InvestIdeas

The World Is Feeling the Might of China’s Commodity Traders

Surging metal prices linked to jump in hedge-fund transactions
Cash pours into materials as alternative to stocks, property

They’re chasing better returns in commodities as stocks and real estate fade, often using algorithms and trading late into the night, when markets in London and New York are most active.

China may have more than 5,000 hedge funds active in commodities. At least 10 manage assets of more than 10 billion yuan ($1.4 billion).

About a third of activity on Chinese exchanges is executed by automated commands, which generates more volume and greater momentum on global markets

The stock market is neither dead nor alive. Investment in real estate also got curbed. So all the money is rushing into commodities.”

Source: Bloomberg

https://www.bloomberg.com/news/articles ... ty-traders

These Two Miners Are Going (Very) Deep in Search of Metals

BY MICHAEL A. ROBINSON

Source: Strategic Tech Investor

http://strategictechinvestor.com/2016/1 ... ch-metals/

Dennis Gartman gives his commodity plays for 2017

by Annie Pei

It's been a banner year for the commodities market, but for investors wondering how to play the space in 2017, Dennis Gartman sees volatility in many of the traditional assets.

According to Gartman, "The trade for the next year," or at least for the next few months, is actually in soft agricultural commodities.

"Historically at this time of the year, being long corn and short wheat [is the trade, especially as] the winter wheat crop seems to be in pretty good shape," the editor and publisher of The Gartman Letter said Tuesday on CNBC's "Futures Now."

"We've gotten decent rains and snow where needed, we had some cold temperatures last week that might've done a little damage to the wintering wheat crop but on balance, we will do fine."

But if Gartman were to own a commodity next year, he still believes that gold is the one for investors' portfolios. This even though the yellow metal is seeing its longest losing streak in 12 years, with seven straight weeks of decline.

He says that from a technical standpoint, gold is actually holding its own with a support level around $1,125.

This means that Gartman doesn't see gold dropping below $1,125, even though the metal has plunged more than 10 percent since the election in November.


Source: CNBC

http://www.cnbc.com/2016/12/28/dennis-g ... yptr=yahoo

Fake receipts at Glencore warehouse unit triggered sector credit freeze, Qingdao shivers: sources

By Melanie Burton

Some global banks briefly froze credit lines for Singapore metal traders last month after a unit of commodities giant Glencore uncovered fake warehousing receipts, people familiar with the matter said, reviving the specter of a $3 billion scandal that rocked the trading world three years ago.

Source: Reuters

http://www.reuters.com/article/us-metal ... ess%200900

Expect commodity stocks to dive in 2017

By Jeff Reeves

Higher interest rates will boost the dollar and defaults

Consider going underweight in energy and mining stocks as commodity companies face eroding profits.

1. Rising rates mean a stronger dollar
2. A stronger dollar means weak commodity prices
3. Defaults will spike again for commodity stocks

Source: Market Watch

http://www.marketwatch.com/story/expect ... yptr=yahoo

Investors Confident Of A Big Upwards Move In Commodity Prices

Investment bank Citigroup forecasts commodity prices will increase this year on strengthening demand in China and mounting inflation inspired by President Donald Trump’s “America First” policies.

Commodity assets under management globally stood at $391 billion in January, up 50 percent from the same time the previous year, according to Citigroup.

Hedge fund managers significantly raised their bets that copper and oil prices have much further to climb.

Global manufacturing activity has expanded for the past six straight months, a good sign for commodities demand going forward.

Global purchasing managers’ index (PMI) advanced to a 69-month high of 52.9 in February, with strong showings from the U.S. and Eurozone.

The bulk of the infrastructure need is in East Asia, which is seeking more than $16 trillion between now and 2030.

Currently, 25 economies in the region are spending a combined $881 billion annually on such projects, leaving a substantial spending gap for global investors to fill. Th

One trillion dollars sounds like a lot, but it falls remarkably short of the $3.9 trillion the U.S. needs by 2025 to rebuild its own aging infrastructure.

Source: Oilprice.com

http://finance.yahoo.com/news/investors ... 00035.html

Palladium, platinum, zinc, sugar, cocoa and nickel are just a few of the markets where supplies are falling short of demand.

Source: Oxford Club

Shhh! The Market’s Signaling a New Bull Market in Commodities

By Eric Fry

The “supercycle” follows the rise and fall of commodities (oil, metal, raw materials, etc.) prices over a span of 10 to 20 years.

The previous commodity supercycle lasted 17 years and ended last year.

Between the start of the cycle in 1999 and its peak in 2008, the Thomson Reuters CRB Commodity Index quadrupled!

The CRB advanced more than 25% between February of last year and January of this year. And many individual commodities gained twice as much.

Nickel, zinc, natural gas, sugar, silver and crude oil all soared more than 50% during the year.

Palladium, platinum, zinc, sugar, cocoa and nickel are just a few of the markets where supplies are falling short of demand.

Source: The Oxford Club

http://wealthyretirement.com/rising-rat ... ?src=email

Japanese snack giant Calbee hit by potato shortage
http://www.bbc.com/news/business-39574512

Metals Extend Sell-Off on Mounting Concerns Over Demand in China

by Mark Burton

Prices pressured by slowdown in China’s manufacturing sector
Nickel sinks after Philippines rejected Environment Secretary

Metals extended their biggest daily plunge this year, buffeted by signs of ample supplies of copper, and concerns over demand in China.

Iron ore tumbled in Dalian, steel plummeted in Shanghai and mining shares slid to the lowest level in four months.

Source: Bloomberg

https://www.bloomberg.com/news/articles ... e-november