Thu, Oct 30, 2014
A A A
Welcome kbr175@gmail.com
RSS
Commodities Briefing 21.Jul 2014

Posted on 21 July 2014 by VRS |  Email |Print

Markets can play an important role in providing future water security. Britain, as the rest of the world, is facing a water crisis, leading some experts to predict that by the end of the decade H2O will be traded on financial markets like other finite commodities such as crude oil, or iron ore.
Although the Environment Agency says the past six months have been the wettest on record, summer hosepipe bans remain a possibility, partly because of historic inconsistencies in infrastructure investment. However, changing weather patterns and rising demand for water resources spell a potentially more nightmarish scenario within the next 20 years………………………………………..Full Article: Source

Posted on 21 July 2014 by VRS |  Email |Print

Midday Thursday, a Malaysia Airlines flight crashed in Eastern Ukraine, killing all 298 people aboard. Initial fears that the plane had been shot down were supported by intelligence agencies, sparking concerns that the crash could signal a deepening of the conflict between Ukraine and pro-Russian separatists. As global investors processed the news, they sold off stocks and bought commodities that could be in short supply if sanctions or increased military conflict followed the plane crash.
The primary issue on commodities traders’ watch list is whether pro-Russian forces will be implicated in the plane crash, which could lead to a fresh round of Western sanctions against Russia. If trade between Russia and the West suffers, one of the worst-hit markets could be palladium, since Russia mines nearly 40 percent of the world’s supply………………………………………..Full Article: Source

Posted on 21 July 2014 by VRS |  Email |Print

Global commodity markets were gripped this week by the Malaysian air crash, which has dramatically raised tensions between Russia — a key producer of many raw materials — and the West. The doomed Malaysia Airlines MH17 flight, which crashed killing 298 people on Thursday, was “likely downed” by a surface-to-air missile fired from separatist-held eastern Ukraine, a US envoy said on Friday.
Investor sentiment was already hit by broadened US sanctions on Russian energy, defence and financial firms to punish what Washington charges are violations of Ukraine´s sovereignty.”If Russia turns out to have played any part in (Thursday´s) shooting down of a passenger plane over east Ukraine, there is a risk of sanctions being further tightened,” Commerzbank analysts said in a research note………………………………………..Full Article: Source

Posted on 21 July 2014 by VRS |  Email |Print

Bloomberg’s Isaac Arnsdorf discusses the effect of events in Ukraine and Russia on commodity prices with Alix Steel on “Street Smart.”.………………………………………Full Article: Source

Posted on 21 July 2014 by VRS |  Email |Print

After more than a year of scaling back in commodities, Morgan Stanley is ready to expand. The Wall Street bank plans to hire about a dozen traders, sales staff and other professionals in the United States. It’s building up commodities trading and financing businesses that can profit despite tougher regulations, people familiar with the matter told Reuters.
“The moves that we’ve made are in large part because we looked at these businesses through a new capital lens,” said one executive involved in the business’s strategy who spoke on the condition of anonymity. “That’s just the reality of life on Wall Street these days.”……………………………………….Full Article: Source

Posted on 21 July 2014 by VRS |  Email |Print

The downed jetliner in Ukraine and Israel’s Gaza offensive blindsided speculators who had cut bullish crude bets on the assumption that risks to supply were diminishing.
Crude futures rose after money managers slashed net-long positions in West Texas Intermediate, the U.S. benchmark grade, by 15 percent in the seven days ended July 15, the Commodity Futures Trading Commission said. It was the biggest drop in bullish wagers since March 2013………………………………………..Full Article: Source

Posted on 21 July 2014 by VRS |  Email |Print

The world has entered a zone of maximum upheaval. From the Atlas Mountains of North Africa to the Hindu Kush, in Afghanistan, the Middle East is in flames. The destruction of a Malaysian airline over Ukraine, almost certainly shot down by Russian-backed separatist rebels, threatens war in the Black Sea region.
Libya is being torn apart by competing militias, while parts of Iraq are under assault by the murderous Islamist force known as ISIS. Syria remains a bloody horror show, and Israeli troops have launched a ground invasion of Gaza. At no time since the terror attacks of 2001 has the world seen such conflict and instability………………………………………..Full Article: Source

Posted on 21 July 2014 by VRS |  Email |Print

OPEC said Friday its crude production and market share fell last year as a boom in U.S. shale dents demand for its oil. In an annual statistical report, the Organization of the Petroleum Exporting Countries said its collective crude production was down 2.5% during 2013 on an annual basis.
OPEC’s share of total global production in 2013 averaged 43.4%, down from the 44.6% in 2012, it said. Global oil production and demand rose last year but was largely captured by OPEC’s rivals, notably a rise in nonconventional U.S. production………………………………………..Full Article: Source

Posted on 21 July 2014 by VRS |  Email |Print

Oil production from the Mideast-dominated Organization of the Petroleum Exporting Countries (OPEC) dipped by 30,000 barrels per day (b/d) in June to 29.94 million b/d, according to the latest Platts survey of OPEC plus industry officials and analysts. The survey showed Iraq’s output plunge of 160,000 b/d in some war-torn areas was largely offset by production increases from several other OPEC member countries.
“Small though it may be, a dip in OPEC output is the last thing the consuming world wants to see,” said John Kingston, Platts global director of news. “OPEC had seen the call on its crude averaging 30.4 million b/d in the second half of this year, so any drop in production from the organization – even an involuntary one – could be viewed as a move in the wrong direction,” King added………………………………………..Full Article: Source

Posted on 21 July 2014 by VRS |  Email |Print

Mohsen Qamsari, an official with the National Iranian Oil Company, said on July 20 rejected the claims that Iran is selling crude oil to Greece, Sri Lanka, and South Africa. “China with 400,000 barrels per day is the biggest costumer of Iranian crude oil,” he said, adding that Beijing’s imports account for 40 percent of Iran’s total oil export, Iran’s IRNA News Agency reported.
“India with 25 percent is the second biggest costumer of Iranian oil,” Qamsari explained. He went on to note that South Korea, Japan, and Turkey are the other main costumers of Iranian oil………………………………………..Full Article: Source

Posted on 21 July 2014 by VRS |  Email |Print

Hedge funds cut bets on a gold rally for the first time in six weeks as prices snapped the longest stretch of gains since August 2011. Money managers trimmed their net-long position by 8.5 percent in the week through July 15, U.S. government data show. Prices dropped 2 percent last week, the first loss since May and helping to erase $1.38 billion from the value of exchange-traded products backed by the metal.
Gold climbed 9 percent this year, outpacing gains for commodities, equities and Treasuries, partly as tensions between Ukraine and Russia increased demand for a haven. The gains are set to reverse as the economy improves and the Federal Reserve “eventually” increases U.S. interest rates, the World Bank said in a report July 17………………………………………..Full Article: Source

Posted on 21 July 2014 by VRS |  Email |Print

In the international market, spot gold prices dropped two per cent to $1310.8 per troy ounce. The metal touched a high of $1324.7 on Friday but came off the peaks soon on profit booking. News of the shooting down of a Malaysian Airlines plane in Ukraine increased geopolitical tensions and helped gold — a classic haven — to edge up.
However, the sharper drop in price in the initial part of the week on fears of an early increase in interest rates in the US made gold close in the negative zone for the week………………………………………..Full Article: Source

Posted on 21 July 2014 by VRS |  Email |Print

Heightened global tensions sent the spot price of gold up nearly US$20 overnight on Thursday to around US$1319 per ounce. On the local bourse gold mining stocks including Newcrest Mining Ltd and Northern Star Resources Ltd were both up around 3% on Friday in response to the tensions and higher gold price; in contrast the S&P/ASX 200 Index traded lower.
The bounce in volatility is a stark reminder to investors that many stocks are now priced for perfection; this leaves them vulnerable to swift declines. At the same time, major economies such as China and the USA continue to report solid growth rates………………………………………..Full Article: Source

Posted on 21 July 2014 by VRS |  Email |Print

During a meeting with shareholder on Thursday, Tata group chairman Cyrus Mistry said that there would be a shift in demand-supply in the global steel industry due to the structural changes happened in china, the largest steel producer in the world. The steel sector anticipates a lower price level for raw materials.
Mistry said in the company’s annual report for fiscal 2013-14 that the growth in China has tempered as the nation has moved its gears to attain a sustainable model of economic development………………………………………..Full Article: Source

Posted on 21 July 2014 by VRS |  Email |Print

While the Hong Kong Exchanges and Clearing has been busy getting into bed with former rival Shanghai to develop cross-trading of stocks, some brokers wonder whether the local bourse was wise to cut a big cheque to buy the London Metal Exchange.
“It is hard for the HKEx to break even by paying such a high price to buy the LME. The takeover is a short cut for the HKEx to expand into commodity trading but the high price means it is a risky bet,” said Joseph Tong Tang, executive director of Sun Hung Kai Financial………………………………………..Full Article: Source

Posted on 21 July 2014 by VRS |  Email |Print

A stand-alone Scottish currency would be the best way forward for the country after independence, a report by MPs has suggested. The SNP government wants to share the pound with the UK in a currency union after independence, keeping the Bank of England safety net.
This has been ruled out by all the main parties at Westminster, and today’s report by the Scottish affairs select committee says there will be no currency union “of any kind”. The report says First Minister Alex Salmond’s Plan B for currency is “sterlingisation” – whereby Scotland would use the pound in the same way that Panama uses the US dollar, without formal links………………………………………..Full Article: Source

Posted on 21 July 2014 by VRS |  Email |Print

As a debate continues on alleged black money of Indians in Swiss banks, the authorities in Switzerland have come across a significant quantum of fake Indian rupee notes in their country — the third highest for any foreign currency after Euro and the US dollar.
According to the latest counterfeit currency statistics released by Switzerland’s Federal Office of Police (Fedpol), the number of fake Euro notes seized in the year 2013 stood at 2,394, while there were 1,101 fake US dollar bills………………………………………..Full Article: Source

Posted on 21 July 2014 by VRS |  Email |Print

Bitcoin is still perceived by financial professionals as a possible bubble, a poll by Bloomberg has shown: Bitcoins, which lost 45% of their value after skyrocketing to more than $1,100 last year, are poised to tumble further, according to the latest Bloomberg Global Poll of financial professionals.
55% of those surveyed said the virtual currency trades at unsustainable, bubble-like prices, according to the quarterly poll of 562 investors, analysts and traders who are Bloomberg subscribers. Another 14% said it’s on the verge of a bubble. Only 6 percent of respondents said a bubble isn’t forming. The remaining 25 percent were unsure………………………………………..Full Article: Source

Posted on 21 July 2014 by VRS |  Email |Print

In the Indian economy, where almost half of an average household’s expenditure goes toward food and where half of the labour force is engaged in agriculture, one cannot simply wish away the centrality of agriculture just because its contribution to GDP now hovers around 14 per cent.
That would be an overly narrow viewpoint, and perhaps a misguided one. India’s agriculture is responsible for feeding a large and growing population that numbers 1.25 billion today and that is projected to exceed that of China by 2035………………………………………..Full Article: Source

Posted on 21 July 2014 by VRS |  Email |Print

The goal of a global carbon market to tackle climate change, once touted to reach $2 trillion (Dh7.3 trillion) by 2020, received a major setback when Australia on Thursday scrapped its planned carbon trading scheme, which would have been the world’s third biggest.
Australia’s Emissions Trading Scheme (ETS) was to have started in 2015 and linked with the world’s biggest market in Europe — the first direct connection between major emissions trading schemes and a test case for possible links between schemes emerging in China and planned in Japan and the United States………………………………………..Full Article: Source

Posted on 21 July 2014 by VRS |  Email |Print

Julia Gillard was not across the details of climate change policy early in her prime ministership and should bear some responsibility for the demise of a price on carbon, Greens leader Christine Milne says. Ms Milne said the former prime minister made a “disastrous” political decision when she conceded her carbon pricing scheme constituted a carbon tax.
The carbon price was abolished last Thursday with the support of all Senate crossbenchers, but the blame game over who brought it down continues. Last week, Labor senators tied the scheme’s demise to the Greens’ decision to vote against Kevin Rudd’s Carbon Pollution Reduction Scheme in 2009………………………………………..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