Fri, May 14, 2021
A A A
Welcome vaishu
RSS
Commodities Briefing 30.Jun 2015

Posted on 30 June 2015 by VRS |  Email |Print

Commodities fell the most in a week on concern that Greece’s deepening financial crisis will threaten global economic growth and demand for energy and metals. The Bloomberg Commodity Index of 22 raw materials lost as much as 0.9 percent, the most since June 19. Energy products and industrial metals led declines, with crude oil dropping to a three-week low and nickel slumping to the lowest since 2009.
Greece shut its banks and imposed capital controls in a bid to avert the collapse of its financial system, increasing the risk that it will be forced out of the euro. After failing to reach a deal with creditors, the country will vote in a July 5 referendum on proposals needed to restore bailout aid………………………………………..Full Article: Source

Posted on 30 June 2015 by VRS |  Email |Print

Commodities did not escape the market turmoil caused by Greece’s capital controls and a hefty drop in Chinese equities, with the stronger dollar and risk aversion hitting raw materials led by oil and metals. ICE August Brent, the international benchmark that has traded within a tight range of $61-$66 a barrel for several weeks, fell $1.41 a barrel to $61.86. In the US, Nymex August West Texas Intermediate fell $1.23 a barrel to $58.40.
On the London Metal Exchange, amid a sea of red for industrial metals prices, nickel plumbed a six-year low. The metal, an ingredient for stainless steel, fell 4.6 per cent to $11,855 a tonne, while aluminium was off 1.5 per cent, copper fell 0.5 per cent, and tin dropped 2.5 per cent………………………………………..Full Article: Source

Posted on 30 June 2015 by VRS |  Email |Print

El Niño 2015 is underway and set to hit wheat, coffee and sugar cane production leading to volatile prices, warns a Rabobank report. With buffer stocks for these commodities at ‘comfortable levels’, some of the impact of a particularly strong El Niño would be buffered - but not completely shielded from fundamental and speculative influences. This also held for soy oil and palm oil, the report said.
While ‘meaningful’ climate disruptions had yet to be observed, Rabobank warned that key drivers of the phenomenon – such as a rise in sea surface temperatures – would intensify from September to November. The National Oceanic and Atmospheric Administration(NOAA) has predicted a strong event for 2015………………………………………..Full Article: Source

Posted on 30 June 2015 by VRS |  Email |Print

Analysts at Morgan Stanley Research recently polled 299 investors about the impact that a potential Iranian nuclear deal would have on the global oil market. Analyst Haythem Rashed summarized the survey results and noted important upcoming deadlines for oil investors to watch when it comes to the Iran negotiations.
Morgan Stanley asked poll participants how much Iranian oil exports will increase by the end of 2015 and into 2016. The most popular choice for 2015 was an incremental Iranian export increase of 200kb/d. Nearly 40 percent of respondents anticipate Iranian exports to increase by 200-300kb/d, while 15 percent of those polled see no change to Iran’s oil exports this year………………………………………..Full Article: Source

Posted on 30 June 2015 by VRS |  Email |Print

What is common between the production and marketing approaches of the 12-member Organization of the Petroleum Exporting Countries (Opec) and the world’s three largest producers of iron ore - Vale, BHP Billiton and Rio Tinto? The fall in prices of crude oil from $115 a barrel in June 2014 to $64 now and of iron ore from $205 a tonne to $62.5 have not proved enough disincentive for leading producers of the two most globally traded commodities to apply a production brake.
Opec and the ore triumvirate do not see merit in restricting production at lowest cost enterprises, which will allow high-cost producers to stay in business. As big miners remain engaged in commissioning large new capacity and others that cannot abandon projects nearing completion, the seaborne ore glut could rise to 260 million tonnes (mt) by the end of next year………………………………………..Full Article: Source

Posted on 30 June 2015 by VRS |  Email |Print

Hedge funds are the least bullish on crude in 10 weeks as talks resumed on a nuclear accord with Iran that could lift sanctions and swell supply. Money managers trimmed their net-long wagers on West Texas Intermediate by 1.3 percent in the week ended June 23, U.S. Commodity Futures Trading Commission data show.
Shorts rose 8.9 percent while long positions increased 0.7 percent. Speculators curbed bullish bets on Brent crude, the European benchmark, to the lowest in three months. U.S. Secretary of State John Kerry and Iranian Foreign Minister Mohammad Javad Zarif met June 27 in Vienna. Iran says it could double oil exports from 1 million barrels a day within six months if sanctions are lifted………………………………………..Full Article: Source

Posted on 30 June 2015 by VRS |  Email |Print

The dollar gold price still has room to move lower, below $1,000/oz for a short period of time, Natixis analyst Bernard Dahdah told Platts Monday. In an email Dahdah said that, “even under the stress of the situation in Greece, the price of gold hasn’t benefited much. The market is fixated on the potential interest rate hike by the Federal Reserve. As we get closer to this hike so we expect gold prices to drop gradually.”
Gold benefits from a low interest rate environment as a non-yielding asset class. The turmoil in Greece, where a potential default on national debt and in turn possible exit from the eurozone has had a near-zero knock-on effect to the gold price in dollar terms………………………………………..Full Article: Source

Posted on 30 June 2015 by VRS |  Email |Print

Ultimate safe-haven asset fades after brief rally, as investors dismiss possibility of Greek exit from eurozone. A gold rush has failed to materialise as Greece edges closer to total financial collapse, suggesting investors aren’t betting on an imminent ‘Grexit’.
A brief rally in the precious metal in early trading faded towards the close in London, as investors discounted the possibility of Greece exiting the currency bloc, despite the government’s shut-down of the country’s banks and stock market. Gold – which is traditionally seen by markets as the ultimate safe-haven asset – initially gained 2.5pc, but by the afternoon in London it had fallen back to a level of $1,176 per ounce………………………………………..Full Article: Source

Posted on 30 June 2015 by VRS |  Email |Print

Price has been remarkably steady over the past week despite a number of factors, which might have been expected to cause it to rise. The gold price has been trading in an extremely narrow range for the past few days, despite a number of seemingly positive pieces of news. It certainly seems that those who do not wish the price to rise back even to the $1,200 level or above have the markets firmly under control.
But it also appears that those who do not wish to see further falls are maybe helping prices stabilise too. In other words there is something of a standoff. So what are the positive pieces of news? First and foremost perhaps is the continuing lack of a real solution to the Greek debt crisis. Contrary to numerous reports that a settlement was about to be reached between Greece and its creditors it appears that no such thing has occurred………………………………………..Full Article: Source

Posted on 30 June 2015 by VRS |  Email |Print

The Shanghai Gold Exchange is expected to receive approval from its central bank for a yuan-denominated gold fix soon, according to Reuters. If the yuan fix takes off, China could draw buyers in the mainland and foreign suppliers to pay the local price, making the London fix less relevant in the world’s biggest bullion market.
Additionally, the Shanghai Gold Exchange is in discussions with the CME Group about listing each other’s contracts on their respective exchanges, according to the exchange’s vice-president. Trading volume on the Shanghai Gold Exchange for the benchmark contract soared this week to the highest on record, according to data on Bloomberg, going back to 2002. The Shanghai Composite Index dropped more than 10 percent in the last two trading days of this week and is down nearly 20 percent from its highs………………………………………..Full Article: Source

Posted on 30 June 2015 by VRS |  Email |Print

A Jim Rogers gold prediction is taken seriously by investors. And today (Friday) we got a fresh Jim Rogers gold prediction courtesy of a MarketWatch interview. “Gold is in a correction, and the correction has gone on for four years,” Rogers said.
“Although I am not buying gold, I am expecting an opportunity to buy gold sometime in the next year or two. For instance, if gold goes under $1,000, I hope I’m smart enough to buy a lot more gold.” When Jim Rogers speaks, he is taken seriously by investors – and for good reason………………………………………..Full Article: Source

Posted on 30 June 2015 by VRS |  Email |Print

The abrupt reversal in China’s stock market has produced one unlikely beneficiary: copper. Though heavily tied to the fortunes of the Chinese economy, copper was the only major industrial commodity that rose on Monday. That may reflect Chinese hedge funds scrambling to buy back bearish bets against the metal, as they faced rising margin calls from the equity market.
Many Chinese funds had bet that a slowing economy would weigh on copper while a subsequent loosening of monetary policy would boost equities, leading them to take opposing positions in the two markets………………………………………..Full Article: Source

Posted on 30 June 2015 by VRS |  Email |Print

Nervous about a tired bull market, rising bond yields and a potential Greek exit? Investors no longer have to search far or pay a steep hedge fund fee for peace of mind, according to Ethan Powell, chief product strategist for Highland Capital Management Fund Advisors.
He said his company’s three new alternative exchange-traded funds “run anywhere between 50% net long to 75% net long so right off the bat you have muted exposure to the marketplace which is where you want to be in this type of uncertain market,” said Powell. The three ETFs that replicate hedge fund strategies are: Highland HFR Global ETF (HHFR), Highland HFR Event Driven ETF (DRVN) and the Highland HFR Equity Hedge ETF (HHDG). All three new Highland ETFs carry fees of 0.85% per year………………………………………..Full Article: Source

Posted on 30 June 2015 by VRS |  Email |Print

If you’re investing for the long haul and it isn’t a big lump sum amount, now is as good a time as any to buy U.S. ETFs. Why do I say that with such confidence? Because I’m not a market timer. I think it is almost impossible to predict where the market will move in the short term.
There are those who cite the Shiller P/E to support the view that the market is inflated. And others, like Terry Shaunessy of Shaunessy Investment Counsel, who disagree. “Both the S&P 500 and large-cap international markets continue to look attractive as the companies that dominate these indexes are global companies that sell their products worldwide, such as Apple in the U.S. or Nestlé in Europe,” he says………………………………………..Full Article: Source

Posted on 30 June 2015 by VRS |  Email |Print

Hedge funds look to have been wrong-footed by the surge in wheat futures late last week, and saw profits dry up in soybeans as a rising market encouraged them to cover short positions at the fastest rate on record.
Managed money, a proxy for speculators, cut by more than 58,000 contracts its net short position in futures and options in the main 13 US-traded agricultural commodities in the week to last Tuesday, according to data from the Commodity Futures Trading Commission (CFTC) regulator………………………………………..Full Article: Source

Posted on 30 June 2015 by VRS |  Email |Print

London’s Baltic Exchange is studying a potential foray into commodities and is open to proposals on tie-ups as other exchanges attempt to boost volumes, its chief executive said. Baltex, the Baltic’s digital shipping platform, was launched in 2011 as the first central electronic marketplace for freight forward agreements (FFAs), which allow investors to take positions on freight rates at a point in the future.
Since the beginning of this year, the previously loss making platform, has reached break even levels after Baltex became a venue for presenting block futures at the start of December………………………………………..Full Article: Source

Posted on 30 June 2015 by VRS |  Email |Print

Turnover of the commodity exchanges rose by 20 per cent to Rs 13.97 lakh crore between April 1 and June 15 period of this fiscal on increased trade in farm and energy items. The turnover stood at Rs 11.66 lakh crore in the year-ago period, commodity market regulator Forward Markets Commission (FMC) said in a statement.
As per the FMC data, the turnover from energy rose by 57 per cent to Rs 4.02 lakh crore till June 15 of this fiscal, as against Rs 2.55 lakh crore in the year-ago period. Agri-commodities’ turnover increased by 24 per cent to Rs 2.95 lakh crore from Rs 2.38 lakh crore, while turnover of metals rose by 16 per cent to Rs 2.94 lakh crore from Rs 2.54 lakh crore during the period under review………………………………………..Full Article: Source

Posted on 30 June 2015 by VRS |  Email |Print

Queues at cash machines, emergency bank holidays, introduction of capital controls and a hastily convened referendum — a cocktail of events that would normally be guaranteed to induce market heatstroke. And yet the way the euro reacted to these seemingly seismic events in Greece on Monday suggested the market was displaying a rare outbreak of cool maturity.
True, the start of the Asian trading session saw the euro drop 1.5 per cent against the dollar and much more against the yen. But when the European markets awoke, the euro was repairing much of those losses and that trend extended into the New York trading day, surprising plenty who had expected a lot more volatility from a market renowned for explosive reactions………………………………………..Full Article: Source

Posted on 30 June 2015 by VRS |  Email |Print

Swiss National Bank President Thomas Jordan said the central bank intervened to stabilize the franc, which surged after Greek Prime Minister Alexis Tsipras called a referendum on bailout terms. “Yesterday and overnight there was an increased demand for francs,” Jordan told a conference of Swiss executives in Bern on Monday. “The euro was under selling pressure and the SNB intervened in the market.”
Tsipras’s decision to call what is effectively a public vote on Greece’s euro-area membership is also a blow for Switzerland, where the currency’s appreciation is pushing the economy toward a recession………………………………………..Full Article: Source

Posted on 30 June 2015 by VRS |  Email |Print

In the days just before its publication, those involved in drafting the pope’s controversial eco-encyclical Laudato Si’ were much exercised about how it would be received by conservative critics. But Pope Francis, Vatican insiders tell me, was unfazed. He remains so in the face of the onslaught of criticism that has, indeed, ensued.
The pope’s acceptance that global warming is almost certainly man-made has irked the vocal minority with more skeptical views. They say Francis has overlooked the ability of technology to provide solutions to climate change. They’ve upbraided him for ignoring the role of free markets in lifting millions out of poverty. They’ve criticized his dismissal of birth control as the answer to an overcrowded planet………………………………………..Full Article: Source

Posted on 30 June 2015 by VRS |  Email |Print

China appears ready to set a more ambitious climate change pledge by moving up the timeline for peaking its carbon emissions and opening the possibility of sending money to other countries to take action, according to EU sources close to the negotiations. The declaration is expected no later than Tuesday, following parallel summits with China and the EU in Brussels, and in New York with United Nations members.
This follows a round of negotiations in New York over the weekend between China, the EU, the United States, South Africa, Brazil and the UN. The European Commission’s climate action and energy chief, Miguel Arias Cañete, flew to New York on Friday to negotiate directly with Xie Zhenhua, China’s special representative for climate change, where he urged Beijing to submit its planned pledge for the COP21 summit in December, known as the Intended Nationally Determined Contribution (INDC), on Monday………………………………………..Full Article: Source

Posted on 30 June 2015 by VRS |  Email |Print

Water will one day be soon traded as a commodity. Setup in 2003 as an unmanaged benchmark, the Palisades Water Index is tracked by many water indexes and ETFs. As the popular rhyme goes: “Water, water everywhere, but not a drop to drink” tweet.
Public perception has begun to change regarding water no longer being an infinite resource as we previously thought. Despite it covering 68% of the surface of the planet, the amount that actually serves a purpose for humans is only a mere 0.3%. With what some perceive as an “epidemic” expanding globally, experts predict that the only sustainable way in managing water is to trade it on a futures exchange, similar to other natural commodities such as oil and gold………………………………………..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