Sat, Nov 22, 2014
A A A
Welcome kbr175@gmail.com
RSS
Commodities Briefing 08.Jul 2013

Posted on 08 July 2013 by VRS |  Email |Print

Investors who rushed to get exposure to commodities during the yearslong rally were caught flat-footed at times when a costly phenomenon called contango cut into their returns.
Then came a wave of new funds that were designed in a way that could dodge some of contango’s impact. The twist is, amid a shift in commodity markets, the new funds are sometimes underperforming earlier funds with a plain-vanilla approach………………………………………..Full Article: Source

Posted on 08 July 2013 by VRS |  Email |Print

Did you sell in May and go away, as the old saw advises? Well it might just be time to “buy in July” if the JPMorgan team has got it right. They headline their latest commodity note “Breakout — time to overweight”. Considering how crook metals are, this advice may come as a surprise to battered investors.
And there is something else investors are going have to factor in: the London Metal Exchange is about to reform its warehousing system, speeding up metals deliveries — and perhaps kneecapping the huge premiums buyers now pay mining companies in order to get needed metal………………………………………..Full Article: Source

Posted on 08 July 2013 by VRS |  Email |Print

An air of gloom appears to have descended on commodity markets. Gold, copper and iron ore prices have tumbled sharply from their post-financial crisis highs while returns to investors have proved disappointing.
The S&P GSCI, the most widely followed commodities benchmark, has delivered a -8.9 per cent total return over the two years to June 30………………………………………..Full Article: Source

Posted on 08 July 2013 by VRS |  Email |Print

Oil major Shell announced it drilled into a discovery in the Gulf of Mexico that is estimated to hold as much as 100 million barrels of oil equivalent. Shell made the discovery while drilling in its Vicksburg exploratory well in deep waters near an area thought to contain five times the amount of the recent find.
That’s good news for a U.S. economy looking to buffer itself against turmoil overseas. The recent crisis in Egypt helped pushed oil prices to record levels for the year. It’s bad news, however, in the era of the low-carbon economy………………………………………..Full Article: Source

Posted on 08 July 2013 by VRS |  Email |Print

Egypt is the big topic on oil trader’s minds this week but it really shouldn’t be. Although it’s been tapped as the reason WTI oil has drifted above $100 a barrel, it’s only the last of several financial and geopolitical reasons that have kept oil strong for the past several months despite the shaky performance of just about every other asset class.
And now that the military has asserted itself in Egypt and taken Morsi down from power, there might be a tendency to think that the situation will cool and so will the price of oil, but I don’t believe that. The commentary on Egypt has been celebratory, but I doubt very much that the Muslim Brotherhood will take their stripping from power easily………………………………………..Full Article: Source

Posted on 08 July 2013 by VRS |  Email |Print

Driven by weak fundamentals, bleak Chinese data and Fed’s plan to slow its bond-purchase program by the end of the year, commodity markets suffered their biggest drop in a year and half – on June 20 – dubbed “Black Thursday” by Commerzbank. And oil was no different. US crude sank 3 percent on the day, with benchmark oil prices projected to decline further during the course of the coming week(s).
But then geopolitics came handy, reversing the trend. Fear premium began to swell. Already the ongoing conflicts in Syria and Libya were weighing heavily on market sentiments. The echo of change in Egypt contributed to further volatility………………………………………..Full Article: Source

Posted on 08 July 2013 by VRS |  Email |Print

A hand drill lying in the hillside tunnel of a 19th-century South African gold mine testifies to the back-breaking labor by black miners that built what was once the world’s biggest bullion industry.
But even with basic tools and cheap labor, costs overran returns at the Kromdraai gold mine north of Johannesburg, which listed in London in 1893 and closed in 1914………………………………………..Full Article: Source

Posted on 08 July 2013 by VRS |  Email |Print

Gold and trouble go together because the metal is often seen as a haven in times of economic distress. But the relationship is complicated. Prices can rise or fall for seemingly contradictory reasons.
Investment advisers these days are trying to make sense of a 25 percent plunge in gold prices in the second quarter, to roughly $1,200 an ounce, its lowest level in three years. The reasons for the dip may not be clear, but the results certainly are………………………………………..Full Article: Source

Posted on 08 July 2013 by VRS |  Email |Print

According to a report released by the Federal Reserve last week, the M2 money supply is about $10.5 trillion. The amount of gold held by the United States government is approximately 260 million ounces. Doing the math, that translates to north of $40,000 per ounce. This is too difficult to even comprehend.
But, whatever the real number might be, it seems that it is above the current $1200 area that gold in currently trading. The SPDR Gold Trust is an exchange traded fund that holds gold; its shares are very liquid. We think gold will be moving up and we’ve positioned our clients accordingly………………………………………..Full Article: Source

Posted on 08 July 2013 by VRS |  Email |Print

A stronger U.S. dollar and surging long-term bond yields pressured gold and silver prices again last week as early gains quickly turned into losses after Friday’s better-than-expected labor report.
An improving U.S. jobs market makes it more likely the Federal Reserve will begin to “taper” its massive $85 billion per month bond buying program in the months ahead and this was a decidedly negative development for precious metals………………………………………..Full Article: Source

Posted on 08 July 2013 by VRS |  Email |Print

Breaking away from the liquidity-driven price performance of the last ten years, global commodity markets appear to be poised for major changes that could well usher in an era of tepid price performance and assertion of market fundamentals. In the event, investor interest will wane further. This is becoming increasingly clear from the developments of the last few weeks.
Most important is that the risks of a China hard-landing are rising. Market participants perceive a sharp, even if temporary, slowdown in growth and investment in the world’s rapidly growing significant economy. Surely, this has serious implications for commodity demand as well as commodity prices………………………………………..Full Article: Source

Posted on 08 July 2013 by VRS |  Email |Print

Investors in gold funds, whose value slumped a record $44.7 billion in the second quarter, may do better in the second half of the year if history is any guide. Gains averaged 1.3 percent in the second half from 1981 to 2000, when gold endured a two-decade bear market, data compiled by Bloomberg show.
First-half losses averaged 3.9 percent in the period. Investors sold 404.4 metric tons from exchange-traded products backed by the metal in the second quarter as prices tumbled into a bear market in April………………………………………..Full Article: Source

Posted on 08 July 2013 by VRS |  Email |Print

Silver prices are expected to average $17.8 per troy ounce in the third quarter of this year as it is witnessing weak fundamentals characterised by poor industrial demand and investors’ support, said London based Barclays in a report.
The commodity is expected to continue with its negative trend in the near term, the bank said. Morgan Stanley recently reduced its 2013 silver price forecast by 14% to $23.39. The financial firm also revised down its 2014 price projection by 29% to $21.01 an ounce………………………………………..Full Article: Source

Posted on 08 July 2013 by VRS |  Email |Print

Record numbers of exchange traded funds have closed so far this year, underscoring the difficulty many of the investment vehicles face in gaining traction among investors, despite the industry’s overall boom in popularity in recent years.
About 117 ETFs have shuttered in the first half of this year, according to data collected by independent research firm ETFGI, easily outpacing closures in the same period in previous years. Out of 4,849 exchange traded products on the market, more than 60 per cent have less than $100m in assets, suggesting that more closures could take place in the coming months………………………………………..Full Article: Source

Posted on 08 July 2013 by VRS |  Email |Print

Commodity markets regulator FMC today said it will soon discuss with the Securities and Exchange Board of India (SEBI) the possibility of making it mandatory for listed companies to disclose their exposure in commodities hedging.
The companies hedge in commodities to offset risks arising out of fluctuations in raw-material prices.”We will soon write to SEBI on this issue. In fact, this was the recommendation of our Sub-committee,” Forward Markets Commission Ramesh Abhishek told PTI………………………………………..Full Article: Source

Posted on 08 July 2013 by VRS |  Email |Print

In recent months, many of Australia’s richest and most powerful business people have said they think they know where Australia’s next boom will come from. With the government finally making provisions to reignite the Australian agricultural industry, experts are saying forget the mining boom, the dining boom is next.
There seems to be a reasonable basis for their prediction. Asia’s rising number of middle class will soon be demanding much more food as the number of individuals (in the “middle class”) goes from 500 million to 3 billion in coming decades. With over 20 times more arable land per capita, Australia stands to benefit from China, India and Indonesia’s potentially high demand………………………………………..Full Article: Source

Posted on 08 July 2013 by VRS |  Email |Print

Rice stockpiles are expanding to the highest level in 12 years as production increases to a record, adding to a worldwide surge in agricultural output that is poised to diminish the $1.1 trillion global food-import bill.
Reserves will gain for a seventh year, rising 2.7 percent to 108.6 million metric tons in 2013-2014, the U.S. Department of Agriculture estimates. Output will climb 1.9 percent to 479.2 million tons, exceeding demand by 2.8 million tons………………………………………..Full Article: Source

Posted on 08 July 2013 by VRS |  Email |Print

Asian currencies will gain some ground against the US dollar in the next twelve months despite sputtering regional economies and dwindling yields, according to a consensus forecast in a Reuters poll. Emerging Asian currencies have been among the worst-hit in the global sell-off that was triggered in late May after the US Federal Reserve signalled a possible reduction in its stimulus programme.
The announcement sent investors racing out of risky Asian bets, in turn dragging most equity indexes and currencies in the region lower. But analysts said markets have largely priced in the Fed’s shift in policy and the US dollar stood to gain little when the stimulus tapering eventually happens………………………………………..Full Article: Source

Posted on 08 July 2013 by VRS |  Email |Print

A wealthy person is diagnosed with a fatal disease for which there is a possible but expensive cure. Surely this person would do everything they could to secure the cure. Yet the coal and gas industries, faced with such an outlook, are neither chasing the cure nor even accepting their fate.
A recent Grattan Institute report, Getting gas right: Australia’s energy challenge, highlights that the world has more than 200 years’ worth of gas resources. Yet to meet the climate change target agreed to by world governments, the energy system must produce near-zero emissions by mid-century………………………………………..Full Article: Source

Posted on 08 July 2013 by VRS |  Email |Print

The city of Shenzhen, in south China’s Guangdong Province, has launched a carbon trading scheme, to become China’s first market for compulsory carbon trading. Energy consumption and environmental experts are praising the move as a positive sign that the government is changing its ways and reducing carbon dioxide emissions.
However, they also point out that the government still has a lot to do to realize carbon trading nationwide. The Shenzhen pilot scheme involves 635 local companies which account for 26 percent of the city’s gross domestic product and 38 percent of its CO2 emissions, or about 30 million tonnes — a tiny amount compared to the 8 billion tonnes China emitted in 2012………………………………………..Full Article: Source

See more articles in the archive

banner
November 2014
S M T W T F S
« Oct    
 1
2345678
9101112131415
16171819202122
23242526272829
30