Wednesday, December 19, 2018
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experts say commodities dip is temporary

many experts have concluded that this year may well be bullish for the commodities market, despite sagging commodity prices around the globe.

fundamentals of many commodities, such as demand, will remain unchanged in the long term, li jing, manag¬ing director and chairman of global markets for jpmorgan china, was reported as saying by the china business news saturday.

commodities trading is banking’s new battleground

may 9 (bloomberg) -- forget bonuses. don’t worry about bailouts. that’s all history. the battle¬ground that matters most for the banking and finance industry right now is the profits it is making from commodities trading.

over the last few days, prices have been bouncing all over the place, a reminder for everyone of just how un¬stable the market in food and raw materials has become.

commodities beat financial assets for fifth month in best streak since ’97

commodities beat stocks, bonds and the dollar for a fifth straight month, the longest stretch in at least 14 years, as demand for raw materials increases with expanding economies and federal reserve promises to boost growth.

the standard & poor’s gsci total return index of 24 commodities climbed 4.4 percent in april, after reaching the highest level since october 2008. the msci all-country world index of equities advanced 3.9 percent, the most since december, and the u.s. dollar index, a gauge against six counterparts, fell 3.9 percent, touching a 33-month low. bonds of all types returned 0.9 percent on average, based on bank of america merrill lynch’s global broad market index.

analysis:commodity bulls, bloody but unbowed, to charge anew

the brutal selloff in commodity markets on thursday had no obvious trigger, and by the same token, there was no obvious reason why prices should not recover in the next few weeks or months.

the speed of this week’s retreat, which went into free-fall on thursday as oil prices plunged by a record $12, has stunned many traders. the 19-commodities crb index .crb fell 5 percent, a level exceeded only four times before, three of those in the midst of the 2008 financial crisis.

commodities rise for seventh day to two-year high, led by cotton, silver

commodities rose for a seventh day to a two-year high, led by cotton and silver, on optimism about economic recovery and a weaker dollar. gold and tin climbed to records.

the standard & poor’s gsci spot index of 24 raw-materials futures reached 757.22 points, the highest level since aug. 4, 2008. it was up 1.6 percent at 756.57 by 8:44 a.m. new york time, for a weekly gain of 3.4 percent, on course for the biggest increase in five weeks. silver for immediate delivery touched $40.30 an ounce, and cotton reached $2.124 a pound.

 

commodities: no bubble here

with commodity prices up so much over the past several years, you can forgive long-term value investors for giving them a miss. who wants to risk exposure to another asset bubble so soon after the dot-com implosion and the u.s. housing mess?

step forward, jeremy grantham. the chairman of global asset manager gmo llc is a much-admired value investor whose firm manages more than $100-billion (u.s.) in assets for corporations, endowments and foundations. as such, he’s not the sort of guy to chase the latest trend.

but when it comes to commodities, he’s certain that the world is experiencing a great paradigm shift, where rising demand for stuff in the ground is becoming more intense as the global population grows, and grows more affluent.

“i believe that we are in the midst of one of the giant inflection points in economic history,” mr. grantham said in his quarterly report to clients. investors must “recognize that we now live in a different, more constrained, world in which prices of raw materials will rise and shortages will be common.”

commodities head for weekly gain as mideast turmoil prompts oil concerns

commodities gained to a one-week high as unrest in the middle east and north africa boosted oil prices and after the group of seven intervened in currency markets to help japan after last week’s earthquake.

the standard & poor’s gsci spot index rose as much as 1.7 percent to 712, the highest level since march 10, a day before japan’s worst earthquake on record triggered a tsunami and a crisis at one of the country’s nuclear power plants. it was at 711.61 at 12:23 p.m. london time.

higher commodity prices for food and fuel a fact for the future

new york, ny, united states (ahn) - soaring commodity prices are wreaking havoc on consumer's budgets here in the u.s., but experts say not to expect them to go down because the culprit is increased global demand for food and fuel.

increased demand from population growth in developing nations is not only causing prices to increase but it is also causing a scarcity of resources, according to jeremy grantham, who helped found boston-based gmo asset management firm.

amber waves of pain

lured by the idea of profiting from raw materials, investors put $277 billion into commodity etfs and related securities by the end of 2009. then they noticed a problem: when commodities go up, the commodity etfs often don't

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