Showing posts with label Agriculture Prices. Show all posts
Showing posts with label Agriculture Prices. Show all posts
Monday, September 24, 2012
Goldman (GS) Sees Commodities Jumping 18 Percent
Over the next year, Goldman Sachs (NYSE: GS) said they see commodities providing a return of 18.2 percent, led by industrial metals and energy prices.
Interestingly, and I think wrongly, Goldman sees precious metals rising only six percent during the same period, as measured in Standard & Poor’s GSCI Enhanced Commodity Index.
Goldman Sachs analyst Jeffrey Currie said, “Apart from being attractive in its own right, we also continue to see an overweight in commodities as a hedge against the risk of the impact of sharply higher commodity prices on economic growth and other asset classes, if oil supplies were to disappoint against a backdrop of very limited spare capacity.”
As for other commodities, Goldman sees agriculture overall dropping by 5 percent over the next year, although it sees livestock climbing 4.5 percent.
For the year, expectations are the Standard & Poor’s GSCI Enhanced Commodity Index will jump 26.5 percent. For the next quarter Currie sees it up by about 8.6 percent.
Globally, these numbers are lower that projections of a 32.8 percent increase in the Tokyo Stock Exchange Topix and 25.5 percent boost in Stoxx equity index.
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.
Monday, May 3, 2010
Why Are Potash Corp. (NYSE:POT) Monsanto (NYSE:MON) Mosaic (NYSE:MOS) Slowing?
Potash Corp. (NYSE:POT) Monsanto Company (NYSE:MON) Mosaic Company (NYSE:MOS) have all showed signs of slowing down over the last couple of months, with Monsanto plunging.
Monsanto is easy to understand because of some of their battles in a variety of situation over their seeds, and some negative publicity that has pushed the price down. Also some sales have been lower as well with farmers resisting the pricing of some of their products.
But for all the companies the question is whether the economy is really as robust as it's being made out to be, as fertilizer was expected to rebound nicely and it hasn't seemed to take hold yet this spring in spite of projections.
If demand for their products are slowing, we'll probably see these stocks take a hit or remain somewhat level until farmers are ready to spend money again.
Monsanto is easy to understand because of some of their battles in a variety of situation over their seeds, and some negative publicity that has pushed the price down. Also some sales have been lower as well with farmers resisting the pricing of some of their products.
But for all the companies the question is whether the economy is really as robust as it's being made out to be, as fertilizer was expected to rebound nicely and it hasn't seemed to take hold yet this spring in spite of projections.
If demand for their products are slowing, we'll probably see these stocks take a hit or remain somewhat level until farmers are ready to spend money again.
Friday, April 2, 2010
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
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
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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