{"id":12978,"date":"2015-08-29T16:11:41","date_gmt":"2015-08-29T20:11:41","guid":{"rendered":"http:\/\/www.pgm-blog.com\/?p=12978"},"modified":"2015-08-29T16:11:41","modified_gmt":"2015-08-29T20:11:41","slug":"commodity-prices-at-lowest-level-since-1999","status":"publish","type":"post","link":"https:\/\/www.pgmcapital.com\/nl\/commodity-prices-at-lowest-level-since-1999\/","title":{"rendered":"Commodity Prices at Lowest level Since 1999."},"content":{"rendered":"

\"\"<\/a>\"\"<\/a><\/p>\n

Dear PGM Capital<\/strong> Blog readers,
\nIn this weekend blog edition, we want to elaborate on the current commodities bear market that brought the Bloomberg Commodity Index (BCOM.IND) on Monday August 24th, to its lowest level since August 1999, as can be seen from below chart.<\/p>\n

\"\"<\/a><\/p>\n

On Monday August 24, the Bloomberg Commodity Index of 22 raw materials from oil to metals lost 2.2 percent<\/span><\/strong> to end the day at US$ 86.3704, as can be seen from below chart.<\/p>\n

\"\"<\/a><\/p>\n

Shares of miners and explorers including Glencore Plc (GLEN.L), BHP Billiton Ltd. (BHP.AX) and Exxon Mobil Corporation (NYSE: XOM). tumbled while Brent crude fell below US$45 a barrel for the first time since 2009.<\/p>\n

THE BLOOMBERG COMMODITY INDEX:<\/strong><\/span>
\nThe Bloomberg Commodity Index is a measure of returns that takes into account the loss or gain from holding futures contracts as well as the performance of the underlying commodities.<\/p>\n

The index was originally launched in 1998 as the Dow Jones-AIG Commodity Index<\/b> (DJ-AIGCI<\/b>) and renamed to Dow Jones-UBS Commodity Index<\/b> (DJ-UBSCI<\/b>) in 2009, when\u00a0UBS (NYSE: UBS) acquired the index from AIG (NYSE: AIG).\u00a0On July 1, 2014, the index was rebranded under its current name.<\/p>\n

GURUS BUYING FREEPORT-MCMORAN INC:
\n<\/strong><\/span>Stanley Druckenmiller:<\/strong><\/p>\n

\"Stanley-Druckenmiller\"<\/a>
\n<\/strong>Legendary hedge fund manager Stanley Druckenmiller, who runs Duquesne Capital, reported to the Security and Exchange commission that in Q2-2015, he bought 3,547,000 shares of Freeport-McMoRan (NYSE: FCX), making FCX, the sixth biggest holding in his portfolio on June 30, 2015.<\/p>\n

Carl Icahn:<\/strong><\/p>\n

\"Carl
\n<\/a>Activist investor Carl Icahn reported, after the closing bell on Thursday, August 27, that he now has a stake of 88 million shares or 8.46% stake in the copper and gold miner\u00a0Freeport-McMoRan, making him its largest shareholder.<\/p>\n

The company’s stock spiked 28 percent during the regular session on Thursday, before Icahn’s 8.5 percent stake became public, to close the week at US$ 10.53, up 32.07 percent<\/span><\/strong> from its 12-year low of US$ 7.92. of Wednesday, August 26, as can be seen from below chart.<\/p>\n

\"\"<\/a><\/p>\n

FY-2015, Earnings Report BHP Billiton:
\n<\/strong>Australian oil and mining giant BHP Billiton Ltd.<\/strong>(ASX: BHP) reported earnings\u00a0on Tuesday, August 25,\u00a0\u00a0for the full year ending in June 2015. The company posted its weakest annual earnings since 2003 in the face of a painful commodity price\u00a0rout.<\/p>\n

Highlights:<\/strong><\/p>\n