Trading Update
24-Feb-14, 10:11am:

Market Analysis



China is tightening some of its lending but the G20 has raised global growth forecasts by 0.5% for 2014-2018 i.e. an extra $2.25tn being traded across the world.

Here is a quick update on how the markets are looking.



Update by Ishaq Siddiqi, Market Analyst,
24-Feb-14, 11:22am:

Cabot Oil & Gas 4Q Update



The Cabot 4Q adjusted EPS was $0.71, up 115% YoY. Production was up 55%, the equivalent of 413.6bn cubic feet.

The oil and gas company has also reported new agreements for long-term sales and pipeline takeaway capacity with a subsidiary of WGL and Transcontinental Gas Pipe Line.

Update by Jacob Wood, Editor,
24-Feb-14, 11:27am:

Bunzl Full Year 2013 Update and Dividends Are Being Distributed



Group revenues increased to £6,097.7m from £5,359.2m in 2012, i.e. an increase of 12% at constant exchange rates.

Organic growth for the outsourcing distribution and logistics specialist was 2%, the remainder was largely due to acquisitions. Distribution and Logistics

Operating profit before intangible amortisation and acquisition related costs was up 16% to £414.4m from £352.4m in 2012.

Adjusted EPS before intangible amortisation, acquisition related costs and vending disposal was up 15% to 82.4p from 70.6p in 2012.

The board is recommending a final dividend of 22.4p. That takes the total dividend for 2013 to 32.4p, up 15% on 2012.

Bunzl Continues to Spend



The company has also bought:
  • Baumer Betriebshygiene Vertriebsgesellschaft Gmbh, a German company “principally engaged in the distribution of cleaning and hygiene and healthcare supplies to end users in various market sectors”

  • Oskar Plast sro, a Prague-based company which “sells a variety of disposable packaging products to customers throughout the Czech Republic”


Update by Jacob Wood, Editor,
24-Feb-14, 2:32pm:

Hedge Funds Go Long of Soft Commodities

Coffee Futures Trading

I don’t normally cover soft commodities and I’m certainly no agricultures specialist but the latest Commitment of Traders (COT) report makes for interesting reading.

The soft commodities COT report show a number of key agricultures markets. With the exception of ‘Live Cattle‘, the ‘Non-Commercial commitments’ have increased across the board.

(If you are not familiar with the US Gov COT reports, ‘Non-Commercial commitments’ are positions taken by big speculators like Hedge Funds).

Perhaps the hedge funds think that the unusual global weather patterns are here to stay for the current season(s) and therefore prices will rise.

With parts of Brazil seeing little rainfall, we’ve certainly seen some sharp rises in coffee futures over the last couple of weeks.

I haven’t traded yet but it’s not difficult to see seemingly random the global weather systems wreaking havoc with harvests.

Perhaps the hedgies are right on this one.

Having said that, I’m not sure how much of the poor weather is already priced into the markets.

Note, these views are my own and not a recommendation to trade. If you are trading, only trade with money you can afford to lose. Good luck!

Update by Jenna Cutly, Editor,
24-Feb-14, 2:53pm:

Hedge Funds Buy into the Metals Markets



The table below shows the latest weekly positions by the hedge funds, i.e. Non-Commercial Traders, up to 18 Feb 2014.

Only a few weeks ago, for the report to 28 Jan, these big speculators were around 7:1 long of platinum and nearly 5:1 long of palladium.

So, whilst they have certainly reduced those positions, they are still heavily long.

Of more interest though is that the hedgies are now 2.1:1 long of gold and 2.4:1 long of silver.

Over the last 7-8 weeks the hedge funds have been slowly, but surely, increasing their gold and silver positions.

Gold prices have also seen slow and ‘relatively’ steady rises over the same period (silver hasn’t been quite as ‘textbook’).

Sadly, I closed out my last gold position for a small profit, but it was far far too early.

Having said that, I am tempted to get back into the market.

Note, these views are my own and not a recommendation to trade. If you are trading, only trade with money you can afford to lose. Good luck!

Update by Jenna Cutly, Editor,