Global
foreign direct investment (FDI) inflows dropped by 18% to US$1.35tn in
2012. Recovery to more vigorous investment levels will take longer than
expected, mostly because of global economic fragility and policy
uncertainty, UNCTAD's (United Nations Conference on Trade and
Development) annual survey of investment trends reports stated today.
Developing countries make up four of the top five host economies. Six of
the top 10 prospective host countries also come from the developing
world, with Mexico and Thailand appearing for the first time. Among
developed countries, Japan jumped three positions largely because of
reconstruction efforts after the 2011 tsunami, and recent expansionary
monetary policies have together increased the country's attractiveness
for foreign investment in the medium term. At the same time, Australia,
the Russian Federation and the United Kingdom slipped down the rankings
from last year's survey, while Germany gained two positions.
Source by Commodity Insights
Friday, June 28, 2013
Hot Commodities: Gold Continues Its Downward Trend, Plummets Under $1200
Gold.......
Gold futures continued its downward trend in the European session
today with the precious metal set for solid losses for the month of
June.
European stock markets opened higher on Friday, with the week set to end on a positive note, in the wake of soothing comments by U.S. Federal Reserve officials. U.S. sentiment data and another wave of Fed speakers are on the calendar for Friday. FTSE 100 index rose 0.4% to 6,265.15, while the French CAC 40 index rose 0.2% to 3,768.37. The German DAX 30 index rose 0.4% to 8,019.27.
Today, the metal is also under pressure due to gains in the global equity markets. Gold for August delivery is trading down $11.6 at $1,200 an ounce, after having hit an intraday low of $1,179.40. The yellow metal is about to end the month of June down more than $200 an ounce.
Gold prices remained on a downward spiral Thursday, even as three Federal Reserve officials suggested the markets had overreacted after Fed Chairman Ben Bernanke's remarks last week that the central bank may start slowing the pace of stimulus as early as this year.
Such a move would be based on improvement in the economy that's in line with the Fed's forecasts, Bernanke had said. Speculation that the end of Fed stimulus would arrive sooner rather than later hit gold futures hard this month, as so-called quantitative easing has been credited for supporting a rally in gold in recent years.
Wells Fargo Advisors joined the downgrades for gold along with Goldman Sachs, Credit Suisse and HSBC this week. Wells Fargo Advisors cut its year-end target range for gold, saying it now expects to see prices settle at $1,225 to $1,325 an ounce. It has previously expected prices to end the year at $1,475 to $1,525 an ounce.
Gold production in China, the world's largest producer, is expected to rise about 10% this year to a record even as bullion prices slump, the nation's mining association said, according to media reports. The country recorded output of 403 tonnes last year. Production gained 12% in the first four months from a year earlier to 122.89 tonnes, according to the producer-funded China Gold Association.
MCX August gold futures tumbled below Rs 25000 earlier today down nearly Rs 400 per 10 grams. A fall below Rs 24900 may take it towards Rs 24700 levels today.
Source by Commodity Insights
European stock markets opened higher on Friday, with the week set to end on a positive note, in the wake of soothing comments by U.S. Federal Reserve officials. U.S. sentiment data and another wave of Fed speakers are on the calendar for Friday. FTSE 100 index rose 0.4% to 6,265.15, while the French CAC 40 index rose 0.2% to 3,768.37. The German DAX 30 index rose 0.4% to 8,019.27.
Today, the metal is also under pressure due to gains in the global equity markets. Gold for August delivery is trading down $11.6 at $1,200 an ounce, after having hit an intraday low of $1,179.40. The yellow metal is about to end the month of June down more than $200 an ounce.
Gold prices remained on a downward spiral Thursday, even as three Federal Reserve officials suggested the markets had overreacted after Fed Chairman Ben Bernanke's remarks last week that the central bank may start slowing the pace of stimulus as early as this year.
Such a move would be based on improvement in the economy that's in line with the Fed's forecasts, Bernanke had said. Speculation that the end of Fed stimulus would arrive sooner rather than later hit gold futures hard this month, as so-called quantitative easing has been credited for supporting a rally in gold in recent years.
Wells Fargo Advisors joined the downgrades for gold along with Goldman Sachs, Credit Suisse and HSBC this week. Wells Fargo Advisors cut its year-end target range for gold, saying it now expects to see prices settle at $1,225 to $1,325 an ounce. It has previously expected prices to end the year at $1,475 to $1,525 an ounce.
Gold production in China, the world's largest producer, is expected to rise about 10% this year to a record even as bullion prices slump, the nation's mining association said, according to media reports. The country recorded output of 403 tonnes last year. Production gained 12% in the first four months from a year earlier to 122.89 tonnes, according to the producer-funded China Gold Association.
MCX August gold futures tumbled below Rs 25000 earlier today down nearly Rs 400 per 10 grams. A fall below Rs 24900 may take it towards Rs 24700 levels today.
Source by Commodity Insights
Thursday, June 27, 2013
Crude Oil Manages Steady Gains In Global Markets
Oil.......
MCX Crude oil futures traded sideways as a bounce in Indian Rupee
from its all time lows near 61 per US dollar undercut the gains in the
overseas prices. Modest gains in Asian and European stocks kept crude
supported and the WTI futures managed to hit a high above $96 per
barrel. The commodity currently quotes at $95.81, up 31 cents per
barrel. Prices topped out at their four-month high last week.
Stocks were supported today around the world. US gross domestic product expanded at a 1.8% annual rate in the first quarter, compared with the previously reported 2.4 percent pace, lending a cautionary note on economic recovery. This data could mean that Fed might not act in a very fleeting manner as regards unwinding of its asset buying. In a keenly awaited move, the US Federal Reserve indicated last week that it would begin to taper its bond-buying program later this year. Ben Bernanke, the Fed chief told a news conference that the Fed expects to 'moderate the monthly pace of purchases later this year'.
Meanwhile, oil remains capped on the upside. Concerns over China's economic outlook are also weighing on oil after data last Thursday showed that manufacturing activity hit a nine-month low in June. China's HSBC preliminary manufacturing purchasing managers' index fell to 48.3 in June from 49.2 in May as new orders declined, indicating that the slowdown in manufacturing is worsening.
The US dollar continued to liner around its three week high against the Euro. It oil might not rise much in evening if the dollar continues to hold on. MCX July crude oil futures are quoting at Rs 5786, down Rs 9 per barrel on the day. Prices had rose to a high of Rs 5835 per barrel earlier as the Rupee crumbled towards 61 per dollar.
Source by Commodity Insights
Stocks were supported today around the world. US gross domestic product expanded at a 1.8% annual rate in the first quarter, compared with the previously reported 2.4 percent pace, lending a cautionary note on economic recovery. This data could mean that Fed might not act in a very fleeting manner as regards unwinding of its asset buying. In a keenly awaited move, the US Federal Reserve indicated last week that it would begin to taper its bond-buying program later this year. Ben Bernanke, the Fed chief told a news conference that the Fed expects to 'moderate the monthly pace of purchases later this year'.
Meanwhile, oil remains capped on the upside. Concerns over China's economic outlook are also weighing on oil after data last Thursday showed that manufacturing activity hit a nine-month low in June. China's HSBC preliminary manufacturing purchasing managers' index fell to 48.3 in June from 49.2 in May as new orders declined, indicating that the slowdown in manufacturing is worsening.
The US dollar continued to liner around its three week high against the Euro. It oil might not rise much in evening if the dollar continues to hold on. MCX July crude oil futures are quoting at Rs 5786, down Rs 9 per barrel on the day. Prices had rose to a high of Rs 5835 per barrel earlier as the Rupee crumbled towards 61 per dollar.
Source by Commodity Insights
Agri Buzz : India Secure Strong Export Orders At $300 Per Tonne
Riding on the strictest multi-layer quality checks mounted by the
Food Corporation of India (FCI), Indian wheat has secured comparatively
better price in the international market, with the latest lot up for
sale crossing the CBOT (Chicago Board of Trade) price by nearly 50
dollars per tonne.
According to the latest tender opened, India got 300.10 dollars per tonne for the lot offered for export as compared to the July future price of CBOT (260 dollars) as on June 3. About four million tonnes (MT) of wheat, exported so far by the FCI, have got an average price of 311.69 dollars per tonne.
An FCI official said the exports this year have proved that the corporation's wheat has a wider and higher acceptability in the international market. “We got a very good response to our wheat despite a drop in the global demand,” he added.
After a long gap, the government had this year allowed export of 4.5 million tonnes of wheat, thanks to a stupendous rise in the production and the excess stock in the country. Earlier, during 2002-04, India had exported it on a commercial basis. However, prices were not so attractive then.
Of the export target, 4.03 million tonnes has already been despatched. The reserve price for export of the initial lot of 2 million tonnes was just 228 dollars per tonne, while for the second lot it was fixed at 300 dollars per tonne.
“There is a huge demand for our wheat now,” said the FCI official. “We get prices as good as that of Australian Soft Wheat, one of the best in the world. The exports have proved the acceptability of our wheat in the international market,” he said.
The main buyers for Indian wheat are South Korea (10,01,789 mt), Ethiopia (6,80,358 mt), Bangladesh (6,75,432 mt), Yemen (3,06,519 mt), Thailand (2,71,767 mt) and Indonesia (2,10,700 mt). Besides, the buyer-countries also included Sharjah, Dubai, Sudan, Oman, Qatar, Vietnam, Malaysia and the Philippines.
FCI has exported the wheat through agencies like STC, PEC and MMTC. Mundra port in Gujarat handled the largest quantify of export, followed by Kandla — also in the Kutch area of the western Indian state. The main players in the international wheat market are USA, Canada, Ukraine, Australia, Russia and Argentina.
“We have a multi-layer quality check to ensure that the Indian wheat gets a credible brand,” the official explained. “The samples were first sent for tests at the Directorate of Wheat Research at Karnal (Haryana) for chemical parameters. Besides the tests by the buyer-representatives, FCI also made sure of tests to prevent rejection of shipments. We exported the wheat only after the buyers got satisfied themselves about the product.”
He said FCI could secure better price if the handling process was fully mechanised. “Non-mechanisation of the handling process is one factor that makes us uncompetitive in the international market. Otherwise, we get highly encouraging feedbacks from the buyers when we meet them,” he noted.
Source by Commodity Insights
According to the latest tender opened, India got 300.10 dollars per tonne for the lot offered for export as compared to the July future price of CBOT (260 dollars) as on June 3. About four million tonnes (MT) of wheat, exported so far by the FCI, have got an average price of 311.69 dollars per tonne.
An FCI official said the exports this year have proved that the corporation's wheat has a wider and higher acceptability in the international market. “We got a very good response to our wheat despite a drop in the global demand,” he added.
After a long gap, the government had this year allowed export of 4.5 million tonnes of wheat, thanks to a stupendous rise in the production and the excess stock in the country. Earlier, during 2002-04, India had exported it on a commercial basis. However, prices were not so attractive then.
Of the export target, 4.03 million tonnes has already been despatched. The reserve price for export of the initial lot of 2 million tonnes was just 228 dollars per tonne, while for the second lot it was fixed at 300 dollars per tonne.
“There is a huge demand for our wheat now,” said the FCI official. “We get prices as good as that of Australian Soft Wheat, one of the best in the world. The exports have proved the acceptability of our wheat in the international market,” he said.
The main buyers for Indian wheat are South Korea (10,01,789 mt), Ethiopia (6,80,358 mt), Bangladesh (6,75,432 mt), Yemen (3,06,519 mt), Thailand (2,71,767 mt) and Indonesia (2,10,700 mt). Besides, the buyer-countries also included Sharjah, Dubai, Sudan, Oman, Qatar, Vietnam, Malaysia and the Philippines.
FCI has exported the wheat through agencies like STC, PEC and MMTC. Mundra port in Gujarat handled the largest quantify of export, followed by Kandla — also in the Kutch area of the western Indian state. The main players in the international wheat market are USA, Canada, Ukraine, Australia, Russia and Argentina.
“We have a multi-layer quality check to ensure that the Indian wheat gets a credible brand,” the official explained. “The samples were first sent for tests at the Directorate of Wheat Research at Karnal (Haryana) for chemical parameters. Besides the tests by the buyer-representatives, FCI also made sure of tests to prevent rejection of shipments. We exported the wheat only after the buyers got satisfied themselves about the product.”
He said FCI could secure better price if the handling process was fully mechanised. “Non-mechanisation of the handling process is one factor that makes us uncompetitive in the international market. Otherwise, we get highly encouraging feedbacks from the buyers when we meet them,” he noted.
Source by Commodity Insights
Economic Buzz: U.K Q1 GDP Revised Down To 0.30%
The
U.K.'s Office for National Statistics said gross domestic product
expanded at a seasonally adjusted rate of 0.3% during the first quarter,
in line with expectations and unchanged from a previous estimate.
Annualized GDP grew at a rate of 0.3% in the first quarter, downwardly revised from a previous forecast of 0.6% growth. Analysts expected annualized GDP to remain unchanged at 0.6%.
Source by Commodity Insights
Annualized GDP grew at a rate of 0.3% in the first quarter, downwardly revised from a previous forecast of 0.6% growth. Analysts expected annualized GDP to remain unchanged at 0.6%.
Source by Commodity Insights
Commodities Buzz: Falling Gold Price Raises Red Flag For SA Miners
Gold..........
The Gold price tumbled as much as 4% on Wednesday, touching a low
last seen in August 2010 and potentially endangering the future of some
of South Africa's top gold mining houses if the fall continues. The top
three JSE-listed gold shares — Anglo Gold Ashanti, Harmony Gold and Gold
Fields — have shed a combined R100bn in value so far this year,
underlining concerns over the sector's future. Predictions that gold
could fall under $1,000/oz as expansionary monetary policies are reined
in, especially in the US, are putting further pressure on gold miners.
The companies are also facing surging labor unrest, and wage demands
ranging from 60% increases to a whopping 100%.
The JSE gold index is down 23% this month for a 48% loss so far this year. Harmony and AngloGold shares have lost 54% and 49%, respectively, since the start of the year, while Gold Fields has given up 47% since Sibanye Gold was unbundled on February 11.The gold industry is under attack from all sides, said independent analyst Ian Cruickshanks. With the price in bear market territory, it is very difficult to make an investment case for the sector and its future in South Africa is limited.
Earlier this week, the Association of Mineworkers and Construction Union tabled a 100% wage demand for all unskilled and semiskilled employees in the gold industry, raising fears of a strike and attendant consequences for production if its demands were not met. The National Union of Mineworkers tabled a 60% wage demand last month.
Spot gold fell to lows of $1,236.25oz on Wednesday, which analysts deemed unsustainable for the bulk of South Africa's gold mines.” The gold spot could go as low as $1,000/oz, further impacting gold miners negatively from the cost point of view. The $1,300/oz is, on average, the break-even point for gold companies to produce gold profitably, said Rezco Asset Management investment director RobSpanjaard.
The dollar-denominated metal has lost 25% in value this year as investors cut back their positions amid expectations that the US Federal Reserve (Fed) will wind down its cheap money policy.Gold is susceptible to so many exogenous factors. Investors had previously bought gold to hedge themselves against the threat of global inflation as a result of the US's easy monetary policy, Sasfin Securities portfolio manager Nicholas Sorour said.
The metal is also generally perceived as a haven from collapse scenarios, and demand will tend to wane when market players feel better about the global economy.Rand Merchant Bank analysts said the fall in the gold price has not hit the rand yet but we are increasingly concerned that the Fed tapering is going to generate a further bear market in South Africa's commodity export prices.
The Fed's action, along with liquidity trouble in China's interbank market, was adding to commodity price woes, Standard Bank analysts said.
Source by Commodity Insights
The Gold price tumbled as much as 4% on Wednesday, touching a low
last seen in August 2010 and potentially endangering the future of some
of South Africa's top gold mining houses if the fall continues. The top
three JSE-listed gold shares — Anglo Gold Ashanti, Harmony Gold and Gold
Fields — have shed a combined R100bn in value so far this year,
underlining concerns over the sector's future. Predictions that gold
could fall under $1,000/oz as expansionary monetary policies are reined
in, especially in the US, are putting further pressure on gold miners.
The companies are also facing surging labor unrest, and wage demands
ranging from 60% increases to a whopping 100%.The JSE gold index is down 23% this month for a 48% loss so far this year. Harmony and AngloGold shares have lost 54% and 49%, respectively, since the start of the year, while Gold Fields has given up 47% since Sibanye Gold was unbundled on February 11.The gold industry is under attack from all sides, said independent analyst Ian Cruickshanks. With the price in bear market territory, it is very difficult to make an investment case for the sector and its future in South Africa is limited.
Earlier this week, the Association of Mineworkers and Construction Union tabled a 100% wage demand for all unskilled and semiskilled employees in the gold industry, raising fears of a strike and attendant consequences for production if its demands were not met. The National Union of Mineworkers tabled a 60% wage demand last month.
Spot gold fell to lows of $1,236.25oz on Wednesday, which analysts deemed unsustainable for the bulk of South Africa's gold mines.” The gold spot could go as low as $1,000/oz, further impacting gold miners negatively from the cost point of view. The $1,300/oz is, on average, the break-even point for gold companies to produce gold profitably, said Rezco Asset Management investment director RobSpanjaard.
The dollar-denominated metal has lost 25% in value this year as investors cut back their positions amid expectations that the US Federal Reserve (Fed) will wind down its cheap money policy.Gold is susceptible to so many exogenous factors. Investors had previously bought gold to hedge themselves against the threat of global inflation as a result of the US's easy monetary policy, Sasfin Securities portfolio manager Nicholas Sorour said.
The metal is also generally perceived as a haven from collapse scenarios, and demand will tend to wane when market players feel better about the global economy.Rand Merchant Bank analysts said the fall in the gold price has not hit the rand yet but we are increasingly concerned that the Fed tapering is going to generate a further bear market in South Africa's commodity export prices.
The Fed's action, along with liquidity trouble in China's interbank market, was adding to commodity price woes, Standard Bank analysts said.
Source by Commodity Insights
Wednesday, June 26, 2013
MCX Silver Breaks Below Rs 40000
Silver......
After trading a range bound manner for nearly 2 months, silver prices
finally got the downward direction. The white metal slumped below Rs
40000 per kg today as the upbeat US data released yesterday supported
the view that the Federal Reserve will slow the pace of monetary
stimulus this year.
MCX July silver futures tumbled to as low as Rs 39325 per kg today. The metal had fallen by nearly 10% so far this month; however the fall in prices has been curbed by the extra soft Indian Rupee. The Indian Rupee has fallen by more than 5% so far this month to low of nearly 60 per dollar. The counter should find support near Rs 39000-37000 levels in the near term.
The international silver futures have been hurt more severely due to sharp appreciation in the US dollar. COMEX July silver futures tumbled below $19 an ounce, falling nearly 17% so far in June 2013.
The dollar-denominated commodities felt the pinch from a rise in the U.S. dollar against key rivals, with the greenback looking for a sixth consecutive day of gains. The buck rose Tuesday after a report showed U.S. sales of new homes rose 2.1% in May, the fastest rate since mid-2008, and the Case-Shiller April home-price index jumped 2.5% in April, the largest monthly growth on record.47070
Federal Reserve Chairman Ben Bernanke last week indicated the central bank may slow the pace of bond buying as early as this year if the economy continues to improve within its forecasts. The Fed currently buys $85 billion a month in U.S. Treasurys.
Later Wednesday, the U.S. Commerce Department is slated to release the third estimate of gross domestic product for the first quarter.
Source by Commodity Insights
MCX July silver futures tumbled to as low as Rs 39325 per kg today. The metal had fallen by nearly 10% so far this month; however the fall in prices has been curbed by the extra soft Indian Rupee. The Indian Rupee has fallen by more than 5% so far this month to low of nearly 60 per dollar. The counter should find support near Rs 39000-37000 levels in the near term.
The international silver futures have been hurt more severely due to sharp appreciation in the US dollar. COMEX July silver futures tumbled below $19 an ounce, falling nearly 17% so far in June 2013.
The dollar-denominated commodities felt the pinch from a rise in the U.S. dollar against key rivals, with the greenback looking for a sixth consecutive day of gains. The buck rose Tuesday after a report showed U.S. sales of new homes rose 2.1% in May, the fastest rate since mid-2008, and the Case-Shiller April home-price index jumped 2.5% in April, the largest monthly growth on record.47070
Federal Reserve Chairman Ben Bernanke last week indicated the central bank may slow the pace of bond buying as early as this year if the economy continues to improve within its forecasts. The Fed currently buys $85 billion a month in U.S. Treasurys.
Later Wednesday, the U.S. Commerce Department is slated to release the third estimate of gross domestic product for the first quarter.
Source by Commodity Insights
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