………………………………………..Full Article: Source

Posted on 06 May 2013 by VRS |  Email |Print

The number of major investment banks able to be successful commodities players will fall to around five by 2016, according to three heads of investment bank commodities operations. One said: “What we’re seeing now is some of the banks retrenching because they don’t actually know how to make money in commodities anymore or compete with the commodities trading houses. Most banks have relatively generic offerings.”
Seb Walker, managing partner at Tricumen, a consultancy that analyses investment bank revenues, said: “The costs of a big-sized commodities business are huge and it is definitely a market where you need to be in it properly or you’re out.”……………………………………….Full Article: Source

Posted on 06 May 2013 by VRS |  Email |Print

The commodities question is a vexing one. To some extent, the fall in commodity prices reflects the large increase in the supply in recent years. We have also seen negative inflation surprises in the United States, China, India and Australia.
So, at its heart what the commodity prices are telling you is that the global economy is struggling for traction. And with effectively unlimited QE in three of the four major economies, we are still struggling to generate a genuine global recovery………………………………………..Full Article: Source

Posted on 06 May 2013 by VRS |  Email |Print

Oil prices have moved around quite a bit of late, and the price of U.S. benchmark crude oil has even dipped below $90 a barrel. Lower oil prices are great for consumers, and they’re one reason we might actually be able to afford gas this summer.
However, not everyone likes to see the price of oil move lower, and it’s pretty obvious that oil producers prefer higher prices. Next time oil prices spike higher, think about the following positive effects of higher oil prices………………………………………..Full Article: Source

Posted on 06 May 2013 by VRS |  Email |Print

Major Western oil companies also did well during the oil boom, but nowhere near as much. Large integrated companies such as Exxon Mobil aren’t as leveraged to oil prices.
Critically, try as they might, most Western majors have struggled to deliver growth, with stock prices weighed down by fears the companies are struggling to profitably secure reserves………………………………………..Full Article: Source

Posted on 06 May 2013 by VRS |  Email |Print

An age-old question to which no one has a definitive answer, but which is continually asked, is back on the agenda. Is the price of oil headed inexorably downward? There are several reasons why this question is being asked.
The overriding one is hope. After almost five years of triple-digit prices, the benchmark Brent crude oil price fell below $100 last month for the first time since July last year. Admittedly, it did not stay there for long, rising to over $100 days later, but the fact that it had slid by almost 20 per cent over the previous two months gave rise to the hope that prices were on a secular downtrend………………………………………..Full Article: Source

Posted on 06 May 2013 by VRS |  Email |Print

Hedge funds increased bets on a gold rally by the most in three weeks as central banks signaled no end to economic stimulus, driving prices higher just as analysts and traders turned the most bearish in three years.
The funds and other large speculators raised their net-long position by 19 percent to 54,762 futures and options as of April 30, U.S. Commodity Futures Trading Commission data show. Holdings of so-called short contracts retreated 9.2 percent, the most since March 19. Net-bullish wagers across 18 U.S.-traded raw materials jumped 28 percent to 550,182, the biggest increase in seven weeks, led by gains in soybeans, cocoa and crude oil………………………………………..Full Article: Source

Posted on 06 May 2013 by VRS |  Email |Print

Gold traders are the most bearish in three years after investors sold a record amount of the yellow metal held in exchange-traded products (ETPs) and prices tumbled in a bear market.
Twenty analysts surveyed by Bloomberg expect bullion to drop next week, with nine bullish and four neutral, the biggest proportion of bears since February 2010. Investors sold 174 tonne through ETPs last month, and $17.9 billion of value was wiped out, data compiled by Bloomberg show. Hedge funds accumulated their secondbiggest bet against gold on record, according to US Commodity Futures Trading Commission data………………………………………..Full Article: Source

Posted on 06 May 2013 by VRS |  Email |Print

Copper has led the London Metal Exchange (LME) to a stellar close, after an interest rate cut from the European Central Bank (ECB) and upbeat US employment data spurred a massive short-covering rally in the recently heavily sold base metals.
At the close of open-outcry trading, LME three-month copper was up some 6.2 per cent on the day at $US7,270 a metric ton, having been dragged out of a bear market by a strong surge of short-covering aided by a stronger euro, heightening the appeal of the US dollar-denominated metals to euro holders………………………………………..Full Article: Source

Posted on 06 May 2013 by VRS |  Email |Print

Continued ETP outflows remain a key downside risk to gold prices in the near term; however, in Barclays’ view, the vulnerability of further ETP outflows subsides should prices recover to above $1500/oz or equity markets underperform given the stronger correlation between the two.
Gold ETP holdings continued their downward march, ending April at a record net outflow of 176 tonnes. This comes after having previously set a monthly net outflow record in February (111 tonnes) and brings year-to-date net outflows to 343 tonnes, Barclays noted in a report………………………………………..Full Article: Source

Posted on 06 May 2013 by VRS |  Email |Print

How attractive is “free”? Some of the largest online brokers of exchange-traded funds are determined to find out. Two have recently expanded the lineups of ETFs they offer without trading commissions, bringing their menus closer to the size of their competitors’.
In February, Charles Schwab Corp. expanded its commission-free ETF menu to 105 funds, up from just its own 15 broad-based index offerings. A few weeks later, Fidelity Investments expanded its exclusive partnership with BlackRock Inc. to offer 65 of BlackRock’s iShares ETFs commission-free, up from 30, in addition to Fidelity’s one ETF………………………………………..Full Article: Source

Posted on 06 May 2013 by VRS |  Email |Print

Want to know which way the price of gold is headed? Some brokers and money managers say you should keep an eye on gold ETFs. They say the recent collapse in the price of gold has highlighted a new leading indicator for the metal: the flow of money into and out of exchange-traded funds in the sector, led by the giant SPDR Gold Shares.
And some suggest that investors who are thinking of buying into gold-related funds may want to heed the recent past and go with the flows—that is, stay away for now………………………………………..Full Article: Source

Posted on 06 May 2013 by VRS |  Email |Print

Oskar Lafontaine, the German finance minister who launched the euro, has called for a break-up of the single currency to let southern Europe recover, warning that the current course is “leading to disaster”.
“The economic situation is worsening from month to month, and unemployment has reached a level that puts democratic structures ever more in doubt,” he said………………………………………..Full Article: Source

Posted on 06 May 2013 by VRS |  Email |Print

It is indisputable that China is over-issuing currency. But the reasons behind China’s massive liquidity growth – and the most effective strategy for controlling it – are less obvious.
The last decade has been a “golden age” of high growth and low inflation in China. From 2003 to 2012, China’s annual GDP growth averaged 10.5%, while prices rose by only 3% annually. But the unprecedented speed and scale of China’s monetary expansion remain a concern, given that it could still trigger high inflation and lead to asset-price bubbles, debt growth, and capital outflows………………………………………..Full Article: Source

Posted on 06 May 2013 by VRS |  Email |Print

Europe’s program to halt climate change is in disarray with lawmakers in the region expressing concern the drift is undermining the planet’s most significant effort to combat global warming.
Members of the European Parliament’s environment committee meet today for a second time to revive a plan the full assembly rejected that would have boosted the cost of greenhouse-gas emissions. The rebuff left the cost of pollution near a record low, leaving companies with less incentive to reduce emissions………………………………………..Full Article: Source

See more articles in the archive

banner
banner
December 2014
S M T W T F S
« Nov    
 123456
78910111213
14151617181920
21222324252627
28293031