Fri, Nov 28, 2014
A A A
Welcome kbr175@gmail.com
RSS
Commodities Briefing 06.May 2014

Posted on 06 May 2014 by VRS |  Email |Print

ETNs are exchange-traded notes, cousin of the far better-known exchange-traded fund, or ETF, and they have been at the center of some drama lately. Despite a drop in new launches and critical articles in the financial news media, ETNs are growing at twice the rate of ETFs — and not many things have grown faster than ETFs, except maybe the Internet.
Total ETN assets jumped 47 percent, or $8 billion, over the past 12 months, to $25 billion, compared to about 25 percent for ETFs. What makes all this so curious is that almost everything ETNs track you can get in an ETF, with less risk. So why on earth have these things captured $25 billion in assets, much less $25?……………………………………….Full Article: Source

Posted on 06 May 2014 by VRS |  Email |Print

‘The Reserve Bank can comfortably keep interest rates at exceptionally low levels over the near term. Whichever way you cut it, inflation is well and truly in check.’ -Savanth Sebastian, an economist at a unit of Commonwealth Bank of Australia
Australia is often called as a resource-rich economy, as huge part of the overall exports represents shipments of commodities, like ore, coal, petroleum, gas or non-monetary gold. The economy has benefited in the recent months from a commodity boom and strong investment into the mining sector. The most rapid pace of growth of commodity exports was registered between 1983 and 1992, when the exports climbed 7.0%………………………………………..Full Article: Source

Posted on 06 May 2014 by VRS |  Email |Print

Thus far in 2014, April ended on schedule and May arrived as expected. Well-placed sources, wishing to remain anonymous as they are not at liberty to speak on the matter, suggest that June will also arrive on time. That seems to sum up the only accurate components of the consensus forecast for 2014. As the chart below portrays, just about everything else continues to do the opposite of what was generally expected by the popular seers on the future.
n the above chart are plotted year-to-date returns for several investment measures. Bars on the left, the ones continuing to show significant positive returns, represent the three components of the commodity sector. To the right, using red bars, are what would be commonly referred to as underperforming groups………………………………………..Full Article: Source

Posted on 06 May 2014 by VRS |  Email |Print

Russia is in the midst of its longest streak of declines in oil and gas production in years, its economy is in shambles and its leverage on the international stage is in question. Its energy-dominated economy may not sustain Russia’s ambitions in Eastern Europe for much longer.
The Russian economy may not be able to finance the Kremlin’s ambitions in Eastern Europe for much longer because the country’s oil and gas output is no longer a strong support of growth. Russian Energy Minister Alexander Novak said on May 2 that gas supplies through Ukraine might be severed unless Kiev pays in advance for its June deliveries………………………………………..Full Article: Source

Posted on 06 May 2014 by VRS |  Email |Print

Iran has indicated it would be willing to supply natural gas to Europe amid concern that Russia could retaliate against EU sanctions by restricting its own supplies of the fuel.
The Islamic republic’s oil minister, Bijan Namdar Zanganeh, said at the weekend: “As a country capable of supplying gas in very big volumes, Iran is always willing to be present in Europe’s market, either through pipeline or in LNG [liquified natural gas] form.”……………………………………….Full Article: Source

Posted on 06 May 2014 by VRS |  Email |Print

Continued liquidation in gold-backed exchange-traded funds amid signs of an improving U.S. economy may undermine gold’s recent safe-haven gains which helped bullion to three-week highs above $1,300 an ounce, CNBC’s weekly sentiment survey showed.
Still, gold bulls maintained that the markets were underestimating the risks of a worsening crisis in Ukraine. “I’m slightly bullish as I believe Ukraine is unpredictable,” said Edmund Moy, Chief Strategist at Morgan Gold and a former director of the U.S. Mint. He added that investors also fear a May correction in U.S. stock markets………………………………………..Full Article: Source

Posted on 06 May 2014 by VRS |  Email |Print

Gold is not correlated to other financial assets like equities and bonds. Having gold in your portfolio increases diversification . It is instantly liquid in any country in the world and is virtually indestructible. The year gone by saw a lull in gold prices and some serious short-selling by gold bears, especially after the Fed started shutting the stimulus tap progressively.
But unlike in the West, it is not just about calculated returns because in India we buy gold for a variety of reasons including ornamentation, investment, social compulsion as well as religious reasons. This has ensured that the limitations imposed by the government have led to the spot prices being higher than futures prices because buyers are ready to pay a premium to secure physical delivery………………………………………..Full Article: Source

Posted on 06 May 2014 by VRS |  Email |Print

One of the most common objections to an investment in gold is the fact that gold doesn’t pay a dividend. It just “sits there,” and because of this, it evokes the “greater fool” theory from skeptics — that “the only reason to buy gold is so that you can find another sucker to sell it to at a higher price.”
Nevertheless, since the beginning of the 21st century, gold has outperformed virtually all income-generating assets. The reason for this is that gold retains its value, while fiat currencies such as dollars and euros do not: Central banks can create as much of these currencies as they want to, and it doesn’t really matter how much dividend income you can generate if the currency you are being paid in is losing value………………………………………..Full Article: Source

Posted on 06 May 2014 by VRS |  Email |Print

The price of silver bounced back on Friday from its slow descent throughout most of last week. The recent FOMC decision and non-farm payroll report may have pushed silver in different direction but on a weekly scale the price of silver slightly declined.
Will silver resume its downward trend? Looking forward, several news items could move the price of silver. Let’s examine the main events and publication that may affect the price of silver and silver ETFs………………………………………..Full Article: Source

Posted on 06 May 2014 by VRS |  Email |Print

For the second week, large speculators pulled back slightly on their bullish platinum futures and options positions on the Comex division of the New York Mercantile Exchange in the latest weekly commitments of traders report from the Commodity Futures Trading Commission, as signs of progress in South Africa labor talks were expected.
In palladium, however, these traders gave a modest boost to their bullish positions in both the agency’s disaggregated and legacy reports. Yet for gold and silver, large speculators’ activity was mixed between the two reports, with mostly minor position changing seen. In copper, fund activity was also mixed, with these traders turning net long in the disaggregated report. The data covers trade through April 29………………………………………..Full Article: Source

Posted on 06 May 2014 by VRS |  Email |Print

Nickel has enjoyed a solid price spurt in recent months, fuelled by fears over heavy supply disruptions after Indonesia — home to around a fifth of total nickel production — placed an export ban on nickel ore back in January.
The move was prompted by a 2009 law calling for more domestic refined output, a situation which is significantly hampering Chinese production of nickel pig iron (NPI) as ore shipments dry up. As Indonesian refining capacity could be described as inadequate at best, nickel prices have shot 35% higher since the turn of the year, striking 14-month peaks above $18,700 per tonne in the process and looking poised for another move skywards………………………………………..Full Article: Source

Posted on 06 May 2014 by VRS |  Email |Print

Commodities had delivered outsized returns compared to most other asset classes since the start of the millennium until the financial crisis. Insatiable demand from China and other emerging nations fuelled the unprecedented rally in commodities, leading many analysts to call it a commodities “super-cycle”.
Underperformance in the last couple of years, mainly due to increased output and economic slowdown in emerging markets, left investors wondering whether the commodities “super-cycle” was dead………………………………………..Full Article: Source

Posted on 06 May 2014 by VRS |  Email |Print

As more retail investors make the move from mutual to exchange-traded funds, one company appears to be reaping the biggest share of the benefits. In a year that has been sluggish otherwise for the $1.76 trillion ETF industry, Vanguard has seen its assets under management grow substantially, putting it in position to rise from third to second in the overall ranking of fund families, according to ETF.com.
In fact, the firm—founded by investing legend and index fund advocate Jack Bogle—has seen individual ETFs it owns occupy three of the top four spots and five of the top seven in terms of inflows. Vanguard led all providers through the first four months with $18.6 billion in new money………………………………………..Full Article: Source

Posted on 06 May 2014 by VRS |  Email |Print

The concerns over weather setbacks to US winter wheat, and to spring corn sowings, drove hedge funds to take a more bullish position on agricultural commodities, although sentiment on cocoa declinesd sharply.
Managed money, a proxy for speculators, raised its net long position in futures and options in the top 13 US-traded agricultural commodities, from coffee to lean hogs, by more than 56,000 contracts in the week to last Tuesday, according to data from the Commodity Futures Trading Commission regulator………………………………………..Full Article: Source

Posted on 06 May 2014 by VRS |  Email |Print

Citigroup Inc’s revenue from commodities transactions nearly doubled in the first quarter of 2014 year-over-year, making it the latest bank to benefit from this past winter’s soaring power and gas prices as the coldest weather in three decades gripped the United States.
The bank brought in $224 million in principal transactions revenue in “commodity and other contracts,” up almost 90 percent from the first quarter last year and just $43 million shy of its total commodities trading haul for all of 2013………………………………………..Full Article: Source

Posted on 06 May 2014 by VRS |  Email |Print

There were strong price fluctuations observed on Friday, but the US Dollar Index was almost unchanged by the results of the day. The U.S. economic data proved to be very positive and moderately negative.
The unemployment rate fell in April to a minimum of 5.5 years and amounted to 6.3%. Jobs in the agricultural sector (Nonfarm payrolls) appeared to be at their maximum in January 2012 and amounted to 288 thousand people. This has caused a short-term growth in the U.S. Dollar index………………………………………..Full Article: Source

Posted on 06 May 2014 by VRS |  Email |Print

A new Scottish currency may be essential, the Scottish parliament has heard. But what would it be called? A new report submitted to the Scottish parliament by the economist Gavin McCrone has suggested that an independent Scotland might find it necessary to set up a central bank and issue its own currency, one that would initially be pegged to the British pound. But what would the new Scottish currency be called?
The merk: Professor McCrone himself suggested the possibility of naming the new currency after a coin minted in Scotland in the 16th century, worth 13 shillings and fourpence………………………………………..Full Article: Source

Posted on 06 May 2014 by VRS |  Email |Print

Through a statement of support to be launched at the UN Climate Summit, countries and companies could work to strengthen carbon pricing policies and implementation to better manage investment risks and opportunities and also share their expertise. The proposed statement reflects a sense of urgency and inevitably for carbon pricing.
Growing momentum by countries and businesses in support of carbon pricing was evident at a global meeting of government officials, corporate leaders and investors ahead of the Summit………………………………………..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