The rising price of industrial and agricultural commodity futures is straining the ability of many firms to maintain their margins without raising prices. A price increase will always be the last resort, particularly when consumer spending remains depressed and lines of credit are drying up for many buyers. Yet retailers and manufacturers have to find… Read more.
Futures Industry News
Crude oil futures declined on Wednesday, reflecting nervousness about the state of the global economy. On the New York Mercantile Exchange, West Texas Intermediate light, sweet crude oil futures for December delivery slipped 84 cents to trade at $81.50 per barrel. Brent crude oil futures for January 2011 delivery on the IntercontinentalExchange slid 46 cents… Read more.
Global commodity futures markets experienced a major correction over the last five days of trading, as the bullish news from Benjamin Bernanke and the Federal Reserve gave way to much more bearish sentiment from the People's Bank of China and Ireland. The Thomson Reuters/CRB Index, which tracks the prices of 19 key raw materials, dropped… Read more.
The Federal Reserve giveth, and the People's Bank of China taketh away. For a while, it seemed that commodity futures prices had nowhere to go but up. Then speculation that the Chinese central bank would cut back on loose money by raising its interest rates sent commodity futures brokers and traders fleeing for the exits,… Read more.
Gold, other precious metals and base metal commodity futures have been rallying for two straight days as a result of the U.S. Federal Reserve announcing $600 billion worth of quantitative easing on Wednesday, according to the Financial Times. London saw spot gold prices increase during early trade on Friday, rising to a record high of… Read more.
Cotton approached its record price on Thursday as concerns mounted that China will acquire mass amounts of the global demand and deplete the supply, Bloomberg reports. Inclement weather also drove up the price as storms in the United States and coldness in China prompted cotton to climb as much as 1.9 percent to $1.3176 per… Read more.
The U.S. central bank's quantitative easing helped commodity futures rise to their highest level in two years, Bloomberg reports. Demand for raw materials as a hedge against inflation is one offshoot prompted by the Federal Reserve infusing the world's largest economy by announcing yesterday it would purchase $600 billion worth of assets. The Standard &… Read more.
Financial markets were consumed this week with talk of quantitative easing – the prospect that the Federal Reserve will buy assets to pump liquidity into the economy and stimulate economic recovery. Also called monetary stimulus, QE is often thought of as "priming the pump." Once the money is injected, the theory goes, it will drive… Read more.
As the recovery of economies around the world continues, bit by bit, to gather steam, commodity futures traders could experience increased volatility. That's the thesis of Oliver Godin, Societe Generale's head of commodities derivatives in Asia and a respected commentator on the commodity business. "There might be some bumps along the way, and that’s going… Read more.
The worldwide boom in commodities has benefited a number of nations – Brazil, Chile and even the U.S come to mind – but few have done as well from it as Australia. With the capital markets and infrastructure of the developed world, Australia is a nation – indeed, a continent – uniquely blessed with natural… Read more.