With the Chinese population celebrating a week long holiday the LME markets have been very quiet with LME copper only moving USD3 a tonne in the last 3 days. On the exchange rate market the AUD dollar is starting to slip away with the AUD/USD currently trading 102.5.
Interesting news this week included the idea that if you cull a camel you can make a meaningful contribution to climate change. The logic being that reducing methane by one ton is equivalent to reducing carbon dioxide by 21 tons and assuming a camel can dodge a bullet for 20 years this equates to 420 tons of carbon dioxide or $9,660 in carbon credits.
**** Camel cull carbon credits fail to get over hump **** ABC News 16 Jan & Westpac Carbon Update 7 Feb
A plan to cull hundreds of thousands of camels from the deserts of central Australia in exchange for carbon credits has been knocked back by the Federal Government.
It is estimated that there are more than a million feral camels in the Red Centre and surrounds, and each animal emits about a tonne of methane gas each year. Private company Northwest Carbon wanted to cull and sell the camels in exchange for credits under the Commonwealth’s carbon farming initiative
The Domestic Offsets Integrity Committee (‘the DOIC’) rejected the application citing concerns around animal welfare and the completeness of the methodology for assessing emission reductions
**** DJ Comex Copper Falls as Chinese, Asian Holidays Limit Buying **** By Matt Day
NEW YORK–Copper futures retreated on Monday, as the start of a week-long market holiday in top- consumer China pushed some traders to cash out.
Copper for March delivery, the most actively traded contract, was recently down 4.25 cents, or 1.1%, at $3.717 a pound on the Comex division of the New York Mercantile Exchange.
Traders in China, Japan, and several other Asian markets were out Monday for holidays. Markets in China will remain closed through the week for festivities around the Lunar New Year. China accounts about 40% of global copper consumption.
“Many participants have withdrawn from the market during the Chinese lunar new year celebrations this week,” Standard Bank analyst Marc Ground said in a note. He added that high inventories of base metals were also making potential buyers cautious.