|
|
|
| March 31, 2008 | | 'Bull run in commodities market will continue'
Generally, it has been seen that commodity prices are driven higher by surging demand throughout the world. But the irony is that the latest surge comes amid concerns about a weaker global economy. At present, commodities prices are rising because the U.S. interest rates are falling below the rate of inflation.
Soon, blue cotton to storm the world!
Monsanto has envisaged the transfer of a gene from a blue flower to the cotton plant to produce blue cotton. Monsanto's current Blue Cotton programme is aimed at the jeans market ($10 bn in the US and £800 mn in the UK) and involves the transfer of a gene from a blue flower to the cotton plant. Coloured cotton is also being produced not only by conventional genetic selection but also by direct DNA engineering. Naturally coloured cotton is a new way to preserve the eco system.
There will never be too much oil
Peak oil has been a matter of discussion in recent times. Christophe de Margerie, the Chief Executive of Total in France, says the world will never produce 100 mn barrels per day of oil; we currently produce around 85 mn barrels per day of oil. In UK, it is widely understood by the general public that the U.K. is going to be a net importer of energy from now on. Peak oil is a reality. It may take a generation for all the effects to be played out but they will be played out.
The arithmetic of global futures trading
The leverage of futures trading stems from the fact that only a relatively small amount of money (known as initial margin) is required to buy or sell a futures contract. On a particular day, a margin deposit of only $1,000 might enable you to buy or sell a futures contract covering $25,000 worth of soybeans. Or for $10,000, you might be able to purchase a futures contract covering common stocks worth $260,000.
| | | |
| March 29, 2008 | | Hazards of inflation: Zimbabwe at 100,000%
Zimbabwe is a classic case of how inflation can make life hell for people. The basic flaw in Zimbabwe's economy is that Zimbabwe lost its ability to feed itself. India's wheat, rice, pulses and edible oil production is not enough to keep pace with the growth the country is witnessing. If inflation is not kept in check, India might go the Zimbabwe way. The situation in Zimbabwe has hit several Indians badly. Many of the Indian businessmen there find it difficult to do trade.
Of Budget, loans and soaring prices
The Central government hiked the minimum export price of non-Basmati rice from $650 to $ 1,000. As the govt struggles to rein in the rising inflation rates, it is clear that the farm loan waiver in the Budget is not a permanent solution. The cost of growing food is increasing each day and this will continue to push farmers to take loans to survive. To check inflation the govt will have to continue to control food prices. The move to waive farmer loans then seems meaningless.
Will India witness riots for daal-chawal?
India is heading for a major rise in food prices especially rice and pulses. Following the global trend and anticipating a shortage, Central government has raised the minimum price for non-Basmati rice exports. Other countries like Egypt and Cambodia have imposed restrictions on export of rice. With rice being staple food in many countries export restrictions will affect prices in the importing countries. These countries are already facing social unrest over high food prices.
Inflation redefines value of money
A common man understands that there is inflation when he buys his usual list of commodities from the market. A simple definition of inflation is an increase in prices and or decline in purchasing power. Over the years, the definition of inflation has undergone a change. In India, inflation is a political issue but a lower inflation rate does not guarantee success in elections. But, political parties need to go by public sentiments, which are often against a rising inflation.
| | | |
| March 27, 2008 | | Meeting water scarcity challenges
Provision of safe drinking water is considered today as fundamental to good governance to promote good health and welfare of the people. The states strive to resolve the issue involved in making safe drinking water accessible to all and to tackle the ever increasing concerns of depletion of ground water tables and quality problems that affect its sources. Considering the magnitude of the problem, the Central Government supplements the efforts of the State Governments in this
US recession: Commodities will struggle
Eben Esterhuizen, a financial news analyst and writer for The Panelist, asks the question of the month: is this the end of the commodity bull run? History suggests that commodity prices will move lower if the US enters a recession, and historical evidence also rejects the notion that emerging market growth will continue to support commodity prices during a US recession.
| | | |
| March 20, 2008 | | Is the bull run in commodities over?
Is the bull market in commodities over? The 75 per cent reduction in the Federal funds rate and big rally in the stock market has some wondering if the whole cycle of monetary stimulus may be almost finished.
How far away is the US recession
This is clearly the worst financial problem we've had since the Great Depression," as Joseph Stiglitz told a radio show in New Zealand on Wednesday morning.
Textile industry to create 45 million jobs
Minister of State for Textiles, E V K S Elangovan said the government expects an increase in employment of 45.19 million persons in the textile industry by the terminal year of the Eleventh Plan. Consequently, the total employment in the textile sector including allied industries is projected to increase to 105.39 million persons in 2011-12 from the present level of 88.02 million persons, resulting in a net addition of 17.37 million persons.
Will gold prices drop?
After a rally in gold that led to the international prices zooming to $1030 an ounce, will gold price reverse direction based on Wednesday's price level of $940?
| | | |
| March 19, 2008 | | Will edible oil export ban help rein in inflation?
The 'Ban Raj' is back. In an effort to rein in rising inflation, the Centre has banned export of all edible oils from the country.
APMCs helping farmers? Not really
A one day strike by the Agriculture Produce Marketing Committees of Gujarat on 18 March, 2008 protesting against taxing of marketing yards in the recent budget is much more than to do with any taxation. It is more to do with transparency.
A farmer's innovative success story
Successful boro cropping with record high yields has brought a degree of fame to Rajib
The man behind India's first power exchange
Jayant Deo, an expert in energy sector has been promoting the concept of power exchange, a common platform for buying and selling power under Electricity Act 2003. His efforts have been fruitful and India's first power exchange will go Live in the first quarter of 2008.
Inflation Vs Gold: Complementing each other
Monetary inflation causes price inflation, because an excess of money reduces the value of each monetary unit. But while almost everyone sees price inflation when it happens, few people notice the monetary inflation that causes it.
| | | |
| March 17, 2008 | | IEX to transform electricity trade in India
Indian Energy Exchange has joined world's leading power exchanges like Powernext (France), EEX (Germany, Northern Europe), PJM (USA), JEPX (Japan and Norway's Nordpool which is the largest power exchange in the world). IEX, India's first power exchange got its approval from CERC on August 31, 2007. It is promoted by Financial Technologies Ltd & PTC financial services, a wholly owned subsidiary of PTC India Ltd. Joseph Massey, Deputy MD of MCX, is in charge of the exchange.
Will the loan waiver help farmers?
Experts believe that waiving off farmers' loans is not the right solution to their problems. If the government puts this money in developing protected agricultural practices, drip irrigation facilities, creating aggregators for the farmers to play in the Futures market and teach them the modern farming methods, they will manage the rest. Farmers usually don't get loans from banks and have to go to moneylenders. They mortgage not just their land, but also homes and equipments.
'Nothing can stop the commodity market'
If a commodity market is to grow, nothing can stop it. We are in a market driven economy. You may keep it under wraps for some time but not long. Today, commodities market is very vibrant. I do not see any hostile institution in this market.
Investing? Go for commodities
Globally, from Jim Rogers to Warren Buffet, many investors now treat commodities as the best investment opportunity mainly because commodities are real assets.
Can Fed further boost rising gold prices?
Production from many gold producing regions of the world is currently constrained by power shortages; and rapidly inflating development costs are causing the postponement of several otherwise promising development projects around the world.
Will peak oil be a fuel for US recession?
The U.S. economy is also interdependent and in many ways dependent. Especially on oil. In a week where the Nymex price for a barrel of crude reached $111 this really should be apparent. Yet this does not seem to have deterred the recklessness driving the U.S. fiscal outlook.
| | | |
| March 13, 2008 | | Commodities are hot when stock market is shaky
Some of the hard and soft commodities in the resource universe are printing endless new highs, enriching producers. Analysts continue to deliver rosy forecasts and raise target prices on the commodities themselves and most of their related equities. Despite this fact, companies lower down in the food chain than the production level are not responding at all.
Commodity prices skyrocket in global market
According to the WB datat, February witnessed a 40 per cent rise in coal prices and 24 per cent in rice. To add to that fuel, food, fibre, and metals saw double-digit jump in global prices. Rice went up 24 per cent due to limited export supplies, deteriorating prospects for the next crop, and the impact of higher wheat prices. Lead jumped 18 per cent on falling stocks, strong battery demand in China, and weather-related supply reductions, also in China.
| | | |
| March 10, 2008 | | Does US face agricultural terrorism?
US experts were pondering on the safety of food imported into US from developing countries. In lieu of this thought process, a new trend has emerged in America of preferring locally produced food. This trend is affecting Wal Mart and Whole Foods too. It has been observed that when food travels far, the local community are the least benefitted out of the exports. But the trend to grow more locally will seriously affect nations that depend largely on agricultural exports.
Will gold fall or rise yet again?
Gold is nearing the psychological barrier of $1000. This is truly dismal picture for investors thinking in terms of the US dollar. But in term of Australian Dollar or the Japanese Yen or even British Pounds Sterling and Euro, the gold price rise is not so outrageous. The rampant rise in gold price can be attributed to the falling dollar, as the dollar is the only other thing that matches gold's security. One can hold gold simply to preserve wealth and as security instrument.
| | | |
| March 06, 2008 | | How to beat CTT to make money
With the introduction of CTT, commodity players raise their doubts about the fledgling futures market.
Why wealth is moving out of US
Following the declining dollar, investor nations are buying gold. There is a discernible return to Gold Standard in global trading from the current Dollar Standard.
| | | |
| March 03, 2008 | | After carbon credits, why not hydrogen credits?
When green house gas emissions began to shoot through the roof an innovative solution was found by introducing the concept of carbon credits. If you pollute you have to buy carbon credits which add to the company's operational expenses or cut emissions and create carbon credits that can be sold.
FMC opposes commodities transaction tax
On Sunday, exchanges and brokers got support against CTT from the apex commodities market regulator--the Forward Markets Commission. The regulator said that it would take up the demand for CTT withdrawal with finance minister Chidambaram.
How much gold does Reserve Bank hold in India?
In the wake of the Chinese war, it was felt in some circles that it would be feasible to make a frontal attack on demand for gold in India. Accordingly, the Gold Control Order 1962 was issued, banning the making and selling of jewellery above 14 carats, making it compulsory for gold smiths to be licensed and submit accounts of all gold received and utilized by them etc., The measures met with lot of resistance and criticism.
| | | |
| February 23, 2008 | | Interest rates: Time to think fresh?
Differing interest rates have always baffled common investors. May be it is time to take a fresh look at interest rates and their impacts.
Trading CEOs in futures market?
As the next step in futures market, traders can consider putting CEOs, bollywood stars and cricketers up for trading in the market.
| | | |
| February 20, 2008 | | Can India keep up the growth momentum?
The world economic scene is no longer as benign as it was in recent years, which saw many countries moving to a higher growth path in conditions of low interest rates and low inflation.
ATM: Any time milk machines!
Come to Gujarat's Anand town, the cradle of India's White Revolution. In a first of its kind, the Amul Dairy recently began trials for milk cards on its newly-installed milk vending machine in Anand. Now you can keep one more plastic card in your wallet and buy milk at any ATMs installed by the Amul Dairy.
| | | |
| January 30, 2008 | | Is the US credit crisis over?
The crisis in confidence in the banking sector is easing. Banks in Europe and America have taken substantial losses both in their proprietary trading departments and in their loan portfolios.
Why ArcelorMittal is not in favour of Steel Futures
ArcelorMittal does not favour futures trading in steel, as it could distort the prices of the commodity completely.
| | | |
| January 16, 2008 | | Will gold price crash in India?
Gold had hit an all-time high of Rs 11,492 on the Multi Commodity Exchange, the largest commodity bourse. The gold contract has gone up more than 7 per cent so far in 2008. Traders said the demand for gold is dull, as many people are expecting that the prices will come down.
| | | |
| January 15, 2008 | | Global oil shortage looms large
Global oil shortage is looming large. While the tug-of-war over oil is waging across the world, Hydrogen Regeneration can be a viable option.
What is the advantage in holding gold
When the western world went on holiday for Christmas the gold price looked as though it might attempt a drop to test $775 per ounce, potentially falling from just above $800.
| | | |
| January 08, 2008 | | Of gold and the bull market
James talks about the gold and silver markets, and shares his views on several interesting companies.
| | | |
| January 07, 2008 | | Which is world's most expensive spice?
It is saffron, (botanical name Crocus Sativus). Derived from the dried reddish-purple stigmas of the saffron crocus, it takes anything from 70,000 to 250,000 flowers to make one pound of saffron.
How $100 crude oil affects Indian cos
ONGC and Oil India might be hit because of this additional burden which they might have to take because of crude going to $100 per barrel.
| | | |
| January 05, 2008 | | Want to make money from rising oil prices?
As global tensions put pressure on the cost of crude oil, sending petrol prices above £1 a litre across the UK, This is Money investment writer Philip Scott investigates how investors can profit from rising oil prices.
Gold: The most glamorous commodity
Gold has tripled in price, from $270 an ounce to over $850. Still, it may have further to go. In real terms, given the massive devaluation of the dollar since 1980, gold is relatively cheap. It's not the bargain it once was, but it could move higher.
| | | |
| January 04, 2008 | | Gold versus oil, metals and currencies
When demand for the dollar outstrips the supply, the value of dollars goes up. But the supply of dollars has been rising steadily at an average of 10 per cent annually from less than $1 trillion in 1980 to over $12 trillion today -- and the fundamentals for gold today have much to do with the resulting drop in demand for dollars.
Oil politics, US and global economy
Close this undeniably, crude oil price levels have shot up considerably since the start of the year.
Shrinking dollar and surging gold
Want a racing certainty for the coming year? Take a look at the dollar and gold... Who can say what 2008 may bring? A post-Olympics crash in China, perhaps, tipping its near-10 per cent annual rate of expansion into an historic slump.
| | | |
| January 03, 2008 | | Gold price surges to record levels
Gold prices topped $860 an ounce Wednesday as a weak U.S. dollar coupled with a record-setting push to $100 oil spurred demand for the precious metal.
Hot commodities of 2007
It's time for the annual fest of figures and charts to review a selection of the key trends in 2007 for commodities and mining shares.
Know the commodities traded in global exchanges
Do you know which are the major commodity exchanges in the world, and what are the commodities traded in each bourse?
Gold: The most happening commodity in 2008
Gold bugs celebrated the immediate returns, and remain confident the returns will continue throughout 2008 - but some near-term volatility may be in the books.
Commodities: A preview of 2008
2008 is the year of the rat. The Chinese Zodiac says the year of the rat will be volatile for commodities and equities. However 2008 is the year of the Earth Rat, which is prosperous for the earth and metal industries.
| | | |
|
|
|
|
|
|
 Advertisement |
|
|
|
Email this Page
