Mon, Dec 22, 2014
A A A
Welcome preal121
RSS
Commodities Briefing 02.Jun 2014

Posted on 02 June 2014 by VRS |  Email |Print

Riding on the wave of ache din and expecting the Narendra Modi government to wave a magic wand that can yield miraculous results, most investors, industrialists as well as those in the service sector believe this to be the turnaround story of the decade.
Joining the bandwagon, HSBC Global Research in a research report titled ‘Commodities and India’ says if all goes well, India’s commodity demand will receive significant support in the coming years if the country’s infrastructure investment ramps up. The new government is expected to prioritise infrastructure development, which is the key source of demand for hard commodities, it adds…………………………………….Full Article: Source

Posted on 02 June 2014 by VRS |  Email |Print

After spending the past decade and more than $200 billion acquiring mines and oilfields from Australia to Argentina, China’s attention is turning to food.
The world’s most populous nation is confronting a harsh reality: For every additional bushel of wheat or pound of beef the world produces, China will need almost half of that to keep its citizens fed…………………………………….Full Article: Source

Posted on 02 June 2014 by VRS |  Email |Print

Oil-price volatility fell to a record amid speculation that crude-supply growth in the U.S. and spare Saudi Arabian production capacity will avoid any shortages resulting from strengthening economies.
The 20-day historical volatility of Brent crude declined to 8.1 percent at 3 p.m. in London today, set to be the lowest since the contract began trading in 1988, according to data compiled by Bloomberg News. Spare capacity in Saudi Arabia and booming U.S. output of oil from shale-rock formations are preventing price surges, while stable global economic recovery and steady stimulus measures by the Federal Reserve avert a slump, BNP Paribas SA said…………………………………….Full Article: Source

Posted on 02 June 2014 by VRS |  Email |Print

The US Securities and Exchange Commission is under growing pressure to tackle the issue of how oil and gas companies disclose payments to foreign governments. Royal Dutch Shell, ExxonMobil, several US senators and aid organisation Oxfam America have urged the agency to write new disclosure rules this year.
The SEC announced recently that it would not address the issue until March 2015, meaning a final rule may not be adopted until the end of next year at the earliest…………………………………….Full Article: Source

Posted on 02 June 2014 by VRS |  Email |Print

For almost two years now, the oil market has witnessed a relative stability rarely seen before. The price of the Opec reference basket of 12 crude oils moved in a narrow range of between $104 (Dh381.68) and $109 a barrel. The oil price is kept within this range as production in the US soared to a level not seen for 28 years, while this is countered by increasing oil demand and by outages of production from other regions, especially in Libya.
More importantly, and especially since February, tension between Russia and the West as a result of the Ukraine crises has given further support to prices in anticipation of a worsening situation, though oil and gas exports from Russia have hardly been affected so far…………………………………….Full Article: Source

Posted on 02 June 2014 by VRS |  Email |Print

The Organisation of Petroleum Exporting Countries (OPEC) crude production climbed in May for the first time in three months, led by gains in Angola and Saudi Arabia, a Bloomberg survey showed. Output from the 12-member OPEC countries rose by 75,000 barrels a day to an average 29.988 million, according to the survey of oil companies, producers and analysts.
Last month’s total was revised 50,000 barrels a day higher to 29.913 million because of changes to the Saudi Arabian and United Arab Emirates estimates. Members increased production as the International Energy Agency projected further increases will be needed to meet demand during the second half of the year…………………………………….Full Article: Source

Posted on 02 June 2014 by VRS |  Email |Print

The $US400 billion gas deal signed between Russia’s giant state-owned corporation Gazprom and China last week is 16 times larger than its predessor in the supply of gas to China – a $US25 billion LNG project based on offshore Western Australian gas signed more than ten years ago.
To put it in context, the project will transfer 38 billion cubic metres (bcm) of gas per year, which is close to a third of total Russian pipelined exports to Europe, and compares with the 592 bcm/y of total Russian production in 2012…………………………………….Full Article: Source

Posted on 02 June 2014 by VRS |  Email |Print

Hedge funds pared bets on a gold rally at the fastest pace this year after prices capped the biggest monthly decline since December.
Money managers trimmed their net-long position by 24 percent as a rally in U.S. equities to a record eroded the appeal of alternative assets. Short holdings are now the highest in 15 weeks and assets in exchange-traded products backed by metal the lowest since 2009…………………………………….Full Article: Source

Posted on 02 June 2014 by VRS |  Email |Print

Markets have been surprised by how little geopolitical events have moved the gold price in recent months. The gold price has risen some 8% this year closing last week at around $1300/ounce as uncertainty over events in Ukraine and the military coup in Thailand have raised risk perceptions among investors. However, the recent elections in India have introduced another variable.
Last July, India’s central bank introduced what was termed the 80:20 rule, whereby a restricted number of importers could import physical gold with an increased 10% duty provided they re-exported up to 20% as finished jewelery. Understandably, this reduced imports in the world’s second largest consumer and put downward pressure on prices…………………………………….Full Article: Source

Posted on 02 June 2014 by VRS |  Email |Print

Gold prices fell to their lowest level in nearly four months, as investors abandon the precious metal amid easing tensions between Russia and Ukraine. Investors say they see little reason to hold gold now that the threat of a wider conflict has faded following the results of Ukraine’s May 25 presidential election, which Russian President Vladimir Putin has said he is willing to recognize.
As well, indicators point to steady, if slow, growth in the U.S. economy, and stocks are rising. This lessens investors’ desire to maintain exposure to an asset that doesn’t offer any yield…………………………………….Full Article: Source

Posted on 02 June 2014 by VRS |  Email |Print

We’re all well aware of the bearish summer seasonality (June and July) for the precious metals sector. However, there are suddenly a few reasons to believe that this summer will break the mold of what investors have become accustomed to:
The sell-off came early this year with a 10%+ decline in Market Vectors Gold Miners (ARCA:GDX) between May 5th and May 28th. Moreover, the bullish divergence between the gold price and the senior producers became quite pronounced in recent days:……………………………………Full Article: Source

Posted on 02 June 2014 by VRS |  Email |Print

Silver is the one of the world’s most versatile commodities. Also classified as a currency, silver is one of the world’s best conductors of electricity and heat. Its versatility is exemplified by its use in products ranging from electronics, antiseptics, solar panels, silverware and jewellery.
In the commodity ETF world, silver ETF’s have among the lowest expense ratios, notably because silver is a quasi-currency with very low storage costs yet the majority of its demand is for industrial purposes. Demand is increasing rapidly along with increasing global per-capita incomes and rapid electrisation…………………………………….Full Article: Source

Posted on 02 June 2014 by VRS |  Email |Print

Precious metals experienced a wave of selling this past week as bullish investors shunned safe haven assets and bid U.S. equities to all-time highs. Expectations of stimulative action by the European Central Bank next week caused the U.S. dollar to rally against the euro, which also contributed to the precious metals selloff.
For the past year, gold and silver have remained within a trading range after plunging in the first half of 2013 in expectation of the tapering or gradual ending of the Fed’s QE3 program. Both metals appear to be forming a type of wedge pattern that could foreshadow a sharp “breakout” move in either direction when the next important catalyst eventually presents itself…………………………………….Full Article: Source

Posted on 02 June 2014 by VRS |  Email |Print

The iron ore swaps forward curve moving into contango shows signs the recent price drop for physical cargoes may have reached its limit, suggested Investec Bank Friday.
The iron ore forward curve has long been in backwardation, with contracts for settlement farther out at a discount to nearby months and quarters. However, the sustained move into contango in the latter period of this month suggested the front of the curve has come under severe unsustainable pressure, Investec said…………………………………….Full Article: Source

Posted on 02 June 2014 by VRS |  Email |Print

While the Fed’s upper hand had caused the U.S. equity markets to deliver stellar returns last year, 2014 has seen lackluster returns so far. The benchmark index S&P 500 had given us a nice 14% return last year by this time, a little less than five times the return S&P 500 has delivered so far this year. This clearly signals that we might not see equities delivering even close to the solid 32% return of 2013.
While the Fed hitting the taper chord certainly played the culprit, a severe winter, geopolitical tensions in Russia, slowdown concerns in China, emerging market turmoil and valuation concerns also took part of the blame…………………………………….Full Article: Source

Posted on 02 June 2014 by VRS |  Email |Print

BlackRock has stoked the price war in Europe among passive fund providers by cutting fees on six of its exchange traded funds. As the largest ETF provider in Europe, with assets of $212bn, BlackRock’s move represents the most significant development so far in the battle to win clients as companies jostle to become known as the cheapest provider.
The cuts follow a flurry of price reductions by rivals as European ETF providers pursue the example of the US, where companies have been undercutting one another fiercely…………………………………….Full Article: Source

Posted on 02 June 2014 by VRS |  Email |Print

Investors looking at the exchange-traded fund space and the many investment solutions and alternatives provided often ask how to make the best use of them and what to avoid doing.
There aren’t simple answers, but the key is not to get bogged down and overwhelmed, otherwise inertia will take hold. For much of the noise accompanying ETFs’ rise to the fore of investment solutions and products, they remain — for the most part — an elegant delivery mechanism…………………………………….Full Article: Source

Posted on 02 June 2014 by VRS |  Email |Print

Last fall we saw bitcoin receive an unusual amount of attention. The upstart crypto currency had an exponential rise from $125 to more than $1,125 per unit on Bitstamp, only to fall back below $500 this spring (see “It’s a $, it’s a €, it’s cryptocurrency,” right).
Additionally, the closing and bankruptcy of the Tokyo-based Mt. Gox (the largest bitcoin exchange with more than 600,000 customers) garnered substantial negative press and threatened the stability of bitcoin…………………………………….Full Article: Source

Posted on 02 June 2014 by VRS |  Email |Print

Bitcoin is a fascinating and ingenious technology, but most promoters are mindful of neither the monetary nor the tax issues. For all practical purposes IRS regulations issued in March preclude bitcoins from being used as an alternative currency.
The IRS treats bitcoins as property. The result is that bitcoin transactions trigger a taxable event. Buyers incur a tax liability for the difference in dollars between what they paid for a bitcoin when they acquired it and the dollar value attributed to the bitcoin when they spend it. Sellers of course are subject to a tax based on the dollar value of the bitcoins they receive for a good or service…………………………………….Full Article: Source

Posted on 02 June 2014 by VRS |  Email |Print

Family-owned Lenlyn to offload ICE, one of the world’s largest bureau de change businesse, and its sister brand, Raphaels Bank. International Currency Exchange, one of the world’s largest bureau de change businesses, is up for sale just weeks after rival Travelex was sold to the owner of UAE Exchange for £1bn.
ICE, and its sister brand, Raphaels Bank, have been placed on the block after their parent company hired KPMG to sell them. Lenlyn Holdings, the family-controlled company which owns the pair, hired the accountancy firm to run an auction for the two brands following what is understood to have been a beauty parade of eight potential advisers…………………………………….Full Article: Source

Posted on 02 June 2014 by VRS |  Email |Print

President Barack Obama will use his executive authority to cut carbon emissions from the nation’s coal-fired power plants by up to 20 percent, according to people familiar with his plans, and will force industry to pay for the pollution it creates through cap-and-trade programs across the country.
Obama will unveil his plans in a new regulation, written by the Environmental Protection Agency, at the White House on Monday. It would be the strongest action ever taken by a U.S. president to tackle climate change and could become one of the defining elements of Obama’s legacy…………………………………….Full Article: Source

Posted on 02 June 2014 by VRS |  Email |Print

If all we had to do to solve the problem of climate change were to reduce the flow of greenhouse gases into the atmosphere to a sustainable level, then a cap and trade regime, or simply putting a price on carbon, would indeed be a good way to start. But it isn’t.
The risk of dangerous climate change is overwhelmingly determined by the cumulative stock of carbon emissions over all time, not the rate of flow in any given decade. Carbon pricing and cap and trade are a great way of slowing down the rate at which we burn fossil carbon, but burning carbon slower won’t make a blind bit of difference if we still burn too much in the end…………………………………….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