Thursday, February 13, 2014

Although 2013 was marked by big drops in commodity prices, it is expected that by 2014 there is a s


Although 2013 was marked by big drops in commodity prices, it is expected that by 2014 there is a slight recovery in some raw materials, such as natural gas and copper, exports accelerating global exports economic growth in a 3.6% according to the IMF. http://bit.ly/1dV0H52 exports
Commodities are raw materials or energy-related goods such as oil, coal or natural gas, metal such as copper, nickel, and zinc, and foods such as wheat, corn or soy that can swindle in market. Economic imbalance, investments tend to happen to the stock market less risky assets such as commodities, enlarging its value as demand increases. The 2013 was not a good year for commodities, because their prices plummeted and I demand declined considerably. This decline exports was attributed mainly to the global economic slowdown, especially the decline in economic performance of China because this country is considered as the largest manufacturer of raw materials and is the second largest consumer of energy state in the world, because it retains 40% of the total demand for precious and industrial metals. Thus, commodities entered a picture of instability, characterized by an increased risk in emerging markets, especially in the case of cereals, with a 40% fall in prices of corn, and precious metals such as gold and silver, with a decrease of 11.3% and 15.3% respectively. exports However, the picture will be different for these products during 2014. According to the International exports Monetary Fund (IMF), investment opportunities are expected in the raw materials exports in the sectors of energy and industrial metals, mainly natural exports gas and copper. Meanwhile, precious metals and agricultural products such as sugar and coffee may expensive prices, however it is predicted exports that this year the production of major industrial countries, Brazil, Colombia and Vietnam, will be very high. Likewise, the IMF signature commodities as gold, silver and oil, whose prices depend on the economic exports growth to accelerate demand not show greater exports variation in their costs because they rely on increased consumption of larger countries level in the world. Although a real or speculative demand that will pull prices, a continuous fall in the values of commodities can reveal would be bad for Latin American economies that depend on those exports should be noted that the increase in prices of these commodities, or fall, not It is exclusively linked to the demand generated by the development of emerging economies like China, but will be encouraged by the availability of liquidity funds (Those institutions that collect funds from different grape investors to be invested exports in various financial instruments and be administered by a bank or financial institution). In the case of agricultural commodities, is forecast for this volatile 2014, which will be tied to the seasonality experienced by many of these raw materials and encouragement to be given to the production of these. Corn and coffee presented the greatest buying opportunities, despite forecasts exports of global reserves by U.S. during 2013 that made the marketing of these products so far lost points for that year. As for oil, according to the Bank of Danish Investment, Saxo Bank, you can meet a continued increase in oil production from the U.S., due to the improvement in the infrastructure of their pipelines, which will transport larger quantities of oil to other refineries. However, it expects Brent oil (type of oil is mainly extracted Sea ideal for gasoline production exports Norte) increase its price due to a decrease in production from Libya and a possible interruption in the supply of crude of the Middle East. This fact increased offer from North America will be added, which would reduce imports of Brent during 2014, limiting the price increase. For precious metals like industrial, prices in 2014 will be characterized by low levels but is expected to resume in early uptrend in the medium term. Although purchases exports of gold will remain strong, will not be sufficient to repair the negative trend obtained during 2013 given the expectations exports of moderate inflation. Regarding its lead, copper, platinum and palladium, exports may be benefited as long as China resumes its economic growth and structural reforms to boost industrial demand

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