Thu, Oct 2, 2014
A A A
Welcome kbr175@gmail.com
RSS
Commodities Briefing 15.Apr 2014

Posted on 15 April 2014 by VRS |  Email |Print

Goldman Sachs Group Inc. expects commodity prices to decline this year even after precious metals and crop prices rallied on Ukraine tension and weather concerns. The S&P GSCI Enhanced Commodity Index may drop 4 percent in the next 12 months from a 4.3 percent decrease predicted in February, analysts led by Jeffrey Currie wrote in a report.
Precious metals will decline 15 percent, compared with a 14 percent retreat forecast in February, it said. Agriculture prices will drop 10 percent, from February’s estimate of a 9 percent loss, it said………………………………………..Full Article: Source

Posted on 15 April 2014 by VRS |  Email |Print

Hedge funds’ longest run of bullish positioning by agricultural commodities in recent history ended as investors took profits on gains, as well as placing more bets on falling prices. Managed money, a proxy for speculators, cut its net long position in futures and options in the top 13 US-traded agricultural commodities, from cotton to cattle, by nearly 38,000 contracts in the week to last Tuesday, according to data from the Commodity Futures Trading Commission regulator.
The decline reflected the first week-on-week drop in the net long position – the extent to which long holdings, which profit when prices rise, exceed short positions, which benefit when values fall – since January………………………………………..Full Article: Source

Posted on 15 April 2014 by VRS |  Email |Print

International demand for oil in 2014 is expected to reach 92.7 million barrels per day (bpd), including 8.1 million from the Middle East, said a senior official of the International Energy Agency (IEA) here on Monday.
In a working paper presented during the first session of the 3rd Kuwait Oil and Gas Summit and Exhibition, Director for Energy Markets and Security at the International Energy Agency (IEA) Keisuke Sadamori said China would become the world’s leading oil importer by 2030………………………………………..Full Article: Source

Posted on 15 April 2014 by VRS |  Email |Print

Oil prices approaching US$110 a barrel are “acceptable” for producers and consumers, and Opec does not need to change its output target, said the UAE’s deputy energy chief. The group is scheduled to next meet in June in Vienna to debate its 30 million barrel per day (bpd) production ceiling, which has remained unchanged since December 2011.
“I don’t think there will be any change in the quota,” said Matar Al Neyadi, the undersecretary of the UAE Ministry of Energy. “The market is stable, the supply is stable. The price is acceptable and comfortable for the producing countries and the consuming countries.”……………………………………….Full Article: Source

Posted on 15 April 2014 by VRS |  Email |Print

Oil sands companies, which have benefited from years of low natural gas prices, are once again facing rising costs as the commodity they need to fuel much of their operations becomes more expensive.
Increasing prices for natural gas hit hardest at projects that use steam to soften oil-rich bitumen deposits to the point where the bitumen can drain into wells from which it can be pumped to the surface. Natural gas is an unavoidable expense in these projects, because it is needed to heat water to create steam………………………………………..Full Article: Source

Posted on 15 April 2014 by VRS |  Email |Print

Crude oil prices rose in early Monday trading amid tensions in Ukraine, but fell again after Libyan protesters ended their occupation of an oil port. The price of Brent crude futures briefly rose above $108 a barrel, but later fell back to $107.30.
Libya’s state oil firm said the port of Zawiya and its refinery had reopened and were operating normally. But pro-Russian militants are still occupying buildings in eastern Ukraine, ignoring a deadline to leave by Kiev………………………………………..Full Article: Source

Posted on 15 April 2014 by VRS |  Email |Print

Tougher Chinese policies aimed at reducing dependency on coal will help restrain global coal demand growth over the next five years, the International Energy Agency (IEA) says in its annual Medium-Term Coal Market Report.
Despite the slightly slower pace of growth, however, coal will meet more of the increase in global primary energy than oil or gas – continuing a trend that has been in place for more than a decade………………………………………..Full Article: Source

Posted on 15 April 2014 by VRS |  Email |Print

Goldman Sachs must really want to buy more gold; this week it repeated yet again its forecast for gold prices in 2014 to drop to $1,050 an ounce. That might sound contradictory at first, but not when it comes to Goldman.
Jeffrey Currie, the investment bank’s head of commodities research, has repeated his $1,050 target several times since last October, when he declared gold a “slam-dunk sell” along with other precious metals………………………………………..Full Article: Source

Posted on 15 April 2014 by VRS |  Email |Print

Goldman Sachs is keeping its year-end price target for gold at $1,050 an ounce, according to a recent research note — despite a nearly 2% gain in prices for the yellow metal over the past two weeks.
Gold for June delivery was last up $10, or 0.8%, at $1,329 an ounce on the Comex division of the New York Mercantile Exchange. Prices, based on the most-active contracts, were poised for their highest close since March 21………………………………………..Full Article: Source

Posted on 15 April 2014 by VRS |  Email |Print

Gold is frequently viewed as insurance in moments of economic volatility or worldwide political turmoil. However, in 2013, gold prices dropped 24% against the U.S. dollar, marking gold’s third-worst decline since 1975. The drop turned many investors off to the yellow metal.
But the current price of gold indicates that the precious metal is back. “Gold has rebounded from late December into mid-March, tacking on about $200 an ounce, or nearly 17%,” Money Morning Resource Specialist Peter Krauth said recently………………………………………..Full Article: Source

Posted on 15 April 2014 by VRS |  Email |Print

The London fix has been in place for almost a century but critics say the system needs reform. To supporters of the gold fixing, its longevity is a mark of its efficiency and utility. To a growing group of critics, however, the benchmark is opaque, old fashioned and vulnerable to market abuse.
Pressure to reform is coming from several directions. Since uncovering evidence of alleged abuse by bankers of the Libor and forex benchmarks, regulators have been scrutinising other big financial benchmarks for signs of weakness……………………………………….Full Article: Source

Posted on 15 April 2014 by VRS |  Email |Print

Demand for the lustrous metal has seen gold prices hit a three week high, with geopolitical risks seeing investors move towards the safe-haven asset. Seen as a hedge against inflation, other metals have also spiked as tensions over Ukraine heat up.
Palladium today sees an August 2011 high, as traders worry that US sanctions on Russia and labour strike in South Africa could limit supply………………………………………..Full Article: Source

Posted on 15 April 2014 by VRS |  Email |Print

The price of silver remained nearly unchanged during last week. On the other hand, gold bounced back following the release of the minutes of the last FOMC meeting. Will silver resume its rally anytime soon? Or will it tumble down? Let’s analyze the recent news that may affect silver and the silver ETFs.
The stagnation of silver is reflected in the little change in demand for silver ETFs such as iShares Silver Trust (SLV). Last week, the Silver Trust’s price inched up by 0.16%………………………………………..Full Article: Source

Posted on 15 April 2014 by VRS |  Email |Print

The price of platinum could rally towards $1,600/oz if a 12-week strike over wages in South Africa persisted, but a significant cache of inventory would keep the metal on a tight leash.
Such was the message from Standard Bank which published its quarterly commodity forecast on April 14. It expected gold to bottom this year, iron ore to run into headwinds amid 100 million tonnes of excess supply, while the price of other industrial metals, aluminium amongst them, would be capped………………………………………..Full Article: Source

Posted on 15 April 2014 by VRS |  Email |Print

It might not look like the time to be buying into copper: The price of the commodity has fallen 9.6% since the start of the year, in part because of concerns about China’s slowing economic growth. So why is a consortium led by a unit of China Minmetals Corp., a state-controlled miner, paying at least $5.8 billion for Glencore Xstrata PLC’s Las Bambas mine in Peru, one of China’s biggest mining acquisitions in years?
For one, China is taking a longer-term view. The nation consumes around 40% of world copper supply, a commodity used to make computers, refrigerators, cars, plumbing equipment and power lines, to name just a few applications………………………………………..Full Article: Source

Posted on 15 April 2014 by VRS |  Email |Print

Nickel prices rose, extending the longest rally in 42 months, as Goldman Sachs Group Inc. said the price is poised climb an additional 12 percent because of limited supplies.
The price may climb as high as $20,000 a ton, Goldman said. Nickel gained 28 percent this year after Indonesia, the world’s top producer from mines, barred exports of raw mineral ores in January. Russia, home to OAO GMK Norilsk Nickel, the leading producer of refined metal, might face more sanctions from the U.S. and Europe amid turmoil in Ukraine………………………………………..Full Article: Source

Posted on 15 April 2014 by VRS |  Email |Print

A crackdown in China on financing backed by commodities risks unleashing a flood of iron ore sales from tens of millions of tonnes of the raw material sitting at Chinese ports, raising the prospect of a renewed price slump.
Investors who have raised funds against mostly unhedged iron ore could be at risk in the event of a price fall due to sluggish steel demand, leading to forced sales as banks wind back loans against the raw material, analysts and traders warned………………………………………..Full Article: Source

Posted on 15 April 2014 by VRS |  Email |Print

Stocks have been taking a beating and the dreaded “correction” has been tossed around a lot. There is one group of assets however that are squarely in the middle of their own bull market - metals. Sure, gold and silver grab all the headlines, but industrial metals can make for some great investment plays too.
Jonathan Hoenig of CapitalistPig.com weighed in on Breakout. “Even in the first quarter of 2014 a lot of the commodities in general have been in legitimate bull markets,” he says before listing the likes of tin, nickel, zinc, copper, and lead as potential boons………………………………………..Full Article: Source

Posted on 15 April 2014 by VRS |  Email |Print

The spectrum shows the top eight most richly valued segments of the market. All of the funds on the list have a negative P/E ratio, meaning that, in aggregate, the portfolio companies lose money. In general, stocks and ETFs are richly valued (have high P/E ratios) when investors anticipate future earnings growth.
As such, the ETFs on this list include many of the companies whose earnings investors expect to grow most………………………………………..Full Article: Source

Posted on 15 April 2014 by VRS |  Email |Print

In the passive world (and, in particular, ETFs), if there is a stock or bond index, it can be tracked – either physically by trackers buying up shares or synthetically through the purchase of derivatives.
But the expansion of this universe into areas such as commodities and unsecured debt instruments means the once simple ETF acronym has been expanded to include ETCs (exchange-traded commodities), ETNs (exchange-traded notes) and the ‘catch-all’ term ETIs (exchange-traded instruments)………………………………………..Full Article: Source

Posted on 15 April 2014 by VRS |  Email |Print

Michel Barnier says new rules will stop market abuse through high-speed trading. The EU’s financial chief has promised some of the toughest curbs on controversial use of high-frequency trading highlighted by author Michael Lewis in Flash Boys.
The restrictions are part of EU market reforms that will be voted on by the European Parliament on Tuesday. Michel Barnier, the EU financial services commissioner, said on Monday: “With these rules the EU is putting in place one of the strictest set of regulations for high-frequency trading (HFT) in the world………………………………………..Full Article: Source

Posted on 15 April 2014 by VRS |  Email |Print

The global market for soy protein is expected to surge from $6,399.9 mn in 2012 to $9,214.4 mn in 2018. The industry is growing at a CAGR of 6.3% from 2013 to 2018. In 2012, North America dominated the global soy protein ingredients market. Because of rapid advancement and increasing demand from key countries such as China and India, Asia-Pacific is expected to be the fastest growing market in the near future.
The report “Soy Protein Ingredients Market By Types (Isolates, Concentrates, and Others), Applications, and Geography - Global Trends and Forecasts to 2018”, said the major rivers for this market are functionality, cost, health benefits, eco-friendliness, and versatility………………………………………..Full Article: Source

Posted on 15 April 2014 by VRS |  Email |Print

For years, betting on a rising Chinese yuan has been about as close as you could get to a sure thing in world financial markets.
The Chinese government has been officially committed to letting its currency appreciate, and the U.S. and other nations constantly apply pressure to make sure it keeps that commitment. Since China regularly runs a large trade surplus and has one of the fastest-growing economies in the world, there seemed to be no fundamental reason for the yuan to stop rising………………………………………..Full Article: Source

Posted on 15 April 2014 by VRS |  Email |Print

An escalation of tension in eastern Ukraine has sent the country’s currency on a fresh record-breaking slide. The National Bank of Ukraine set the official exchange rate for the currency at an all-time low of 12.97 against the dollar on Monday, according to Russian nongovernmental news agency Interfax.
Analysts said two-way price flow in the hryvnia, which is limited even in calm market conditions, has evaporated, making it particularly tough to buy the currency………………………………………..Full Article: Source

Posted on 15 April 2014 by VRS |  Email |Print

European Union governments will hold further discussions in June about a proposal to make supply in the world’s biggest carbon market more flexible, according to two people with direct knowledge of the matter.
Climate officials from the 28 EU nations held an initial discussion about the proposal on April 11 in Brussels and agreed to compile a list of questions about the draft to send to the European Commission, said the people, who asked not to be identified because the talks are private. The commission, the EU’s regulator, is to answer the questions by the end of May, the people said………………………………………..Full Article: Source

Posted on 15 April 2014 by VRS |  Email |Print

New Zealand’s emissions of greenhouse gases grew 2.2 per cent in 2012, accelerating from 1.4 per cent in 2011. The increase, reported by the Ministry for the Environment in New Zealand’s greenhouse gas inventory, also exceeds the average since 1990, over which period the cumulative increase in emissions was 25 per cent.
Emissions in 2012 grew by 1.7 million tonnes of carbon dioxide equivalent, reflecting 900,000 tonnes or 2.9 per cent more from the energy sector, as a dry year reduced hydro-electricity production, and an 800,000 tonne or 2.4 per cent increase in agricultural emissions as the dairy herd grew………………………………………..Full Article: Source

See more articles in the archive

banner
October 2014
S M T W T F S
« Sep    
 1234
567891011
12131415161718
19202122232425
262728293031