Commodity Stock in Focus: Alliance Resource Partners (ARLP)
Mining stocks have received a lot of attention over recent years, as more and more investors have been turning to this sector in search of attractive returns. But as witnessed last year, mining companies in particular can quickly make a turn for the worse, with rising operational costs and falling commodity prices making big impacts on bottom line returns [for more commodity news and analysis subscribe to our free newsletter].
Checking in on the Worst Commodities of 2012
2013 was undoubtedly a rough year for commodities, particularly for precious metals like gold and silver. There were, however, some bright spots in the space, including cocoa, soybean meal, orange juice, gasoline, and brent. For the coming year, analysts remain rather pessimistic on the broad commodity market. Goldman Sachs analysts have noted: “Last year, we pointed to the ongoing shift in our commodity views, ultimately towards downside price risk. The impact of supply responses to the period of extraordinary price pressure continues to flow through the system.” [For more commodity news and analysis subscribe to our free newsletter].
BHB Billiton Looks To Expand Coal Operations (BHP)
When it comes to commodity stocks, there is perhaps no name more prolific than BHP Billiton Ltd (BHP). The Australian-based natural resource giant has operations across the world and has its hands in everything from iron ore and natural gas to aluminum and diamond mining. And while the company’s over 150-year history is certainly a testament to its success, BHP Billiton has recently fallen out of favor with commodity investors, as concerns over falling revenue have come to the forefront [for more commodity news and analysis subscribe to our free newsletter].
BP Energy Report: U.S. Production On The Rise, Global Demand Slows
While the global economic slowdown has impacted nearly every corner of the investable universe, one commodity group that has been hit particularly hard has been energy. Oil, gas, coal, and even nuclear power have all fallen victim to sluggish economic growth and dwindling global demand. And in its annual energy report, BP takes a closer look at how exactly the global recession has impacted the supply and demand of some of the most widely-traded commodities on the market [for more energy news and analysis subscribe to our free newsletter].
The Uncertain Future For Coal
It used to be that coal dominated energy consumption around the world, as this fossil fuel was both abundant and relatively cheap to use. But as big oil stepped in, the past few decades have seen dependence on coal cool off. In more recent years, coal has taken an even bigger hit as developed countries have attacked the fuel source for its negative environmental impact. As fracking continues to pick up steam and alternative energy sources enjoy growth, many are left wondering what the future holds for coal [for more coal news and analysis subscribe to our free newsletter].
Commodity Growth: All Eyes On China
As markets continue to roar forward, many investors have turned their gaze toward the commodity world, wondering how this asset class will fare after a “super-cycle” filled with gains. While there are a number of important factors at play, it is widely agreed that China will have a significant impact on the future of some of the world’s most popular hard assets. What is not widely agreed upon, is whether or not the Chinese economy will hinder or enable commodities going forward, as the emerging nation has seen its economy cool off [for more commodity news and analysis subscribe to our free newsletter].