Commodities Correspondent
Pratima's Feed
Jun 29, 2011

UK watchdog to look again at metals warehouses

LONDON, June 29 (Reuters) – The UK anti-competition watchdog
said on Wednesday it will take another look at activity by large
traders on the London Metal Exchange that also own warehouses,
after lawmakers again raised concerns.

A parliamentary committee on Wednesday said it had alerted
the Office of Fair Trading (OFT) to more concerns that the same
firms that trade metals are able to hold large amounts of metal
stored in warehouses monitored by the LME, the world’s top
metals exchange.

Jun 22, 2011

BlackRock says commodity firms likely to hike dividends

LONDON (Reuters) – Commodity-linked companies could potentially pay higher dividends over coming years as earnings rise and balance sheets get stronger, Richard Davis, a fund manager at U.S.-based BlackRock, said.

“Commodity prices are at attractive levels, cash flows are at record levels and earnings are at record levels,” Davis said at a briefing.

Jun 22, 2011

Commodity firms likely to hike dividends: BlackRock

LONDON (Reuters) – Commodity-linked companies could potentially pay higher dividends over coming years as earnings rise and balance sheets get stronger, Richard Davis, a fund manager at U.S.-based BlackRock (BLK.N: Quote, Profile, Research, Stock Buzz), said.

“Commodity prices are at attractive levels, cash flows are at record levels and earnings are at record levels,” Davis said at a briefing.

Jun 21, 2011

Investors spooked by Greece choose gold

LONDON (Reuters) – Gold prices rose on Tuesday as investors spooked by talk of a Greek debt default and contagion to other euro zone countries sought safety while a softer dollar also helped.

Spot gold was bid at $1,543.04 a troy ounce at 1000 GMT (6 a.m. ET) compared with $1,539.95 late in New York on Monday when it touched $1,545.90, its highest since June 9.

Jun 15, 2011

Sovereign debt concerns help buoy gold prices

LONDON (Reuters) – Gold slipped on Wednesday as a stronger dollar prompted a flurry of sales, but investor buying sparked by sovereign debt concerns and inflationary pressures.

Spot gold was bid at $1,518.29 a troy ounce at 0905 GMT (5:05 a.m. ET) from $1,523.25 an ounce late in New York on Tuesday. The precious metal hit a three-week low of $1,511.11 on Monday.

Jun 15, 2011

China to return to copper market, deficit on cards

LONDON (Reuters) – China is likely to return to the copper market and vindicate predictions of a deficit this year, easing current concerns that its absence could fuel a surplus.

The second quarter is when China traditionally buys copper ahead of strong construction and industrial activity in the third quarter. But this year purchases have been deferred, mostly because of record high prices.

Jun 14, 2011

Gold rallies on weaker dollar, jewelry demand

LONDON (Reuters) – Gold rallied on Tuesday as the jewelry sector came looking for bargains, the dollar slipped and investors fretted about the Greek debt crisis.

Spot gold was bid at $1,518.64 a troy ounce at 0929 GMT (5:29 a.m. ET) from $1,514.73 an ounce late in New York on Monday when it suffered its biggest one-day loss in a month, touching a three-week low of $1,511.11 an ounce.

Jun 10, 2011

Analysis: Pensions need new commodity strategy to diversify

LONDON (Reuters) – Pension funds that invest in commodities to diversify portfolios need a different approach that involves understanding fundamentals and targeting certain areas, because the sector as a whole no longer fulfils the role.

Natural resources have historically had a negative correlation with equities. Commodities reflected immediate economic conditions, while the stock market tends to discount expectations for future growth and earnings.

Jun 3, 2011

U.S. credit rating and dollar worries shore up gold

LONDON (Reuters) – Gold held firm on Friday supported by the weaker dollar and a warning from Moody’s that it would consider cutting the United States’ top-notch credit rating if there is no progress on debt talks.

Traders and analysts expect subdued trading ahead of a key monthly jobs report from the United States, the world’s largest economy, which could help determine the future direction of the dollar.

May 27, 2011

Bank deals have led to aluminium surcharges -BMW

LONDON, May 27 (Reuters) – Bank financing deals that have
tied up large amounts of aluminium in London Metal Exchange
(LME) warehouses have led some suppliers to impose surcharges,
German luxury carmaker BMW (BMWG.DE: Quote, Profile, Research, Stock Buzz) said on Friday.

Metal industry sources estimate these deals have tied up a
hefty 70 percent or 3.3 million tonnes of record high aluminium
stocks at 4.7 million tonnes in LME-registered warehouses.
MALSTX-TOTAL