Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Bobby Yellin who wrote (33208)	5/5/1999 7:38:00 PM
From: goldsnow	Respond to of 116762

with the left turn? :)

To: Bobby Yellin who wrote (33208)	5/5/1999 7:45:00 PM
From: goldsnow	Respond to of 116762

Top World News Wed, 05 May 1999, 7:42pm EDT World Bank Says Commodity Price Plunge Ends After 3 Years as Oil Surges By Roger Runningen Commodity Price Plunge Ends as Oil Prices Rise, World Bank Says Washington, May 5 (Bloomberg) -- The three-year drop in world commodity prices is probably over as oil exporters cut output and Asia shows signs of economic recovery, the World Bank said. Still, although oil prices have rebounded as much as 83 percent since a 12-year low in December after OPEC members cut production, prices of grains, metals, minerals, and other products are likely to stay weak because of huge supplies. ''The sharp declines in most commodity prices are probably over,'' the World Bank said. ''The recovery of prices is expected to be slow and faltering.'' The forecast covers 28 commodities -- from crude oil and natural gas to wheat, cotton, and copper -- that are tracked by a team of World Bank economists. ''Pricing bouncing along at the bottom is one way to put it, and it could occur for several years,'' economist Don Mitchell said. The exception is oil, which by the end of April showed a price rebound as members of OPEC made 83 percent of their total promised oil output cuts in April in an effort to slash a glut and raise prices. ''They've been reasonably compliant, and that means the benefits we've seen from cheap prices last year are over,'' said Shane Streifel, an energy economist at the World Bank. Crude oil for June delivery closed yesterday at $18.92 a barrel on the New York Mercantile Exchange, up 83 percent from a 12-year low of $10.35 in December. Oil today fell to as low as $18.45 on concern U.S. refiners will need less than had been expected to meet gasoline demand. Ample Oil Supplies Though crude oil supplies remain ample now, even a 70 percent compliance rate would mean 1.5 million barrels less of output each day, enough to create lean supplies in the second half of 1999. ''If there's a cold winter, you could indeed have a tight market,'' Streifel said. For now, though, the World Bank projects crude oil prices averaging $14.50 a barrel during 1999, up from $13.07 last year. In 2000, prices could average $16.50 a barrel. For other commodities, prices will barely budge over the next year or two, the World Bank said. Excluding energy, commodity prices have declined by 29 percent over the last 34 months. The Bridge-Commodity Research Bureau index of commodity prices fell to 182.93 on Feb. 26, the lowest since July 1975. It rose 0.37 yesterday to 192.66. Grain stockpiles held by the world's major exporters more than doubled to 140 million metric tons in the last three years, damping prices. Exceeded Production Sugar harvests have exceeded production for the fourth straight year, sending prices to a 14-year low last week. Metal stocks are near record levels, and copper supplies at the London Metal Exchange were the highest ever, at the end of April. The stock markets in Japan, South Korea, and Thailand are showing signs of recovery, along with industrial production, suggesting that food and raw material prices will stop their slide. ''Until there's a fairly good recovery in Asia, I don't think commodity prices are going to rise very much,'' Mitchell said. Even if the signs of recovery in Asia ''are unmistakable in a year or two, then recovery in commodities is a year or two after that.'' ©1999 Bloomberg L.P. All rights reserved. Terms of Service, Privacy Policy and Trademarks.

To: Bobby Yellin who wrote (33208)	5/5/1999 10:27:00 PM
From: Alex	Read Replies (1) \| Respond to of 116762

SBI may get MoF nod to hedge gold overseas Jayanthi Iyengar New Delhi 5 May The State Bank of India (SBI) will be permitted to hedge the gold raised through the gold bond scheme in the international market. Currently, only entities which trade in commodities are permitted to hedge in markets abroad. According to finance ministry officials, SBI would be considered a commodity trader for the purposes of hedging the gold raised by it through the bond scheme. The government has so far not permitted others to hedge in the international market fearing that it would lead to speculation. While freed commodity trading is new to the country, hedging in the global markets is of even newer origin. The government allowed companies to hedge in the international market following the recommendations, and acceptance, of the R V Gupta committee on hedging. Initially, when the Unit Trust India (UTI) had sought government permission to come out with gold-linked units, finance ministry officials had maintained that it was not necessary to hedge in the international market. They felt it was sufficient to do so domestically. Since then, new guidelines for hedging through international commodity exchanges have been announced by the government. Officials now say that this facility would now also be extended to the SBI. Hedging in the international market was permitted in order to make Indian producers more efficient, thereby enabling them to compete in the international markets. Hence, the facility was made available to Indian companies having genuine underlying exposures, through authorised dealers. According to the norms, hedging on the recognised international exchanges is permitted only through brokerage firms which are clearing members of exchanges. Currently, all standard exchange traded future, options contracts (purchase) are permitted. The tenure of the contract is usually six months, beyond which the RBI's approval is required. Only crude and petroleum products have been excluded from the scope of this facility. Since SBI will be trading in gold abroad — exchanging jewellery for pure gold with foreign banks, as also selling and investing some of the proceeds abroad — the hedging facility will permit it to guard against unexpected losses on account of unforeseen price movements. economictimes.com