Tue, Sep 2, 2014
A A A
Welcome kbr175@gmail.com
RSS
Commodities Briefing 16.Jul 2014

Posted on 16 July 2014 by VRS |  Email |Print

In a bumpy year for commodities markets, some investors think they have hit on a winning strategy: Wait it out. Extreme weather and an uncertain economic outlook have sent prices for commodities ranging from coffee to natural gas to soybeans on a wild ride this year. In many of these markets, the cost for commodities delivered today is higher than months from now. That is opening up a number of ways for investors to profit.
How it works: A fund manager buys a futures contract for delivery next month. Right before it expires, the investor sells the contract, buys a cheaper one for delivery at a later date and pockets the difference………………………………………..Full Article: Source

Posted on 16 July 2014 by VRS |  Email |Print

Goldman Sachs’ commodities business, known for its muscular trading operation, is rapidly expanding in a plainer and less politically charged area even as listless markets and increased regulation force rivals to beat a retreat. Commodity finance is among the fastest-growing segments of Goldman’s commodities business, the bank’s executives said.
“The financing side of the equation has gone from being a sort of appendage to being a really major organ for us,” Greg Agran, Goldman’s global co-head of commodities trading, said. “When we think about growth going forward over the next few years, I actually think the commodity finance business is one of the areas we are most excited about”………………………………………..Full Article: Source

Posted on 16 July 2014 by VRS |  Email |Print

Brent crude suffered its biggest one-day percentage fall since the start of the year as concerns about supply disruptions eased, leading investors to unwind bullish positions and sell futures contracts.
ICE August Brent fell to a three-month low of $104.39 a barrel, extending losses since the middle of June, when insurgents swept across northern Iraq, to more than 9 per cent………………………………………..Full Article: Source

Posted on 16 July 2014 by VRS |  Email |Print

Crude oil prices actually fell 3.1% last week despite rising tensions in Iraq and continued geopolitical turmoil in Israel. However, despite this decline, tensions pushed crude oil’s implied volatility to three-week highs.
Although crude oil prices will likely stabilize as the U.S. moves further into the summer driving season, volatility could continue to move higher, allowing investors to profit from an options strategy called a straddle………………………………………..Full Article: Source

Posted on 16 July 2014 by VRS |  Email |Print

In the past three weeks the price of West Texas Intermediate crude oil has lost 6% of its value; a barrel is currently priced at around $100. The recent plunge in oil prices has also dragged down the shares of big oil producers such as BP and Chevron.
BP’s stock is at $51.84, down 1.7% since the beginning of the month. Shares of Chevron are at $129.35, down 0.9% during July. But will crude oil prices continue to decline in the coming weeks? Following are are three factors that could keep pressure on oil pressures………………………………………..Full Article: Source

Posted on 16 July 2014 by VRS |  Email |Print

Crude oil supply from hydraulic fracturing isn’t just a controversial topic for U.S. politicians and industry regulators; it’s also affecting the business of the world’s biggest oil cartel. The Organization of the Petroleum Exporting Countries (OPEC) cut demand forecast for its own oil by around 300,000 barrels per day (bpd) in 2015, mainly due to increased supply from American and Canadian shale formations.
Last week, OPEC’s secretariat in Vienna, Austria, issued a report projecting that demand for oil from its 12 member nations would drop from 29.7 million bpd this year to 29.4 million bpd in 2015………………………………………..Full Article: Source

Posted on 16 July 2014 by VRS |  Email |Print

Energy security is more about diversity than abundance in any one particular resource, the head of the IEA warned the United States.
International Energy Agency Executive Director Marian van der Hoeven told delegates gathered in Washington for the annual conference of the Energy Information Administration there may be trouble on the horizon for the United States. “Energy security is about much more than supply, and it’s about more than the here and now,” she warned………………………………………..Full Article: Source

Posted on 16 July 2014 by VRS |  Email |Print

Recent reports have confirmed that the US is now the world’s largest producer of crude oil with output exceeding 11 million barrels per day in the 1Q of this year. This surpasses the daily oil production of Russia and Saudi Arabia.
This is the first time in over 40 years that the US has once again become the largest producer of oil in the world – and this is despite the Obama administration’s continued ban on new drilling for oil in our coastal waterways………………………………………..Full Article: Source

Posted on 16 July 2014 by VRS |  Email |Print

Traders and analysts are characterizing Federal Reserve Chair Janet Yellen’s congressional testimony Tuesday as largely neutral for the gold market.
About an hour into her testimony, prices suddenly slipped below $1,300 an ounce for the first time since June 19. But most observers said they did not feel that the Fed chief had suddenly sounded more hawkish – other than suggesting rates could rise sooner than expected if the labor market keeps improving rapidly………………………………………..Full Article: Source

Posted on 16 July 2014 by VRS |  Email |Print

If the gold market was a horse race then after yesterday’s sudden fall for no apparent reason observers would be calling for a stewards’ enquiry. Certainly those looking at a replacement for the London gold fix ought to be paying attention.
Just days after Goldman Sachs renewed its propaganda onslaught against the precious metal in a long article on Bloomberg the price dropped by 2.3 per cent, its biggest one day drop this year. Did it fall or was it pushed?……………………………………….Full Article: Source

Posted on 16 July 2014 by VRS |  Email |Print

It’s the proverbial pie in the face for traders who were sure gold was destined for higher highs. On Monday, gold prices, along with the SPDR Gold Shares (GLD), plunged a stunning 2.3% — the biggest one-day dip of the year — when Portugal’s debt crisis didn’t cause the country to sink into the ocean and drag the rest of Europe down with it.
The closing price of gold on Monday was $1,306.70 per ounce, pulling the commodity’s price to its lowest level since June 18. That was the day before gold prices soared after Janet Yellen vowed to keep interest rates low, and thereby keep the U.S. dollar suppressed………………………………………..Full Article: Source

Posted on 16 July 2014 by VRS |  Email |Print

Well, hardly had our article yesterday on a potential smashdown in gold and silver been published on site for a couple of hours than, hey presto, it seems to have happened. Or at least started. According to reports a massive $1.37 billion sale of gold futures hit the market at New York open.
This initially drove the gold price down by around $20 before it recovered a little maintaining a level just above $1300 an ounce where it stayed overnight and in choppy morning trade in Europe. This morning has seen some strength on a rebound, though, taking the yellow metal back up above $1310 at the time of writing suggesting greater resilience than yesterday’s heavy seller(s) may have contemplated. Silver has been following gold’s lead as it is wont to do. ……………………………………….Full Article: Source

Posted on 16 July 2014 by VRS |  Email |Print

It’s now going on close to 30 years since I first discovered that silver was manipulated by excessive and concentrated short selling on the COMEX. I remember the exact moment like it occurred yesterday. It’s hard to believe I was in my 30’s when this started.
As I’ve explained previously, I was looking for an answer to Izzy Friedman’s question as to how and why silver prices remained so low when the market was in a supply/demand deficit………………………………………..Full Article: Source

Posted on 16 July 2014 by VRS |  Email |Print

The billionaire investor who famously broke the Bank of England has been making some big bets on a recovery in precious metal prices of late. This has seen him take some big positions in three of the industry’s hottest plays.
These bets are also in harmony with the increasingly positive outlook for the price of gold, silver, and platinum with a range of macro-economic, geopolitical and industry specific factors set to drive their prices higher. Let’s take a closer look at three of Soros’s biggest bets in the beaten-down precious metals mining industry………………………………………..Full Article: Source

Posted on 16 July 2014 by VRS |  Email |Print

A Chinese commodity trading house is accused of securing multiple bank loans against a single stockpile of copper and aluminium, causing ructions in copper prices and a dip in trading volumes.
The discovery of a financing practice by a Chinese trading firm using the same metals inventory as collateral to secure multiple bank loans has caused copper prices to plummet, yet futures traders have profited from the price dislocations………………………………………..Full Article: Source

Posted on 16 July 2014 by VRS |  Email |Print

Most of the top 50 economies in the world have engaged in one form or another of monetary stimulus since the start of 2009. Halfway through 2014, most still endeavor to keep interest rates low to encourage borrowing by consumers and businesses; nearly all of those countries or regions also hope to fuel exports with modestly depreciating currencies.
Theoretically, tactics designed to devalue a currency as well as push borrowing rates into the basement should strongly benefit precious metals like gold. And in the first three years of ultra-accommodative policies (e.g., zero-percent overnight lending, quantitative easing, etc.), the SPDR Gold Trust roughly doubled in price………………………………………..Full Article: Source

Posted on 16 July 2014 by VRS |  Email |Print

The ETF universe is one that is continually changing in an evolutionary fashion. Each year new ETFs are created and others delisted in a Darwinian-style “survival of the fittest” environment that allows the best funds to thrive while the weakest die off.
Through the first six months of 2014, we have seen total U.S.-listed ETF assets surpass $1.8 trillion. That includes net inflows of $73 billion this year alone. The total count of exchange-traded products, including both ETFs and ETNs, now stands at more than 1,600 available options with the list expanding rapidly………………………………………..Full Article: Source

Posted on 16 July 2014 by VRS |  Email |Print

ThinkAdvisor’s big annual ETF event will cover everything from smart beta to finding winning global ETFs and everything in between. The summer is typically quiet time for Wall Street, but not in the fast-moving ETF marketplace.
Never mind that a Winklevoss Bitcoin ETF is on the verge of being launched, the adoption rate of ETFs among financial advisors is through the roof. “We predict annual growth rates of 15%-30% around the globe over the next five years and believe the ETF industry could surpass the hedge fund industry in assets under management during the next 12–18 months,” said EY in its 2014 ETF Global Survey………………………………………..Full Article: Source

Posted on 16 July 2014 by VRS |  Email |Print

Short & Leverage (S&L) ETP/ETF investors cut their exposure to equities as outflows overwhelmed inflows in US, Europe and Japan ETPs. Outflows in US debt ETPs also exceeded inflows into German debt ETPs.
Bearish repositioning by S&L investors underpinned flows in equity and debt ETPs, with Japan recording $780 million in redemptions of long ETPs. A contrarian stance by S&L investors took hold over commodities, as sharp falls in natural gas futures accompanied bullish flows in natural gas ETPs, while the marked rally in silver futures coincided with bearish flows in silver ETPs………………………………………..Full Article: Source

Posted on 16 July 2014 by VRS |  Email |Print

The turnover of commodity exchanges fell by 65% to Rs.14.55 trillion in the first quarter of the current fiscal due to poor volumes in most commodities, the Forward Markets Commission (FMC) said. The turnover at these commodity bourses stood at Rs.41.45 trillion in the same period last year.
Much of the fall was seen in bullion, followed by energy, metals and agricultural commodities, FMC data showed. According to the FMC, the turnover from bullion fell by 73% to Rs.5.23 trillion in April-June this year, against Rs.19.38 trillion in the same period a year ago……………………………………….Full Article: Source

Posted on 16 July 2014 by VRS |  Email |Print

World agriculture must create short and long term adaptation strategies to cope with climate change accelerating the water cycle. This is the finding of an Organisation for Economic Co-operation and Development (OECD) report that sees rainfall periods being longer and more intense in the years to come.
The recent paper Impact of Climate Change on the Water Cycle and Implications for Agriculture has tipped higher latitude areas for more rain in winter and summer. Drier summer weather is expected for mid-latitude and subtropical areas………………………………………..Full Article: Source

Posted on 16 July 2014 by VRS |  Email |Print

Global regulators have published details of their plans to overhaul foreign-exchange benchmarks in response to allegations that traders colluded to manipulate rates in the US$5.3 trillion-a-day currency market.
The Financial Stability Board (FSB) proposed changes to the way the WM/Reuters rates are calculated, including extending the length of the one-minute windows on which the benchmark is based, and making firms set up systems to address potential conflicts of interest with their clients. The Basel-based FSB set an August 12 deadline for comments on the plan………………………………………..Full Article: Source

Posted on 16 July 2014 by VRS |  Email |Print

Currencies moved in a narrow range yesterday. Within the USD moved only ±0.1% or more against four G10 currencies, falling vs CAD and rising vs NZD, JPY and GBP. Commodities were more volatile. Gold and silver, which fell in late European trading Monday, failed to register any bounce, while corn, wheat and several other agricultural commodities fell further.
Traders looking for volatility might want to look at those markets, although as prices there are determined largely by the weather and my training is in economics, I have little insight to share about them………………………………………..Full Article: Source

Posted on 16 July 2014 by VRS |  Email |Print

Tony Abbott’s hopes of quickly scrapping the carbon tax under a more compliant Senate have again been put on hold with the repeal bills not brought before the upper house until Tuesday night for fear of another mishap. That was despite amended legislation being passed in the House of Representatives on Monday.
But the Senate has extended its hours to try to pass the Abbott government’s repeal - whether that takes hours, days or a weekend or two. The government kept senators in the upper house late into the evening on Tuesday as it debated the carbon tax repeal, and could keep the chamber open much longer if it doesn’t get its way………………………………………..Full Article: Source

Posted on 16 July 2014 by VRS |  Email |Print

Britain will expand funding for a programme to help coal-rich South Africa develop a carbon trading market in an attempt to rein in its rising greenhouse gas emissions. The British High Commission in Pretoria last week said it will fund a pilot emissions trading programme from next year to help companies prepare for a 120-rand-per-tonne ($11.21) carbon tax that is expected to come into force in 2016.
The value of the grant was not disclosed. The launch of South African’s carbon tax, which would apply to major emitters including steel giant ArcelorMittal, utility Eskom [ESCJ.UL] and petrochemical group Sasol, was delayed by one year to allow more time for planning and consultation with stakeholders………………………………………..Full Article: Source

See more articles in the archive

September 2014
S M T W T F S
« Aug    
 123456
78910111213
14151617181920
21222324252627
282930