Options Update: Freeport-McMoRan Calls Active as Shares Rally on Copper Runup originally appeared on BloggingStocks on Thu, 24 Mar 2011 08:50:00 EST. Please see our terms for use of feeds.

Freeport McMoran Copper (FCX) is a miner of copper, gold and molybdenum. It has operations in North and South America, Indonesia and Africa, and competes with other miners such as the Southern Copper (SCCO), Codelco and Newmont Mining (NEM).

Continue reading Should Freeport Pursue Lundin Mining?

Should Freeport Pursue Lundin Mining? originally appeared on BloggingStocks on Thu, 10 Mar 2011 12:40:00 EST. Please see our terms for use of feeds.

The world is screaming for copper. Demand from China, the U.S. and Europe is pushing prices to all-time highs. London copper traded at $10,000 a metric ton. On the New York Mercantile Exchange, copper hit $.4.58 a pound, as reported in the Wall Street Journal.

Traders are looking for "five dollar copper," which would push London's price to $11,000 per metric ton. Goldman Sachs (GS) forecasts that copper will average $10,230 a metric ton in 2011, up 15%. It warned that new mine capacity will not come to market for at least two years.

Continue reading Copper Sets Record $10,000 a Metric Ton

Copper Sets Record $10,000 a Metric Ton originally appeared on BloggingStocks on Thu, 03 Feb 2011 12:30:00 EST. Please see our terms for use of feeds.

With the surge in copper prices -- and other industrial and precious metals -- it was no surprise that Freeport-McMoRan Copper & Gold (FCX) had a great quarter. Net income rose 60% to $1.55 billion or $3.25 per share. Excluding a $0.01 charge, the earnings handily beat the consensus of $3.03. As for the top line, revenues increased 22% to $5.6 billion. The Street estimate was for $5.47 billion.

Despite all this, the stock was off nearly 6% early Thursday. No doubt, one reason is that it has had a strong run over the past few months and the valuation was getting overextended.

Continue reading Freeport-McMoRan's Forecast Overshadows Strong Quarter

Freeport-McMoRan's Forecast Overshadows Strong Quarter originally appeared on BloggingStocks on Thu, 20 Jan 2011 11:30:00 EST. Please see our terms for use of feeds.

Newmont Mining (NEM), first discussed here on June 3, 2009, at a price of $46.42, retreated slightly in late 2010 after pushing through $65, but that may be viewed as opportunity to consider the shares, if you missed the June 2009 entry point.

Newmont has the right commodities for globalization's third decade: copper and gold. However, it's not a stock for squeamish or low-risk investors: Newmont's stock practically defines uptrend volatility. Therefore, if you're looking for a steady, predictable, staircase north, it's probably best to skip NEM.

Continue reading Newmont Mining: Take Advantage of the Bull Market in Copper

Newmont Mining: Take Advantage of the Bull Market in Copper originally appeared on BloggingStocks on Thu, 06 Jan 2011 11:00:00 EST. Please see our terms for use of feeds.

Looking back can be painful, especially if you missed the biggest bull move of the year. The star performer was palladium, which is used in catalytic converters. The metal rallied 95% during 2010, according to the Financial Times.

One major reason for the jump was the belief that Russia has exhausted its stockpiles of palladium that they had accumulated during the Cold War. The big metals trader, Johnson Matthey, said that palladium could swing into a "serious deficit" if sales from the Russian government diminish.

On the futures market, March palladium touched $800 per ounce. Some analysts are forecasting $1,000 per ounce in 2011.

Continue reading Palladium: Best Performer of 2010, Hits Nine-Year High

Palladium: Best Performer of 2010, Hits Nine-Year High originally appeared on BloggingStocks on Mon, 03 Jan 2011 09:30:00 EST. Please see our terms for use of feeds.

Over the years there have been some strange goings on in the commodity markets. One episode that comes to mind is the attempt by the Hunt brothers of Texas to corner the silver market in the 1970s.

Now we have another strange occurrence. The Financial Times reported that one trader holds 80% to 90% of the copper in the London Metals Exchange (LME) warehouses, valued at about $3 billion. We do know that JPMorgan Chase (JPM) is a big player in the copper market. Whether JPMorgan increased its holdings is not known.

Continue reading Single Trader Dominates Copper in London Metals Exchange

Single Trader Dominates Copper in London Metals Exchange originally appeared on BloggingStocks on Fri, 24 Dec 2010 11:00:00 EST. Please see our terms for use of feeds.

Continue reading Copper Sets New Record High

Copper Sets New Record High originally appeared on BloggingStocks on Mon, 13 Dec 2010 14:00:00 EST. Please see our terms for use of feeds.

Continue reading Copper Gains Glamour as Hedge

Copper Gains Glamour as Hedge originally appeared on BloggingStocks on Tue, 07 Dec 2010 14:30:00 EST. Please see our terms for use of feeds.

Over the past couple of weeks, a mystery trader purchased more than 50% of all the copper stocks on the London Metals Exchange, valued at over $1 billion. There were rumors that whoever it was is trying to corner the copper market.

As it happens the mystery bank is JPMorgan Chase (JPM), The Wall Street Journal reported, citing The London Daily Telegraph. The bank bought some of the copper for clients. But the bank owns a large chunk, estimated at 175,000 metric tons.

Continue reading JPMorgan Buys 50% of London Copper Stocks

JPMorgan Buys 50% of London Copper Stocks originally appeared on BloggingStocks on Tue, 07 Dec 2010 09:30:00 EST. Please see our terms for use of feeds.

Gold keeps powering to new record highs amid a battery of speculations. Mari Kooi, CEO of Wolf Asset Management International LLC, sees gold rising 64% to $2,200 per ounce, Bloomberg reported.

If we look for a key reason for the gold rally, the most obvious one is the weak U.S. dollar. Kooi believes the dollar will fall another 20% within the next 12 months. A falling dollar will spark higher commodity prices and create inflation.

The dollar "will fall as people perceive that the Fed will do anything to fuel growth," Kooi told Bloomberg. "Commodities are going to be a hot thing."

Continue reading Kooi Forecasts Gold to Rise to $2,200 per Ounce

Kooi Forecasts Gold to Rise to $2,200 per Ounce originally appeared on BloggingStocks on Thu, 07 Oct 2010 10:30:00 EST. Please see our terms for use of feeds.

First off we should distinguish between precious metals and base metals. Copper and zinc fall in the category of base metals. Base metals are used in construction and products. So copper and zinc are more a supply-and-demand play than precious metals. The prices of base metals move almost in lock-step to basic supply.

Goldman Sachs Group (GS) has an international division that specializes in commodities. Much of the data comes from London, which is a hub for commodities trading. The London Metals Exchange (LME) is where this trading takes place. Traders like Goldman can monitor trading and inventories at the LME and run estimates of supply and demand based on trading activity, both on and off exchanges.

Continue reading Goldman Sachs Forecasts $11,000 a Ton for Copper

Goldman Sachs Forecasts $11,000 a Ton for Copper originally appeared on BloggingStocks on Tue, 05 Oct 2010 13:40:00 EST. Please see our terms for use of feeds.

I'm betting on a substantial rise in copper prices. It seems like a sure bet to me. As global manufacturing interests are attempting to excite production and governments are attempting to re-energize consumerism, warehouse supplies of copper have been declining.

Yet, this alone is not what piques my interest. Two other significant factors are converging with a reduced copper stockpile, creating what I see as an undeniable, medium-term investment opportunity.

Continue reading Why Go Long on Copper?

Why Go Long on Copper? originally appeared on BloggingStocks on Wed, 29 Sep 2010 12:00:00 EST. Please see our terms for use of feeds.

Options Update: Freeport McMoRan Volatility Flat as Shares Rally originally appeared on BloggingStocks on Wed, 22 Sep 2010 17:40:00 EST. Please see our terms for use of feeds.

Why has the price of tin jumped in recent weeks? The economic rebound in Japan and parts of Europe has spurred increased demand for the commodity. Tin is used for soldering, especially in electronics. Inventories are down 50%.

The increased demand has come with falling production, especially in Indonesia, the world's largest producer. Tin prices have risen 30% in two months. On the London Metals Exchange (LME), tin traded as high as $20,750 per ton. This is the highest level since August 2008.

Continue reading Tin Prices Soar to Over $20,000 per Ton

Tin Prices Soar to Over $20,000 per Ton originally appeared on BloggingStocks on Fri, 06 Aug 2010 09:30:00 EST. Please see our terms for use of feeds.

Continue reading Are Oil, Copper, Aluminum Draw-Downs Sending an Economic Signal?

Are Oil, Copper, Aluminum Draw-Downs Sending an Economic Signal? originally appeared on BloggingStocks on Fri, 16 Jul 2010 16:40:00 EST. Please see our terms for use of feeds.

From Iraq oil to Afghanistan minerals. A Pentagon team and U.S. geologists discovered mineral deposits valued upwards of $1 trillion dollars. Deposits of iron, copper, cobalt, gold and lithium are scattered throughout the country, mainly in the south and east, near the border with Pakistan. This is the area where the Taliban strongholds are located.

The U.S. team estimates that development of Afghanistan's mineral deposits would make them a major world producer. Already China has invested $4 billion to develop the Aynak copper mine. Other players would include Russia and India.

Continue reading $1 Trillion in Mineral Deposits Discovered in Afghanistan

$1 Trillion in Mineral Deposits Discovered in Afghanistan originally appeared on BloggingStocks on Mon, 14 Jun 2010 11:30:00 EST. Please see our terms for use of feeds.

Continue reading Commodity Metals Decline on Investor Emotions

Commodity Metals Decline on Investor Emotions originally appeared on BloggingStocks on Wed, 26 May 2010 15:00:00 EST. Please see our terms for use of feeds.

Continue reading Newmont Mining: Choppy Uptrend

Newmont Mining: Choppy Uptrend originally appeared on BloggingStocks on Mon, 24 May 2010 18:00:00 EST. Please see our terms for use of feeds.

Industrial metals like copper, aluminum and iron ore are basic to economic development. China, with its explosive growth needs these metals.

Word of this has spread around the world, bringing speculators into the markets. China is the world's biggest consumer of aluminum and copper. Armed with that knowledge, speculators drove the price of copper up 48% in the second half of 2009.

Continue reading Speculation Is Spurring Price Jumps in Industrial Metals

Speculation Is Spurring Price Jumps in Industrial Metals originally appeared on BloggingStocks on Mon, 01 Mar 2010 15:30:00 EST. Please see our terms for use of feeds.