Fri, May 14, 2021
A A A
Welcome vaishu
RSS
Commodities Briefing 08.May 2015

Posted on 08 May 2015 by VRS |  Email |Print

The high-profile hedge fund world is about to be surpassed in terms of total assets by the unstoppable juggernaut that is the exchange-traded fund (ETF) industry, new research shows. Assets held globally in ETFs reached $2.93trn (£1.9trn) at the end of the first quarter of this year, according to research and consultancy firm ETFGI.
Meanwhile, a report from Hedge Fund Research has revealed there was $2.94trn in hedge funds at the same time. The difference in assets is the closest it has ever been (see top chart) and ETFGI predicts that given the much faster rate of inflows into ETFs seen in recent years, the tracker funds should overtake hedge funds within the second quarter of this year………………………………………..Full Article: Source

Posted on 08 May 2015 by VRS |  Email |Print

Hefty supplies and cheaper shipping costs mean countries will pay less to import food than anytime in the past five years, the United Nations predicted. Food prices globally have fallen for most of the past year given an oversupply in everything from wheat to sugar and dairy, according to a report released Thursday by the UN’s Food & Agriculture Organization.
The group said the world food import bill may drop $153 billion, or 12 percent, to $1.13 trillion this year. While poorer countries, such as those in sub-Saharan Africa, will be able to get cheaper food in the international market, in some cases the benefit is diminished because their currencies have weakened relative to the dollar, the FAO said………………………………………..Full Article: Source

Posted on 08 May 2015 by VRS |  Email |Print

We’ve been seeing some shaky equity markets lately. The stock markets can be great to trade when there’s a good trend going on, but while we are still in a global equity bull market, there may be some shaky periods ahead. Perhaps there are better opportunities in other asset classes.
The key advantage of commodity markets is that they’re not correlated to the financial markets. Whether the stock markets are heading up or down has very little impact on the price of rice. At the moment, there are some very interesting trends going on in the commodities space which are completely unrelated to what’s going on in stocks and bonds at the moment………………………………………..Full Article: Source

Posted on 08 May 2015 by VRS |  Email |Print

Current crude prices at about $68 a barrel are unsustainable and will rise to $80 by the end of next year as U.S. supply slows, Iran’s deputy oil minister said. “From a commercial point of view, we believe today’s price is not sustainable,” Roknoddin Javadi, who is also managing director of state-run National Iranian Oil Co., said Thursday at a news conference in Tehran.
“Based on trends and information we have and what’s happening in the U.S. drilling sector and consequences for the related industry, our expectation is that by the end of 2016 we can see this figure of $80.”……………………………………….Full Article: Source

Posted on 08 May 2015 by VRS |  Email |Print

Oil futures settled back under $60 a barrel on Thursday, with traders increasingly worried about how much oil Iran can add to the global market should sanctions be lifted as part of a deal with world powers over its nuclear program.
June crude fell $1.99, or 3.3%, to settle at $58.94 a barrel on the New York Mercantile Exchange. Prices had settled near $61 Wednesday at their highest level of the year. Brent crude for June delivery on London’s ICE Futures exchange settled lower by $2.23, or 3.3%, lower at $65.54 a barrel………………………………………..Full Article: Source

Posted on 08 May 2015 by VRS |  Email |Print

Over the next six months, we may expect a Goldilocks scenario in which prices are neither too high nor too low. From Main Street to Wall Street, Beijing to Paris, people are interested in whether oil prices will rise or fall.
I suggest that we begin to examine this question by asking why oil prices dropped like a rocket from over $105 per barrel on the New York Mercantile Exchange in summer 2014 to around $47 per barrel in January 2015. We can then see if the causes of the price collapse are likely to reverse going forward………………………………………..Full Article: Source

Posted on 08 May 2015 by VRS |  Email |Print

The price of oil has made minor gains over the past few weeks or so but analysts tell CNBC it’s not yet time to celebrate. Crude prices have made steady gains this spring, rising nearly every week since mid-March. Brent is up nearly 25 percent since March 16, with WTI jumping 35 percent over the same period. Brent was edging near $68 as of 14:00 GMT Thursday, with WTI up near $60.
But some analysts say the recovery won’t hold. “We don’t think we’re out of the woods yet when it comes to oil markets improving,” Barclays oil analyst Miswin Mahesh told Worldwide Exchange Thursday………………………………………..Full Article: Source

Posted on 08 May 2015 by VRS |  Email |Print

Indonesia is considering rejoining the Organization of the Petroleum Exporting Countries as an observer after leaving the group six years ago, a minister said Thursday. “We want to have an interaction with the market [by becoming an observer in OPEC],” the Minister of Energy and Mineral Resources Sudirman Said said. He said Indonesia has in the past been invited by OPEC to attend meetings as an observer.
Indonesia discontinued its OPEC membership when it expired on Jan. 1, 2009. It has been a net oil importer since the early 2000s. The government is struggling to increase the country’s crude-oil production from about 830,000 barrels a day currently, while domestic consumption continues to rise………………………………………..Full Article: Source

Posted on 08 May 2015 by VRS |  Email |Print

Oil may be Saudi Arabia’s bread and butter but as the Middle East’s largest bourse gets set to open its doors to foreigners, investors may want to focus their attention outside the energy sector.
“There are 162 listed companies and the largest by market cap is a pretty diverse group: Technology, construction, financial services, retail, and chemicals. There are lots of different sectors that an international investor can enter,” said Joel Whitaker, senior vice president of global research at Frontier Strategy Group………………………………………..Full Article: Source

Posted on 08 May 2015 by VRS |  Email |Print

Gold is not reliable as a hedge against geopolitical risks, Société Générale said on Thursday. The performance of the yellow metal in periods of regional military conflicts is mixed and it has not performed well consistently, the bank said in a note on Thursday.
One of the most recent examples is the annexation of Crimea by the Russian military during which gold initially rallied towards $1,400. “[But] the gold rally didn’t last very long and it wasn’t long before gold was trading at levels below when armed men seized Crimea’s parliament,” SocGen said………………………………………..Full Article: Source

Posted on 08 May 2015 by VRS |  Email |Print

Analysts have noted that the gold market has suffered because of lackluster investment demand, as investors shift away from precious metals and into higher yielding assets like equities. However, one analyst at RBC Wealth Management sees some higher short-term risk to equity markets, which could be bullish for gold and silver.
Bob Dickey, technical analyst at RBC, said in his Market Maps report, published Tuesday that the S&P 500 is six years into what could be a 27-year secular bull market, if historical patterns prove correct. “The years ahead could represent a good time to own stocks, in general, much like it was in the 1975–2000 period,” he said in the report………………………………………..Full Article: Source

Posted on 08 May 2015 by VRS |  Email |Print

May 5 brought the release of the World Silver Survey 2015, an extensive report completed annually by Thomson Reuters GFMS on behalf of the Silver Institute. The document outlines key silver price, supply and demand trends for 2014 and includes some information into what may be in store for 2015.
To get a little more insight on those topics, Resource Investing News spoke with Andrew Leyland of Thomson Reuters GFMS. Here’s what he had to say. Silver mine supply came to a record 877.5 million ounces in 2014, with total market supply (also including scrap and net hedging supply) reaching 1,061.8 million ounces, the highest level since 2010………………………………………..Full Article: Source

Posted on 08 May 2015 by VRS |  Email |Print

South Africa is Africa’s second-largest silver producer, but it is minuscule when compared with global supply, which last year notched up a 12th consecutive year of growth to reach 877-million ounces. Silver in SA is largely a by-product of other mining processes, and production has remained constant at about 2.8-million ounces a year over the past decade.
Silver is used mainly in industrial, jewellery and investment applications. The silver market ended last year with a 4.9-million ounce deficit, but the price fell 20% to $19.08/oz, the lowest average annual price since 2009, according to the 2015 World Silver Survey compiled by Thomson Reuters GFMS………………………………………..Full Article: Source

Posted on 08 May 2015 by VRS |  Email |Print

Spot export trades for Chinese magnesium ingot on a FOB basis remained lackluster on the dearth of overseas buying interest, while offers continued to hold steady, industry sources said Thursday. Platts kept its weekly magnesium ingot (minimum 99.8%) price assessment steady at $2,180-$2,230/mt FOB China Thursday, unchanged from the previous weeks as bids and offers were heard within the range.
The Chinese magnesium die-cast alloy price assessment was also maintained at $2,460-2,530/mt FOB China, unchanged from last week. “I am not hearing any movement in both the domestic and export offers after the implementation of the minimum domestic offer of Yuan 13,000/mt ($2,095/mt) in Shaanxi,” said a North China-based analyst, who heard steady offers at Yuan 13,000-Yuan 13,300/mt ex-works and $2,200-$2,250/mt FOB China………………………………………..Full Article: Source

Posted on 08 May 2015 by VRS |  Email |Print

China’s bid for greater influence over commodity prices is intensifying as record trade in its iron ore futures dwarfs its nearest rivals. Derivatives volumes on the Dalian Commodity Exchange more than doubled to 18.6 million contracts last month, or 1.86 billion metric tons, bourse data show.
Trading in contracts on the Singapore Exchange Ltd. totaled 78.2 million tons. UBS Group AG forecasts global demand at 2.04 billion tons in 2015. The world’s biggest consumer of metals, energy and grains is seeking to tighten its grip over prices with its own contracts for raw materials from tin to coal………………………………………..Full Article: Source

Posted on 08 May 2015 by VRS |  Email |Print

After a freefall over the past one year due to a stronger greenback, a positive momentum for the euro has started to build up in recent weeks. This is especially true, as euro has rebounded over 7% against the greenback from its 12-year low of $1.05 touched in March.
In fact, the second-most traded currency in the world saw its biggest monthly gain of 4.6% in April since September 2010, according to Bloomberg. In the ETF world, the two euro products – CurrencyShares Euro Trust and iPath EUR/USD Exchange Rate ETN – gained 4.3% and 5.5%, respectively, in the last one-month period………………………………………..Full Article: Source

Posted on 08 May 2015 by VRS |  Email |Print

It is fact that equity prices prosper when commodity prices are relatively stable. Normally, it is the instability of commodities on the upside that disturbs equities, such as that experienced between 1973 and 1974. However, downside volatility in the commodity pits can be even more devastating. Just consider the sharp drop in both markets in the second half of 2008, 1921 or even the 1930/32 experience.
That said, we can use long-term trends in commodity momentum to signal favorable long-term environments for equities. This chart, for instance, features our secular commodity momentum indicator. It is calculated by dividing a 60-month by a 360-month MA of commodity prices………………………………………..Full Article: Source

Posted on 08 May 2015 by VRS |  Email |Print

The Board of Directors Office of the Ethiopian Commodity Exchange today announced the appointment of Ato Ermias Eshetu as Chief Executive Officer of the ECX. Ato Ermias has held a range of leadership positions locally and abroad. Since 2007, he has served as an Executive Management Member at Zemen Bank, most recently as Vice President for Marketing & Corporate Services.
He received his Masters in International Business from Manchester School of Management and a Bachelor degree in Computation at UMIST, in the United Kingdom. Over the past 20 years, Ermias has worked at multi-national organization such as IBM, Alcatel, Orange and MicroStrategy………………………………………..Full Article: Source

Posted on 08 May 2015 by VRS |  Email |Print

New York’s powerful banking regulator has announced its first licence for a Bitcoin exchange, extending its influence over the growing but little-regulated virtual currency industry. New York City-based itBit Trust Co. was the first company dealing in so-called crypto-currency to receive a trust licence from the state Department of Financial Services (DFS) on Thursday.
ItBit immediately announced it was accepting US retail and institutional Bitcoin trading customers, and said it had recruited to its board the respected former chair of the Federal Deposit Insurance Corporation, Sheila Bair………………………………………..Full Article: Source

Posted on 08 May 2015 by VRS |  Email |Print

European Central Bank board member floats the idea of an “IOU” system to pay civil servants if country runs out of euros. Greece could start using a “parallel currency” to pay its civil servants if it runs out of cash, one of the European Central Bank’s board members has suggested.
Highlighting the desperate situation faced by the country, Yves Merch, a member of the ECB’s executive board and governor of Luxembourg’s central bank, told Spanish newspaper La Vanguardia that Greece could resort to using “exceptional tools” to pay its obligations………………………………………..Full Article: Source

Posted on 08 May 2015 by VRS |  Email |Print

The International Monetary Fund (IMF) has said China should continue to provide “greater flexibility” in its exchange rate policy as the country continues to see slower growth. The IMF said the mainland should reduce foreign exchange intervention.
China’s currency is widely seen as undervalued and the country was accused for years of suppressing the yuan in order to boost exports. China says it is trying to manage the yuan’s value against other currencies. Analysts say that in reality it is still pegged to the dollar………………………………………..Full Article: Source

Posted on 08 May 2015 by VRS |  Email |Print

Even as some of them fight Washington’s new clean air regulations in court, coal-reliant Midwestern states are asking the Obama administration to provide rules for an emissions trading platform that would help them meet the federal greenhouse gas standards.
Late last month, a coalition of power companies, regulators and green groups known as the Midwestern Power Sector Collaborative (MPSC) asked the Environmental Protection Agency to create ground rules for states that want to trade carbon emissions permits with other states, an option it feels would offer one of the cheapest options to meet the agency’s proposed Clean Power Plan………………………………………..Full Article: Source

Posted on 08 May 2015 by VRS |  Email |Print

A deal to claw back hundreds of millions of surplus allowances from Europe’s emissions trading system (ETS) has been hailed as a watershed by environmentalists, MEPs and renewable industry groups.
Nearly half of the continent’s emissions are covered by the ETS, the world’s largest carbon market, which sets a cap on CO2 output and forces firms to buy or sell allowances to stay within its boundaries. Recession and lavish handouts to industry have contributed to a glut of around 2bn allowances but a new market reserve will now start removing roughly the same amount from the market in 2019, as the Guardian reported in February………………………………………..Full Article: Source

Posted on 08 May 2015 by VRS |  Email |Print

German credibility is on the line in a showdown pitting government pledges to cut carbon emissions against lignite-fired power plants in Europe’s biggest economy.
With Germany trailing its self-defined goal of cutting carbon dioxide emissions 40 percent by 2020, Chancellor Angela Merkel’s government plans to force lignite and coal plants to buy more emissions allowances. Energy companies and industry lobby groups are alarmed over the government’s plans………………………………………..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