In an interview with CNBC-TV18's Sonia Shenoy and Ekta Batra, commodity expert and billionaire Jim Rogers gave his take on the unrest in the Middle East and how that's affecting his investment decisions.
Here's a look at what Rogers said:
Q: What is your estimate, what have you made of the fresh wave of geopolitical risk? Do you think the situation in Libya could get worst?
A: Ofcourse it can get worse. It can turn into a civil war which can rage for a long time. I doubt it will, given the state of the world. But now we are having more and more social unrest, certainly we are going to have a lot of social unrest. The price of food is going up. When food prices go up, people get out agitated and they look for someone to blame.
Q: I recollect you stating in the month of January that crude may just surge all the way up to USD 150 per barrel, it is sort of getting there, Brent is now USD 106 per barrel, what is your estimate of how high crude could escalate, if the situation gets worse?
A: Certainly, it can go to USD 150 per barrel over the next decade. I have no idea what will happen this year. If Libya calms down and everybody else does, it will go down for a while. If the UK goes bankrupt or some sudden surprise happens, everything will go down. But crude oils is going to go over USD 150 per barrel, it is going to go to a couple of 100s in the next decade.
Q: What, according to you, is a good investment right now; do you think that investors should turn bullish towards precious metals to hedge their bets at this point in time?
A: Firstly, I have started looking at shorting US government bonds. I think they are turning into a real bubble because of this situation in the Middle East. People are flooding into US government bonds, which is a mistake. I have bought a small tractor company in Japan today because they are starting to infuse huge amounts of money in Japan trying to solve their agricultural problems. I am bullish on agriculture, I am bullish on all commodities.
Showing posts with label Agriculture Commodities. Show all posts
Showing posts with label Agriculture Commodities. Show all posts
Friday, March 4, 2011
Monday, September 20, 2010
Goldman (NYSE:GS) Likes Energy, Down on Agriculture
Goldman Sachs Group Inc. (NYSE:GS) said over the next 12 months they see energy as the top performer in the commodity sector, while they view agriculture as the weakest.
Energy is projected to rise at a 27 percent clip, followed by precious metals at 17 percent, and industrial metals at 15 percent. Agriculture on the other hand, is expected to plummet by 10 percent during the same time.
The analysts' report said, "For the more cyclical commodities, oil and copper, while continued indications of more supportive policy in the U.S. and China, better macro data in these key countries, and improving commodity data have pushed prices higher within their respective trading ranges, we continue to expect them to break out to the upside in coming months."
In the short term they do see some agriculture products doing well, as they raised their outlook on raw sugar, cotton, corn and arabica.
Energy is projected to rise at a 27 percent clip, followed by precious metals at 17 percent, and industrial metals at 15 percent. Agriculture on the other hand, is expected to plummet by 10 percent during the same time.
The analysts' report said, "For the more cyclical commodities, oil and copper, while continued indications of more supportive policy in the U.S. and China, better macro data in these key countries, and improving commodity data have pushed prices higher within their respective trading ranges, we continue to expect them to break out to the upside in coming months."
In the short term they do see some agriculture products doing well, as they raised their outlook on raw sugar, cotton, corn and arabica.
Friday, May 28, 2010
Does Monsanto (NYSE:MON) Deserve More Love?
Over the last couple of months, it has seemed there has been no good news for Monsanto (NYSE:MON), largely based on the focus on Roundup.
The problem with that scenario, is Roundup isn't what has made Monsanto what it has been, and regardless of its performance going forward, Monsanto still solid growth potential.
When you consider Monsanto is still projecting earnings to grow at a rate in the mid-teens even with the Roundup challenges, and you see the long-term potential and quality product lineup they have.
The company is hated by some of the purists who don't believe in the products they provide, so they have had some influence in pushing only the negative aspects of how they view the company, to the detriment of their strong aspects.
For investors, we need to throw the negative out that is only based on emotion and activists, and look at the product line of the company as it is, and the earnings potential they represent.
The much larger segment of the company is in "seeds-and-traits," and that will be more indicative of their future performance than Roundup is, even if it was still protected.
Trading at its lowest levels in about three years, the stock could be a real bargain now.
The problem with that scenario, is Roundup isn't what has made Monsanto what it has been, and regardless of its performance going forward, Monsanto still solid growth potential.
When you consider Monsanto is still projecting earnings to grow at a rate in the mid-teens even with the Roundup challenges, and you see the long-term potential and quality product lineup they have.
The company is hated by some of the purists who don't believe in the products they provide, so they have had some influence in pushing only the negative aspects of how they view the company, to the detriment of their strong aspects.
For investors, we need to throw the negative out that is only based on emotion and activists, and look at the product line of the company as it is, and the earnings potential they represent.
The much larger segment of the company is in "seeds-and-traits," and that will be more indicative of their future performance than Roundup is, even if it was still protected.
Trading at its lowest levels in about three years, the stock could be a real bargain now.
Monday, May 17, 2010
What Marc Faber Likes ...
Marc Faber said in a recent interview that there is one particular investment sector he particularly likes, and that is commodities. Within commodities he likes agriculture, which he views as getting very cheap.
Commodity investment guru Jim Rogers has been saying the same thing for at least the last year, with the idea that agriculture prices are depressed, and ultimately they'll start to rebound, as demand isn't going to ever go away, and will only increase.
For the three favorite picks of Faber in the agriculture sector, he likes three of the majors: corn, soybeans and wheat.
The timing is everything of course with all of this, and it's impossible to know when agriculture will finally start to move forward again.
But it's only a matter of when and not if, and then, not only will these major crops start to rise in value, but there will be an additional price rise for fertilizer companies and other firms connected to the sector as all elements related to agriculture benefit.
Commodity investment guru Jim Rogers has been saying the same thing for at least the last year, with the idea that agriculture prices are depressed, and ultimately they'll start to rebound, as demand isn't going to ever go away, and will only increase.
For the three favorite picks of Faber in the agriculture sector, he likes three of the majors: corn, soybeans and wheat.
The timing is everything of course with all of this, and it's impossible to know when agriculture will finally start to move forward again.
But it's only a matter of when and not if, and then, not only will these major crops start to rise in value, but there will be an additional price rise for fertilizer companies and other firms connected to the sector as all elements related to agriculture benefit.
Wednesday, May 5, 2010
Jim Rogers: Agriculture Top Commodity Choice
Jim Rogers has been beating the agricultural commodity drum for some time, and he continues to say that sector is the most depressed of the commodity sector, and over the long term should outperform all other commodities.
Rogers said the agricultural sector is "very depressed," and over the long haul it'll end up going up.
Even sugar - which Rogers likes - has risen strongly over the last two years, but as Rogers notes, it is still depressed in contrast to its all time high.
Most other commodities have strengthened over the last couple of years, and while some will continue to go up, agriculture has the most upside potential in the years ahead in the view of Rogers.
Rogers said the agricultural sector is "very depressed," and over the long haul it'll end up going up.
Even sugar - which Rogers likes - has risen strongly over the last two years, but as Rogers notes, it is still depressed in contrast to its all time high.
Most other commodities have strengthened over the last couple of years, and while some will continue to go up, agriculture has the most upside potential in the years ahead in the view of Rogers.
Tuesday, May 4, 2010
Potash (NYSE:POT), Monsanto (NYSE:MON), Mosaic (NYSE:MOS) Confirm Economy Not Growing
The lackluster performance of agriculture stocks like Potash (NYSE:POT), Monsanto (NYSE:MON) and Mosaic (NYSE:MOS) confirm what most of us suspect, and that is the economy isn't growing, and the temporary and illusory effects of the government stimulus program aren't sustainable.
Agriculture stocks are one of the ways to watch to see if there is economic growth, and their performance will tell you a lot one way or the other.
What this says is there is no growth from within the companies, and that means demand for products is down, which brings us to the conclusion the economy, at best, is stagnant, and maybe even contracting some.
Agriculture stocks are one of the ways to watch to see if there is economic growth, and their performance will tell you a lot one way or the other.
What this says is there is no growth from within the companies, and that means demand for products is down, which brings us to the conclusion the economy, at best, is stagnant, and maybe even contracting some.
Saturday, April 24, 2010
Jim Rogers: Let Greece Go Bankrupt
Billionaire investor and commodity expert Jim Rogers continues to urge the European Union to allow Greece to go bankrupt in order for the euro to be considered a serious currency.
If Greece is bailed out, it would show Europe isn't willing to regulate its member countries, and are willing to allow them to be fiscally irresponsible.
Rogers said, "The way to solve this debt problem is not with more debt. The idea that you would solve a problem with too much debt and too much consumption with more debt and more consumption, that defies comprehension.
"If Greece went bankrupt, it will clean up the system, (the) euro will go down for a while but then in my view, the euro will be a very strong currency."
Rogers added that there isn't a need for more regulation, but rather for more competent regulators. He called Obama's drive to regulate the markets even more as "ludicrous." Rogers says this was the cause of the financial crisis in the first place.
Precious metals and agriculture is considered the most solid places to put your money by Rogers, and he continues to hold to that theme.
If Greece is bailed out, it would show Europe isn't willing to regulate its member countries, and are willing to allow them to be fiscally irresponsible.
Rogers said, "The way to solve this debt problem is not with more debt. The idea that you would solve a problem with too much debt and too much consumption with more debt and more consumption, that defies comprehension.
"If Greece went bankrupt, it will clean up the system, (the) euro will go down for a while but then in my view, the euro will be a very strong currency."
Rogers added that there isn't a need for more regulation, but rather for more competent regulators. He called Obama's drive to regulate the markets even more as "ludicrous." Rogers says this was the cause of the financial crisis in the first place.
Precious metals and agriculture is considered the most solid places to put your money by Rogers, and he continues to hold to that theme.
Friday, April 2, 2010
Deere (NYSE: DE) Acquires Beit Hashita Metal Industries
Deere Acquires Beit Hashita Metal Industries
Deere Co. (NYSE:DE) has acquired Israeli manufacturer Beit Hashita Metal Industries. Beit Hashita Metal manufactures machinery and agricultural implements for the industry.
The deal was actually closed earlier in the week after a District Court in Nazareth approved of the sale of the assets as part of a settlement with creditors.
The offer for Beit Hashita Metal Industries Ltd. was initially made in December 2009, and was waiting on due diligence before being concluded and formalized.
Deere Co. (NYSE:DE) has acquired Israeli manufacturer Beit Hashita Metal Industries. Beit Hashita Metal manufactures machinery and agricultural implements for the industry.
The deal was actually closed earlier in the week after a District Court in Nazareth approved of the sale of the assets as part of a settlement with creditors.
The offer for Beit Hashita Metal Industries Ltd. was initially made in December 2009, and was waiting on due diligence before being concluded and formalized.
Corn, Wheat, Soybeans, Oats Mixed
Corn, Wheat, Soybeans, Oats
With an abundant crop around the world in 2010, major agriculture prices continue to struggle to find support, and even after a bad week finished the work week before Easter weekend mixed.
Climbing for the day were wheat, oats and soybeans, while corn dropped on the day.
Even with the excessive inventory, most farmers continue to plow ahead with most crops to increase their plantings in 2010. After several years of this you would think they would learn, but they're probably getting taxpayer subsidies in relationship to the planting, otherwise it would make no sense.
With an abundant crop around the world in 2010, major agriculture prices continue to struggle to find support, and even after a bad week finished the work week before Easter weekend mixed.
Climbing for the day were wheat, oats and soybeans, while corn dropped on the day.
Even with the excessive inventory, most farmers continue to plow ahead with most crops to increase their plantings in 2010. After several years of this you would think they would learn, but they're probably getting taxpayer subsidies in relationship to the planting, otherwise it would make no sense.
Wednesday, March 24, 2010
Goldman Sachs (NYSE:GS): Global Food Reserves Falling
Goldman Sachs: Food reserves as percentage of consumption
Food commodities have been a difficult sector to figure out, as there are a lot of conflicting element involved in the overall equation, and it'll take time to sort it all out. Goldman Sachs (NYSE:GS) says global food commodities, while having record ending stocks this year for some of them, when taken together as a percent of consumption, drops by 17 percent.
While most of us understand the population growth which will generate more food demand, there is also the supply side, which in many cases has created the record ending stock because of so many countries growing major crops for their own people and exports. That has put and kept downward pressure on food prices for a while now.
We'll know if and when food demand outpaces supply, as the prices of food will respond almost immediately.
When taking into account the 30-year average for reserves as a percentage of consumption, which is 27.7 percent, you can see there could be the possibility of a surge in food prices.
There's no way to no the bottom of course, but we're down in the major food commodities and there isn't a lot of room more to go.
Food commodities have been a difficult sector to figure out, as there are a lot of conflicting element involved in the overall equation, and it'll take time to sort it all out. Goldman Sachs (NYSE:GS) says global food commodities, while having record ending stocks this year for some of them, when taken together as a percent of consumption, drops by 17 percent.
While most of us understand the population growth which will generate more food demand, there is also the supply side, which in many cases has created the record ending stock because of so many countries growing major crops for their own people and exports. That has put and kept downward pressure on food prices for a while now.
We'll know if and when food demand outpaces supply, as the prices of food will respond almost immediately.
When taking into account the 30-year average for reserves as a percentage of consumption, which is 27.7 percent, you can see there could be the possibility of a surge in food prices.
There's no way to no the bottom of course, but we're down in the major food commodities and there isn't a lot of room more to go.
Marc Faber: Food at 200 Year Low
Marc Faber on Food Commodity Prices
Recently Marc Faber was talking food commodities and stated as a whole they are at their lowest levels when measured by real time dollars.
Faber said: “Food commodities are at 200 year lows in real time dollars.”
The question for the majority of food commodities is whether the supply of food will increase at a rate the demand is through a growing population.
Right now it seems there is a huge supply because, in fact there is. But that supply has come from a number of countries increasing their domestic acreage to grow a variety of commodities, especially major ones like wheat, corn and soybeans.
Once this come to fruition, the question then will be answered as to how the price of food commodities will react in the years ahead.
Even droughts and other events which bring down crop production hasn't dented the larger agricultural commodities because of the enormous amount being planted.
Eventually all of this will come to a head, but for now it seems a lot of the major food commodities will have downward pressure on prices.
One other major factor is the cost of inputs, which have seemed to rise in price some lately, but that can be offset by genetically modified plants which largely reduce the needs of those inputs, depending on which particular crop you're talking about.
The bottom won't hit with food commodities as a whole in my opinion, but they will be hit on a crop by crop basis, even more so the further you move from the major foods we eat.
Marc Faber on Food Commodity Prices
Recently Marc Faber was talking food commodities and stated as a whole they are at their lowest levels when measured by real time dollars.
Faber said: “Food commodities are at 200 year lows in real time dollars.”
The question for the majority of food commodities is whether the supply of food will increase at a rate the demand is through a growing population.
Right now it seems there is a huge supply because, in fact there is. But that supply has come from a number of countries increasing their domestic acreage to grow a variety of commodities, especially major ones like wheat, corn and soybeans.
Once this come to fruition, the question then will be answered as to how the price of food commodities will react in the years ahead.
Even droughts and other events which bring down crop production hasn't dented the larger agricultural commodities because of the enormous amount being planted.
Eventually all of this will come to a head, but for now it seems a lot of the major food commodities will have downward pressure on prices.
One other major factor is the cost of inputs, which have seemed to rise in price some lately, but that can be offset by genetically modified plants which largely reduce the needs of those inputs, depending on which particular crop you're talking about.
The bottom won't hit with food commodities as a whole in my opinion, but they will be hit on a crop by crop basis, even more so the further you move from the major foods we eat.
Marc Faber on Food Commodity Prices
Tuesday, March 16, 2010
Citibank (NYSE:C) Growing Commodities Unit
Citibank Commodities Unit
Citibank (NYSE:C) is looking to its investment banking division for growth, specifically its commodities unit, which it is focusing on expanding in the near term.
Raw materials and agriculture should be strong sectors for many years, and even with the alleged move by China to tighten its monetary policy, that could be a ploy as it negotiates across a number of sectors for raw materials it needs desperately.
One for sure is iron ore for the steel industry in China, which is booming and a major export for the country.
Precious metals are another sector which China will have great demand for in the years ahead.
With the pressure to cut back on fees in relationship to consumers, banks like Citibank are looking outside of retail banking for growth sectors, and commodities afford some of the best opportunities in the years ahead, even though there could be a lot of ups and downs on the road.
Citibank Commodities Unit
Citibank (NYSE:C) is looking to its investment banking division for growth, specifically its commodities unit, which it is focusing on expanding in the near term.
Raw materials and agriculture should be strong sectors for many years, and even with the alleged move by China to tighten its monetary policy, that could be a ploy as it negotiates across a number of sectors for raw materials it needs desperately.
One for sure is iron ore for the steel industry in China, which is booming and a major export for the country.
Precious metals are another sector which China will have great demand for in the years ahead.
With the pressure to cut back on fees in relationship to consumers, banks like Citibank are looking outside of retail banking for growth sectors, and commodities afford some of the best opportunities in the years ahead, even though there could be a lot of ups and downs on the road.
Citibank Commodities Unit
Wednesday, March 10, 2010
Commodities: Soybean Futures Gain
Soybean Futures Rise
Soybean futures in the U.S. posted gains today after a weak open, as government estimates of soybean ending stocks in the U.S. were adjusted downward.
The other factor was an increase in crude oil prices, which had a upward effect on soybean futures prices as the day went on.
May soybeans at the Chicago Board of Trade hit a session high of $9.64-1/4 per bushel, increasing 16-3/4 cents or 1.8 percent. The market also pushed through major technical resistance, pushiing past the 20-day moving average of $9.55-1/2.
Soybean Futures Rise
Soybean futures in the U.S. posted gains today after a weak open, as government estimates of soybean ending stocks in the U.S. were adjusted downward.
The other factor was an increase in crude oil prices, which had a upward effect on soybean futures prices as the day went on.
May soybeans at the Chicago Board of Trade hit a session high of $9.64-1/4 per bushel, increasing 16-3/4 cents or 1.8 percent. The market also pushed through major technical resistance, pushiing past the 20-day moving average of $9.55-1/2.
Soybean Futures Rise
Commodities: Agriculture Prices Should Rise in 2010
Agriculture Prices 2010
Although consumers have been relatively happy with food prices, the farmers and related industries haven't exactly been estatic about the performance of agriculture, as gluts of major grains, especially, have kept food prices down a couple of years.
According to the USDA, farm income should increase in 2010 by close to 12 percent, generating about $63 billion for the year.
Many everyday food items are expected to inflate in 2010, including regulars like meat and milk, along with cotton, although cotton could get touchy depending on what happens with the Brazil situation, where they're putting a tariff on it when imported after winning a ruling from the WTO over the subsidizing of cotton by the U.S. government.
Exports of meats are also expected to rise in 2010, led by pork and beef, both looking for about 9 percent export increases.
Agriculture Prices 2010
Although consumers have been relatively happy with food prices, the farmers and related industries haven't exactly been estatic about the performance of agriculture, as gluts of major grains, especially, have kept food prices down a couple of years.
According to the USDA, farm income should increase in 2010 by close to 12 percent, generating about $63 billion for the year.
Many everyday food items are expected to inflate in 2010, including regulars like meat and milk, along with cotton, although cotton could get touchy depending on what happens with the Brazil situation, where they're putting a tariff on it when imported after winning a ruling from the WTO over the subsidizing of cotton by the U.S. government.
Exports of meats are also expected to rise in 2010, led by pork and beef, both looking for about 9 percent export increases.
Agriculture Prices 2010
Wednesday, March 3, 2010
Goldman Sachs (NYSE:GS) on Monsanto (NYSE: MON)
Goldman Sachs (NYSE:GS) on Monsanto (NYSE: MON)
Is the bearish outlook by Goldman Sachs (NYSE:GS) on Monsanto (NYSE: MON) a long term trend, or its it based on factors related to only short-term results?
Another question is if this is primarily a Monsanto issue and not an issue related to the overall agriculture sector, which could have a strong impact on companies like Potash Corp (NYSE:POT).
For Monsanto, the concerns from Goldman were raised in relationship to their SmartStax corn and RR2 soybean seed, which didn't receive the planting in acreage originally thought, which over the long term could have a dramatic downward drag on the stock.
Ongoing plantings around the world for major crops like corn, wheat, soybeans and rice keep pressure on agriculture prices, and unless that changes, it seems the specialty seeds of Monsanto may experience the same thing, depending on whether it's based on resistance to prices or to the genetically modified seed.
Goldman Sachs (NYSE:GS) on Monsanto (NYSE: MON)
Is the bearish outlook by Goldman Sachs (NYSE:GS) on Monsanto (NYSE: MON) a long term trend, or its it based on factors related to only short-term results?
Another question is if this is primarily a Monsanto issue and not an issue related to the overall agriculture sector, which could have a strong impact on companies like Potash Corp (NYSE:POT).
For Monsanto, the concerns from Goldman were raised in relationship to their SmartStax corn and RR2 soybean seed, which didn't receive the planting in acreage originally thought, which over the long term could have a dramatic downward drag on the stock.
Ongoing plantings around the world for major crops like corn, wheat, soybeans and rice keep pressure on agriculture prices, and unless that changes, it seems the specialty seeds of Monsanto may experience the same thing, depending on whether it's based on resistance to prices or to the genetically modified seed.
Goldman Sachs (NYSE:GS) on Monsanto (NYSE: MON)
Tuesday, February 23, 2010
Marc Faber, Jim Rogers: Buy Farmland and Gold
Marc Faber, Jim Rogers, Farmland and Gold
There are two things Marc Faber and Jim Rogers have been telling investors for a long time, and that has been to buy farmland and invest in gold, with a portion of that being in physical gold.
Faber repeated that mantra recently in Tokyo when talking to a group of institutional investors in Tokyo.
Faber added that fund managers need to take into account what the effects of major disruptions could have on the assets they hold, as there is sure to be unpredictable major events beyond simple volatility in the market.
Saying if those events happen to be attackes, they're almost sure to happen in the cities, making buying a home in the countryside somewhere an important part of their personal investment strategy; beyond only making money.
As far as regular investment strategies, Faber said agriculture is a good bet along with companies providing water treatment technology, as he sees both having the potential for major shortages in the future, especially in Asia.
Faber reiterates what others are saying, and that it the uncontrollable debt of the American government is a disaster, and he believes the U.S. is on the verge of bankruptcy in the not too distant future.
Marc Faber, Jim Rogers, Farmland and Gold
There are two things Marc Faber and Jim Rogers have been telling investors for a long time, and that has been to buy farmland and invest in gold, with a portion of that being in physical gold.
Faber repeated that mantra recently in Tokyo when talking to a group of institutional investors in Tokyo.
Faber added that fund managers need to take into account what the effects of major disruptions could have on the assets they hold, as there is sure to be unpredictable major events beyond simple volatility in the market.
Saying if those events happen to be attackes, they're almost sure to happen in the cities, making buying a home in the countryside somewhere an important part of their personal investment strategy; beyond only making money.
As far as regular investment strategies, Faber said agriculture is a good bet along with companies providing water treatment technology, as he sees both having the potential for major shortages in the future, especially in Asia.
Faber reiterates what others are saying, and that it the uncontrollable debt of the American government is a disaster, and he believes the U.S. is on the verge of bankruptcy in the not too distant future.
Marc Faber, Jim Rogers, Farmland and Gold
Monday, February 22, 2010
India Major Agriculture Commodities Producer
India Agriculture Commodity Production
India has been quietly growing a strong position in agricultural commodities while China gets the majority of the attention because they're such a strong consumer of most commodities.
While some of the top commodities India produces aren't that used in the western world, other than bananas and lemons, they still are the world leader in the following: safflower, bees wax, goat milk, castorseed, mangoes, guavas and mangosteens, chickpea, pigeon pea, lemons, bananas and buffalo milk, among others.
Unless you think India is only the king of the secondary agricultural commodities in the world, they have held the No. 2 position with major crops like sugarcane, wheat, rice, onions, green peas, cauliflower and garlic. They have been 3rd in cashews, rapeseed, sorghum, linseed and tomatoes.
Although India has a lot more bureaucratic problems than China, and internal challenges they will have to work through, the agricultural production of the country is one of the more positive signs economically for them.
Figures above were primarily based on the production numbers of 2007.
India Agriculture Commodity Production
India has been quietly growing a strong position in agricultural commodities while China gets the majority of the attention because they're such a strong consumer of most commodities.
While some of the top commodities India produces aren't that used in the western world, other than bananas and lemons, they still are the world leader in the following: safflower, bees wax, goat milk, castorseed, mangoes, guavas and mangosteens, chickpea, pigeon pea, lemons, bananas and buffalo milk, among others.
Unless you think India is only the king of the secondary agricultural commodities in the world, they have held the No. 2 position with major crops like sugarcane, wheat, rice, onions, green peas, cauliflower and garlic. They have been 3rd in cashews, rapeseed, sorghum, linseed and tomatoes.
Although India has a lot more bureaucratic problems than China, and internal challenges they will have to work through, the agricultural production of the country is one of the more positive signs economically for them.
Figures above were primarily based on the production numbers of 2007.
India Agriculture Commodity Production
Thursday, February 11, 2010
Soybeans Up on Storage, Cash Market
Soybean Futures
With soybean futures prices dropping over 9 percent already in 2010, farmers have been storing their crops for better prices, while cash markets have also tightened up.
Weather in the midwest has also played a role as roads are so bad that the soybeans which want to be sent to processors or elevators are kept from being delivered, helping press prices higher over the last couple of days.
Consequently, 143 soybean contracts were canceled which had been ready for delivery, according to the Chicago Board of Trade. Supplies at elevators and processors will now have to be held going forward, although some being stored at those places have already been taken out to be used.
Soybean Futures
With soybean futures prices dropping over 9 percent already in 2010, farmers have been storing their crops for better prices, while cash markets have also tightened up.
Weather in the midwest has also played a role as roads are so bad that the soybeans which want to be sent to processors or elevators are kept from being delivered, helping press prices higher over the last couple of days.
Consequently, 143 soybean contracts were canceled which had been ready for delivery, according to the Chicago Board of Trade. Supplies at elevators and processors will now have to be held going forward, although some being stored at those places have already been taken out to be used.
Soybean Futures
Monday, February 8, 2010
George Soros' Possible Adecoagro IPO
George Soros Adecoagro IPO
Adecoagro is a venture capital company formed in 2002 by a group of investors including billionaire George Soros. The company invests in assets like renewable energy and agriculture in Latin America.
If the time seems right, rather than just raising capital from its private shareholders, the company is thinking of going the initial public offering (IPO) route as the means to raise more capital.
With sugar and ethanol continuing to be an important and profitable part of Brazil, the company has a strong reason and base product to make it an attractive IPO candidate.
The company already has plans in place to increase its sugar-cane crushing to 11 million metric tons in 2016, a major increase from the current 4.8 million they are crushing now. Another strategy is to build a huge can processor in Mato Grosso do Sul sometime in 2010. The acquisition of a sugar mill in Brazil is another possibility during the year.
At this time Adecoagro either leases or owns close to 840,000 acres of farmland in Brazil, Argentina and Uruguay. They grow a number of agricultural products, including soybeans, rice and coffee on the acreage, while also producing a variety of dairy products too.
With land in Brazil skyrocketing because of increasing commodity prices and the value of the local currency, Adecoagro has worked on securing long-term land leasing agreements to lock in prices in order to manage costs.
It's not a surety concerning the IPO, as the company can also raise significant funds with its current base of investors in the company.
George Soros Adecoagro IPO
Adecoagro is a venture capital company formed in 2002 by a group of investors including billionaire George Soros. The company invests in assets like renewable energy and agriculture in Latin America.
If the time seems right, rather than just raising capital from its private shareholders, the company is thinking of going the initial public offering (IPO) route as the means to raise more capital.
With sugar and ethanol continuing to be an important and profitable part of Brazil, the company has a strong reason and base product to make it an attractive IPO candidate.
The company already has plans in place to increase its sugar-cane crushing to 11 million metric tons in 2016, a major increase from the current 4.8 million they are crushing now. Another strategy is to build a huge can processor in Mato Grosso do Sul sometime in 2010. The acquisition of a sugar mill in Brazil is another possibility during the year.
At this time Adecoagro either leases or owns close to 840,000 acres of farmland in Brazil, Argentina and Uruguay. They grow a number of agricultural products, including soybeans, rice and coffee on the acreage, while also producing a variety of dairy products too.
With land in Brazil skyrocketing because of increasing commodity prices and the value of the local currency, Adecoagro has worked on securing long-term land leasing agreements to lock in prices in order to manage costs.
It's not a surety concerning the IPO, as the company can also raise significant funds with its current base of investors in the company.
George Soros Adecoagro IPO
Jim Rogers: Torrid Agriculture Prices
Jim Rogers: Agriculture Prices
The price of food and agricultural goods should continue to rise for years into the future, according to commodity guru Jim Rogers, as "The inventories of food are the lowest not in years but in decades. Supply is going to remain down since we have serious production problems. At the same time people are eating more and we are burning some of our foods as fuels.”
This combination won't change unless governments quit the debacle of using corn to turn into ethanol. That at least would keep the prices of corn relatively in check and available to livestock and human beings at a decent price. If not, corn itself and anything it feeds will increase in price as a result.
Rogers has said numerous times in the recent past that those that own the fancy cars in the next 10 to 20 years will be those who turn in their briefcases for farming. I think he's right!
Still, there are numerous ways you can play agriculture, from those providing equipment and seeds to to those providing the fertilizers and other essentials to operate the business.
Water is another key thing to look at over the next years as populations in many areas of the world continue to grow exponentially, with world population growth estimated to be at over 9 billion by 2050.
Jim Rogers: Agriculture Prices
The price of food and agricultural goods should continue to rise for years into the future, according to commodity guru Jim Rogers, as "The inventories of food are the lowest not in years but in decades. Supply is going to remain down since we have serious production problems. At the same time people are eating more and we are burning some of our foods as fuels.”
This combination won't change unless governments quit the debacle of using corn to turn into ethanol. That at least would keep the prices of corn relatively in check and available to livestock and human beings at a decent price. If not, corn itself and anything it feeds will increase in price as a result.
Rogers has said numerous times in the recent past that those that own the fancy cars in the next 10 to 20 years will be those who turn in their briefcases for farming. I think he's right!
Still, there are numerous ways you can play agriculture, from those providing equipment and seeds to to those providing the fertilizers and other essentials to operate the business.
Water is another key thing to look at over the next years as populations in many areas of the world continue to grow exponentially, with world population growth estimated to be at over 9 billion by 2050.
Jim Rogers: Agriculture Prices
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