Commodities increased in Trading Accounts

Commodity increased in Trading Accounts

Commodity increased in Trading Accounts, driven by a weaker dollar and increased demand, according to Standard Chartered Plc, which plans to boost hiring in metals, agriculture and coal by 10 percent next year as revenue climbs.

Copper has surged 28 percent over the past year, trading at $8,439 a metric ton today, on stronger demand and a weaker U.S. currency.

Cotton climbed to a record $1.3920 a pound this week; gold traded an all-time high of $1,387.35 an ounce last month; and New York crude has risen 7.5 percent this year.

The dollar’s weakness, inflationary pressure in the U.S. over the next 12 to 18 months, and stronger emerging-market demand imply that commodities are going to be very bullish.

The Dollar Index has dropped 14 percent from this year’s high in June to yesterday’s close, boosting investment demand for metals and grains. The U.S. Federal Reserve said yesterday that it would buy an additional $600 billion of Treasuries in a bid to stimulate growth and cut unemployment.

Standard Chartered’s commodities revenue has been boosted by financing inventories of aluminum, fuel and agricultural products.

The bank may also in future take delivery of metals from the mines that it finances and sell the product to consumers in China, he said.

China’s raw-material needs have increased over the past five years, accounting for about 41 percent of global copper demand and 39 percent of cotton sales, according to Morgan Stanley estimates.

Manufacturing in the country expanded at the fastest in six months in October even after policy makers raised interest rates and boosted reserve requirements at banks.