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September 12th, 2012
Commodity Investing – Commodities are surging from a bear to a bull market in the fastest turnaround since the depths of the financial crisis four years ago as traders await economic stimulus measures from central banks.
Within 11 weeks the Standard & Poor’s GSCI spot index rose 22 percent from its 2012 low, stoked by falling supplies of oil and grains and speculation that the Federal Reserve will prop up U.S. growth while the European Union ends its sovereign debt crisis. The gauge of 24 raw materials soared to a record high four years ago before plunging as the U.S. slid into the deepest recession since the 1930s.
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August 3rd, 2012
Commodity Investing – Corn and soybean traders are bullish for a 15th consecutive week on speculation that the drought spreading across fields in the U.S. will spur the government to make more cuts to its production forecasts.
Fourteen analysts surveyed by Bloomberg predicted soybeans will climb next week and a further seven were bearish. Twelve expect gains in corn, six saw a decline and three anticipated little change. Hedge funds are holding the biggest bet on higher corn prices since September and almost the largest wager on costlier soybeans since at least 2006, U.S. Commodity Futures Trading Commission data show.
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June 29th, 2012
Commodity Investing – Commodities jumped the most in three weeks after European leaders agreed to ease repayment rules for emergency loans to Spanish banks and relax conditions on possible help for Italy, increasing optimism that the region’s debt crisis may be contained.
The Standard & Poor’s GSCI Spot Index (MXWD) of 24 raw materials soared as much as 1.8 percent to 577.49 points, the biggest gain since June 6, before trading at 576.33 at 2:47 p.m. in Singapore. Crude oil jumped as much as 2.9 percent in New York and copper rose 2.1 percent. The increase in the gauge trimmed its quarterly loss to 16 percent, still the worst since the final three months of 2008.
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May 16th, 2012
Commodity Investing – Commodities fell as talks to form a Greek government failed, boosting speculation that the country may quit the euro, and data from the U.S. and Japan added to concern an economic slowdown may reduce demand.
The Standard & Poor’s GSCI Spot Index of commodities lost as much as 1.5 percent to 626.57, the lowest level since Dec. 20. The gauge, set for to drop for the 10th day in 11 sessions, was at 627.16 at 8:48 a.m. in London. Oil fell for a fourth day in New York, trading at a six-month low, and copper dropped to the lowest price since January in London. Gold declined.
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April 17th, 2012
Commodity Investing – Commodities and stocks advanced after Spain sold more debt than targeted and the International Monetary Fund increased its forecasts for global economic growth. The pound climbed as U.K. inflation unexpectedly accelerated.
The Standard & Poor’s 500 Index gained 1 percent at 10:33 a.m. in New York and the Stoxx Europe (SXXP) 600 Index advanced 1.6 percent. The yield on the Spanish 10-year bond fell 17 basis points to 5.90 percent, with the similar-maturity Italian yield 10 basis points lower. Ten-year Treasury yields increased two basis points to 2.00 percent. The pound strengthened against 12 of its 16 most-traded peers after U.K. consumer prices rose 3.5 percent in March, the first increase in six months.
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February 6th, 2012
Commodity Investing – Speculators raised bullish bets on commodities to a 12-week high on signs that global growth will boost demand at a time when shortages are forecast for everything from copper to palladium to cocoa.
Money managers expanded their combined net-long position across 18 U.S. futures and options by 11 percent to 823,917 contracts in the week ended Jan. 31, Commodity Futures Trading Commission data show. That’s the highest since Nov. 8. Gold wagers surged the most since September 2009, silver holdings rose for a fifth week and cattle bets climbed to a 10-week high.
The U.S. jobless rate fell to the lowest in three years in January as payrolls rose more than forecast, the government said Feb. 3. Reports last week showed that manufacturing is expanding in India, the U.S. and China, the world’s biggest energy and metals consumer. Investments (.CMDOI) in commodities are expanding at the quickest pace in six years after prices rebounded 16 percent from a 10-month low in October.
“Growth is back in vogue,” said John Stephenson, who helps manage $2.7 billion of assets at First Asset Investment Management Inc. in Toronto. “It definitely helps commodities that we’re seeing strong economic numbers, especially the payrolls in the U.S. That’s a very welcome sign.”
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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 31st, 2012
Orange Juice Futures: With almost an entire month in the books, 2012 is shaping up to be a strong year for commodities, as a number of these investments have produced handsome gains. Futures for gold, cocoa, and silver have garnered a fair amount of attention, delivering eye popping gains in a relatively short period of time. But for those looking for a truly hot commodity, no product has been able to outdo orange juice. While these futures are certainly more obscure than something like gold or oil, their gains for the year are impossible to ignore [see also 50 Ways To Invest In Agriculture].
The Juicy Details
Thus far, orange juice futures have jumped by nearly 26% for the year. These gains have gone largely unnoticed due to the relatively low popularity as well as limited access that this commodity offers to investors. Still, the impressive rally is not without its reason, as there is a lot going on behind the scenes of this favorite fruit. The Food and Drug Administration has very strict policies on imports, and orange juice is no exception. Each import of orange juice needs to be tested for certain chemicals, and a recent shipment from Brazil tested positive for fungicide. Fungicide are chemical compounds used to kill fungi, but they are toxic to humans when consumed in certain quantities. The FDA “said 11 of 80 shipments sampled from Brazil and Canada contained carbendazim [a common fungicide] at concentrations of 10 parts per billion or higher” writes Marving G. Perez.
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January 27th, 2012
Commodity Investing – The Standard & Poor’s GSCI Spot Index of 24 raw materials rose 0.3 percent to close at 666.64 at 5 p.m. in New York as gasoline and natural gas climbed.
The UBS Bloomberg CMCI index of 26 prices was little changed at 1,606.01.
OIL PRODUCTS
Gasoline surged to the highest level since August as refinery outages, scheduled maintenance and plant closures in North America and Europe tighten supplies of the motor fuel.
Futures rose 2.8 percent as ConocoPhillips planned to shut the fluid catalytic cracker at its Bayway refinery in New Jersey. Two unprofitable refineries in Pennsylvania have shut down, one owned by Sunoco Inc. and one owned by ConocoPhillips. Hovensa LLC plans to shut its 350,000-barrel-a-day St. Croix plant in the U.S. Virgin Islands next month.
On the New York Mercantile Exchange, gasoline for February delivery rose 8.02 cents to $2.9268 a gallon, the highest settlement since Aug. 31. It gained 5.1 percent for the week. The crack spread, or the premium of gasoline over crude oil, widened $3.19, or 16 percent, to $23.22 a barrel, the highest level since October.
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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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