Fri, Apr 18, 2014
A A A
Welcome kbr175@gmail.com
RSS
Commodities Briefing 26.Jun 2013

Credit Suisse cuts commodity 2013, 2014 average price forecasts
Big banks are on the move with their gold, commodity-price targets
China’s commodities output more potent, Standard Chartered says
Hedge funds hope losing shorts on U.S. natural gas will pay off
OPEC emergency meet on oil prices not needed: UAE
Oil below $100 highlights widening gap in OPEC pain thresholds
Coal industry, target of Obama rules, expands exports
HSBC cuts gold price outlook; joins list of banks cutting forecasts
Five reasons why HSBC cuts gold, silver price forecast for 2013, 2014
Morgan Stanley cuts gold, silver price forecasts
Gold heads for worst quarter since at least 1968 as demand ebbs
Gold bear market hits hardest in South Africa mines: Commodities
China importing 2000 tons of gold by 2016 'not inconceivable': Standard Chartered
What’s next for silver prices?
How to invest in precious metals in 2013
Precious metals: Prices down, chances to buy up
After labor strikes, what's next for platinum?
Metals stabilize for now as Chinese concerns abate; data nudges gold lower
Copper: The bullish U turn
Silver ETF holdings sink most in 12 months; traders fear retail exit
Gold vunerable to further ETF selling
UBS launches constant maturity commodities ETF
Commodity markets pin hopes on Hong Kong ties
Hong Kong 'not ready to be a commodities trading centre'
HKEx says commodities contracts to be cash settled
Is the 136-year-old London Metal Exchange ready for a woman CEO?
Top bond manager predicts comeback in commodity currencies
Debating the Indian rupee
China currency swaps and prepping for the last monetary frontier
Highlights of Obama's plan to cut carbon pollution
EU emissions trading scheme 'set to cancel out renewable energy gains'

Posted on 26 June 2013 by VRS |  Email |Print

Credit Suisse lowered its commodities price forecasts for this year and next saying the commodity complex would likely remain under pressure mostly on depressed global growth and prospects of slower Chinese activity.
The bank reduced its 2013 and 2014 average price forecasts for commodities including oil, precious metals and base metals. Credit Suisse cut its 2013 Brent crude price forecast to $108 per barrel from $112, and reduced its West Texas Intermediate (WTI) crude price outlook to $97 per barrel from $98………………………………………..Full Article: Source

Posted on 26 June 2013 by VRS |  Email |Print

Is there an echo in here? No less than four investment banks have adjusted their commodity calls in the last 24 hours. And one, Goldman Sachs, has revisited the theme twice.So here’s Tuesday’s roundup.
Deutsche Bank, which made the changes as part of its quarterly review, said a slower-than-expected recovery for China and expectations for Fed tapering are the major rationale behind the cuts. Oil forecast trims are based on a bullish dollar outlook……………………………………….Full Article: Source

Posted on 26 June 2013 by VRS |  Email |Print

China is becoming increasingly powerful as a supplier of raw materials including iron ore, aluminum, nickel and coal as it boosts output from local mines and smelters, according to Standard Chartered Plc.
Gold and copper are among the raw materials that are least vulnerable to China’s growing capacity, the bank said in a report dated June 21. Other commodities cited as insulated from the trend were platinum and diamonds, while tin was reported to be somewhat resilient………………………………………..Full Article: Source

Posted on 26 June 2013 by VRS |  Email |Print

This year’s early rally in U.S. natural gas prices dealt heavy losses to hedge funds that stubbornly maintained short positions in the face of brutally cold weather, and the price slide of the past two months has not yet erased losses that prompted some investors to flee the funds, industry sources say.
Sasco Energy, Skylar Capital and Copperwood Energy, funds founded by some of the most prominent names in gas trading, posted losses after misreading winter weather patterns in the first quarter that caused a spike in prices of gas used for heating, said the sources speaking on condition of anonymity………………………………………..Full Article: Source

Posted on 26 June 2013 by VRS |  Email |Print

United Arab Emirates Energy Minister Suhail al-Mazrouei said Tuesday that there was no need for an emergency conference of OPEC members to discuss the status of oil prices which he described as “fair and acceptable”.
“The current fluctuations in oil prices are normal. The price is fair and acceptable to producers and consumers and does not impact the level of investments needed by the oil industry in producing nations,” Mazrouei said in remarks to official news agency WAM………………………………………..Full Article: Source

Posted on 26 June 2013 by VRS |  Email |Print

Oil’s fall below the $100 a barrel favoured by OPEC exposes the deepening divide between countries in the group better able to cope with a lower price and those most hurt by it, making collective action to halt any further price slide harder.
The price of oil dropped below $100 this week from a 2013 high of $119.17 in February, pressured by lacklustre demand and ample supply. While a sustained sub-$100 Brent is bearable for Saudi Arabia, it puts a strain on others such as Iran………………………………………..Full Article: Source

Posted on 26 June 2013 by VRS |  Email |Print

While President Obama aims to crack down on coal-fired power plants, the coal industry finds lucrative and booming markets abroad, even in developed countries such as Germany and Japan.
The U.S. coal industry, under increasing pressure at home after President Obama’s call Tuesday for tougher anti-pollution rules, is ratcheting up a more promising part of its business: exports………………………………………..Full Article: Source

Posted on 26 June 2013 by VRS |  Email |Print

HSBC (HBC) has joined the growing list of banks who are cutting their gold price forecasts, slashing its outlook on the metal’s price prospects late Monday. The bank cited the U.S. Federal Reserve’s plan to start tapering its gold-supportive stimulus program as one of the primary reasons for its cuts to its 2013, 2014 and 2015 gold price forecasts.
A stronger U.S. dollar, slower economic growth in major gold buyer China and lackluster physical appetite for the metal also contributed to its decision to reduce its gold price outlook, said HSBC analyst James Steel………………………………………..Full Article: Source

Posted on 26 June 2013 by VRS |  Email |Print

HSBC Holdings plc has cut its gold and silver price forecast for 2013 and 2014 on late Monday. HSBC has listed 5 reasons for its downward revision to Gold and Silver prices: First, the discussion by the Fed of a tapering, or reduction, of its quantitative easing (QE) asset purchases was more aggressive than we initially envisaged, and has resulted in higher United States Treasury yields, which are traditionally negative for gold and silver.
Second, turmoil in emerging markets and the prospects of lower growth in China have weighed on bullion. HSBC economists cut their forecast of 2013 Chinese gross domestic product to 7.4% from 8.2% and 2014 GDP forecast to 7.4% from 8.4%………………………………………..Full Article: Source

Posted on 26 June 2013 by VRS |  Email |Print

Morgan Stanley lowered its gold and silver price forecasts, citing the possibility of reduced US Federal Reserve monetary stimulus or outright withdrawal from the current quantitative easing programme.
“With investor demand for safe-haven assets waning against the backdrop of a strengthening the dollar and rising US bond yields, market conditions for gold and silver have become markedly less favourable,” the bank said in a note. The bank cut its 2013 gold price forecast by five per cent to $1,409 an ounce and its 2014 estimate by 16 per cent to $1,313………………………………………..Full Article: Source

Posted on 26 June 2013 by VRS |  Email |Print

Gold fell for a third day, heading for the biggest quarterly loss in more than 40 years, as U.S. economic data beat estimates, backing the case for reduced stimulus from the Federal Reserve as the dollar strengthened.
Cash bullion declined as much as 0.3 percent to $1,273.76 an ounce, and traded at $1,275.46 at 8:43 a.m. in Singapore. The metal dropped to $1,269.46 on June 21, the cheapest since September 2010. It’s lost 20.2 percent since the start of April, the biggest drop in quarterly data compiled by Bloomberg since 1968, when bullion traded at about $40………………………………………..Full Article: Source

Posted on 26 June 2013 by VRS |  Email |Print

No one has more to lose from gold’s bear market than South African producers as workers digging in the world’s deepest, costliest mines threaten to bring them to a standstill unless pay is more than doubled.
A record quarterly drop in the metal to as low as $1,270 an ounce is already below production and capital spending costs at Sibanye Gold Ltd. (SGL), Harmony Gold Mining Co. and Gold Fields Ltd. (GFI), figures compiled by Bloomberg show. Harmony’s South African output costs are the highest of the world’s 12 biggest producers by volume, according Bloomberg Industries………………………………………..Full Article: Source

Posted on 26 June 2013 by VRS |  Email |Print

China may be importing 2000 tons of gold by the time it is 2016 which would roughly be equal to 80% of the total global gold mine supply, said Standard Chartered in a report cited by Bloomberg News, noting that such a feat is not something ‘inconceivable’.
“Although it is the world’s largest producer of gold, 40 percent of its production uses imported gold in concentrates,” Standard Chartered noted. Meanwhile gold output by China may jump 10% to 440 tons this year, China’s mining association said last week………………………………………..Full Article: Source

Posted on 26 June 2013 by VRS |  Email |Print

If you’re wondering why silver prices are down today (yesterday) along with most commodities, just look to China. Silver prices today – along with other commodities – have slumped $0.57, or 2.83%, to $19.55 by midday after tightening credit conditions in China triggered global market sell offs on fears about Chinese economic growth.
The silver price drop follows a rough week for the white metal, which lost 9.07%. Prices managed to claw back over $20 after gaining $0.43 Friday, finishing the volatile week at $20.06………………………………………..Full Article: Source

Posted on 26 June 2013 by VRS |  Email |Print

Anyone thinking about how to invest in precious metals right now has been watching the plunging prices of gold and silver. Both metals are firmly in bear market territory. By the end of last week, gold was down about 27% from its 52-week high of $1,803 and silver had cratered by a whopping 43%.
But the recent downward slide in the price of silver and gold has once again revealed to investors the most important fundamental fact about precious metals - they’re incredibly volatile. Swings of 50% in value in a single year are not unheard of………………………………………..Full Article: Source

Posted on 26 June 2013 by VRS |  Email |Print

The prices of many precious metals fell last week after Federal Reserve Chairman Ben Bernanke’s announcements regarding the Fed’s projected end to quantitative easing (QE) by the middle of 2014. And they are continuing their weakening trend this week, bringing ETFs and other metals-themed products down to levels that that some analysts are pointing to as good buying opportunities for investors.
The general outlook of gold and silver prices, says ETF Securities Research, should stay negative while interest-rate expectations keep rising and the U.S. dollar continues to improve………………………………………..Full Article: Source

Posted on 26 June 2013 by VRS |  Email |Print

The platinum group metals (PGM) markets are highly concentrated, meaning that both supply and demand are heavily reliant on only a few sources. On the supply side, about 75% of platinum mine supply comes from South Africa.
These metals are primarily industrial commodities and their prices move in tandem with industrial activity, mostly in the auto sector. At present, there is weakness in platinum prices because demand from the European auto sector is weak and contracting. During the next 12–18 months, growth could improve in the European auto market, which would be positive for platinum prices………………………………………..Full Article: Source

Posted on 26 June 2013 by VRS |  Email |Print

Metals across the board showed some signs of stabilizing, at least temporarily, Tuesday morning in response to assurances from Chinese authorities that they are providing some liquidity into the financial system and also seemingly more dovish comments from some Federal Reserve officials.
Still, gold flipped from modestly higher to lower when a slew of U.S. economic data came out stronger than forecast, reminding the market of the potential for the Fed to taper its asset-purchase program known as quantitative easing………………………………………..Full Article: Source

Posted on 26 June 2013 by VRS |  Email |Print

Copper futures seem to have come a full circle or has taken an abrupt U-turn, as analysts say. The commodity was in an extreme bearish territory in the morning as China credit crunch situation loomed large on markets.
The soothing words from Peoples Bank of China’s deputy director of the Shanghai branch that China would maintain money market rates at reasonable levels even as the seasonal forces that drove the rates up would fade. The liquidity risks that the system faced was controllable and the PBOC would closely monitor rates………………………………………..Full Article: Source

Posted on 26 June 2013 by VRS |  Email |Print

Holdings of the world’s largest silver-backed exchange-traded funds have fallen their most in a year to levels last seen in December, sparking fears that mom-and-pop investors have started to unwind investments after last week’s rout.
The world’s largest silver ETF, the iShares Silver Trust , on Monday posted a 192-tonne, or nearly 2 percent, decline to 9,882 tonnes, its biggest daily drop since June last year. Similarly, holdings in six major silver ETFs tracked by Reuters fell to 16,139 tonnes, their lowest since December………………………………………..Full Article: Source

Posted on 26 June 2013 by VRS |  Email |Print

The gold market looks set to remain under pressure with a slew of investment banks cutting their price forecasts after the spot price last week sank below the $1,300 an ounce mark, dropping below another psychologically important support level.
Goldman Sachs, Credit Suisse, UBS, Morgan Stanley and Deutsche Bank have all lowered their gold price forecasts following the Federal Reserve’s signal that it was preparing to scale down its bond buying programme, a shift which has led to US Treasury yields moving significantly higher and to upward pressure on the dollar………………………………………..Full Article: Source

Posted on 26 June 2013 by VRS |  Email |Print

New UBS fund tracks UBS Bloomberg Constant Maturity Commodity Total Return Index; ETF and ETP inflows hit new highs; Europe-domiciled ETFs in good health, says Deutsche report; investor appetite turns to equity ETFs in May.
UBS Global Asset Management has launched the UBS-ETF CMCI Composite SF (Swap Fund) exchange-traded fund (ETF), which provides investors with exposure to commodities via the UBS Bloomberg Constant Maturity Commodity Total Return Index. The individual commodities are weighted according to economic and liquidity data, reflecting their global consumption patterns………………………………………..Full Article: Source

Posted on 26 June 2013 by VRS |  Email |Print

Mainland commodity exchanges are looking to co-operate with Hong Kong Exchanges and Clearing in developing the trading of new commodities and cross-listing their products. They hope to gain a greater share of the global market through this after HKEx announced plans to develop the city into a commodities trading hub.
Calling the city’s exchange a “partner” rather than a “competitor”, Zhengzhou Commodity Exchange president Zhang Fan said he wanted to develop trading of new commodities with HKEx and list the new products “wherever suitable”, so that mainland bourses could share in the pie as transaction volumes increased………………………………………..Full Article: Source

Posted on 26 June 2013 by VRS |  Email |Print

Commodities brokers and buyers say Hong Kong does not yet have the trading infrastructure to be a major commodities centre. That may change in the future as traders seek to take advantage of growing demand for commodities from the mainland.
“Hong Kong’s commodities trading infrastructure is not complete, which means there is little room for trades and related financial products development to occur. This results in a low participation in commodities trading,” Li Baomin, chairman of Jiangxi Copper, told the London Metal Exchange conference in the city………………………………………..Full Article: Source

Posted on 26 June 2013 by VRS |  Email |Print

Hong Kong Exchanges and Clearing (HKEx) chief executive Charles Li said Tuesday that new commodities contracts to be introduced by the exchange would initially be cash-settled products.
“We are going to start with cash-settled products and over time… We will develop physically deliverable capabilities,” Li said in a speech to a conference in Hong Kong. “Most likely the contract we will look at in Hong Kong will be cash settled, will be monthly and will be different sizes from the current contract,” he added………………………………………..Full Article: Source

Posted on 26 June 2013 by VRS |  Email |Print

The next chief of the London Metal Exchange (LME), where only men take part in the shouted, testosterone-fuelled trading of materials like copper, may be a woman who prides herself on speaking softly.
Industry sources say Harriet Hunnable, managing director of metals at the CME Group, is among potential candidates to be LME chief executive when Martin Abbott leaves the post at the end of this year. “That’s a super compliment,” Ms Hunnable said this week when asked about talk of her candidacy. “But I’m enjoying my role at CME group and I’ve got a lot of things to do here,” she added………………………………………..Full Article: Source

Posted on 26 June 2013 by VRS |  Email |Print

Commodity currencies will overcome their recent tough run and emerge as a solid, growth option as the bond market’s 30-year bull run begins to fade.
That is the view of Loomis Sayles’ Matthew Eagan, who pin-pointed Australia, New Zealand and Norway as investment grade nations which will become increasingly attractive as investors hunt out yield. Eagan co-manages four fixed income funds on behalf of the Boston-based asset management firm………………………………………..Full Article: Source

Posted on 26 June 2013 by VRS |  Email |Print

It’s not difficult to argue that the economy and the currency could have been managed better. Discussions in policy circles and the financial market is being dominated by the sliding rupee. Though the rupee was witnessing downside pressure for a while, concerns have mounted a great deal ever since the US Federal Reserve laid out a fairly clear path of action to scale back its asset purchase programme.
The slide in the rupee and the changing dynamics of the global financial market raise a number of fundamental questions on the state of the economy and the stance of the central bank which needs to be debated………………………………………..Full Article: Source

Posted on 26 June 2013 by VRS |  Email |Print

China seems to be waiting patiently in the wings, as the U.S. dollar may be starting its next decent just in time for another EU crisis to emerge.
China has been negotiating currency swaps in preparation for the day it must intervene on the world monetary front, perhaps making its currency, the yuan, a defacto candidate for reserve currency status as the dollar’s fortunes decline………………………………………..Full Article: Source

Posted on 26 June 2013 by VRS |  Email |Print

The White House on Tuesday released a plan to cut global carbon pollution and address the effects of climate change in three broad ways: cutting carbon pollution domestically, preparing the country to be resilient to climate impacts, and leading international efforts to target climate change.
Below are key highlights of the administration’s “Climate Action Plan:” Obama will issue a presidential order to direct the country’s chief environmental regulator, the Environmental Protection Agency, to complete performance standards for lowering carbon emissions from existing power plants with feedback from states, power companies, and other stakeholders………………………………………..Full Article: Source

Posted on 26 June 2013 by VRS |  Email |Print

Huge oversupply of carbon pollution permits will cancel out efforts made in other areas to cut carbon, study finds. Deep problems in Europe’s carbon trading scheme – its flagship climate change policy – are set to cancel out over 700m tonnes of emissions saved through renewable energy and energy efficiency efforts, according to a new report.
The study, by carbon trading thinktank Sandbag, found that a huge oversupply of carbon pollution permits means many are being banked to enable emissions after 2020, when efforts to tackle global warming should be intensifying. These emissions, nearly equivalent to Germany’s annual carbon pollution, will cancel out efforts made in other areas to cut carbon………………………………………..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