BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Hedge Funds Dump Natural Gas Contracts]]>http://www.bloggingstocks.com/2010/10/04/hedge-funds-dump-natural-gas-contracts/http://www.bloggingstocks.com/2010/10/04/hedge-funds-dump-natural-gas-contracts/http://www.bloggingstocks.com/2010/10/04/hedge-funds-dump-natural-gas-contracts/#commentsFiled under:

Hedge funds have the money and leverage to place large bets in commodities. This year, in particular, hedge funds have stepped up their exposure to commodities. Gold is a good example. Hedge funds have moved aggressively on the buy side during this past year.

More than ever, the movement of funds by hedge funds is controlling commodity prices. Hedge funds dumped 25% of their positions in natural gas in the week ending Sept. 28, as reported in BusinessWeek.

The commodity exchanges publish a commitment of traders report, which tracks the number of long and short contracts. Net long positions fell by 17,373 to 51,306.

Continue reading Hedge Funds Dump Natural Gas Contracts

Hedge Funds Dump Natural Gas Contracts originally appeared on BloggingStocks on Mon, 04 Oct 2010 09:30:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>featuredgasoline priceshedge fundsinthenewsnatural gasspeculatorsMon, 04 Oct 2010 09:30:00 EST<![CDATA[Oil falls to $69 on U.S./global recession concerns ]]>http://www.bloggingstocks.com/2008/10/16/oil-falls-to-69-on-u-s-global-recession-concerns/http://www.bloggingstocks.com/2008/10/16/oil-falls-to-69-on-u-s-global-recession-concerns/http://www.bloggingstocks.com/2008/10/16/oil-falls-to-69-on-u-s-global-recession-concerns/#commentsFiled under: , , ,

August 2007. You remember the month.

Oil had zoomed through $70 on its way to almost $100 by year's end, and soon there were research reports arguing that oil would top $150 or even $200 in the year ahead, on surging global economic growth.

Few knew it then, but the month also marked the start of the subprime mortgage default problem -- first deemed isolated, then sector-wide in scope, and that now encompasses every corner of the globe, in the world's most serious financial crisis since the Great Depression.

Concern over the credit crunch and an accompanying slowdown in global economic growth sent oil prices below $70 Thursday for the first time since August 2007, with crude plunging $5.04 to $69.50 at mid-day. Oil has now fallen 53% since hitting an all-time high of $147.27 per barrel in July.

The other major energy commodities also continued their nearly month-long downtrend. Heating oil fell 11 cents to $2.07 per gallon, unleaded gasoline plunged 17 cents to $1.61 per gallon, and natural gas fell 6 cents to $6.65 per million BTUs.

Continue reading Oil falls to $69 on U.S./global recession concerns

Oil falls to $69 on U.S./global recession concerns originally appeared on BloggingStocks on Thu, 16 Oct 2008 13:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>emerging marketsgasoline pricesgdphedge fundsinstitutional investorsinthenewsoil pricesOPECRichard FelsonSaudi ArabiaspeculatorstradersU.S. economyThu, 16 Oct 2008 13:40:00 EST<![CDATA[Did speculators cause oil's $25 one-day price jump?]]>http://www.bloggingstocks.com/2008/09/23/did-speculators-cause-oil-s-25-one-day-price-jump/http://www.bloggingstocks.com/2008/09/23/did-speculators-cause-oil-s-25-one-day-price-jump/http://www.bloggingstocks.com/2008/09/23/did-speculators-cause-oil-s-25-one-day-price-jump/#commentsFiled under: , ,

Oil jumps more than $25 in one day and a chorus rises to 'stamp out speculators'.

But are speculators at the core of the problem? And if so, would reducing speculation lower oil prices?

Economist David H. Wang argues that speculators "may in fact be boosting oil's price" and a partial solution may be to require commodity traders to deposit more money per futures contract, thus reducing the number of speculators. That should lead to smaller price moves for oil, he said.

However, Wang cautioned, that reduction in speculators will also lead to smaller price moves to the downside if and when oil's bearish fundamentals become the market's major concern.

Oil: "The sexiest asset in town"

Continue reading Did speculators cause oil's $25 one-day price jump?

Did speculators cause oil's $25 one-day price jump? originally appeared on BloggingStocks on Tue, 23 Sep 2008 15:05:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bondsbudget deficitdollarfeaturedfinancial crisisgasoline pricesgdphedgersoil pricesoil shockspeculatorsstockstradingU.S. CongressU.S. economyU.S. TreasuryTue, 23 Sep 2008 15:05:00 EST<![CDATA[Is inflation peaking in many parts of the world?]]>http://www.bloggingstocks.com/2008/08/18/is-inflation-peaking-in-many-parts-of-the-world/http://www.bloggingstocks.com/2008/08/18/is-inflation-peaking-in-many-parts-of-the-world/http://www.bloggingstocks.com/2008/08/18/is-inflation-peaking-in-many-parts-of-the-world/#commentsFiled under: , , ,

The reduction in global economic growth and growth expectations is leading to one benefit: a sharp decline in commodity prices, creating hope inflation may be peaking in many parts of the world, The Wall Street Journal reported Monday (subscription required).

Rice and palm oil, two commodities critical for the developing world, are both down about 40% since May, while the world's most vital commodity, crude oil, is down abut 23%, The Journal reported.

An end to surging commodity prices?

Economist Glen Langan told BloggingStocks Monday that while the commodity price-lower trend is still young, continued commodity price declines would be a welcomed sight, provided they don't drop too much.

"The pullback is welcome because many commodities had reached prohibitive levels, hindering commerce and really hurting the modest budgets of the poor/working poor in developing countries," Langan said. "However, too much of a price slide in commodities would be a sign of a pronounced global economic slowdown, which is something we don't want."

Further, Langan said that while regulators in various nations probe 'speculator' activity and alleged price manipulation in commodity markets, he argues that many of the price rises are consistent with historical price booms in other asset classes / sectors.

Continue reading Is inflation peaking in many parts of the world?

Is inflation peaking in many parts of the world? originally appeared on BloggingStocks on Mon, 18 Aug 2008 09:59:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>chinacommodity pricesemerging marketsfood pricesgdpglobal growthglobalizationinflationinstitutional investorsinthenewsoil pricesspeculatorsMon, 18 Aug 2008 09:59:00 EST<![CDATA[Cotton price spike mystifies traders, prompts inquiry]]>http://www.bloggingstocks.com/2008/08/13/cotton-price-spike-mystifies-traders-prompts-inquiry/http://www.bloggingstocks.com/2008/08/13/cotton-price-spike-mystifies-traders-prompts-inquiry/http://www.bloggingstocks.com/2008/08/13/cotton-price-spike-mystifies-traders-prompts-inquiry/#commentsFiled under: ,

cottonAdd another case study to the controversy over speculators and market manipulation.

The Commodity Futures Trading Commission is investigating whether cotton prices were 'artificially inflated' in early March, The Wall Street Journal reported Wednesday (subscription required). The March 4 price spiked from about 70 cents per pound to an intra-day high of $1.09 and closed at 93.1 cents.

In Wednesday morning trading, cotton rose about four-tenths of one cent to 70.070 cents per pound.

The Journal reported that the price spike in early March was unusual and baffled traders because cotton inventories were at their highest level in four decades, towel and fabric demand was weakened by the housing slump, and global supplies were high.

On the other side of argument, one which argues that market forces set the price, some cotton merchants themselves were trading aggressively; a little-used exchange rule suddenly required merchants to unwind sell orders; and financial investors, including pension and hedge funds, started to enter the market, which generated an eight-fold jump February 19-26 in net buying, The Journal reported, citing CFTC data.

Continue reading Cotton price spike mystifies traders, prompts inquiry

Cotton price spike mystifies traders, prompts inquiry originally appeared on BloggingStocks on Wed, 13 Aug 2008 12:20:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Commodity Futures Trading Commissioncottonfutureshedge fundshedgersinstitutional investorsinthenewspension fundsspeculationspeculatorsWed, 13 Aug 2008 12:20:00 EST<![CDATA[Oil pushes past $145 on dollar decline concerns]]>http://www.bloggingstocks.com/2008/07/03/oil-pushes-past-145-on-dollar-decline-concerns/http://www.bloggingstocks.com/2008/07/03/oil-pushes-past-145-on-dollar-decline-concerns/http://www.bloggingstocks.com/2008/07/03/oil-pushes-past-145-on-dollar-decline-concerns/#commentsFiled under: , , ,

Another day, another oil record.

Oil easily pushed past $145 Thursday morning after traders calculated that the already weak dollar has further to fall after the European Central Bank increased a key interest rate by a quarter point to 4.25%.

Oil rose as much as $2.28 to $145.85 per barrel -- an all-time high -- before easing back slightly to trade at $144.40 at mid-day.

Oil tends to rise when the dollar falls as investors/traders seek to preserve purchasing power of the decreased value of dollar-denominated commodities by bidding their price up. However, it's important to note that the dollar/oil correlation is not perfect: there have been instances in which the dollar fell and oil fell.

Continue reading Oil pushes past $145 on dollar decline concerns

Oil pushes past $145 on dollar decline concerns originally appeared on BloggingStocks on Thu, 03 Jul 2008 14:52:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bubblebubblesdollarECBemerging marketseuroEuropean Central Bankgasoline pricesinterest ratesinthenewsIranIraqNYSEoiloil pricesoil shockOPECspeculationspeculatorsstock marketstocksThu, 03 Jul 2008 14:52:00 EST<![CDATA[NYT's Krugman: Speculators schmeculators - demand is pushing oil higher, not traders]]>http://www.bloggingstocks.com/2008/07/01/nyts-krugman-speculators-schmeculators-demand-is-pushing-oil/http://www.bloggingstocks.com/2008/07/01/nyts-krugman-speculators-schmeculators-demand-is-pushing-oil/http://www.bloggingstocks.com/2008/07/01/nyts-krugman-speculators-schmeculators-demand-is-pushing-oil/#commentsFiled under: , ,

One of the major economic debates on Main Street and in Washington concerns the influence of speculators during oil's record price rise. (Oil currently trades above $140 and is up 100% during the past year, and more than 400% since 2000).

More than one Congressional committee is investigating the role of speculators, who critics say have 'distorted' or artificially boosted oil's price -- driven it higher than a level the commodity would trade at if the price were based solely on supply and demand fundamentals.

New York Times columnist Paul Krugman, while not denying speculators have contributed to oil's record rise, nevertheless offers perhaps the strongest evidence regarding how a commodity's price can rise a great deal, without the influence of speculators. His evidence: iron ore.

Continue reading NYT's Krugman: Speculators schmeculators - demand is pushing oil higher, not traders

NYT's Krugman: Speculators schmeculators - demand is pushing oil higher, not traders originally appeared on BloggingStocks on Tue, 01 Jul 2008 17:34:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>emerging marketsgasoline pricesglobalizationhedge fundsinvestment fundsiron oreiron ore pricesKrugmanoil pricesoil shockOPECPaul KrugmanspeculatorsTue, 01 Jul 2008 17:34:00 EST<![CDATA[Two quick steps to lower the price of oil]]>http://www.bloggingstocks.com/2008/06/12/two-quick-steps-to-lower-the-price-of-oil/http://www.bloggingstocks.com/2008/06/12/two-quick-steps-to-lower-the-price-of-oil/http://www.bloggingstocks.com/2008/06/12/two-quick-steps-to-lower-the-price-of-oil/#commentsFiled under: , , , , , , , , ,

With oil at $135 a barrel - up 463% since January 2001, Washington wrings its hands and says there's nothing it can do to lower the price. I think that's nonsense. There are two things that Washington can do today to get the price down: raise interest rates and close the swaps loophole.

What is the role of speculators in the price of oil and other commodities and what should be done to get those prices down? Some argue that oil prices are set by supply and demand. But if that were true, oil would drop because global demand is forecast to grow 1.2 million bbl/day -- and demand in the U.S. is down 300,000 barrels a day -- while global supply is expected to rise 2 million bbl/day.

Perhaps sixty percent of trading volume in oil is due to speculators -- these traders bet on a declining dollar and a rising price of oil. Raising interest rates would help lower the value of the dollar which has lost 70% of its value relative to the Euro since January 2001. Our Fed Funds rate fell from 5.25% to 2% since last August whereas in Europe, their rate is 4% and expected to rise. This difference makes Euros a more attractive currency for investors. So if the U.S. raises interest rates, people will start to buy dollars instead.

Continue reading Two quick steps to lower the price of oil

Two quick steps to lower the price of oil originally appeared on BloggingStocks on Thu, 12 Jun 2008 10:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>dollareurofeaturedhome pricesHomePricesliebermanmedian incomeMedianIncomeoilspeculaspeculatespeculatingspeculationspeculative bubbleSpeculativeBubblespeculativepricingspeculatorsswaps loopholeSwapsLoopholeThu, 12 Jun 2008 10:00:00 EST<![CDATA[Soros: Speculators driving oil price to bubble levels]]>http://www.bloggingstocks.com/2008/05/27/soros-speculators-driving-oil-price-to-bubble-levels/http://www.bloggingstocks.com/2008/05/27/soros-speculators-driving-oil-price-to-bubble-levels/http://www.bloggingstocks.com/2008/05/27/soros-speculators-driving-oil-price-to-bubble-levels/#commentsFiled under: , , , , , ,

Billionaire investor George Soros said speculators are playing a major role in oil's record price rise. He also argued that the sky-high $130 per barrel price looks like a bubble, The Daily Telegraph reported Tuesday.

Soros said "speculation . . . is increasingly affecting the price" and that oil now has "this parabolic shape which is characteristic of bubbles." However, he qualified his remarks by stating that the bubble would not burst "until both the U.S. and Britain were in recession, after which prices could fall dramatically."

Oil fell about $2 to $130.12 per barrel in mid-day Tuesday trading after data showed Americans are cutting back their gasoline consumption amid record-high gasoline prices approaching $4 per gallon in several regions of the country, Bloomberg News reported. U.S. gasoline consumption has fallen for about fourth straight months, on a year-over-year basis, according to U.S. Department of Energy data. Oil is up 100% in the past 12 months, and about 480% since 2002.

Continue reading Soros: Speculators driving oil price to bubble levels

Soros: Speculators driving oil price to bubble levels originally appeared on BloggingStocks on Tue, 27 May 2008 14:20:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Chinafeaturedgasolinegasoline pricesGeorge SorosIndiaoiloil futuresoil pricesoil shockOPECSorosspeculatorsU.S. Energy Information AdministrationTue, 27 May 2008 14:20:00 EST<![CDATA[Bearish hedgies throwing in the towel?]]>http://www.bloggingstocks.com/2007/07/24/bearish-hedgies-throwing-in-the-towel/http://www.bloggingstocks.com/2007/07/24/bearish-hedgies-throwing-in-the-towel/http://www.bloggingstocks.com/2007/07/24/bearish-hedgies-throwing-in-the-towel/#commentsFiled under: , , , ,

Each week, the Commodity Futures Trading Commission publishes a report known as the Commitments of Traders Report ("COT"), which breaks down aggregate trader positions ( "open interest") in certain futures and options markets into three categories: commercial, non-commercial, and nonreportable.

According to the CFTC, commercial operators, or "hedgers," are "engaged in business activities hedged by the use of futures or option markets." Non-commercial operators, or "large speculators," include individuals and firms, such as hedge funds, that engage in large-scale speculative buying and selling. Nonreportables, or "small speculators," comprise all other participants, including individual traders.

Continue reading Bearish hedgies throwing in the towel?

Bearish hedgies throwing in the towel? originally appeared on BloggingStocks on Tue, 24 Jul 2007 15:20:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>breadthcommercialsCommitments of TradersCommodity Futures Tradings CommissionCommodityFuturesTradingsCommissionCOTFuturesNasdaq 100 IndexNDXnonreportablesspeculatorstechnical analysisTue, 24 Jul 2007 15:20:00 EST