Author Topic: Commodities -- News, Views & Analysis  (Read 16390 times)

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um@ir

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Commodities -- News, Views & Analysis
« Reply #-1 on: October 09, 2008, 10:14:52 AM »
NCEL introduces mini-gold futures contract


Thursday, October 09, 2008

By Faryal Najeeb

KARACHI: National Commodity Exchange Ltd Managing Director Assim Jang has said the launching of mini-gold futures contract is not likely to hurt local gold dealers as the gold NCEL dealing in is 100 per cent pure and not gold tezabi that local dealers deal in.

Jang said he believed it would help enhance the business of local gold dealers such as those in Sarafa Bazaar as small investors who would not be able to purchase from NCEL would turn to these small dealers.

“We are in a way also marketing their business that would help them as gold business remains low right now,” he said. NCEL launched its mini-gold futures contract formally on Wednesday whereas earlier a soft launch had already been conducted on September 11, Jang enunciated.

Jang said the main aim was to target households as “there is no saving culture in the country and the general notion is to encourage the action.” He stated this is an opportunity for small investors to deal in short-period futures trading and the response so far has been received tremendously as they were receiving calls from all major cities of Pakistan.

The MD expatiated these mini-gold futures was not likely to affect the local gold rates as they are affected by the global turnover and dollar value rather than any local movements as the gold industry is not that powerful.

« Last Edit: May 06, 2011, 11:11:30 AM by M&M »

Pakinvestorsguide

Commodities -- News, Views & Analysis
« Reply #-1 on: October 09, 2008, 10:14:52 AM »

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Re: Latest News: Commodities
« on: October 11, 2008, 09:45:25 AM »
Gold hits record high
 
Saturday, October 11, 2008
By our correspondent

KARACHI: Gold in the local market hit a record high of Rs23,314 per 10 grams on Friday, up Rs514 in a day.

International gold price touched $922 an ounce, up from $888 on Thursday, crossing the $900 mark for the second time in a week. Gold per tola also hit peak at Rs27,200. All Sindh Sarraf and Jewellers Association, President Haroon Rasheed Chand, said that world financial markets are in turmoil and international gold markets are also feeling pressure with the charged financial sector of the world.

Gold is an attractive commodity these days as the world financial crisis is affecting almost all regions and people prefer the precious metal. Locally, marriage season has started but gold sales are not up to the mark due to declining purchasing power and worst law and order situation in the country. People are coming with their old jewellery and preferring to make light-weight jewellery for their daughters, he added.

Vegoils: Asian vegetable oil markets plummeted on Friday as panicky investors unwound positions amid growing fears of global recession that slows demand and adds to already ballooning stockpiles, according to Reuters.

um@ir

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Re: Latest News: Commodities
« Reply #1 on: October 11, 2008, 03:17:15 PM »
SPI up 30.6pc as prices of flour, sugar, eggs rise.

ISLAMABAD: The Federal Bureau of Statistics (FBS) on Friday reported that weekly inflation measured by Sensitive Price Indicator (SPI) year-on-year for 53 daily use kitchen items for week ending on October 9, 2008 has increased by 30.67 percent as compared to the corresponding week of the last fiscal.

The most depressing aspect of the FBS figures was that in a span of one week, prices of wheat flour up by 12.98 per cent to Rs27.50 per kilogram, wheat 8.41 per cent to Rs24.49 per kg, sugar 7.45 per cent to Rs37.66 per kg, egg (farm) 5.98 per cent to Rs59.87 per dozen, powder milk 5.47 per cent to Rs170 per 400 gram, chicken 3.91 per cent to Rs112.65 per kg, tea prepared by 1.87 per cent to Rs8.18 per cup, gur 1.8 per cent to Rs39.05 per kg and potatoes price up by 1.5 per cent to Rs27.15 per kg.

Inflationary pressure during the week under review was higher on lowest income group earning below Rs3000 per month. For them, SPI registered an increase of 33.04 per cent. Income group Rs3001 to Rs5000, it stood at 31.77 per cent, for Rs 5000 to Rs 12000 it was at 31.25 per cent and for income earners of more than Rs12000, it stood at 30.36 per cent as compared to the same week of the fiscal year 2007.

According to the SPI bulletin, year-on-year the rise in the prices of some necessities and kitchen items was exorbitant. These items were wheat flour, wheat, sugar, powder milk, bananas, onions, chicken, potatoes, L.P.G, tomatoes, gur, firewood, eggs, beef, fresh milk, rice, ghee, petrol, diesel and all type of pulses.

The SPI bulletin based on data collected for about 53 items from 17 centres, showed that 20 items registered increase whereas 14 items showed decline while prices of 19 items remained unchanged.

Further analysis of the data revealed that year-on-year basis; some items are dearer by double digits. These include; kerosene which was costlier by 89 per cent, wheat flour 71 per cent, wheat 71 per cent, potatoes 47 per cent, plain bread 34 per cent, chicken 28 per cent, sugar 27 per cent, egg 25 per cent, curd 23 per cent, cooked beef 23 per cent, firewood 22 per cent, fresh milk 22 per cent and beef price up by 15 per cent over corresponding week of the last fiscal.

Prices of 14 items decreased, yet compared to the prices of corresponding week of last year, items which showed increase in their prices were; masoor pulse dearer by 120 per cent, rice IRRI-6 dearer 83 per cent, gram pulse 54 per cent, rice basmati 53 per cent, mustard oil 51 per cent, LPG 48 per cent, vegetable ghee loose 36 per cent, bananas 27 per cent and red chillies prices up by 21 per cent over corresponding week of the last fiscal.

Though the price of 19 items remained unchanged yet the prices of some items as compared to corresponding week of the last week are still dearer by double digit. These items include diesel, which was costlier by 81 per cent, petrol 52 per cent, tea packet 45 per cent, cooking oil (tin) 45 per cent, vegetable ghee (tin) 43 per cent, bath soap 31 per cent and electric charges up by 16 per cent.

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Re: Latest News: Commodities
« Reply #2 on: October 13, 2008, 09:02:50 AM »
Oil more than three dollars higher in Asia
 
Updated at: 0850 PST, Monday, October 13, 2008   

SINGAPORE: World oil traded more than three dollars higher in Asia on Monday after world leaders united to tackle a global financial crisis.

New York's main contract, light sweet crude for delivery in November, was 3.10 dollars higher at 80.80 dollars a barrel, recovering from one-year lows reached on Friday.

The contract had plunged 8.89 dollars to 77.70 at the end of last week, in tandem with a global equities meltdown on fears of recession that would crimp demand for energy.

Brent North Sea crude for November traded 2.58 dollars higher at 76.67 dollars. On Friday in London, Brent fell by 8.57 dollars to settle at 74.09 dollars. Oil prices have already plunged from record highs above 147 dollars, reached in July, because of demand worries, dealers said.

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Re: Latest News: Commodities
« Reply #3 on: October 14, 2008, 09:17:24 AM »
DAP price surges 46pc in one week
 
Tuesday, October 14, 2008
By Israr Khan

ISLAMABAD: Di-ammonium phosphate (DAP) price has increased by 46.27 per cent (or Rs1,433) to Rs4,530 a bag in only a week which ended on October 9.

In the corresponding week of last fiscal year, DAP price was Rs1,297, a leap of 249 per cent (or Rs3,233) when compared with Oct 9 price of Rs4,530 which may hit hard agriculture growth, the backbone of Pakistan’s economy. Prices of other varieties of fertilisers have also escalated in the range of 38 to 185 per cent compared to the corresponding week of fiscal year 2007, says the Federal Bureau of Statistics (FBS).

Experts believe that usage of fertiliser would fall in FY09 as a result of skyrocketing prices and see grim agriculture growth in the current fiscal year, as farmers are facing acute water shortages. During 2007-08, agriculture growth declined to 1.5 per cent against the target of 4.8 per cent.

Due to high agriculture input prices, most of the poor farmers leave their holdings uncultivated. And if they cultivate, their output is always of lower than expected capacity because of using inadequate amounts of fertilisers. As a result agricultural yield is always low. Even with the fact that Pakistan has the largest canal irrigation system in the world, its average wheat yield ranked 9th, rice (paddy) 14th, sugarcane 14th, seed-cotton 11th and maize 18th in the world.

Growers’ financial miseries have already multiplied as the government has increased the power tariffs of agriculture tube wells in all federating units. Higher energy and fertiliser costs, important inputs for agricultural produce, have contributed to higher prices for all agricultural commodities which look to be permanent.

It is interesting to note that sensing the expected commodities’ price hike in international market and anticipated huge subsidy from the government, influential fertiliser tycoons started importing fertiliser in huge quantum and piled up huge stocks of imported fertilisers in order to cash in on the period of scarcity.

They imported more than two million metric tonnes of fertiliser during fiscal year 2007-08 against 1.4 million metric tonnes during the comparable period of the last fiscal year. While on the other hand, growth in fertilisers’ off-take was very nominal at 3.9 per cent to 2.8 million metric tonnes against 2.7 million metric tonnes in the corresponding period of the previous year. The all time high imports of fertiliser went un-noticed in official circles.

By importing huge amount of fertilisers, these importers doubled their gain by obtaining a huge subsidy from the government and gaining price differential benefit of the commodity in local and international markets.

It is interesting to note that import of the commodity increased during fiscal year 2007-08, yet agriculture growth was at the lowest.

The government has been heavily subsidising the cost at which fertiliser is made available to the farmers. In FY 2007-08, the bill of subsidy was Rs29.5 billion. For the current fiscal 2008-09, Rs35 billion has been kept to subsidise urea, phosphatic and pottasic fertilisers to provide relief to the farming community against the rising prices of fertilisers within the country as well as in the international market.

Another big blow to the masses was that Compressed Natural Gas (CNG) charges have also shot up by 32.61 per cent (or Rs11) to Rs44.85 per kilogram and cement prices by 62.83 per cent (or Rs144) to Rs373 a bag over the corresponding week of the last fiscal.

The cement cartels in Pakistan have got a free hand and they are earning abnormal profits of billions of rupees at the cost of the consumers. It indicates that if persistent increases in these commodities prices are not capped, it may also confront big development projects with cost overrun and swell transportation cost in the coming months.

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Re: Latest News: Commodities
« Reply #4 on: October 14, 2008, 09:18:10 AM »
Oil above $81
 
Tuesday, October 14, 2008

LONDON: Oil held above $81 a barrel on Monday after governments around the world acted to shore up confidence in the global banking system, spurring a rally across commodities and stock markets. But investment bank Goldman Sachs said the financial crisis had already done more damage than it expected to commodity demand and warned that a slide to $50 a barrel for oil could be possible.

US crude for November delivery was up $3.42 at $81.12 a barrel by 1502 GMT, below a session high of $82.52.Prices had plunged on Friday to their lowest since September 10, 2007. London Brent crude was up $2.87 at $76.96 a barrel. “The announcements from over the weekend would have some positive effects on the markets, even though it’s still in very early days at this stage to say if they would put an end to the financial crisis,” said David Moore, a commodities analyst at the Commonwealth Bank of Australia.

Goldman Sachs, a longstanding commodity bull, turned a near-term bear on Monday after conceding that global financial turmoil would take a far bigger toll on demand. It warned that $50 oil was possible if the crisis deepened. “We have underestimated the depth and duration of the global financial crisis and its implications on economic growth and commodity demand,” its commodity markets research team said.

The bank cut its year-end US crude oil target to $70 a barrel, down from a previous forecast of $115 a barrel, and slashed its average 2009 forecast by a third to $86 a barrel. A fall in demand in the United States and other developed economies has helped drive oil down nearly 50 per cent from its July peak above $147 a barrel. A boom in consumption from emerging markets such as China had contributed to a six-year rally in commodity prices.

Oil’s fall has caused some members of the Organisation of the Petroleum Exporting Countries (OPEC) to call for a cut in production levels.

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Re: Latest News: Commodities
« Reply #5 on: October 14, 2008, 09:22:29 AM »
Palm oil up 3.5pc
 
Tuesday, October 14, 2008

JAKARTA: Malaysian palm oil futures closed 3.5 per cent higher on Monday on a rebound, after hitting a 23-month low on Friday, supported by crude oil price rise, some traders said.

A Malaysian government move to raise the annual export quota for crude palm oil by 50 per cent, in an attempt to ease surging inventory that has hurt prices, lent some support to the market, dealers said. The benchmark December contract on the Bursa Malaysia Derivatives Exchange rose 62 ringgit to 1,835 ringgit ($524) a tonne. Contracts for other traded months were mostly higher. Overall volume stood at 17,933 lots of 25 tonnes each.

“Palm price bounced back partly because it has dropped so much relative to crude oil and soybean oil. I think the bottom is not that far off,” said an analyst at a Singapore-based brokerage. The analyst said buyers seemed to be more comfortable now to buy as they may think that “there is not much potential for prices to go down further.”

Malaysia, the world’s second-largest producer of palm oil, will raise its annual export quota for crude palm oil to 3 million tonnes from 2 million tonnes as part of the government’s efforts to help reduce growing palm oil stocks, Commodities Minister Peter Chin said on Monday.

um@ir

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Re: Latest News: Commodities
« Reply #6 on: October 14, 2008, 09:33:13 AM »
Gold tumbles 3pc

LONDON: Gold prices tumbled on Monday as traders unsettled by the metal’s failure to break resistance at $930 an ounce sold the precious metal as stock markets recovered. Gold had risen 2 per cent in earlier trade as the dollar weakened, boosting the precious metal’s appeal as an alternative investment and as prices of oil and other commodities climbed. But it failed to hold those gains. Spot gold fell 3 per cent to a session low of $821.00, and was quoted at $827.75/831.75 an ounce at 1428 GMT, down from $847.40 in late New York trade on Friday.

Pakistan Steel revises prices

By our correspondent

KARACHI: Pakistan Steel (PS) has revised prices of some of its products. A nominal change of some Rs200 to Rs250 has been made. In the international market, steel rates have come down, market sources said, adding that Pakistan is not reaping fruits of low international rates due to the depreciating rupee against the dollar.

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Re: Latest News: Commodities
« Reply #7 on: October 16, 2008, 09:27:36 AM »
Oil falls to 13-month low on economic weakness
 
Thursday, October 16, 2008

LONDON: Oil prices fell on Wednesday to their lowest in 13 months, dragged down by expectations that economic weakness will cut further into demand for crude.

US crude was down $3.76 a barrel at $74.87 by 1504 GMT. It touched a session low of $74.62, its lowest since September last year. London Brent crude was $4.03 down at $70.50 a barrel. Stock markets also fell sharply and the dollar weakened against the yen as global recession fears returned to centre stage after governments around the world pledged trillions of dollars for bank bailouts.

A weak performance from US retailers provided evidence of the slowdown. The retailers suffered their biggest monthly drop in sales in more than three years in September. Recession in the world’s top consumer the United States and other key markets could further dampen oil demand.

The Organisation of the Petroleum Exporting Countries (OPEC) cut its forecasts for world demand for crude next year in its latest monthly report. “Even if governments are successful in calming equity markets and unfreezing credit markets in the near future, the fallout on the real economy from financial market headwinds is expected to be considerable,” it said. OPEC is due to hold an emergency meeting in Vienna next month to review the impact of the global financial crisis on the oil market.

The impact of the credit crisis has contributed to around a 50 per cent drop in oil prices from a record peak in July above $147 a barrel.

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Re: Latest News: Commodities
« Reply #8 on: October 16, 2008, 03:26:53 PM »
Oil price hits 15-month low under 68 dollars
 
Updated at: 1505 PST, Thursday, October 16, 2008   

LONDON: Oil prices slumped further on Thursday, with Brent crude sliding below 68 dollars a barrel to the lowest level for more than 15 months, as slowing energy demand took its toll, traders said.

Crude oil futures were down more than 50 percent from record highs of above 147 dollars reached in July, when prices rocketed on fears of supply disruptions.

In early London trade, Brent North Sea crude for delivery in November slumped to 67.17 dollars a barrel the lowest point since mid-2007. It later recovered to 68.17 dollars by about 0830 GMT, down 2.63 dollars from Wednesday's close.

The contract had ended down 3.73 dollars on Wednesday as mounting fears of a global recession raised expectations of a prolonged slowdown to global energy demand.

In Thursday trade, New York's main futures contract, light sweet crude for November delivery, was down 2.06 dollars at 72.48 dollars a barrel after sinking as low as 71.21.

The Organization of the Petroleum Exporting Countries (OPEC) on Wednesday cut its estimate for growth in demand for oil this year and in 2009 largely because of an "excessive" easing of demand in the United States.

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Re: Latest News: Commodities
« Reply #9 on: October 16, 2008, 03:32:21 PM »
Rupee hits record low of Rs81.25 against dollar
 
Updated at: 1215 PST, Thursday, October 16, 2008   

KARACHI: The national currency touched a new record low against the US dollar in early trading in interbank on Thursday amid mounting economic problems.

The dollar rose to Rs81.25 with the addition of 55 paisas during trading in interbank, while it is selling at Rs84 in open market.

According to Forex market dealers, the dollar closed at Rs80.70 on Wednesday. The currency, which hit its previous record low last week, remains under pressure because of a brewing balance of payments crisis that has led to a steady drain on foreign currency reserves.

The central bank has taken steps to curb speculation against the currency in the past few months. However, economic analysts said that the measures taken by the central bank proved insufficient.

Invest Capital’s Head of Research, Samiullah Tariq told Geo News that the rupee had lost its value, but added that it could gain value by improving foreign inflow in coming days.

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Re: Latest News: Commodities
« Reply #10 on: October 17, 2008, 09:20:45 AM »
Rupee at new low on demand pressure
 
Forex dealers advise general public not to hoard dollar, individuals buying dollar to keep money safe must know it is losing shine globally

Friday, October 17, 2008
By Shahzad Anwar

KARACHI: No change was witnessed in market trend as rupee touched another low price level against US dollar in interbank as well as open market on Thursday.

In open market rupee lost Rs1.50 as the dollar which had closed at Rs82 for buying and Rs82.50 for selling a day back was changing hands at Rs83.50 for buying and Rs84.00 for selling respectively.

“Demand continued to outperform supply on Thursday and rupee suffered losses for the third consecutive day. The buyers continued to demand dollars and there was a persistent rush to buy the greenback,” a forex dealer said.

“People are buying dollars to keep their money safe. This additional demand pressure is becoming difficult to manage and is continuously hurting the exchange rate,” the forex dealers said.

“Unnecessary buying of foreign currencies should be avoided and people should understand that it is a time when such buying of foreign currencies will only be adding problems to the economy and is against the national interest as well,” Syed Nabeel Iqbal at Khanani & Kalia said.

Iqbal added that confidence on national currency should not be lost rather should be restored.

He warned that individuals buying dollars with an opinion that it is safe to keep money in it rather than in Pak rupee should also understand that the US dollar itself is losing its shine globally.

By virtue of increased technical pressure in the interbank where rupee continued to lose grounds against US dollar rupee also came under severe pressure in open market.

In interbank market for the fourth consecutive day, rupee lost ground and traded under severe demand pressure from oil companies and importers while the lower supply of greenback pushed rupee to a new low by touching Rs82 barrier for the first time in its history of trading.

Rupee started to lose from early morning by trading above Rs81.00 level and intense buying pressure edged it lower to Rs82.00 till close. The rupee therefore lost another Rs1.30 during day trading.

The market sources are of the same opinion as it was on Wednesday that in case the same supply position persists, rupee will find itself under pressure in the coming sessions too. It will only get better if SBP supplies some more dollars to the banks to meet their demands as it did last week. However, keeping in mind the existing pressure on foreign exchange reserves, it does not seem possible for SBP to keep on flooding market with dollars. If done so, the market would certainly recover but again for a short term.

Technically, an increase in dollar’s price in the inter bank means an increased price in the open market as well. The physical shortage of dollars continued to stand as the key factor responsible for rupee’s fall in the open market. There is more buying than selling which is not bringing equilibrium in the market and hence, rupee is falling to new lows every day.

“For immediate recovery of the market, sufficient supply of dollars is needed. In case SBP supplies dollars in the market as it did last week, the current price of dollar should come down,” Syed Nabeel Iqbal at Khanani & Kalia said and added that it is hard to expect any major recovery if the current buying trend persists on Friday.

The currency market runs on the basis of sentiments, technical and fundamental. The market sentiments are getting better slowly and gradually on account of diplomatic moves being taken by the government in the form of visits to China, Saudi Arabia, UAE, Iran and ongoing negotiations with international donor agencies including ADB, World Bank and IMF.

Forex dealers said that things will get better; the only thing needed is not to panic and let us together face the challenges being faced by country.

Lahore saw US dollar closing at Rs86 and Rs85 on buying and selling on kerb, The News correspondent from Lahore reports.

The trading of US dollar started at Rs83.50 on selling counter, which reached at Rs85.50 in the first hour of trading. The surging trend in dollar has continued and trading finally closed at Rs86 on selling counters.

The Lahore’s currency market is witnessing shortage of physical US dollar, as there are numerous buyers but no sellers.

Rates of other currencies have also surged in Lahore. Euro closed Rs113.15 on selling and Rs113 on buying, pound sterling closed Rs144.50 and Rs143.50 and UAE Dirham at Rs23.07 and 23.05.

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Re: Latest News: Commodities
« Reply #11 on: October 17, 2008, 09:21:31 AM »
Delay in clearing wheat stock chokes ports
 
 
Friday, October 17, 2008
By Saad Hasan

KARACHI: Inefficient handling of heavy imports of wheat has led to congestion at the country’s ports, officials told The News on Thursday.

As many as 17 ships were waiting for berths at the outer anchorage of Port Qasim and a similar number of vessels are incurring demurrage charge at the Karachi Port.

“At least six ships will have to pay demurrages,” a shipping agent said, adding that one of his clients waiting for a berth since October 2 has been allotted a slot for October 24.

“Demurrage starts to build up after nine days, imagine the needless liability which has been incurred.”

The problem, he said, has been created due to short sightedness of Trading Corporation of Pakistan in planning how it intends to manage 2.5 million tonnes of imported wheat. “Wheat import should have been assigned to the private sector. They would have surely come up with a quicker way of unloading wheat and clearing it from the port.”

The KPT has dedicated two berths for handling wheat cargo. In a communique on Wednesday, it said the rate of wheat discharge from ships was much below acceptable limits. “At present (till Wednesday) approximately 32,836 tonnes of wheat discharged is still lying at the Karachi Port.”

The build-up of wheat stock at Port Qasim has also started to hinder normal operations there. “Around 100,000 tonnes of wheat is lying here, creating problems for the backup operation,” a senior PQA official said. He said Ports and Shipping Minister Naveed Qamar is arriving in Karachi to take stock of the situation.

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Re: Latest News: Commodities
« Reply #12 on: October 17, 2008, 09:23:22 AM »
Cotton farmers may reap rich harvest
 
Friday, October 17, 2008
By Jawwad Rizvi

LAHORE: The country is likely to harvest a good cotton crop as prevailing weather conditions are favourable, but the production may not meet the target of 14.12 million bales.

Farmers of Lodhran, Multan, Khanewal and Vehari are still facing problems in handling their crop due to late sowing but growers in other cotton-growing areas including Faisalabad, Jhang, Rahimyar Khan, Bahawalpur, DG Khan and Khanpur are satisfied with their cultivation.

Sources in the Punjab agriculture department revealed the farmers, who cultivated cotton crop late in Lodhran, Multan, Khanewal and Vehari districts, were mainly encountering problems of pest attack while the crop in other areas was at maturity level. Thus, chances of crop damage by pests are limited, but natural calamity such as hailstorm and windstorm can affect the standing crop.

They said September hailstorm had partly damaged the standing crop of Kabirwala, adding the farmers who had not handled their crop properly in some areas after harvesting sunflower crop were in trouble. Farmers of these areas were mainly affected by non-availability of fertiliser on time, they added.

After cultivating sunflower crop, they said, fertility of land decreased which affected the cotton crop, which meant the crop was weak, increasing the chances of pest attack. To prevent pest attack, the farmers need extra sprays, fertilisers and watering in order to get a handsome crop.

Talking about the actual crop status, they said cotton picking in some areas had started, which would pick up pace in coming days. Actual size of the crop will be clear in next three weeks as field surveys will be completed by that time.

They said the cotton ginners’ association was expecting a good ginning season this year due to a handsome harvest. Dr Mumtaz Warich, member of Farmer Associates of Pakistan from Khanewal, talking to The News said cotton price decreased as arrival of the new crop had started. He said crop condition in some areas was very good while in some other areas it was normal. Currently in majority of the areas, he said, “cotton crop is at maturity stage and chances of pest attack are less.”

However, those who had sown cotton late will face lower per acreage yield which will be 10 to 12 maunds. Average per acre yield ranged between 15 and 16 maunds, he added.

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Re: Latest News: Commodities
« Reply #13 on: October 17, 2008, 09:29:20 AM »
Oil price tumbles to 15-month low under $67
 
 
Friday, October 17, 2008
LONDON: Oil prices slumped further on Thursday, with Brent crude sliding under $67 dollars a barrel, the lowest level for more than 15 months, as slowing energy demand took its toll, traders said.

Crude oil futures were down more than 50 per cent from record highs of above $147 reached in July, when prices had rocketed on fears of supply disruptions. Traders were digesting news that US crude stockpiles rose sharply last week, an indication that demand for energy was slowing in the United States, the world’s biggest oil-consuming nation. OPEC, worried about slumping oil prices, said it was bringing forward an extraordinary meeting on the impact of the current finance crisis on oil rates to October 24 from November.

Brent North Sea crude for delivery in November slumped to $66.42 a barrel, the lowest point since mid-2007, in late London trade. By 1520 GMT, Brent recovered to $66.61, down $4.19 from Wednesday’s close. The contract had ended down $3.73 on Wednesday as mounting fears of a global recession raised expectations of a prolonged slowdown to worldwide energy demand.

In Thursday’s trade, New York’s main futures contract, light sweet crude for November delivery, was down $1.37 at $73.17 a barrel after sinking as low as $71.21, a level last reached in August, 2007. “The fears about this global credit crisis leading to an extended economic slump, and perhaps a recession, really are causing investors to bail out of equities and also oil,” said Victor Shum from the Purvin and Gertz energy consultancy.

Global stock markets sank on Thursday on mounting recession fears, a day after Wall Street’s worst session in more than 20 years. The Organisation of the Petroleum Exporting Countries (OPEC) on Wednesday cut its estimate for growth in demand for oil this year and in 2009 largely because of an “excessive” easing of demand in the United States.

For 2008, the cartel slashed its estimate for growth in demand to 550,000 barrels per day, giving average total demand of about 86.5 million bpd. Oil prices had skidded on Wednesday on recession fears and also following news that a Nigerian court had ordered Anglo-Dutch energy giant Royal Dutch Shell to hand over land to locals, a key demand of armed rebels camped in Nigeria’s crude-producing region.

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Re: Latest News: Commodities
« Reply #14 on: October 17, 2008, 09:31:47 AM »
Palm oil hits 2-year low  
 
Friday, October 17, 2008
JAKARTA: Malaysian crude palm futures dropped to their lowest in two years on Thursday, tracking sliding crude oil prices and amid worries that an accelerating economic slowdown will cut demand, traders said.

The benchmark January contract on the Bursa Malaysia Derivatives Exchange closed 97 ringgit, or 5.55 per cent lower, at 1,651 ringgit ($468) per tonne by the close. The contract earlier fell as low as 1,593 ringgit a tonne, the lowest since October 17, 2006.

“This is the old same story. Crude is down, soy is down, equities are down. Everything is down on the back of fears of severe recession coming in,” a trader at a brokerage in Malaysia said. US crude futures fell more than $3 to $71.52 a barrel on Thursday, as commodity investors rushed for the exit on fears that a global recession would slash energy demand. Palm oil, used in products from soap to biodiesel, has lost two-thirds of its value from an all-time high of 4,486 ringgit a tonne in early March, pressured by increased supplies of global vegetable oils and faltering crude oil prices. Contracts of other traded months fell between 73 ringgit and 105 ringgit.

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Re: Latest News: Commodities
« Reply #15 on: October 17, 2008, 09:33:41 AM »
Friday, October 17, 2008
Gold gains on falling rupee

By our correspondent

KARACHI: Gold in the local market gained Rs342 per 10 grams on Thursday to Rs22,970 on the back of depreciating rupee. However, in the international market gold fell $10 per ounce to reach $837. Haroon Rashid Chand, President All Sindh Sarraf and Jewellers Association said that the US dollar continues to appreciate against the rupee which is helping local gold prices to maintain an uptrend. UAE, the destination where Pakistan imports the yellow metal, has also witnessed an upward trend in its dirham currency against the rupee. Chand said gold is in demand in local markets but it is short in supply as people are looking to invest in the yellow metal.

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Re: Latest News: Commodities
« Reply #16 on: October 17, 2008, 12:45:45 PM »
Dollar selling at Rs85 in open market
 
Updated at: 1145 PST, Friday, October 17, 2008   

KARACHI: The national currency remains under pressure in interbank market, as the dollar is being traded at a new high of Rs83.60.

According to dealers, the US dollar is seen trading at Rs83.60 with the increase of Rs1.60 in the interbank. Meanwhile, Head of Research for Khanani and Kalia Internationals, Nabeel Iqbal said that the dollar has surged to Rs85 in open market.

According to sources, the greenback is gaining frequent value due to sharp decline in foreign exchange reserves. On the other hand, head of Global Markets and Standard Chartered said that some elements in the market wanted to pressurize the government by devaluing the national currency.

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Re: Latest News: Commodities
« Reply #17 on: October 17, 2008, 03:26:24 PM »
Rupee plunges to record low against dollar
 
Updated at: 1457 PST,  Friday, October 17, 2008

KARACHI: The national currency hit a new record low of Rs83.90 against the dollar during trading in interbank here on Friday.

The greenback continued to dominate the national currency in the inter-bank market, dealers said on Friday. The American dollar commenced the day’s trading at Rs81.80 and after gaining strength closed at Rs83.90.

On the other hand, dollar was seen trading at Rs85.50 in the open market.

According to some reports reaching here, dollar is being sold at Rs87 in some money exchangers also. Forex market dealers told Geo News that everybody was looking for dollar and that is why greenback was gaining value over frequent demand.

Experts warned that people doing short-term investment in dollar might face hug losses as world financial institutions and China could provide US$6 billions to Pakistan.

AKD analyst Asad Farid urged on the government to undertake long-term planning for improvement in exports to strengthen the falling economy.

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Re: Latest News: Commodities
« Reply #18 on: October 17, 2008, 03:27:40 PM »
Oil prices rise in Asian market
 
Updated at: 1515 PST, Friday, October 17, 2008   

SINGAPORE: Oil prices rose more than two dollars in Asia on Friday on worries about falling demand, after slipping below 70 dollars for the first time in more than a year.

Analysts said the overall trend was bearish and noted that the OPEC cartel decided to meet earlier than expected next Friday instead of in November to discuss the global financial crisis and its impact on the oil market.

In afternoon trade New York's main futures contract, light sweet crude for November delivery, rose 2.60 dollars to 72.45 dollars per barrel. The contract had fallen 4.69 dollars to 69.85 Thursday at the New York Mercantile Exchange, the first time the benchmark contract closed below the 70-dollar level since August 2007.

Brent North Sea crude for December delivery rose 2.16 dollars to 70.00. The November contract expired at the close of trade Thursday after slumping 4.48 dollars to settle at 66.32 in London.