Salient to Investors: Eric Zoldan at JHS Capital Advisors said that over the last two weeks, it is much clearer that while money is flowing out of all asset classes, it is not flowing out of the gold market, and that deteriorating global growth and demand is leading investors back to gold.
READ MORE... →Salient to Investors: Gold held in ETPs are the lowest in 5 years, gold’s 60-day volatility is near a 5-yr low, and open interest near the lowest since 2009. Brian Levitt at OppenheimerFunds sees no compelling reasons to be in gold, and said no inflationary pressures and a Fed that will
READ MORE... →Salient to Investors: Dorab Mistry at Godrej Intl said: Palm oil at a 5-year low creates a buying opportunity for plantation and processing company stocks because producers are still making money. Invest in plantations when palm oil prices are low. In Q4, 2008, when in a similar situation with regard to supply,
READ MORE... →Salient to Investors: Hedge funds’ net-long positions of 18 US-traded commodities rose 18 percent last week to the highest since September 2012. Investors tripled the net-long position in arabica coffee this month to the most bullish since May 2011 Barclays said weather is the big driver of commodities. EPFR Global
READ MORE... →Salient to Investors: EPFR Global said the increase in inflows into commodity funds in 2012 was 92 percent higher than the increase in 2011. The S&P GSCI, of which energy comprises 70 percent, fell 0.9 percent in 2012, the MSCI All-Country World Index rose 13 percent, the Dollar Index fell 0.9 percent, Treasuries returned 2.3 percent. Barclays
READ MORE... →Salient to Investors: US farmers are having their most-profitable year ever because of record-high prices and insurance claims and despite the worst drought in a half century. The government predicts food inflation will accelerate next year, led by meat, dairy and baked goods. The UN said says the global cost of food imports
READ MORE... →Salient to Investors: Rising supply from Brazil potentially hurts demand for US beans. Rabobank Intl said Brazil will displace the US as the largest soybean grower this year and may extend that lead as planting is expanded to meet increased demand from China, the biggest buyer. Jasper van Schaik at Rabobank said Brazil’s share of China’s imports
READ MORE... →Salient to Investors: Commodities beat equities, bonds and the dollar for a second consecutive month, the longest streak in more than a year, showing investors expect policy makers to succeed in stimulating growth. More than two-dozen nations cut market interest rates this year. China has slowed for six quarters. Bill O’Neill at Merrill
READ MORE... →Salient to Investors: Stockpiles of the biggest crops will decline for a third year on drought in three continents. U.S. crops are in the worst condition since 1988, heat waves are battering European crops and India’s monsoon rainfall is 20 percent below normal. Goldman Sachs, Macquarie Group and Credit Suisse say crops will
READ MORE... →Salient to Investors: Corn and soybean traders are bullish for a 15th consecutive week. Hedge funds are holding the biggest bet on higher corn prices since September and almost the largest bet on soybeans since at least 2006. 24 percent of U.S. corn crop and 29 percent of soybeans were in good
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