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February 7th, 2012
Commodities rose to the highest level in more than five months as the dollar declined after Federal Reserve Chairman Ben S. Bernanke said that the U.S. jobs market is far from healthy.
The Standard & Poor’s GSCI Index of 24 commodities gained 0.8 percent to 673.99 at 1:20 p.m. in New York, the highest level since Aug. 31.
Oil futures advanced as much as 2.3 percent after Bernanke’s comments sent the dollar to its lowest level against the euro since Dec. 12, making assets priced in the U.S. currency more attractive. Bernanke said in testimony prepared for the Senate Budget Committee that the U.S. has a long way to go before the jobs market operates “normally.” Gold, aluminum and copper also advanced.
“There’s general improvement in risk sentiment and strong weakness in the dollar,” said Nic Johnson, who helps manage about $30 billion in commodities at Pacific Investment Management Co. in Newport Beach, California. “Equities are higher, commodities are higher, so people are generally putting on risk.”
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February 3rd, 2012
Commodity Brokers – Orange-juice futures fell, heading for the biggest weekly drop since mid-August, as tests by the U.S. Food and Drug Administration for a banned fungicide in some domestic supplies indicated no health risk. Cotton rose.
The FDA said yesterday that nine of 14 samples contained carbendazim in concentrations of less than 80 parts per billion, a safety benchmark set by the government. The agency, which will conduct follow-up tests, said it “does not believe there is a need to continue” screening juice already in the U.S. A probe on imports still is under way. Futures headed for the first weekly decline since mid-December.
“A good chunk of the rally was because of this probe,” Jack Scoville, a vice president for Price Futures Group in Chicago, said in a telephone interview.
Orange-juice futures for March delivery declined 1.5 percent to $2.01 a pound at 9:58 a.m. on ICE Futures U.S. in New York. The price has dropped 4.7 percent this week. On Jan. 23, the commodity rose to a record $2.2695.
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January 26th, 2012
Commodity Brokers – MF Global (MFGLQ) Holding Ltd.’s clients may be the losers no matter who wins a $700 million dispute between bankruptcy administrators in London and New York that threatens the return of money locked in customer accounts.
The trustee of MF Global Inc., the New York brokerage unit, is seeking the return of money used as margin for American customers trading in Europe. It wants U.K. administrators KPMG LLP to tap into $1.2 billion it had set aside for customers with segregated accounts, which are supposed to be protected.
MF Global Inc. trustee James Giddens “is prepared to use all legal avenues available to him in recovering the customer funds, including litigation,” Kent Jarrell, a spokesman for Giddens, said in an e-mailed statement.
If successful, the trustee’s claim would significantly reduce KPMG’s client money pool and lower returns for U.K. customers, said two people with knowledge of the discussions who declined to be identified because they are confidential. Should KPMG win, U.S. customers will be treated as unsecured creditors and face a lengthy wait for any payout.
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January 12th, 2012
Commodity Brokers – One of the hottest debates raging from Wall Street to the farm belt is destined to stretch into next month, as the trustee overseeing the bankruptcy of broker MF Global Inc collects the final claims by customers who are missing some $1.2 billion – or, maybe, only half as much.
Once a Jan 31 deadline for customer claims comes and goes, trustee James Giddens plans to “sharpen” his longstanding estimate of a $1.2 billion “hole” in customer money. It’s an estimate that has been challenged, publicly or privately, by other agencies involved in the investigation who say the gap may be only half as large.
Some say the discrepancy is technical: Giddens’ estimate includes foreign funds, while others only include U.S. collateral, for instance. Other bankruptcy lawyers and advisors say it may be a case of Giddens, who is responsible for liquidating the brokerage and returning money to customers, managing expectations, hoping to keep anxious traders at bay until he can recover more funds.
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November 17th, 2011
Gold futures fell the most in more than seven weeks as commodities and equities slumped after Fitch Rating said U.S. banks face a “serious risk” from Europe’s debt woes. Silver, palladium and platinum also tumbled.
The MSCI World Index of equities dropped for a fourth day, and the Standard & Poor’s GSCI index of 24 raw materials fell the most in eight weeks. Fitch said yesterday that “the broad credit outlook for the U.S. banking industry could worsen,” unless Europe’s woes are resolved soon. Gold has risen 21 percent this year on demand for a store of value.
“Apparent liquidation from fear of possible contagion from the European crisis has commodities, including gold, under continued pressure,” Miguel Perez-Santalla, a sales vice president at Heraeus Precious Metals Management in New York, said in telephone interview. “This is a big collapse.”
Gold futures for December delivery fell 3 percent to settle at $1,720.20 an ounce at 1:40 p.m. on the Comex in New York, the biggest drop for a most-active contract since Sept. 23.
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