Sat, May 15, 2021
A A A
Welcome vaishu
RSS
Commodities Briefing 24.Jun 2011

Hedge funds fear commodity bull run may be over
Commodities: The strategies fund selectors are backing
G20 agrees farm deal, but not commodities regulation
G20 wants stricter regulations on commodity markets
Need global action to tackle price rise in commodities: RBI
Commodities fall broadly on concerns about economy
Why commodity king China ignored in price setting
China to wield more power over commodities pricing
OPEC, IEA clash over oil reserves weapon
OPEC members warn IEA oil release could backfire
JP Morgan, Goldman, cut oil price forecasts after IEA
A coalition strike on oil prices
World’s insatiable energy need brings uranium-market opportunities
Uranium prices no way to go but up - stocks to follow - Chang
Vietnam only behind India in gold hoarding
Gold investing is beneficial to everybody
Should more pension funds buy gold?
Surge in gold and silver ownership worldwide as doomsday nears
Copper ends lower in commodity-wide risk retreat
Copper as a critical metal
Avoid copper (unless you're a smelter or refiner) - SocGen
Why it may be time to load up on gold ETFs
What you need to know and watch out for when it comes to exchange-traded funds
Better commodities ETFs
Exchange-traded funds: Too much of a good thing
Global fund flows total $270 bln through April
Dodd-Frank restricts retail commodity investment
Kiwi falls with commodity prices
Coffee prices nearly double, with no relief in sight
Polluters winners from carbon scheme
EU energy efficiency proposal ‘destined for failure’, say enviros

Posted on 24 June 2011 by VRS |  Email |Print

Patric de Gentile-Williams

The price of gold, copper and other commodities may have peaked, say hedge fund managers meeting in Monaco this week, who are avoiding the sector for fear that last month’s sharp sell-off may herald further falls.
Executives at the GAIM conference said gold and base metals, which have boomed in recent years thanks to rising demand and low interest rates, along with the recent wave of high-profile mining company flotations, looked over-priced………………………………………..Full Article: Source

Posted on 24 June 2011 by VRS |  Email |Print

Mark WinklerFund managers are queuing up to tell us that high commodity prices are here to stay, so what strategies are Europe’s fund selectors using to tap this trend?
Economic growth in emerging markets during the last decade has led to a higher demand for commodities resulting in increasing prices. Even the financial crisis only dampened this trend for a short time. Although prices have recently been dropping and volatility has been rising, the commodity sector is still on solid ground………………………………………..Full Article: Source

Posted on 24 June 2011 by VRS |  Email |Print

Farm ministers from the G20, the world’s largest economies, have agreed on ways to tackle high food prices at a conference in Paris.
But it was a watered-down declaration, falling short of France’s ambitious proposals to tighten regulation on the buying and selling of agricultural products – that is commodities – to prevent speculators pushing up prices. Despite that the French farm minister Bruno Le Maire hailed the agreement………………………………………..Full Article: Source

Posted on 24 June 2011 by VRS |  Email |Print

French President Nicolas Sarkozy has appealed for stricter regulations on commodity markets and the setting up of emergency reserves at a first ever summit meeting of G20 agriculture ministers.
The summit is aiming to address an upsurge in food prices. In his opening address Sarkozy claimed, “The G20 has shown its capacity to restart the global economy and to establish a new regulation. The word regulation is not a dirty word. A market without regulation is no longer a market. What we were able to do for the financial markets, it is our duty to do the same for the agriculture markets.”……………………………………….Full Article: Source

Posted on 24 June 2011 by VRS |  Email |Print

Attributing rising commodity and crude oil prices to excess liquidity in the global market, Reserve Bank Governor D Subbarao today underlined the need for coordinated action to deal with the situation.
“…in the current juncture, one of the driving forces behind hardening commodity prices in recent months is the excess liquidity in the global system which has possibly triggered financialisation of commodities,” Subbarao said in a lecture to Australia National University in Canberra………………………………………..Full Article: Source

Posted on 24 June 2011 by VRS |  Email |Print

Commodity prices dropped sharply Thursday on more evidence of a slowing global economy and a decision by a group representing 28 countries to release emergency oil supplies into the market in an effort to lower prices.
The declines came across the board. Oil fell 4.6 percent, silver dropped 4.7 percent, gold lost 2.1 percent and heating oil fell 5.8 percent………………………………………..Full Article: Source

Posted on 24 June 2011 by VRS |  Email |Print

As the world increasingly tilts from West to East, the corresponding economic shift has not been all-inclusive. China, the world’s largest consumer of commodities, has largely been left on the sidelines with regard to the setting of global commodity prices.
China operates futures exchanges in Shanghai, Zhengzhou, and Dalian that, collectively, make up the world’s largest by volume, according to data from the Chinese Futures Association………………………………………..Full Article: Source

Posted on 24 June 2011 by VRS |  Email |Print

China may be the world’s largest consumer of commodities but has little say over commodities prices since exchanges where they are traded are in the West. That may be changing. The Hong Kong Mercantile Exchange (HKMEx) is open for business and aims to position China to compete with London, New York, and Chicago.
“Global demand for core commodities has in recent years been driven by Asia,” says Barry Cheung, chairman of HKMEx, according to the Christian Science Monitor. “Our new platform will offer Asia a bigger say in setting global commodity prices.”……………………………………….Full Article: Source

Posted on 24 June 2011 by VRS |  Email |Print

Consumer watchdog the International Energy Agency’s emergency oil release is a desperate measure that threatens to undo two decades of cooperation with OPEC and could fail to calm prices.
Thursday’s announcement of a 60 million-barrel release from emergency stocks — only the third in the IEA’s 37-year history — came after consumer nations unsuccessfully applied pressure on the Organization of the Petroleum Exporting Countries to increase its output at a meeting this month………………………………………..Full Article: Source

Posted on 24 June 2011 by VRS |  Email |Print

Some OPEC members warned of possible retaliatory measures after several of the world’s largest oil consumers said they would release 60 million barrels of oil—a move that immediately sent oil prices sharply lower.
The International Energy Agency, which coordinates emergency oil inventories policy for its 28 members, said Thursday it had consulted about the oil-release plan with major oil producers, including the Organization of Petroleum Exporting Countries, and major consumers including China………………………………………..Full Article: Source

Posted on 24 June 2011 by VRS |  Email |Print

Bankers J.P. Morgan and Goldman Sachs slashed forecasts for crude prices in the third quarter after the International Energy Agency announced the release of 60 million barrels of oil next month to shore up the economic recovery.
J.P. Morgan cut its average forecast for Brent crude to $100 a barrel in the third quarter, down from its previous projection of $130. Goldman Sachs , one of the most influential banks in commodities, expects Brent prices to fall to $105-$107 a barrel by the end of July………………………………………..Full Article: Source

Posted on 24 June 2011 by VRS |  Email |Print

President Obama has found his own coalition of the willing: members of the International Energy Agency.
Brent crude oil fell as much as 7.4% after the IEA announced plans Wednesday to release two million barrels of oil a day from emergency stocks in July, with the U.S. providing half of it………………………………………..Full Article: Source

Posted on 24 June 2011 by VRS |  Email |Print

In the wake of the world’s second-worst nuclear disaster, confidence in what had been one of the most promising forms of alternative energy has faded, but talk of nuclear energy’s demise has been greatly exaggerated.
“There’s so much schmaltzy anti-nuclear sentiment out there right now, I can’t stop my nostrils from twitching at the scent of opportunity,” Alex Cowie said in a recent report for Daily Reckoning Australia………………………………………..Full Article: Source

Posted on 24 June 2011 by VRS |  Email |Print

While uranium prices fell after the Japanese earthquake and tsunami, Versant Partners Analyst Rob Chang says in the long term, prices must rise due to a supply shortfall and the economic necessity of using nuclear power.
Switching to the long-term price, which better indicates how utilities see things, it was around $73/lb. prior to the disaster. After the first post-Fukushima price update, it only declined $1/lb., a fantastic sign that the utilities and the producers didn’t see much of a long-term impact. It has declined a little since then-and is currently down 7%, to $68/lb………………………………………..Full Article: Source

Posted on 24 June 2011 by VRS |  Email |Print

Vietnam claimed second position as far as gold holdings are concerned only behind India with nearly 1000 tons. According to country’s National Financial Supervisory Commission, Vietnam is hoarding between 460 and 1,000 tons of gold worth around $21 to $45 billion, second only to India.
The figures take into account gold held by the people and stored at banks………………………………………..Full Article: Source

Posted on 24 June 2011 by VRS |  Email |Print

Gold investing is very lucrative in times of uncertainty and it provides a great store on value and a means of protection against inflation. The gold price performance has a history as far back as the general stock market. It’s often used as a stabilizer with stocks and bonds in order to protect the value of a portfolio in times of economic and political unrest.
This type of investing is great because of its low volatility and historical price trends………………………………………..Full Article: Source

Posted on 24 June 2011 by VRS |  Email |Print

Investors who’ve been brave enough to invest in commodities like gold and silver have reaped some of the biggest returns in recent years.
Yet as larger institutional investors like pension funds have joined the commodity bandwagon, they’ve also started worrying about whether the impact they’ve had on commodities markets may have turned their bullish bets into self-fulfilling prophecies — and caused a great deal of harm to the global economy in the process………………………………………..Full Article: Source

Posted on 24 June 2011 by VRS |  Email |Print

As the implications of the global financial crisis are at long last beginning to filter through to the general public, the move to dump cash and other savings forms in favour of gold and silver - notably in the easily accessible and sellable coin form is now really beginning to gather momentum and is becoming a major driver of the precious metals markets.
We have long known that the rising, and rapidly expanding, middle classes in Asia have an almost inbuilt propensity to keep a significant proportion of their savings in gold while the less costly silver is now beginning to come into the equation………………………………………..Full Article: Source

Posted on 24 June 2011 by VRS |  Email |Print

Copper ended down for a second straight day on Thursday as a strengthening dollar and heightened concerns about slowing global economic growth triggered a wave of risk aversion across the commodities complex.
From a bleak assessment of U.S. growth prospects by Federal Reserve Chairman Ben Bernanke on Wednesday to slower factory sector growth in China and Europe this month, raw material demand prospects remained unclear, spurring investors to reduce exposure in everything from industrials to energies………………………………………..Full Article: Source

Posted on 24 June 2011 by VRS |  Email |Print

The world needs copper, and lots of it. Output of the red metal has already doubled in the last 16 years, however, according to Jack Lifton, founder of Technology Metals Research, this output needs to double again; a feat that is going to be a very big challenging.
This comment was just one of many bullish statements made about the state of the copper market at the recent Critical Metals Symposium in Vancouver………………………………………..Full Article: Source

Posted on 24 June 2011 by VRS |  Email |Print

Constrained supply has been a major price prop for copper in recent years, rather than growing demand and, as such the bank argues, copper prices might struggle as supply swells.
In its latest quarterly Commodities Review, investment bank Société Générale argues that a bumpy, but safe, landing is likely for the Chinese economy, but that we may not know until late 2013 whether a hard landing has been avoided………………………………………..Full Article: Source

Posted on 24 June 2011 by VRS |  Email |Print

Gold equities and related exchange traded funds listed on the TMX finally came alive this week after significantly underperforming the TSX composite index since the beginning of March.
They are showing early technical signs of recovering from oversold levels (albeit they are in the red today amid the weakness in the broader market)………………………………………..Full Article: Source

Posted on 24 June 2011 by VRS |  Email |Print

The market for exchange-traded funds has boomed since the SPDR S&P 500 made its debut as the first U.S. ETF in 1993. Today, investors have more than $1 trillion in these funds, which trade and often specialize in almost everything imaginable, from smartphone-related stocks to livestock futures to gold and silver.
ETFs are popular because they’re inexpensive to trade, tax-efficient and for the most part transparent………………………………………..Full Article: Source

Posted on 24 June 2011 by VRS |  Email |Print

That’s because, as Ben pointed out in his blog last week, new commodities ETFs are addressing the very issues that made first-generation products so unappealing. Most recently, UBS tackled the long-standing problem related to “contango” in futures markets by rolling out two ETNs designed for investors to profit from it.
That was a first, turning on its head what to think about when you think about contango………………………………………..Full Article: Source

Posted on 24 June 2011 by VRS |  Email |Print

Any industry would be proud of an average annual growth rate of 34% over ten years and of a global reach from Austria to Taiwan.
But the headlong expansion of exchange-traded funds (ETFs), which by May this year controlled almost $1.5 trillion of assets (not far short of the $2 trillion in hedge funds), has become a matter for concern among financial regulators. Could ETFs be the next source of financial scandal, or even of systemic risk?……………………………………….Full Article: Source

Posted on 24 June 2011 by VRS |  Email |Print

Global long-term fund flows through April reached $270 billion, according to Strategic Insight’s “Global Mutual Fund Review April 2011, New & Top Selling Funds, Leading Managers.”
This puts the industry on track for another year of record cash flows, Strategic Insight said. Total flows should be between $750 billion to $1 trillion, estimated Daniel Enskat, head of global consulting at Strategic Insight. He also noted that equity funds, having taken in $125 billion in the four months through April, have been “a main driver of flows” so far this year………………………………………..Full Article: Source

Posted on 24 June 2011 by VRS |  Email |Print

New rules for the over-the-counter derivatives market won’t just hit big banks and firms, but also retail investors who buy short-term derivatives contracts to bet on the price movements of gold and silver.
The Dodd-Frank financial overhaul passed last summer took aim at the complex derivatives that were traded by banks in privately negotiated contracts with the goal of moving as much of that market as possible onto regulated trading platforms or exchanges………………………………………..Full Article: Source

Posted on 24 June 2011 by VRS |  Email |Print

The New Zealand dollar fell against the greenback as commodity prices tumbled and amid fresh fears Greece will default on its debt payments.
Greece was the focus of currency markets after European Central Bank President Jean-Claude Trichet warned that a default was likely to have a significant impact on banks………………………………………..Full Article: Source

Posted on 24 June 2011 by VRS |  Email |Print

Coffee prices — from generic to specialty brews — have been ticking upward for over a year with no end in sight. The price of a pound of raw coffee beans has almost doubled in 12 months. Now consumers are cutting back, roasters are struggling and retailers are scrambling to cover costs.
With rising food and fuel prices, coffee drinkers are left to make tough choices about their caffeine habits………………………………………..Full Article: Source

Posted on 24 June 2011 by VRS |  Email |Print

A European plan to raise funds for clean energy has backfired spectacularly, helping trigger a rout on its carbon trading scheme, and so cutting available green funds and benefiting polluting coal plants.
Additional causes for the latest sell-off included eurozone woes over Greece, and an EU efficiency directive announced this week which could send carbon emissions lower………………………………………..Full Article: Source

Posted on 24 June 2011 by VRS |  Email |Print

The European Commission has put forward a proposal which it claims will enable the EU to meets its 2020 energy efficiency target. But the EU executive body has shied away from making the target binding and environmental lobbyists claim that the proposal is therefore destined for failure.
The Commission is targeting a 20% reduction in energy consumption by 2020, compared with a ‘business as usual’ projection from 2005 levels………………………………………..Full Article: Source

See more articles in the archive

banner
banner
banner
banner
May 2021
S M T W T F S
« Nov    
 1
2345678
9101112131415
16171819202122
23242526272829
3031