Sat, Sep 20, 2014
A A A
Welcome kbr175@gmail.com
RSS
Commodities Briefing 22.Jul 2014

Posted on 22 July 2014 by VRS |  Email |Print

Swiss commodities traders are buying significant volumes of Africa’s oil in opaque and lightly-regulated deals, according to a new report that spotlights their commanding position in the continent’s energy markets.
Traders such as Glencore PLC and privately-owned Trafigura Beheer B.V. spent $55 billion buying a quarter of the oil produced by Africa’s top 10 suppliers between 2011 and 2013, according to the report by a trio of nongovernmental organizations, the Berne Declaration, the Natural Resource Governance Institute and Swissaid………………………………………..Full Article: Source

Posted on 22 July 2014 by VRS |  Email |Print

Speculators cut their bets on higher Brent crude oil prices by almost a quarter in the week to July 15 after prices dropped to three-month lows. Hedge funds and other money managers curbed their net long futures and options positions to 151,981 – the lowest since April 8 – from 201,568 contracts, the IntercontinentalExchange said in its Commitment of Traders report on Monday.
Concerns about supply disruptions eased, leading investors to unwind bullish positions and sell futures contracts. This prompted prices to fall to $104.39 a barrel – the lowest in three months – in the week ending July 15, after rising to more than $115 a barrel in mid-June………………………………………..Full Article: Source

Posted on 22 July 2014 by VRS |  Email |Print

Three of the so-called ‘fragile five’ would be among the worst hit countries if unrest in Iraq sparks another spike in oil prices, Capital Economics has claimed. Chief emerging markets economist Neil Shearing said the group’s forecast is for prices to drop back to below $100 per barrel by the end of the year, in part due to increased supply from the rest of the Middle East.
But if prices do spike beyond current levels, vulnerable markets such as Turkey, South Africa and India would find themselves in the eye of the storm………………………………………..Full Article: Source

Posted on 22 July 2014 by VRS |  Email |Print

Hedge funds and other large speculators slashed their bets on higher Brent crude oil prices by almost 25 percent in the week to July 15, ICE said on Monday, as prices collapsed to their lowest in three months.
The IntercontinentalExchange Inc. said money managers reduced their net long futures and options positions in Brent to 151,981 from 201,568 as prices fell to a three-month low of $104.39, down from more than $115 a barrel in mid-June………………………………………..Full Article: Source

Posted on 22 July 2014 by VRS |  Email |Print

Money managers trim net-long positions as gold price rally snaps, but investors are still adding to holdings through ETPs backed by metal. 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 per cent in the week to July 15, US government data showed. Prices dropped 2 per cent last week, the first loss since May and helping to erase US$1.38 billion from the value of exchange-traded products (ETPs) backed by the metal………………………………………..Full Article: Source

Posted on 22 July 2014 by VRS |  Email |Print

Gold stabilized near $1,310 an ounce on Tuesday as escalating tensions over conflicts in Ukraine and the Gaza strip dented global risk appetite and burnished the metal’s safe-haven appeal. Spot gold was little changed at $1,311.16 an ounce by 0009 GMT, after ending flat in the previous session.
The United States, alarmed by escalating civilian bloodshed in an Israeli offensive in the Gaza Strip, took a direct role in efforts to secure a ceasefire on Monday, as the Palestinian death toll jumped to more than 500………………………………………..Full Article: Source

Posted on 22 July 2014 by VRS |  Email |Print

Gold prices are moderately higher in early U.S. trading Monday as heightened geopolitical tensions keep a safe-haven bid in the market. August Comex gold was last up $8.70 at $1,318.00 an ounce. Spot gold was last quoted up $5.60 at $1,317.00. December Comex silver last traded up $0.261 at $21.205 an ounce.
Geopolitics remains on the front burner of the market place early this week. Last week’s downing of a Malaysian airliner on the Russia-Ukraine border and Israel’s ground offensive against Hamas on the Gaza strip are the dominant fundamentals in the markets Monday morning………………………………………..Full Article: Source

Posted on 22 July 2014 by VRS |  Email |Print

Gold is typically perceived to be a hedge against inflation, and with better than expected U.S. economic growth along with the European Union and China implementing economic stimulus packages, inflation is expected to grow. Furthermore, ongoing instability in the Middle East is driving crude prices higher, making economic growth more expensive, which will translate into higher global inflation.
Growing inflationary pressures coupled with increasing economic volatility, as witnessed with the emerging markets sell-off earlier this year, and mounting geopolitical uncertainty will drive demand for gold higher………………………………………..Full Article: Source

Posted on 22 July 2014 by VRS |  Email |Print

Over the past few weeks we have seen mining stocks make a transition out of a stage one base and into a new bull market. This transition is likely to be complete this week.
Since May they have been going higher. Two weeks ago they had a nice surge up to their March highs and the 250 level on the HUI. Last week though they dipped for a few days below that level………………………………………..Full Article: Source

Posted on 22 July 2014 by VRS |  Email |Print

Amid pressure from regulators, a new system for determining benchmark silver prices will be put in place from mid-August, while reforms are also under discussion in the gold market. Industry observers say increasing participation will be crucial to restoring confidence in the benchmarks.
The daily silver and gold fixings represent two of the oldest commodity benchmarks in the world, dating back to 1897 and 1919, respectively. But now, their long lives appear to be coming to an end. The silver fix is to be held for the last time in mid-August, while industry discussions were underway aimed at ‘modernising’ the gold fix as Energy Risk went to press. In both cases, the developments will bring significant changes to the way benchmark prices are set for precious metals………………………………………..Full Article: Source

Posted on 22 July 2014 by VRS |  Email |Print

Silver mining companies offer big leverage to a rising price of silver and should be considered by silver bulls. Investors should look for low-cost producers in politically stable mining jurisdictions.
Great Panther Silver, Endeavor Silver and Coeur Mines are three of my favorite silver miners to play a rally………………………………………..Full Article: Source

Posted on 22 July 2014 by VRS |  Email |Print

Gold gets all the glory, but silver’s no slouch. The price of silver has risen 10 percent since the end of May, more than double the gains in gold, bonds and stocks. This comes after a three-year slump when silver was down 50 percent, trailing gold by 30 percent and the S&P 500 Index by 100 percent. Until recently, it had a dubious distinction as one of the few things left in the investment universe that hadn’t rallied in recent years.
Silver suffered a 2.2 percent price drop on July 14 — gold fell as well — on fears that the Fed may raise interest rates sooner than expected. Both metals have since rebounded. And the fundamentals look solid: Silver is benefiting from a drop in total supply, a pickup in manufacturing and increased demand from China………………………………………..Full Article: Source

Posted on 22 July 2014 by VRS |  Email |Print

Zinc and aluminium prices hit their highest in more than a year on Monday as investors sought exposure to commodities with improved fundamentals, but copper’s gains were curbed by worries over China’s property sector and over a build-up of stocks.
The gains were probably driven by CTAs (commodity trading advisors), or managed futures funds, said analyst Andrey Kryuchenkov at VTB Capital, referring to funds that often use computer algorithms to track momentum………………………………………..Full Article: Source

Posted on 22 July 2014 by VRS |  Email |Print

Copper prices on the London Metal Exchange have dropped over five per cent since the beginning of the year to $6,987 (₹4.22 lakh) a tonne. A major reason for this fall is the drop in demand after a scandal over financing of commodities broke out in China. Data on Chinese copper imports show sharp drop in consumption.
The scam came to light a couple of months ago and it has seen copper shipments to China drop drastically. In May, copper imports declined 16 per cent to 3,80,000 tonnes from April and last month they slipped further to 3,50,000 tonnes………………………………………..Full Article: Source

Posted on 22 July 2014 by VRS |  Email |Print

Aluminum entered a bull market in London and traded near the highest in 16 months on speculation demand will exceed supply for the metal used in everything from cars to packaging. Stockpiles monitored by the London Metal Exchange slumped 9.4 percent this year to the lowest in 22 months.
Producers outside China cut output after prices on the bourse slumped 13 percent last year. Demand will exceed supply by 136,000 metric tons this year, with the deficit widening to 504,000 tons next year, Bank of America Corp. estimates. Premiums added to the LME benchmark price to obtain metal in Europe, North America and Asia climbed to records this year………………………………………..Full Article: Source

Posted on 22 July 2014 by VRS |  Email |Print

Investors are slowly being drawn back into commodities, attracted by stronger global economic growth and more volatility within sub-sectors, typified by current investment flows out of grains into industrial metals.
The sector has been shunned in recent years, knocked by poor returns during the financial crisis which saw commodities move in step with other assets. Commodities has benefited this year after China unleashed stimulus measures to prop up growth and recovery took hold in the United States………………………………………..Full Article: Source

Posted on 22 July 2014 by VRS |  Email |Print

Natural gas prices have plunged to about an eight-month low as temperate weather conditions keep Americans from reaching for the A/C. Meanwhile, related exchange traded funds that take a bearish stance on the market are surging on the falling prices.
The VelocityShares Daily 3x Inverse Natural Gas ETN , which seeks to provide the daily inverse 3x, or -300%, performance of the NYMEX natural gas futures, has increased 51.8% over the past three months while the ProShares UltraShort Bloomberg Natural Gas, which provides the daily inverse 2x, or -200%, performance of natural gas futures, has gained 36.2%………………………………………..Full Article: Source

Posted on 22 July 2014 by VRS |  Email |Print

Diversified broad commodity ETFs received the largest inflows after platinum and palladium with total inflows of $172mn in the second quarter of 2014 with agri seeing outflows,according to a Global Commodity ETP Quarterly released by ETF Securities Ltd.
The inflows reflect improving sentiment towards commodities as an asset class as China growth has shown signs of picking up and China policy makers have made clear they are moving into stimulus mode after three years of tightening………………………………………..Full Article: Source

Posted on 22 July 2014 by VRS |  Email |Print

The idea Scotland would be able to hold on to the pound in the event of independence is a “dead parrot”, MPs have warned. The country’s first minister was told he urgently needed to come up with a plan B on how Scotland would proceed without a “currency union” if there was a “yes” vote in just two months’ time.
A report from the Scottish Affairs Committee cautioned the Scottish Government there was no way there would be a formal deal for an independent Scotland to continue using sterling………………………………………..Full Article: Source

Posted on 22 July 2014 by VRS |  Email |Print

The central banks of China and Switzerland have struck a bilateral currency swap agreement, a move that advances the international use of the renminbi and boosts Switzerland’s hopes of becoming a trading hub for the Chinese currency.
Under the terms of the deal, signed in Beijing on Monday by Zhou Xiaochuan, governor of the People’s Bank of China, and Thomas Jordan, chairman of the Swiss National Bank, renminbi and Swiss francs can be purchased and repurchased between the two central banks, up to a limit of Rmb150bn or SFr21bn………………………………………..Full Article: Source

Posted on 22 July 2014 by VRS |  Email |Print

Water scarcity is making headlines, particularly as a drought savages California, and heightened tensions about water supply and use won’t evaporate any time soon. Whether it is concern about climate change, global population growth or the need to revamp aging water infrastructure, investment advisers say the water sector offers long-term buying opportunities. However, they add, carefully review the type of investment since offerings are as vast as the ocean.
It has become easier to add water investments to a portfolio. Some water utilities are publically traded, as are a few agricultural producers, and a handful of exchange-traded funds have bubbled up to make it simpler to get broad sector exposure. Farmland remains another way to get water ownership………………………………………..Full Article: Source

Posted on 22 July 2014 by VRS |  Email |Print

Global Carbon Capture and Sequestration market (CCS) will grow at a CAGR of 25.49 per cent over the period 2013-2018, according to a report by Sandler Research. The report says CCS technology will emerge as a clean technology to reduce GHG (Green House Gas) emissions. The integration of CCS with Integrated Gasification Combined Cycle (IGCC) will reduce costs and make CCS technology more economically viable.
CCS is the process of capturing waste carbon dioxide (CO2) from large point sources, such as fossil fuel power plants, transporting it to a storage site, and depositing it where it will not enter the atmosphere, normally an underground geological formation………………………………………..Full Article: Source

Posted on 22 July 2014 by VRS |  Email |Print

Some developers of projects to cut carbon emissions in developing nations, particularly China, are likely to pull out of the U.N. offset scheme and move to markets with higher prices, if plans to allow them to exit are implemented.
At a meeting last week, members of the board overseeing the U.N’s Clean Development Mechanism (CDM) said they would work on new rules to allow any registered project to exit the system. They will discuss proposed rule changes at its next meeting in September………………………………………..Full Article: Source

Posted on 22 July 2014 by VRS |  Email |Print

Momentum is growing behind global efforts to develop a carbon price, despite Australia’s decision to scrap its tax on the country’s top polluters. That is the view of the World Bank’s top climate official Rachel Kyte, addressing delegates at an environmental conference in Pori, Finland.
“The question I would ask if I was Australian was would I want to be in the Pacific when every one of my trading partners is on track to have an emissions trading scheme or an economy that prices carbon in within the next 2-3 years?” she said………………………………………..Full Article: Source

See more articles in the archive

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