Tag: commodities

Commodity prices were volatile in the first half of 2009, but in the second half companies gained confidence to start hedging again, making banks optimistic about 2010. Equities and commodities will yield returns in 2010 on the back of a global market recovery driven partly by emerging markets, predicts Credit Suisse. Soozhana Choi joins Deutsche from commodities and raw materials supplier Glencore to provide a broader perspective on the sector. The Hong Kong stock exchange wants more time to go through the listing documentation, sources say, leaving no room for the Russian aluminium giant to go public before year end. The $100 million upsize option increases Olam's initial seven-year convertible bond to $500 million. Sovereign wealth fund China Investment Corporation buys a 14.9% stake in the commodities firm. Bank of America Merrill Lynch adds one managing director and four directors to its commodities team, while J.P. Morgan has hired seven executive directors this year. Standard Chartered Bank has promoted Ashish Mittal to global head of commodities sales, based in Singapore. Expect volatility to remain a key factor in prices throughout the rest of the year, says Deutsche's Asia head of commodities, but look for growth in the carbon credit market ... Chip Goodyear leaves Temasek even before taking charge, over differences regarding strategic issues. The Singapore investment firm invests $305 million to take a 13.8% stake in commodities trader Olam. Deutsche Bank launches a Singapore-listed structured fund that uses a long/short strategy to capture roll returns on 21 commodities. China, Indonesia and the UAE get new heads for commodity trading and agribusiness, including one new hire from Rabobank. Food price increases hurt consumers in poor countries most, but provide a bonanza for investors starved of other enriching opportunities. The $300 million bond is priced with a 30% premium, while the coupon and yield are both set at the wide end of terms with the aim of exercising the $100 million upsize option. We talk to Deutsche Bank's Amanda Lee about the reasons behind the recent correction in commodity prices and her outlook for the market. The price is fixed at the lower end of the range for a 6% discount, but solid demand allows the deal to be increased by 48%. The bank opens a new desk that will provide secondary market pricing and liquidity for forex and commodity products. The Singaporean commodities company increases its offer for the third time, trumping rival bidder and shareholder Louis Dreyfus for the Australian cotton asset. The head of BNP Paribas’ energy and commodities group in Sydney says when markets become heated, proper risk assessment is needed to avoid disaster.