Thu, Oct 2, 2014
A A A
Welcome kbr175@gmail.com
RSS
Commodities Briefing 17.Jun 2014

Posted on 17 June 2014 by VRS |  Email |Print

Hedge funds accelerated bearish positioning on agricultural commodities to the fastest pace in nearly a year as hopes rose for grain, sugar and cotton supplies – with the extent of the selldown potentially setting the scene for greater price stability.
Managed money, a proxy for speculators, cut its net long position in futures and options in the top 13 US-traded agricultural commodities, from cocoa to lean hogs, by more than 126,000 contracts in the week to last Tuesday, according to data from the Commodity Futures Trading Commission regulator………………………………………..Full Article: Source

Posted on 17 June 2014 by VRS |  Email |Print

For the last fortnight, global market sentiments were largely positive in the start of fortnight owing to number of factors. Major factors like US unemployment rate been seen below the US Federal Reserve target of 6.5 percent along with European Central Bank (ECB) cutting the minimum bid rates to 0.15 per cent supported an upside in the markets.
The ECB became the first central bank in the world to charge banks if they holding money which acted as a positive factor. However, in the later part of the fortnight markets began to take correction after unrest in Iraq which threatened to oil supplies………………………………………..Full Article: Source

Posted on 17 June 2014 by VRS |  Email |Print

Markets have been quite complacent as of late, proven by incredibly low volatility across all asset classes (chart here and here). However, volatility could now start picking up with a potential crisis flaring up in the Middle East. On Saturday, the Guardian reported recent US reactions toward the Iraq Crisis.
The US is sending an aircraft carrier and two guided missile ships into the Persian Gulf, bolstering sea and airpower before a possible US strike on the jihadist army in Iraq in the coming days………………………………………..Full Article: Source

Posted on 17 June 2014 by VRS |  Email |Print

The price of oil is trading near nine-month highs as the situation in Iraq remains febrile. Oil market analysts Monday described the situation as “more persistent than geopolitical scares in Syria and Ukraine,” and said continual headlines would “begin to change the market psychology.” Here are their views on where the price of oil goes from here:
Peter Helles, Commodities Strategist at Bank of American Merrill Lynch: The range of potential outcomes is broad. In our view, the two most likely scenarios are a stalemate or a limited retrenchment of ISIS as the Iraqi army fights back. In both instances, we see Brent in a $105-$115 a barrel range………………………………………..Full Article: Source

Posted on 17 June 2014 by VRS |  Email |Print

The price of oil is at its most stable since 1970, as a huge increase in US oil production offsets disruption to supply from places such as Libya, according to BP. Christof Rühl, group chief economist, said the world had seen a cumulative 3m barrels a day of supply disruption since the start of the 2011 Arab uprising but that had been “cancelled out” by a similar extra amount of US production.
“There has been an almost perfect match between outages in north Africa and elsewhere and US production growth,” he said. The equilibrium had created an “eerie quiet” in global oil markets………………………………………..Full Article: Source

Posted on 17 June 2014 by VRS |  Email |Print

The US recorded one of the biggest annual increases in oil production by a country last year thanks to the shale boom, according to BP’s annual review.
The 1.1 million barrels per day extra the US pumped helped offset slumps in production from countries like Libya, which is still gripped by civil war three years on from the Arab Spring………………………………………..Full Article: Source

Posted on 17 June 2014 by VRS |  Email |Print

From the Keystone pipeline to Ukraine to fracking and American self-sufficiency, Washington is abuzz about energy politics these days, but top U.S. policymakers continue to make mistakes when thinking about world energy markets.
For example, James Woolsey, a former director of the CIA and self-proclaimed energy hawk, argues that the Organization of the Petroleum Exporting Countries (OPEC) has a grip on global oil and gasoline prices so tight that the United States will never be free of its influence. Like most people, Woolsey wrongly believes that OPEC is a powerful cartel………………………………………..Full Article: Source

Posted on 17 June 2014 by VRS |  Email |Print

The unrest in Iraq isn’t affecting oil markets or the country’s oil output, the secretary general of the Organization of the Petroleum Exporting Countries said Monday. Abdalla Salem el-Badri said: “Nothing is affected. production is still going well and exporting is going fine.”
He said he doesn’t expect the recent wave of unrest in the country to affect the balance of the supply and demand of the oil market. The US and Iran have publicly committed in recent days to provide military support if requested to Iraqi Prime Minister Nouri al-Maliki and help his government repel an offensive the Islamic State of Iraq and al-Sham has launched against Baghdad and other Iraqi cities over the past week………………………………………..Full Article: Source

Posted on 17 June 2014 by VRS |  Email |Print

Even though present Geo-political events in Iraq have now pushed up the price of gold due to Brent Crude hitting a new high in 2014, the value of the yellow metal relative to oil is still way below its historical average. Currently, the price of Brent Crude is trading at $113.35, while gold is at $1,275. This is an embarrassing 11.2 to 1 ratio…. thanks to the manipulation by the Fed and member banks.
We can see the average Gold-Oil Ratios for the past 5+ decades. When the U.S. Dollar was backed by gold, the average gold-oil ratio during the 1961-1970 period was 20 to 1. Which means one ounce of gold could purchase 20 barrels of oil……………………………………….Full Article: Source

Posted on 17 June 2014 by VRS |  Email |Print

The fifth subfloor of the Federal Reserve Bank of New York is home to the world’s largest gold vault. And pretty much anybody can take the elevator down 25 metres below street level to view the steel and concrete structure. But very few people are allowed past the 90-ton steel cylinder that protects the entrance to the vault – not even the owners of the gold stored inside.
Of course security has to be pretty tight, for the vault that contains over 20% of the world’s gold. But some owners have become increasingly suspicious over the existence of the gold………………………………………..Full Article: Source

Posted on 17 June 2014 by VRS |  Email |Print

While the Chinese dominate gold production among countries, it still maintains a level of mystery as to where all these ounces come from. Much of the mining industry in China is highly privatized and you’d be hard pressed to find traditional production figures that are generally more available around the rest of the world.
Gold production coming out of China over the last decade has more than doubled as the country produced 6,827,000 ounces of gold in 2004. In 2014, gold production estimates are expected to be around 14.5 million ounces………………………………………..Full Article: Source

Posted on 17 June 2014 by VRS |  Email |Print

Ten companies are interested in developing and running a replacement for the century-old London silver fixing benchmark that will end in August.
The London Bullion Market will create a shortlist from the requests for proposals and the industry group’s members will consider presentations at a seminar in London on June 20, the LBMA said today in a statement on its website. A survey conducted in May showed the market wants an electronic, auction- based process and one that’s tradable, the LBMA said June 5………………………………………..Full Article: Source

Posted on 17 June 2014 by VRS |  Email |Print

Precious metals mining is a fickle industry. It changes constantly because of price volatility, market demand, and the costs incurred for capital-intensive projects. Then, there’s always something else that causes mining companies to change plans. Here are five things to consider before investing in precious metals.
1. Price volatility is inherent to the industry: Precious metals prices follow no set pattern or trend. They can swing up or down in a flash. For example, Canadian Mining Journal reported this month that, “A rare combination of ongoing strikes in South Africa’s platinum group metal mines combined with political tensions between Russia and Ukraine have translated into three-year highs for palladium prices in early June, resulting in one of the few bull markets for a mining commodity this year.”……………………………………….Full Article: Source

Posted on 17 June 2014 by VRS |  Email |Print

Copper futures rose for the second straight session on signs that demand will pick up as economies gain in China, the world’s top consumer of industrial metals, and the U.S., the second-biggest.
China’s central bank extended a cut in reserve requirements to some national lenders as officials try to support the economy without broader stimulus. In the U.S., industrial output increased more than forecast in May, while the Federal Reserve of New York’s Empire manufacturing report unexpectedly climbed this month as orders jumped………………………………………..Full Article: Source

Posted on 17 June 2014 by VRS |  Email |Print

In terms of copper production, it’s Chile who accounts for the lion’s share of world output by far. However, there are still several other countries with significant operations, including neighbouring Peru, as well as China, the U.S. and Russia.
The United States Geological Survey released its most recent set of data on copper-producing countries, and Copper Investing News took a look to see who made the top ten. Below is a list of the top ten copper producing countries as reported by the USGS, ordered by total production………………………………………..Full Article: Source

Posted on 17 June 2014 by VRS |  Email |Print

The Forward Markets Commission has set up a working group to prepare a roadmap and a structure for a common clearing system for all commodity exchanges in the country in order to reduce transaction costs of market participants and strengthen risk management systems.
The commodity markets regulator announced this in an office memorandum on Monday. The move comes in the backdrop of the payment crisis involving the National Spot Exchange Ltd that broke out in July last year when the exchange could not settle contracts………………………………………..Full Article: Source

Posted on 17 June 2014 by VRS |  Email |Print

We hate you guys.” This was how Luo Ping, a senior official at the China Banking Regulatory Commission, vented his frustration at the US in 2009. He and others in China believed that, as the US Federal Reserve printed money to resuscitate American demand, the value of China’s vast US Treasury bond holdings would plunge along with the dollar.
“Once you start issuing $1tn-$2tn . . . we know the dollar is going to depreciate so we hate you guys – but there is nothing much we can do,” Mr Luo told a New York audience………………………………………..Full Article: Source

Posted on 17 June 2014 by VRS |  Email |Print

Bitcoin has stared down an existential threat, after a consortium of miners briefly gained enough processing power to theoretically destroy the currency. For a few hours on Friday, mining pool Ghash.io controlled 51% of all the processing power being used to perform the calculations that keep bitcoin secure.
If it had abused that power, it would have had the ability to irreversibly take money from other users, simply by rewriting the register of who owns which bitcoins. But shortly after the threshold was breached, some members of the mining pool pulled their computing power from the group, averting – or at least, delaying – catastrophe………………………………………..Full Article: Source

Posted on 17 June 2014 by VRS |  Email |Print

The use of carbon markets to curb rising greenhouse gas emissions was dealt a blow on Sunday after two weeks of United Nations talks on designing and reforming the mechanisms ended in deadlock.
The negotiations, held as part of U.N. climate negotiations in Bonn, Germany, made scant progress as envoys representing almost 200 nations tied reforms to progress under the wider discussions and remained entrenched in diverse positions………………………………………..Full Article: Source

Posted on 17 June 2014 by VRS |  Email |Print

European Union negotiations this week on planned energy and climate policies will focus on ways to share the burden of carbon reductions after 2020, according to an EU document prepared for the talks.
In the series of bilateral discussions, the bloc’s senior officials and representatives of EU heads of state and government will also discuss ways to boost the share of renewable energy and the need for an energy-efficiency target, according to the document, which was obtained by Bloomberg News………………………………………..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