Corn fell by 6.3% since midle January 2012, while cotton fell to more than 1 years on May 2012. Gross domestic product in the euro area will decline 0.3 percent this year, the European Commission forecast May 11. Greece will have the deepest contraction, with GDP shrinking 4.7 percent. Fifty-seven percent of investors said at least one nation will leave the euro at the end of the year, according to Bloomberg Global Poll published May 10.
Industrial output
Commodities may rebound as producers of raw materials can not meet increasing demand, said Adrian Day, president of Adrian Day Asset Management in Annapolis, Maryland, which oversees about $ 170 million of assets.
Palladium supplies will lag behind demand through at least 2016, UBS AG said on May 11. Barclays Plc is forecasting shortages of copper and tin this year. U.S. soybean stocks at the end of August 2013 will be 31 percent lower than the previous year, the U.S. Agriculture Department said May 10.
"Commodities remain a good long term investment given the background and the dovish central bank continues to unexpected supply disruptions," said Mihir Worah, who manages Pacific Investment Management Co. 's $ 22000000000 Commodity Real Return Strategy Fund from Newport Beach, California, in e- mails.
Money Flows
Investors pulled $ 815 million of commodity funds in the week ended May 9, according to data from the Cambridge, Massachusetts-based EPFR Global, which tracks the flow of money. That's the biggest outflows this year, said Cameron Brandt, director of research for the EPFR. Dana-gold and precious metals lost $ 467 million.
Gold is now only 1.1 percent higher this year at $ 1,584 per ounce in New York after removing most of its gains. These metals will rally to $ 1,840 within the next six months because he remains a "currency of last choice," said Goldman Sachs Group Inc. commodity analyst in a report May 9.
Gold bullish bets fell 20 percent to 92 498 contracts, the lowest since December 2008, CFTC data showed. Bet on a rally of silver fell 32 percent to 7159, the biggest drop since late December. Gold prices fell 3.7 percent last week, the highest in two months, as the dollar climbed, curbing demand for precious metals as alternative investments. Silver fell 5.1 percent to $ 28.89 per ounce.
Fort Shutters
Fortress Investment Group LLC (Pictures), the public private equity and hedge fund manager first in the U.S., said it would liquidate $ 500 million a commodity fund run by William Callanan after losing nearly 13 percent in four months.
The fort is the third commodity hedge fund shutter in the last six weeks. Billionaire trader John Arnold said in a letter obtained by Bloomberg on May 2 that it planned to close the Centaurus Energy Master Fund in Houston, and Pierre Andurand, who co-runs BlueGold Capital Management LLP, the fund $ 1 billion in London, said last month that client money will be refunded.
Industrial output
Commodities may rebound as producers of raw materials can not meet increasing demand, said Adrian Day, president of Adrian Day Asset Management in Annapolis, Maryland, which oversees about $ 170 million of assets.
Palladium supplies will lag behind demand through at least 2016, UBS AG said on May 11. Barclays Plc is forecasting shortages of copper and tin this year. U.S. soybean stocks at the end of August 2013 will be 31 percent lower than the previous year, the U.S. Agriculture Department said May 10.
"Commodities remain a good long term investment given the background and the dovish central bank continues to unexpected supply disruptions," said Mihir Worah, who manages Pacific Investment Management Co. 's $ 22000000000 Commodity Real Return Strategy Fund from Newport Beach, California, in e- mails.
Money Flows
Investors pulled $ 815 million of commodity funds in the week ended May 9, according to data from the Cambridge, Massachusetts-based EPFR Global, which tracks the flow of money. That's the biggest outflows this year, said Cameron Brandt, director of research for the EPFR. Dana-gold and precious metals lost $ 467 million.
Gold is now only 1.1 percent higher this year at $ 1,584 per ounce in New York after removing most of its gains. These metals will rally to $ 1,840 within the next six months because he remains a "currency of last choice," said Goldman Sachs Group Inc. commodity analyst in a report May 9.
Gold bullish bets fell 20 percent to 92 498 contracts, the lowest since December 2008, CFTC data showed. Bet on a rally of silver fell 32 percent to 7159, the biggest drop since late December. Gold prices fell 3.7 percent last week, the highest in two months, as the dollar climbed, curbing demand for precious metals as alternative investments. Silver fell 5.1 percent to $ 28.89 per ounce.
Fort Shutters
Fortress Investment Group LLC (Pictures), the public private equity and hedge fund manager first in the U.S., said it would liquidate $ 500 million a commodity fund run by William Callanan after losing nearly 13 percent in four months.
The fort is the third commodity hedge fund shutter in the last six weeks. Billionaire trader John Arnold said in a letter obtained by Bloomberg on May 2 that it planned to close the Centaurus Energy Master Fund in Houston, and Pierre Andurand, who co-runs BlueGold Capital Management LLP, the fund $ 1 billion in London, said last month that client money will be refunded.
Prices of corn advanced the most in more than two weeks on speculation that U.S. farmers may switch some acreage to soybeans, and as import demand may increase after futures dropped to a four-month low yesterday.
In July corn delivery advanced as much as 1.4 percent to $6.025 a bushel on the Chicago Board of Trade, the biggest intraday gain for the most active contract since April 3, and last traded at $6.02 at 11:08 a.m. Singapore time. Futures fell to $5.9175 yesterday, the lowest level since Dec. 19.
Soybeans for July delivery rose 0.7 percent to $14.23 a bushel. Wheat for delivery in the same month gained 1 percent to $6.2175 a bushel.
Corn Processing Industry Association Korea issued a tender to buy as much as 55,000 metric tons of corn for food production to arrive by Aug. 25, according to a notice to suppliers, a copy of which was e-mailed to Bloomberg News today. The group will hold the bidding at 5 p.m. Seoul time today, the notice showed.
Farmers told the government last month that they plan to cut soybean planting 1.4 percent to 73.9 million acres, the lowest level in five years. Soybean acres will rise 2 million to 2.5 million from what the government said in March as farmers plant more on winter-wheat fields, and some corn is switched to the oilseed, Don Roose, the president of U.S. Commodities Inc. in West Des Moines, Iowa, said yesterday. Farmers are expected to increase corn sowing by 4.3 percent to 95.864 million acres this year, the most since 1937, the USDA said on March 30.
Speculation that farmers may plant more soybeans over corn “could be a reason, but for now, it’s a bit too early,” Lynette Tan, an analyst with Phillip Futures Pte., said by phone from Singapore today. “This is more of bargain-hunting” after prices fell below $6 yesterday, she said.
In July corn delivery advanced as much as 1.4 percent to $6.025 a bushel on the Chicago Board of Trade, the biggest intraday gain for the most active contract since April 3, and last traded at $6.02 at 11:08 a.m. Singapore time. Futures fell to $5.9175 yesterday, the lowest level since Dec. 19.
Soybeans for July delivery rose 0.7 percent to $14.23 a bushel. Wheat for delivery in the same month gained 1 percent to $6.2175 a bushel.
Corn Processing Industry Association Korea issued a tender to buy as much as 55,000 metric tons of corn for food production to arrive by Aug. 25, according to a notice to suppliers, a copy of which was e-mailed to Bloomberg News today. The group will hold the bidding at 5 p.m. Seoul time today, the notice showed.
Farmers told the government last month that they plan to cut soybean planting 1.4 percent to 73.9 million acres, the lowest level in five years. Soybean acres will rise 2 million to 2.5 million from what the government said in March as farmers plant more on winter-wheat fields, and some corn is switched to the oilseed, Don Roose, the president of U.S. Commodities Inc. in West Des Moines, Iowa, said yesterday. Farmers are expected to increase corn sowing by 4.3 percent to 95.864 million acres this year, the most since 1937, the USDA said on March 30.
Speculation that farmers may plant more soybeans over corn “could be a reason, but for now, it’s a bit too early,” Lynette Tan, an analyst with Phillip Futures Pte., said by phone from Singapore today. “This is more of bargain-hunting” after prices fell below $6 yesterday, she said.
Grain prices March 2012 in Banyumas and Cilacap, Central Java (Java), dropped, as it enters the harvest season.
At the farm level, the price of unhusked rice harvest (GKP) ranged from Rp3.000 per kilogram (kg) or below the purchase price of government (COGS) Rp3.300 per kg.
One farmer in Kemiren, South Cilacap, Cilacap, Darkim, 48, revealed that grain prices are declining when compared with previous times.
"Right now the price of grain is only Rp3.000 per kg. And last month the price still ranges from Rp3.500 to Rp3.600 per kg. Even the previous month to reach Rp3.900 per kg," said Darkim, Sunday (25/3) .
Farmers in the village of Limpakuwus, District Contribute, Banyumas, named Sarkum, 54, said the current price of rice was decreased dramatically, because everywhere there is harvest.
"If the harvest season comes, the condition is like this, the price decline. For the range of grain Rp3.000 per kg. If the result is good only up to Rp3.200 per kg," he said.
Association Secretary Rice stated the current Faturrahman Banyumas Bulog partners have made a purchase price in order not to be deteriorating. In general, the price of grain at the farm level ranged Rp3.200 per kg.
"The price of grain is dropped. In addition to entering the harvest, as well as high water content, unlike in the dry season," said Faturrahman.
According to the Regional Public Relations Bulog subdivision (Subdivre) IV Banyumas Priyono, it has absorbed at least 12 thousand tons of rice equivalent to the current harvest season.
While in some districts began Pidie rice harvest, have been characterized by khanduri blang and thanksgiving held in each district. However, farmers complain that the price of grain remained until Rp Rp 3.800/Kg 3.900/Kg.
Area that has begun to harvest the rice, among others, the village of Paya Kingdom, District Simpang Tiga, and parts Kemukiman Laweung, Muara District Three, District Pidie. Grain prices are very impartial and likely to harm the farmers. "Instead of grain prices could fall again if the harvest had started evenly," said Sofyan (37), a farmer in Simpang Three.
Meanwhile, another farmer, Ilyas added, for a while he would not sell the new rice dipanennya it, because the price of rice offered by agents and middlemen reservoir is very low.
When compared to the issuance of capital, ranging from the processing of paddy fields, planting seeds, fertilizer to cost cutting and transporting the crops that have been issued very large.
"Rice for a while I reserve pending the sale price up. If all farmers do not sell gabahnya, certainly will increase the resale value. Therefore, I chose the rice first store, "said Ilyas.
Bungie GBS Refinery Leadership Rice, District Simpang Tiga, Pidie Teuku Bustami, Friday (24/2) explains, it received the purchase price of grain from the farmers at a price of up to Rp Rp 3.800/Kg 3.900/Kg. The price is a benchmark as it is, because the purchase of rice received Rp 6.600/Kg Dolog today.
At the farm level, the price of unhusked rice harvest (GKP) ranged from Rp3.000 per kilogram (kg) or below the purchase price of government (COGS) Rp3.300 per kg.
One farmer in Kemiren, South Cilacap, Cilacap, Darkim, 48, revealed that grain prices are declining when compared with previous times.
"Right now the price of grain is only Rp3.000 per kg. And last month the price still ranges from Rp3.500 to Rp3.600 per kg. Even the previous month to reach Rp3.900 per kg," said Darkim, Sunday (25/3) .
Farmers in the village of Limpakuwus, District Contribute, Banyumas, named Sarkum, 54, said the current price of rice was decreased dramatically, because everywhere there is harvest.
"If the harvest season comes, the condition is like this, the price decline. For the range of grain Rp3.000 per kg. If the result is good only up to Rp3.200 per kg," he said.
Association Secretary Rice stated the current Faturrahman Banyumas Bulog partners have made a purchase price in order not to be deteriorating. In general, the price of grain at the farm level ranged Rp3.200 per kg.
"The price of grain is dropped. In addition to entering the harvest, as well as high water content, unlike in the dry season," said Faturrahman.
According to the Regional Public Relations Bulog subdivision (Subdivre) IV Banyumas Priyono, it has absorbed at least 12 thousand tons of rice equivalent to the current harvest season.
While in some districts began Pidie rice harvest, have been characterized by khanduri blang and thanksgiving held in each district. However, farmers complain that the price of grain remained until Rp Rp 3.800/Kg 3.900/Kg.
Area that has begun to harvest the rice, among others, the village of Paya Kingdom, District Simpang Tiga, and parts Kemukiman Laweung, Muara District Three, District Pidie. Grain prices are very impartial and likely to harm the farmers. "Instead of grain prices could fall again if the harvest had started evenly," said Sofyan (37), a farmer in Simpang Three.
Meanwhile, another farmer, Ilyas added, for a while he would not sell the new rice dipanennya it, because the price of rice offered by agents and middlemen reservoir is very low.
When compared to the issuance of capital, ranging from the processing of paddy fields, planting seeds, fertilizer to cost cutting and transporting the crops that have been issued very large.
"Rice for a while I reserve pending the sale price up. If all farmers do not sell gabahnya, certainly will increase the resale value. Therefore, I chose the rice first store, "said Ilyas.
Bungie GBS Refinery Leadership Rice, District Simpang Tiga, Pidie Teuku Bustami, Friday (24/2) explains, it received the purchase price of grain from the farmers at a price of up to Rp Rp 3.800/Kg 3.900/Kg. The price is a benchmark as it is, because the purchase of rice received Rp 6.600/Kg Dolog today.
Coffee futures of Arabica may rebound to as high as $2 a pound by year-end as global stockpiles tighten, world demand remains firm. Arabica coffee for May delivery advanced 1 percent to $1.7875 a pound yesterday on ICE Futures U.S. in New York, after falling to $1.7445, the lowest for a most-active contract since Oct. 8, 2010. Still, prices are down 33 percent in the past year as the market anticipated Brazil’s higher yields for this year.
Brazilian will enter the low-cycle of the biennial harvest in 2013, reducing the small surplus left by the bigger production this year, Illy said. In addition, Colombia’s output, the second biggest grower of the arabica beans, has not recovered from weather-induced losses seen in the last three years, which may leave global stockpiles in a tight situation, as demand remains resilient, he said.
Brazilian will enter the low-cycle of the biennial harvest in 2013, reducing the small surplus left by the bigger production this year, Illy said. In addition, Colombia’s output, the second biggest grower of the arabica beans, has not recovered from weather-induced losses seen in the last three years, which may leave global stockpiles in a tight situation, as demand remains resilient, he said.
Soybeans rebounded from one-week lows on speculation that declining production in Argentina will boost demand for U.S. exports.
Soybean output in Argentina, the world’s largest shipper of cooking oil and animal feed made from the oilseed, will fall to 44 million metric tons this year, down from 49 million collected in 2011 and 46.5 million estimated by the U.S. government this month, the Agriculture Ministry said yesterday. The corn harvest may fall to 21 million from 22.5 million last year.
“Smaller crops in Argentina mean global supplies are getting tight, and that could boost overseas purchases from the U.S.,” Mark Schultz, the chief analyst for Northstar Commodity Investment Co. in Minneapolis, said in a telephone interview.
Soybean futures for May delivery advanced 1.2 percent to close at $13.6575 a bushel at 1:15 p.m. on the Chicago Board of Trade, after prices yesterday touched $13.385, the lowest since March 13. Still, the oilseed fell 0.6 percent this week, snapping five straight weekly gains.
Soybean output in Argentina, the world’s largest shipper of cooking oil and animal feed made from the oilseed, will fall to 44 million metric tons this year, down from 49 million collected in 2011 and 46.5 million estimated by the U.S. government this month, the Agriculture Ministry said yesterday. The corn harvest may fall to 21 million from 22.5 million last year.
“Smaller crops in Argentina mean global supplies are getting tight, and that could boost overseas purchases from the U.S.,” Mark Schultz, the chief analyst for Northstar Commodity Investment Co. in Minneapolis, said in a telephone interview.
Soybean futures for May delivery advanced 1.2 percent to close at $13.6575 a bushel at 1:15 p.m. on the Chicago Board of Trade, after prices yesterday touched $13.385, the lowest since March 13. Still, the oilseed fell 0.6 percent this week, snapping five straight weekly gains.
Precious metal prices decline, silver was the biggest loser at 3.09% while natural gas posted the most gains at 1.21%. Base metals remained mixed with copper and zinc posting gains while lead and nickel ended in the red.
-Crude oil markets were relatively calm for the week considering that the whole Iran issue was the focus point over the past months. This was reflected in prices, which moved down marginally. However, conditions still favour strong oil prices.
-Natural gas prices rebounded with a decent 1.21% gain. US weather has been forecasted to be warm over the coming weeks, which makes it difficult for gas prices to record any strong upmoves.
-In China, February trade deficit of $31.5 billion was its biggest ever since 2000, sparking concerns that the Chinese economy may indeed be heading to a major slowdown. Commodities like base metals and crude oil came under pressure during the week.
-In India, the Union Budget 2012/13 failed to impress any critic. The budget was focused more towards controlling the widening fiscal deficit, the target for the next fiscal year being at 5.1% of GDP. Current year growth is projected to be at a disappointing 6.9% but 2012/13 is expected to see growth at 7.6%.
-In the US, US Fed chairman Ben Bernanke stated his intention to continue the lose monetary policy. Industrial production for February failed to record any growth after a marginal 0.4% growth in January. Retail sales in February rose to 1.1% while Business inventories rose to 0.7% in January.
-In the Eurozone, investors continue to watch out on the impact of the CDS triggered by the Greek default. Trade balance in the region declined to $5.9 billion in January from $7.4 billion in December
-Precious metals declined for the week with silver moving down by more than 3%. Ben Bernanke disappointed the precious metals bulls and did not mention the possibility of QE3. Instead, he expressed belief that the is economy was improving. Weak Chinese trade balance also proved bearish for silver since China is a major consumer of the metal.
-Base metals were mostly under pressure despite copper and zinc posting gains, mostly on the back of China's weak trade balance.
-Copper inventories at Shanghai exchange monitored warehouses are expected to result in lower copper imports in March and April, Goldman Sachs reported.
-A major zinc mine in China remains closed and is expected to be bullish for Chinese zinc exports if the closure extends beyond 3 months.
-Crude oil markets were relatively calm for the week considering that the whole Iran issue was the focus point over the past months. This was reflected in prices, which moved down marginally. However, conditions still favour strong oil prices.
-Natural gas prices rebounded with a decent 1.21% gain. US weather has been forecasted to be warm over the coming weeks, which makes it difficult for gas prices to record any strong upmoves.
-In China, February trade deficit of $31.5 billion was its biggest ever since 2000, sparking concerns that the Chinese economy may indeed be heading to a major slowdown. Commodities like base metals and crude oil came under pressure during the week.
-In India, the Union Budget 2012/13 failed to impress any critic. The budget was focused more towards controlling the widening fiscal deficit, the target for the next fiscal year being at 5.1% of GDP. Current year growth is projected to be at a disappointing 6.9% but 2012/13 is expected to see growth at 7.6%.
-In the US, US Fed chairman Ben Bernanke stated his intention to continue the lose monetary policy. Industrial production for February failed to record any growth after a marginal 0.4% growth in January. Retail sales in February rose to 1.1% while Business inventories rose to 0.7% in January.
-In the Eurozone, investors continue to watch out on the impact of the CDS triggered by the Greek default. Trade balance in the region declined to $5.9 billion in January from $7.4 billion in December
-Precious metals declined for the week with silver moving down by more than 3%. Ben Bernanke disappointed the precious metals bulls and did not mention the possibility of QE3. Instead, he expressed belief that the is economy was improving. Weak Chinese trade balance also proved bearish for silver since China is a major consumer of the metal.
-Base metals were mostly under pressure despite copper and zinc posting gains, mostly on the back of China's weak trade balance.
-Copper inventories at Shanghai exchange monitored warehouses are expected to result in lower copper imports in March and April, Goldman Sachs reported.
-A major zinc mine in China remains closed and is expected to be bullish for Chinese zinc exports if the closure extends beyond 3 months.
Global prices of the cotton commodity shot up after India, the second largest exporter of cotton, imposed ban on the commodity.
According to the officials, India imposed ban to ensure sufficient amount for the domestic industries as the exports surged to about 9.5 million bales (170 kilograms each) more than the surplus of 8.4 million bales estimated by the government.
While the government has issued registration certificates for another 2 million bales.
According to United States Department of Agriculture (USDA), India accounts for 17% of global exports in 2011-2012. China is the largest consumer of Indian cotton.
India is expected to produce around 34 million bales of cotton for 2011-12. and is expected to export around 70 million bales.
In Inter-Continental Exchange (ICE), cotton for march delivery gained 0.22 cents to 89.78cents per lb.
While, in India's National Commodity and Derivative Exchange (NCDEX), cotton for March delivery traded up 0.06% to Rs 810 per kg on 9th March at 16:20 IST.
According to the officials, India imposed ban to ensure sufficient amount for the domestic industries as the exports surged to about 9.5 million bales (170 kilograms each) more than the surplus of 8.4 million bales estimated by the government.
While the government has issued registration certificates for another 2 million bales.
According to United States Department of Agriculture (USDA), India accounts for 17% of global exports in 2011-2012. China is the largest consumer of Indian cotton.
India is expected to produce around 34 million bales of cotton for 2011-12. and is expected to export around 70 million bales.
In Inter-Continental Exchange (ICE), cotton for march delivery gained 0.22 cents to 89.78cents per lb.
While, in India's National Commodity and Derivative Exchange (NCDEX), cotton for March delivery traded up 0.06% to Rs 810 per kg on 9th March at 16:20 IST.
