Posted: November 10th, 2013 | Author: Pascal Blanc | Filed under: Commodities | Tags: commodities, commodity 2013, commodity forecast, commodity outlook, commodity risk | No Comments »
The recent fortunes made by investors in rare earth metals and gold are just two shining examples of what an extremely profitable investment class commodities can be. From aluminum and platinum to zinc and silver, oil and gas to cocoa and wheat, this Guide to Commodities from the Economist Intelligence Unit is a comprehensive overview of the forces at work in the world of commodities.
The price volatility of so many commodities over the past decade has underlined their economic importance and how dependent we are on them: the price of gold has soared to new peaks (before tumbling in the last few weeks) as currencies have endured a crisis of confidence, demand from China has pushed metal prices up, instability in the Middle East and North Africa has had its effect on the oil price and food prices have been increasing in parallel with worries about whether there is enough to feed the world. Read the rest of Guide to Commodities 2013 » » »
Posted: November 1st, 2013 | Author: Rod Sherkin | Filed under: Commodities | Tags: commodities, commodities glut, commodities price | No Comments »
Commodities dropped to a four-month low, paced by declines in crude oil and gold, on signs of climbing supplies of raw materials at a time when the prospect of reduced Federal Reserve stimulus may cut demand.
The Standard & Poor’s GSCI Spot Index of 24 raw materials lost 1.7 percent to 611.72 at 3:03 p.m. in New York, after touching 611.65, the lowest since July 1. West Texas Intermediate fell below $95 a barrel for the first time since June. Gold reached a two-week low. Hog futures capped the longest slump in three months, and cotton fell to the lowest since January.
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Posted: October 8th, 2013 | Author: Pascal Blanc | Filed under: Agricultural, Commodities, Corn, Cotton, Food, Soybaens, USA | Tags: commodities, commodities market, US government shutdown | No Comments »
The US government shutdown is starting to disrupt commodity markets. Beyond its budget gridlock, the United States could default on its debt if no agreement is reached in Congress by Thursday of next week. This threat to the world’s largest economy has slightly brought down the oil market last week, but is not taken seriously by the commodity markets.
However, the paralysis of a large part of the US administration is already disrupting markets. Since last Tuesday, for example, the US Department of Agriculture has not published any report: no information on U.S. exports last Thursday, no statistics on U.S. agriculture production. It is also unlikely that next Friday, the monthly key report on global supply and demand for agriculture products will be available. But, this USDA report is the reference for the global markets and it can greatly influence global grain prices up or down at a key period, the harvest of corn and soybeans.
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Posted: September 26th, 2013 | Author: Pascal Blanc | Filed under: Commodities | Tags: commodities, commodities super cycle, mckinsey, mckinsey super cycle | No Comments »
“Talk about the death of the super cycle appears premature,” McKinsey says in a new report, considering commodity supply constraints and increasing demand from emerging markets.
Energy, metal and agricultural prices that more than doubled since 2000 are still close to highs reached before the financial crisis, even after commodities from gold to wheat dropped into bear markets, McKinsey said in a report today. “Commodities have risen more sharply than global economic output since 2009.”
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Posted: July 18th, 2013 | Author: Rod Sherkin | Filed under: Best practices, Gem, Greening the Supply Chain, Negotiating with Suppliers, What's Happening in Our Profession | Tags: commodities, CSR, green purchasing, Greening the Supply Chain | No Comments »
If you want to really use your buying power to make a environmental difference, make sure that any “green” criteria for vendor selection are widely publicized so that your suppliers’ competitors hear about them too.
In this way, encouraging a change in one supplier can have a “multiplier effect” on many others.
via Negotiating Nugget | Propurchaser.
Posted: July 16th, 2013 | Author: Pascal Blanc | Filed under: China, Commodities, Economic Indicators | Tags: china, chromium, coal, commodities, commodities china, commodities price, electricity, gas, iron ore, nickel, steel | No Comments »
China announced Monday that its gross domestic product growth slowed to 7.5% in the three months ended in June. Its economic growth is still strong, compared with much of the world. But recent single-digit expansion rates are a notable comedown from a 14.2% peak in 2007.
Unlike so often in the past, though, the Chinese leadership shows little inclination to act. Indeed, the mood in Beijing is studiedly sanguine. Not only did the national statistics bureau describe yesterday’s figures as “within the reasonable range for the year”. Finance Minister Lou Jiwei even hinted, last week, that growth could drop well below 7 per cent over the coming months (although his remarks were later airbrushed into line with the official 7.5 per cent target by the state news agency).
The biggest losers from China’s rebalancing are likely to be the major commodity-producing emerging markets, most of which lie in Latin America, the Middle East and parts of Africa, but China’s slowdown will impact on different commodity groups in different ways.
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Posted: June 30th, 2013 | Author: Pascal Blanc | Filed under: China, Commodities | Tags: china, commodities, commodities china | No Comments »
The Chinese credit squeeze had been building since late May – worsening in mid-June – as a result of a number of factors, among them a drop in foreign currency inflows, regulatory requirements at the end of the second quarter and a mismatch between banks’ long-term lending and short-term funding.
China‘s short-term interbank rates rocketed to unusually high levels during the past two weeks, but the People’s Bank of China (PBOC) took a tough line with the banks faced with the cash crunch until Tuesday, when it boosted liquidity support for some cautious financial institutions.
Read the rest of Will China cash crunch impact commodities? » » »
Posted: June 20th, 2013 | Author: Pascal Blanc | Filed under: China, Commodities, Currencies, Economic Indicators, Precious metals, US Dollar | Tags: china, commodities, commodities china, commodities price, commodity 2013, commodity outlook | No Comments »
Gold is down by more than 5% this morning, barely holding onto $1,300 after having dipped below that level for the first time since September 2010. Silver has slumped by 7.2% to just over $20.
The price of crude oil has slumped 1.6% to under $97 per barrel this morning, while copper is down 1.9% and most agricultural commodities are lower. Even natural gas is taking a hit: its price is down by 1.7% to $3.90 this morning.
The Standard & Poor’s GSCI Index of 24 raw materials lost as much as 2 percent to 622.91, the biggest intraday loss since May 10, before reaching 625.31 as of 1:41 p.m. in London.
“There is panic selling all over the commodities sector after the Fed’s comments and the data from China,” said Daniel Briesemann, analyst at Commerzbank.
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Posted: December 15th, 2012 | Author: Rod Sherkin | Filed under: Commodities | Tags: commodities, glut, oversupply | No Comments »
So far this year, U.S. oil futures are down 13%, while cotton prices have fallen 19%. Sugar is 20% lower. Copper is off 21% from its February 2011 record.
A glut of raw materials from crude oil to copper to Palm Oil and cotton is driving down prices and dimming the outlook for commodities over the next few months.
Stores of crude in the developed world are forecast to end 2012 at a two-year high, thanks largely to a slowdown in world demand growth and an unexpected surge in production in the U.S. In China, copper stockpiles are at record levels as the country’s slowing economy limits use of the metal. Cotton bales held in warehouses are predicted to reach an all-time high next year.
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Posted: October 23rd, 2012 | Author: Rod Sherkin | Filed under: Commodities | Tags: commodities, commodities price, Copper, cotton, crude oil, energy, imf | No Comments »
Commodities declined, erasing this year’s advance, on speculation that demand for energy, industrial metals and some agricultural products will slump because of the sluggish global economy.
Cotton futures fell the most in 10 weeks, and crude oil dropped to the lowest since mid-July. Gasoline declined for the ninth straight session, the longest slump since at least October 2005. Copper dropped to the lowest since Sept. 7.
Read the rest of Commodities Erase 2012 Gain on Global Economic Woes » » »