Wednesday, May 25, 2011

The Commodities Markets Today

Dr.Francisco Blanch is seeing that,in the short run,it's still a very tight crude oil market.
Dr.Blanch,global head of commodities research and a managing director at Bank of America-Merrill Lynch,notes that we're going into the summer driving season now.
China has stopped exporting diesel.Japan has strong needs for fuel.It's still very tight going into June and July.
You can only buy West Texas Intermediate crude around Texas and Oklahoma.Brent crude should be your global benchmark.It may be at 140.00 a barrel in three months.It is currently around 115.00.
In terms of the economic context for commodities,Dr.Blanch observes that real interest rates are about to turn upward.If the U.S. economy gets back on track,the Federal Reserve will not renew the Quantitative Easing policy.
These factors tend to support commodity prices.
Dr.Blanch says they also like corn and palladium.
Francisco Blanch has a doctorate from the Complutense University of Madrid.He is the publisher of widely read newsletters such as Global Energy Weekly,Commodity Strategist and Energy Strategist.
Bank of America(BAC)

Wednesday, May 18, 2011

Enbridge Sees Growth Stretching Out

This is the strongest growth that we've had,and we see it going five years out,says Enbridge,Incorporated's CEO Patrick Daniel.The Canada-based energy delivery company serves North America with its transport and distribution of oil and natural gas,as well as its interests in renewable and green energy technologies ranging from wind to solar.The Canadian oil sands,as well as the Bakken and Eagleford shales,will make us much less dependent on foreign oil than we are,there's no doubt,Mr.Daniel believes.
Canadian energy producers like the optionality of our largest pipeline system in the world.In addition to Enbridge's vast and complex oil pipeline system,we think we're in a very strong position to export Canadian natural gas.
Citing the Gateway Pipeline to the west coast,Mr.Daniel promotes Enbridge as a jobs-creator.They're very good jobs that stem from both the construction and operation of our pipelines,he indicates.
Enbridge employs 6,000 Canadian and American workers.The company has never cut its dividend in 55 years.It is listed on both the Toronto and New York stock exchanges under the same ticker symbol,ENB.

Wednesday, May 4, 2011

PepsiCo Confident Going Forward

PepsiCo is confident in meeting the challenges it faces in today's business climate.We really do think we've got a portfolio of brands and market positions that enable us to manage rising costs effectively,says chief financial officer Hugh Johnson.My expectation is,we'll be taking pricing across the whole of our business.Strong brands growth is offsetting higher commodity costs.
While you see some challenges in developed markets,developing markets are growing quite strongly.We feel committed to 7-8% growth this year,Mr.Johnson noted.
PepsiCo beat Q1 earnings estimates slightly on both the top and bottom lines,but has an outlook a little below Wall Street expectations.In December 2010,it announced it was acquiring a controlling stake in Wimm-Bill-Dann,a Russian beverage titan.Wimm-Bill-Dann is the market leader in dairy products and children's food in Russia,Ukraine and the Commonwealth of Independent States,and a major producer of juice drinks.For PepsiCo,it's another move away from carbonated beverages to a much broader porfolio of brands.
PepsiCo is led by CEO Indra Nooyi.