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June 11th, 2012
Commodity Futures – Goldman Sachs Group Inc. (GS) predicted a 29 percent return over the next year from the Standard & Poor’s GSCI Enhanced Commodity Index, led by energy and industrial- metals investments.
European policymakers will be able to contain the euro-area debt crisis, while recovery in the U.S. and China is set to continue, Jeffrey Currie, head of commodities research in New York, said today in a report. Returns may be 41 percent in a year for energy investments, compared with 23 percent for industrial metals and 18 percent for precious metals, while agriculture is forecast to lose 14 percent, the report showed.
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June 4th, 2012
Ethanol futures rebounded from the lowest level in 20 months on speculation that cheaper prices will spur demand.
Ethanol futures prices rose the most since May 16 after its two worst weeks this year, giving blenders an incentive to use more of the fuel. Ethanol in the U.S. is made from corn and mixed with gasoline to augment supply and meet federal mandates.
“Anytime you get a 1 in front of ethanol prices, it gets people to salivating and they want to get some,” said Jerrod Kitt, an analyst at Linn Group in Chicago. “Prices got pretty darn cheap. We finally got a print under $2, which started a relief rally.”
Denatured ethanol for June delivery climbed 3.5 cents, or 1.8 percent, to settle at $2.01 a gallon on the Chicago Board of Trade. Prices rebounded from $1.975 on June 1, the lowest price since Oct. 6, 2010. Futures have fallen 8.8 percent this year.
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June 4th, 2012
Gasoline futures rose, reversing an earlier loss, as the dollar fell against the euro after European leaders agreed to discuss more cooperation among banks using the European benchmark currency.
Gasoline futures advanced as a weaker dollar boosted the investment appeal of commodities. The euro was up 0.6 percent against the U.S. benchmark after German Chancellor Angela Merkel said systemic banks may need supervision at the European level as the European Union weighs possible steps toward “political union.”
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June 5th, 2012
Commodity Futures – The third consecutive year of record rice production is poised to expand inventories to the most in more than a decade, driving down prices and helping to contain the more than $1 trillion spent on food imports annually.
Farmers will harvest 466.4 million metric tons in the 2012-2013 season, boosting stockpiles by 0.7 percent to 104.9 million tons, the largest since 2001-2002, says the U.S. Department of Agriculture. Prices of 5 percent white rice in Thailand may drop as much as 14 percent to $520 a ton by the end of July, said Mamadou Ciss, who is the president of Alliance Commodities SA in Geneva and has traded the grain for more than a quarter century.
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June 1st, 2012
Managed Futures – Money managers cut their net-long positions in Chicago Board of Trade corn futures, government data showed Friday, as investors abandon long positions on slowing demand and improved crop weather.
Broader risk aversion across many asset classes enticed fund managers to trim their long positions in the market as well.
Money managers were net-long 61,493 corn contracts, down 44% from the prior week, according to data from the Commodity Futures Trading Commission.
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June 1st, 2012
Crude oil fell to the lowest level in almost eight months as employment reports in the U.S. and the euro area signaled fuel demand may tumble.
Crude oil futures dropped 3.8 percent after the Labor Department said American employers added the fewest workers in a year in May. The euro region’s jobless rate reached a record high, the European Union’s statistics office in Luxembourg said. Brent dropped below $100 for the first time since October.
“You need a word stronger than terrible for the jobs report,” said Stephen Schork, president of the Schork Group Inc. in Villanova, Pennsylvania. “Everything is driven by the lousy economic data.”
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May 31st, 2012
Natural gas futures edged higher Thursday, snapping a four-day losing streak, after the U.S. government said gas inventories rose broadly in line with expectations.
Natural gas futures for July delivery settled 0.4 cents, or 0.2%, higher at $2.422 a million British thermal units on the New York Mercantile Exchange.
Futures began the session lower, falling to as low as $2.377/MMBtu, before reversing course in the hours after the 10:30 a.m. EDT inventory data. They extended their gains after the government also said natural-gas production in March fell to the lowest level since October.
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May 16th, 2012
Crude oil dropped to the lowest price in more than six months in New York after U.S. crude stockpiles increased and talks to form a coalition government in Greece collapsed, raising concern the region’s debt crisis will worsen.
West Texas Intermediate futures slid as much as 2 percent, declining for a fourth day. U.S. inventories rose 6.6 million barrels last week, data from the American Petroleum Institute indicated. A government report today is projected to show a gain of 1.8 million, according to a Bloomberg News survey. Greece will schedule new elections as early as June 10, which German Finance Minister Wolfgang Schaeuble said will be a referendum on whether the country stays in the euro.
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May 14th, 2012
Gasoline futures slid to a three-month low on concern that Europe’s debt crisis will worsen, curbing fuel use, after Greece failed to form a new coalition government and German Chancellor Angela Merkel’s party lost a key election.
Gasoline futures sank 1.4 percent as Greece headed toward a possible exit from the euro area. Merkel’s Christian Democratic Union lost a regional election to the main opposition Social Democratic Party. Industrial output slowed in Europe and China.
“The global economy is slowing, even China,” said Dominick Chirichella, senior partner at the Energy Management Institute in New York. “The elections in Europe are causing a big level of uncertainty and fear the austerity measures that have been negotiated are starting to unravel. It’s all a mess.”
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May 14th, 2012
Crude oil fell to the lowest level in almost five months amid growing speculation Greece may leave the euro currency union and as Saudi Arabia’s oil minister said prices should decline further.
Crude oil futures dropped as much as 2.6 percent after Greece failed to agree on a unity government and European Union officials considered its possible exit from the euro. Saudi Arabia wants crude prices lower than they are now, Oil Minister Ali al-Naimi said yesterday in Adelaide, Australia. The kingdom is pumping at its highest rate in almost three decades, OPEC data show.
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