Commodity Investing Report
CALL 1-888-456-8090 TO BEGIN TRADING TODAY!INTERNATIONAL INVESTORS CALL 1-541-773-5741
|
|
Commodity Investing ReportCALL 1-888-456-8090 TO BEGIN TRADING TODAY!INTERNATIONAL INVESTORS CALL 1-541-773-5741 |
Commodity Investment Outlook Remains "Very Positive," Barclays Forecasts April 10th, 2008Commodity prices will rise from this year's records as producers battle to meet demand buoyed by China and other emerging economies, Barclays Capital forecast. Copper and oil will ``go a lot higher'' and corn may as well as wealthier emerging economies offset a slowdown in the U.S., said Kevin Norrish, director of commodities research at Barclays Capital. Cotton, aluminum and platinum are expected to be the best performers in coming months, he said. Electricity shortages, rising production costs and delays in permitting new projects are limiting supplies of metals, fuel and food needed by booming economies in countries including China, Russia, India and Brazil. Investors, shaken by the credit-market crisis, the near-collapse of Bear Stearns Cos. and the declining dollar are finding havens in commodities. ``For a number of the big, important markets, we are still very positive for higher prices to come,'' Norrish said yesterday in a telephone interview from Santiago. ``China and other parts of the world have much more than offset the slowdown that we've seen in the U.S. for industrial metals and other commodities.'' The UBS Bloomberg Constant Maturity Commodity Index surged 19 percent this year before today as the dollar dropped 6.3 percent against a weighted basket of the euro, yen, pound and three other major currencies. The Standard & Poor's 500 Index of equities fell 7.8 percent in that time. Inventories of many industrial and agricultural raw materials are ``incredibly low,'' lending further support to higher prices, Norrish said. The lack of inventories will increase volatility in commodity prices as they react quickly to supply disruptions, he said. Oil, Corn RecordsCrude-oil stockpiles unexpectedly dropped by 3.1 million barrels last week, the U.S. government reported yesterday, pushing the price to a record $112.21 a barrel in New York. Corn supplies in the U.S. also may drop more this year than forecast earlier, the government said yesterday, sending corn futures to a record $6.16 a bushel in Chicago. Investors, attracted by tighter supplies and strong demand, are increasing purchases of exchange-traded funds and structured notes to take positions in commodity markets, Norrish said. Citigroup Inc. estimates that global commodity investments jumped more than 20 percent in the first quarter to $400 billion, including an influx of $70 billion. ``We're in the first few years of what's going to be a very long time of rising commodity prices,'' Evan Smith, who helps manage $1.5 billion at U.S. Global Investors Inc., said yesterday in an interview in New York. ``The fundamental long-term drivers of higher demand and short supplies will mean prices will remain bullish for some time.'' Earlier ForecastsNorrish predicted correctly in December that oil would top $100 a barrel for the first time this year and that copper and gold would reach records. His copper forecast for an average of $7,800 a ton was 12 percent above the average estimate of 11 analysts surveyed by Bloomberg. Before today, the metal averaged $7,810.15 a ton this year on the London Metal Exchange. Electricity shortages and lower grades of metal-bearing ore will be among the biggest constraints on miners trying to boost output, Norrish said. In Chile, the world's largest copper- producer, inadequate power supplies may limit plans to expand output while in South Africa, the largest source of platinum, power cuts shut the largest mines in January and insufficient generating capacity is threatening expansion plans. ``There's no reason why prices shouldn't be pushed up by speculative buying on tighter fundamentals,'' Norrish said. ``The physical demand that we see in all sorts of different commodity sectors is very strong.'' - Stewart Bailey and Millie Munshi in New York Bloomberg. Click here for your Free Commodity Investing eGuide |
|
Gold Futures
Copper Futures Silver Futures Platinum Futures Crude Oil Futures Natural Gas Futures Heating Oil Futures Unleaded Gas Futures Ethanol Futures Gasoline Blendstock Futures Corn Futures Soybean Futures Wheat Futures Coffee Futures Cocoa Futures Cotton Futures Orange Juice Futures Sugar Futures Feeder Cattle Futures Live Cattle Futures Lean Hog Futures Pork Belly Futures British Pound Futures Canadian Dollar Futures Japanese Yen Futures Swiss Franc Futures Euro FX Futures Eurodollar Futures Treasury Bond Futures |
