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Reliance may set up Commodity Exchange
2008-06-01 12:40:00 ADAG may set up Commodity exchange under its company Reliance Capital. Similarly Kotak group , IndiaBulls too are looking at establishing Commodity Exchange.
Reliance may set up Commodity Exchange
2008-06-01 12:40:00 ADAG may set up Commodity exchange under its company Reliance Capital. Similarly Kotak group , IndiaBulls too are looking at establishing Commodity Exchange.
The best commodities to buy in 2008
2008-02-25 14:42:00 Investors in raw materials have enjoyed a sensational start to the year. Helped along by geopolitical tension and the weak dollar, which makes greenback-denominated commodities cheaper for non-US investors, oil last week eclipsed the $100 mark and gold burst through its 1980 peak of $850 an ounce; it has now reached $880. Platinum, soybeans, heating oil and palm oil also hit records. Expect the commodity cycle to continueThe upswing of the past few years is set to continue for years. As Jim Rogers puts it, we have three billion people in Asia ?who were not in the game? during the last boom; they want Western living standards. Industrialising economies already consume 55% of the world?s commodities, says Ian Henderson of JP Morgan Asset Management?s Natural Resources fund, while Evy Hambro of Blackrock?s World Mining fund said last year that Brazil, India, China and Russia would collectively need more oil, aluminium and copper than the entire planet used in 2006. Supply has been lagg...
Oil price: it's all about the supply
2008-02-25 14:37:00 People are amazed by numbers. Benchmarks and records can have huge psychological effects on the way people view a problem. So why are people so slow to react to this new milestone?Oil has finally reached $100 per barrel, yet few people on the distant end of oil supply lines are aware of how fast the status quo can change. The status quo tells us to expect more oil when we want it. That market forces always bring ample oil supplies to market. That oil producers will always accept a fixed amount of paper money in exchange for concentrated liquid energy.But the status quo view of the oil market has been wrong for years. Many still use speculation and geopolitics, rather than supply and demand, to explain rising prices. These pundits never question whether the exchange of paper money for black gold is sustainable. In the old days, when oil prices rose, big exporters like the Saudis recycled most of their oil money into the U.S. bond market, giving rise to the term ?petrodollars.? But th...
Are we heading for Peak Coal?
2008-02-25 14:35:00 Peak oil, yes; but peak coal? India's Tata Power recently acquired 30% stakes in Indonesia's two largest coal mines, securing 20 million tons of coal to fuel its 750 kilowatt project on India's west coast. This is a shrewd and opportune move.There's a sustained and tightening squeeze on global supplies of the 'thermal' coal needed to power the world's coal-fired power stations, just as Asia (except Japan) embarks on a massive expansion of planned generating capacity based on coal, despite rising concerns about carbon pollution. The technology that needs to be deployed to separate and store the pollutants from coal burning is still at least five years away.Meanwhile, disastrously polluted China brings a new coal-fired station on stream every week to help 'keep the lights on' and power its frantic industrial growth. The Chinese plan to triple generating capacity to 500 gigawatts by 2030. India is driving to triple its generating capacity by 2010. South Korea is adding 7.3 gig...
How to profit from rising soft commodities prices
2008-02-25 14:34:00 Times are tough in Japan. Not only do its residents have to put up with regular doses of bad economic data and a stock market that ? unjustly ? has spent the year so far in freefall, but now the prices of most of their favourite foods are soaring too.I mentioned the shock rise in mayonnaise prices across Japan in this column last year (the Japanese appear to find that the taste of most things can be improved with a dollop), but this is nothing compared with what?s going on with the price of milk.This has doubled in the past year, emptying the wallets of cheese lovers across the country and most recently causing popular fast-food chain Cheesecake Factory, caught between fast-rising input prices and static sales prices, to shut its doors for good.Of course, it isn?t just in Japan where milk prices are on the up. And it isn?t just milk prices that are rising. Wheat prices leapt about 150% last year (to a level described as the ?agricultural equivalent of $100 oil?) while rice prices cl...
Go for gold, but get cautious on oil
2008-02-25 14:30:00 ?Dynamics have begun to change inexorably towards a diminishing supply of gold and increasing investment demand.? So said David Davis, Analyst at Credit Suisse Standard Securities.It has also been said that we are very close to a point where the total of private investor holdings of gold bullion will exceed the total amount held by central banks.At fullCircle we are wrestling with the big question. We expect there to be three stages to this primary bull market for gold. The first stage from 2001 ended in 2005 when the second stage started at an accelerated rate. The possibility is that in August last year the third stage commenced. If that is so, then it will all get very fast and furious and we would expect, as a minimum, for the gold price to double in a relatively short time. If you look at the published chart from January 2003, you will see the latest accelerated trend for gold bullion. If it is at that third stage, then that trend should sustain and as time goes by, even accele...
Cotton: the commodity to watch in 2008
2008-02-25 14:28:00 Already a month into the new year, traders begin trying to figure out what trades will be the big winners in the as 2008 rolls on. Now, it?s not exactly breaking news that agriculture markets have basically been on fire for the last couple of years. Corn has skyrocketed on the back of huge ethanol demand, and soybeans, for that matter, have too.A significant side-effect of the biofuels boomWheat exploded this year on poor global crops and much higher demand. So is the big bull run for grains over? No, it?s actually just getting started. While I think wheat, soybeans and corn will continue to do very well, another crop may do even better in 2008 ? cotton.The longer-term effect of all the extra corn and wheat planting in the South could be a cotton shortage and much higher prices.The general consensus is that many farmers are switching out of less profitable crops like cotton and rice and moving into the lucrative corn and wheat market, which has benefited from the ethanol boom.Accord...
Never mind gold - invest in record-breaking coal
2008-02-25 14:25:00 Over the last week, the price of coal has soared to a new record.Thermal coal prices jumped to $116.44 a tonne at Australia's Newcastle port, which is the benchmark coal price for Asia. This represents a staggering rise of $23.09 in just a week. That?s a staggering increase of 25%...!Not only is demand very high, but the supply chain is in trouble. China?s chilly winter is playing havoc with transport and electricity shortages mean mine output is being hit. The country has therefore declared that it will not export any coal in February and March?This has combined with the electricity shortage in South Africa? something that I believe will not be sorted anytime soon. Indeed, the South African power group Eskom have already failed to deliver on their promises.The company said that it would be able to meet 90% of the power needs for miners. However, it said at the end of last week that generating plant breakdowns meant it could supply only 80% of their needs.It?ll take years to sort o...
Resource-rich Brazil has plenty to offer investors
2008-02-25 14:23:00 Several years ago investment bank Morgan Stanley came up with the original idea that four big countries ? Brazil, Russia, India and China ? would together soon become so important in the world economy that they could be viewed as a single group, much as we think of Europe or Latin America.They dubbed the group BRIC, after the first letters of their names, saying that their combined economies, from being just 15 per cent the size of the world?s six most advanced countries? ? including the US and Japan -- would grow to become even larger than them in combination in fewer than 40 years.The obvious conclusion was that long-term investors should focus on the BRICs.As I live in Asia, I have tended to write a lot about China, India and the regional economies linked to theirs. But there is obviously a case for some balancing investment in the two other BRICs, whose circumstances are very different.The clearest difference is that ?Chindia? is developing a gargantuan appetite for natural reso...
The most recession-proof asset class
2008-02-25 14:20:00 Danish farmers, hedge-fund managers and investment bankers ?all want a piece of the rich soil of England?, says James Rossiter in The Times. The result is a boom in the price of farmland, which rose by a record 27.9% in the second half of 2007 and is up 56% since the end of 2004.According to the Royal Institution of Chartered Surveyors (RICS), arable land hit a record average price of £10,949 per hectare in the second half. It?s the first time the £10,000 level has been breached in the 13-year history of the survey. As a RICS spokeswoman observed: ?Rising commodity prices have resulted in a bit of a feeding frenzy for farmland.? Higher food prices are encouraging existing farms to expand production and British farmers ?surged back into the land market last year?, rivalling Irish and Danish buyers, ?for whom land in Britain is cheap?, says Charles Clover in The Daily Telegraph. Adding to the boom has been demand from ?City slickers who buy up swathes of countryside?, says Daniel Thom...
A new record for black gold
2008-02-25 14:19:00 Oil is back on the boil. US futures closed above the $100 a barrel mark for the first time this week, homing in on the inflation-adjusted 1980 record of almost $103.A series of supply problems have rattled the tight market, including a pipeline leak in Nigeria, where violence has already shut a fifth of the country?s oil facilities. Short covering by bearish traders helped boost prices, while investors unnerved by turmoil in bond and equity markets have been piling into commodities of late, a trend buttressed by the weak dollar. Moreover, Opec has signalled that production will not be raised at its next meeting in March. Opec?s view that demand will soften has actually ?stoked bullish expectations?, said Lex on FT.com, as investors are assuming Opec could therefore cut production quotas. (Article continues below)AdvertisementMIDAD North Sea Oil bannerConsumption is expected to ease this year, according to both the International Energy Agency and the US Energy Department, which is a...
Soft commodities still have further to go
2008-02-25 14:13:00 In 2007, wheat prices rose 90%, soybeans were up 80% and all other soft commodities started charging higher. But don?t be intimated by the gains so far. These softs are not overvalued. In fact, they are set to go much, much higher over the next few years.So, if you are not invested in agriculture now, I think you may live to regret it.The US Department of Agriculture (USDA) now expects wheat inventories in the country to fall a staggering 40% by June this year.... This would leave wheat stocks at their lowest level in 30 years - and the lowest ever in terms of days of supply - according to Merrill Lynch. World barley stocks are expected to hit a 42-year low.Globally, grain stockpiles fell to about 53 days of supply last year, the lowest level since record-keeping began in 1960.The USDA forecast that US wheat harvests could rise to 2.3 billion bushels from 2.1 billion bushels last year, but corn production looks set to ease to 12.8 billion bushels from 13.1 billion bushels last year....
Commodity forex online trading by Nick Schultz
2007-12-14 14:52:00 Whenever we go to a store to buy a product, there is always something in return the shop keeper expects from us. This is how it works in most businesses and this is the case of forex as well, where... Online Forex Trading Resources - Improve Your Forex Trading, Foreign Exchange, Stock Exchange, Option Trading, Commodity Trading, Future Exchange, Option Forex, Option Stock, Fundamental Analysis, Technical Analysis, Currency Trading Strategy with simple to understand guides. Learn How to leverage your investment and maximize your return. Please also visit to http://online-forex-trading-rev-iews.blogspot.com/
Introducing Greenhouse Gas Trading in Asian Commodity Exchanges
2007-04-12 00:00:00 Al Gore’s Oscar winner “An Inconvenient Truth” on alarming levels of global warming would be rebuked by cynics as a convenient means of reviving his ailing political career. Should the big businesses and banking community echo their concerns on rising levels of greenhouse gases by tying it to socially responsible investment, cynics will be quick ...
By: Commodity Wealth
EurAsEC members to have access to Russian commodity exchange
2007-04-08 00:00:00 Eurasian Economic Community (EurAsEC) member states will participate in trading on the Russian refined oil product exchange, Russian Economy Minister German Gref told journalists following a EurAsEC Financial and Economic Policy Council meeting today. He also said that one of the main subjects discussed during the meeting was the establishment of a common energy exchange, as ...
By: Commodity Wealth
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