Natural Gas – Can it get any Worse?

29-Mar-2012 | Reggie | Canadian Investing Commodities Oil & Gas

Today US natural gas futures hit a 10 year low at $2.16 per MMBTU (million british thermal units) and $1.59 here in Alberta.  This should not come as much of a surprise to anyone who has been following the market for the gas.  Production has remained at or around record highs as new technologies flourish and allow for extraction through unconventional means, along for the high demand and price for Natural Gas Liquids (of which Natural Gas is a byproduct).  Add to this, winter in North Americawas one of the most mild in years leaving demand for gas much lower than normal.

 

This leads to the question, how low can it go?  Some analysts think it might not be long until gas producers are paying consumers to take the product off their hands.  Storage tanks are completely full and there is no where to send the massive amounts of gas being produced.  This is definitely not the ideal situation as the economics of many of these gas wells allow for profits to be made even at these rock low prices, but with demand where it is, there is really no choice but for prices to continue to decline until exploration halts and wells are shut in.

This blog has been prepared by the Retire First Team. The blog expresses the opinions of the writers and not necessarily those of Retire First Ltd. Statistic and factual data are from sources Retire First believes to be reliable but their accuracy can not be guaranteed. This blog is furnished on the basis and understanding that Retire First is under no liability whatsoever in respect thereof. It is for informational purposes only and is not be construed as an offer or solicitation for the sale or purchase of securities. Retire First Ltd. And its officers, directors, employees and their family may from time to time invest in the securities discussed in this blog. This blog is intended for individuals where Retire First Ltd is registered as a dealer in securities.

Retire First is a member of the Canadian Investors Protection Fund.

Commission, trailing commissions, management fees and expense all may be associated with mutual funds. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. A recommendation of any of the mentioned investments would only be made after a personal review of individual portfolio. Third Party research has been used in formulating the writer's opinions.

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This Commodity Keeps your Bones Strong and Investment Returns Strong

30-Dec-2011 | kate | Commodities Economy USA

Milk was the top preforming commodity in 2011, beating out crude oil, gold and cattle.

Milk futures jumped 41% in 2011 due to  an increase in rising populations, increased exports and rising world incomes. Milk futures reached their highs in August 2011, but still ended the year as the number one commodity performer.

Following along with milk is dry whey, a milk by product used in sports drinks, snacks and baby formula. Whey priced increased 75.13%.

 

Lots of analyst believes that milk exports will rise in Canada, Mexico, Japan, China, Philippines and Indonesia, the six biggest buyers in the world.

 

Even though milk future rose during the year, it didn’t necessarily mean bigger pay days for the farmers, as feed prices also increased throughout the year.

This blog has been prepared by the Retire First Team. The blog expresses the opinions of the writers and not necessarily those of Retire First Ltd. Statistic and factual data are from sources Retire First believes to be reliable but their accuracy can not be guaranteed. This blog is furnished on the basis and understanding that Retire First is under no liability whatsoever in respect thereof. It is for informational purposes only and is not be construed as an offer or solicitation for the sale or purchase of securities. Retire First Ltd. And its officers, directors, employees and their family may from time to time invest in the securities discussed in this blog. This blog is intended for individuals where Retire First Ltd is registered as a dealer in securities.

Retire First is a member of the Canadian Investors Protection Fund.

Commission, trailing commissions, management fees and expense all may be associated with mutual funds. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. A recommendation of any of the mentioned investments would only be made after a personal review of individual portfolio. Third Party research has been used in formulating the writer's opinions.

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Canada Set to Challange China’s Rare Metal Monopoly

23-Dec-2011 | kate | Asia Commodities Economics Mining

China is currently the key supplier of rare earth metals to the United States, Europe and Japan. They country has a monopoly on the supply of rare metals, which are a set of 17 chemical  elements that despite their name are abundant, but because they are very dispersed they are rarely found in concentrations that are economically exploitable. China currently produces 95% of  rare earth metals that are used to produce cell phones, hybrid cars, wind generators, flat screen TV’s, computers and other devices.

 

After China announced that they were going to reduce export of rare metals in 2010, foreign firms began worrying about access to supplies and began looking for alternative deposits, which has led to mining expeditions around the world, with the majority searching in Canada.

 

Earlier this week Toyota announce that they would be entering a joint venture project with  Matamec to develop a rare earth mine in Quebec.  If the joint venture with Matamec turns out to be economically viable, Toyota will finance the entire dig and use the entire output to produce their hybrid vehicles.

This blog has been prepared by the Retire First Team. The blog expresses the opinions of the writers and not necessarily those of Retire First Ltd. Statistic and factual data are from sources Retire First believes to be reliable but their accuracy can not be guaranteed. This blog is furnished on the basis and understanding that Retire First is under no liability whatsoever in respect thereof. It is for informational purposes only and is not be construed as an offer or solicitation for the sale or purchase of securities. Retire First Ltd. And its officers, directors, employees and their family may from time to time invest in the securities discussed in this blog. This blog is intended for individuals where Retire First Ltd is registered as a dealer in securities.

Retire First is a member of the Canadian Investors Protection Fund.

Commission, trailing commissions, management fees and expense all may be associated with mutual funds. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. A recommendation of any of the mentioned investments would only be made after a personal review of individual portfolio. Third Party research has been used in formulating the writer's opinions.

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Argentine Government Hate Foreign Investment

26-Oct-2011 | Reggie | Canadian Investing Commodities Economy Investment Ideas

The Argentine Government is infamous for protectionist policies and poor fiscal management.  Keeping their track record, they today announced that all export revenue stemming from oil, gas, and mining companies must be repatriated, meaning any funds derived from the sale of these natural resources must flow through the country.  This was an increase from the 2002 law which stated that 30% of all revenue has to flow through.

 

The law was passed by Argentine President Cristina Fernandez de Kirchner, who just won her second term on October 23rd.  It was largely expected that rules pertaining to foreign companies would be maintained and many stocks rose on the news of her re-election.  The move is designed to help maintain capital in the country and keep the Peso strong, but the detriment done to foreign investment seems to be a much bigger blow.  The United Nations estimate that foreign investment in Argentina has already decreased by 30% since the beginning of the year.  Companies with significant operations in Argentina all fell on the news.

This blog has been prepared by the Retire First Team. The blog expresses the opinions of the writers and not necessarily those of Retire First Ltd. Statistic and factual data are from sources Retire First believes to be reliable but their accuracy can not be guaranteed. This blog is furnished on the basis and understanding that Retire First is under no liability whatsoever in respect thereof. It is for informational purposes only and is not be construed as an offer or solicitation for the sale or purchase of securities. Retire First Ltd. And its officers, directors, employees and their family may from time to time invest in the securities discussed in this blog. This blog is intended for individuals where Retire First Ltd is registered as a dealer in securities.

Retire First is a member of the Canadian Investors Protection Fund.

Commission, trailing commissions, management fees and expense all may be associated with mutual funds. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. A recommendation of any of the mentioned investments would only be made after a personal review of individual portfolio. Third Party research has been used in formulating the writer's opinions.

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News Tidbits

14-Oct-2011 | Reggie | Asia Banks Bonds Canadian Investing Commodities

 

Canadian banks managed to escape the debt crisis of 2008 without much trouble thanks to their safe balance sheets and relatively high capitalization ratio.  That safety is paying off 3 years later as banks in Europe are once again struggling with high debt levels.  In order to raise capital, Euro banks are unloading assets and Canadian banks are in great shape to snap those up.  So far RBC has grabbed up some assets from Dutch bank Dexia and will probably get more.

 

Inflation in China is down slightly from their highs which came as a bit of a relief to Chinese authorities who have been struggling hard to get rising prices under control.  Over the past year, China has constantly raised interest rates and bank reserve rates in an effort to get inflation under control and it finally seems to be working.  Food prices are still up significantly which means that there likely won’t be any rate decreases in the near term future.

 

Bill Gross: “This year is a stinker.” This comment was made by the world’s biggest bond manager in his October newsletter.  He attributes the poor performance to investors moving into US government bonds as European debt issues continued.  The PIMCO bond fund was positioned to perform best in a scenario of about 2% global growth.

 

Oil price rise over $3.00 thanks to strong economic data released today.  The price increase is being mainly attributed to strong US consumer spending, increased bank lending in China, and the G20 meeting where the European debt issues continue to

 

Occupy Wall Street continues in New York and spreads throughout the world.  The protesters that have been basing their operations out of Zuccotti park will be allowed to continue to camp out in the park thanks to the Canadian real estate trust, Brookfield Asset Management.  Brookfield owns and controls the park in downtown New York.  The movement has gained more momentum as folks and businesses continue to make the endorsement and activists spring up in different cities throughout the globe.  The Canadian Auto Workers union is one of the latest to give their encouragement to the movement.

 

This blog has been prepared by the Retire First Team. The blog expresses the opinions of the writers and not necessarily those of Retire First Ltd. Statistic and factual data are from sources Retire First believes to be reliable but their accuracy can not be guaranteed. This blog is furnished on the basis and understanding that Retire First is under no liability whatsoever in respect thereof. It is for informational purposes only and is not be construed as an offer or solicitation for the sale or purchase of securities. Retire First Ltd. And its officers, directors, employees and their family may from time to time invest in the securities discussed in this blog. This blog is intended for individuals where Retire First Ltd is registered as a dealer in securities.

Retire First is a member of the Canadian Investors Protection Fund.

Commission, trailing commissions, management fees and expense all may be associated with mutual funds. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. A recommendation of any of the mentioned investments would only be made after a personal review of individual portfolio. Third Party research has been used in formulating the writer's opinions.

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