Potash (NYSE:POT), CF Industries (NYSE:CF), Mosaic (NYSE:MOS), Agrium (NYSE:AGU) and Monsanto (NYSE:MON) close up as corn futures settle at record price.
Also climbing was Deere & Co. (NYSE:DE), as the manufacturer of farm, turf and lawn equipment usually moves up on positive agriculture news.
Corn futures soared to a new settlement price record, with the July front-month contract rising 21 cents, or 2.8 percent, to settle at $7.854 a bushel on the Chicago Board of Trade. It reached as high as $7.93 before pulling back.
Lower acreage planted in the U.S., rising demand from China, and weather-related crop damage is pushing the price of corn up.
Wasting corn supply on ethanol is also weighing on the corn equation.
Potash closed Thursday at $55.36, gaining $2.12, or 3.98 percent. CF Industries closed at $154.86, soaring $6.24, or 4.20 percent. Mosaic closed at $68.84, rising $3.18, or 4.84 percent. Agrium ended the day at $84.71, jumping $2.76, or 3.37 percent. Monsanto closed at $69.51, up $1.89, or 2.80 percent. Deere closed at $82.00, increasing $2.04, or 2.55 percent.
Showing posts with label Corn Futures. Show all posts
Showing posts with label Corn Futures. Show all posts
Friday, June 10, 2011
Friday, July 23, 2010
Corn Plunges 6 Percent on Bearish Outlook
Things changed quickly for corn futures this week, as concerns over hot, dry weather rapidly moved from high corn prices to plunging ones, as rains and cooler weather increased the outlook for the corn harvest, but not for corn traders.
For the week, corn dropped 6 percent, with September corn falling 5 1/4 cents to $3.71 1/4 a bushel, and December corn decreasing more, 5 3/4 cents, to $3.84 1/2 a bushel.
Some are trying to extend the corn price rally by implying the rain was too much and would have a detrimental effect on corn, but that adds too much confusion and uncertainty, as you can't have it both ways.
That isn't to say there won't be some negative effects, as corn planted in lower areas could be impacted, but overall, the outlook is far better than it was, the reason corn prices will continue to fall, even with attempts to use every different weather pattern as a way to try to push corn prices up.
For the week, corn dropped 6 percent, with September corn falling 5 1/4 cents to $3.71 1/4 a bushel, and December corn decreasing more, 5 3/4 cents, to $3.84 1/2 a bushel.
Some are trying to extend the corn price rally by implying the rain was too much and would have a detrimental effect on corn, but that adds too much confusion and uncertainty, as you can't have it both ways.
That isn't to say there won't be some negative effects, as corn planted in lower areas could be impacted, but overall, the outlook is far better than it was, the reason corn prices will continue to fall, even with attempts to use every different weather pattern as a way to try to push corn prices up.
Tuesday, July 20, 2010
Corn Prices Continue to Fall on Good Weather Conditions
Corn prices continue to fall as cooler and wetter weather continues to hit the Midwest of the United States.
Hot, dry weather had been pushing prices of corn up on concerns there wouldn't be a weather change, but now that it has come, prices will go back to where they should be at in light of the potential harvest.
Wheat and soybeans also continue to fall, with wheat falling on the reality it won't be needed for feed substitute now that corn production looks better.
Corn futures for December delivery dropped 5.5 cents, or 1.4 percent, to $3.885 a bushel at 10:00 AM on the Chicago Board of Trade.
Forecasts for cool and wet weather continue on for the next several days, giving the region what it should need to generate a bountiful corn harvest.
Hot, dry weather had been pushing prices of corn up on concerns there wouldn't be a weather change, but now that it has come, prices will go back to where they should be at in light of the potential harvest.
Wheat and soybeans also continue to fall, with wheat falling on the reality it won't be needed for feed substitute now that corn production looks better.
Corn futures for December delivery dropped 5.5 cents, or 1.4 percent, to $3.885 a bushel at 10:00 AM on the Chicago Board of Trade.
Forecasts for cool and wet weather continue on for the next several days, giving the region what it should need to generate a bountiful corn harvest.
Friday, July 16, 2010
Corn, Soybeans, Wheat, Oats Up on Expected Midwest Rains
Weather has given and now weather is taking away, the price of the major grains in the U.S., as hot and dry weather in the western and eastern parts of the Midwest had traders pushing up the prices on concerns over a smaller harvest for corn, soybeans, wheat an oats.
That has changed now as longer term contracts dropped on news the majority of the Midwest should receive up to 3 inches of rain over the next week, essentially eliminating the potential for damage.
Approximately 90 percent of the fields north of Omaha, Nebraska and Columbus, Ohio are expected to receive the rain.
Soybean delivery for November dropped 2.75 cents, or 0.3 percent, to $9.8525 a bushel, while corn futures for December delivery declined 1 cent, or 0.2 percent, 50 $4.0425 a bushel early in the Friday trading session on the Chicago Board of Trade.
Since the end of June, corn futures have gained 18 percent on revised production, weather concerns and demand from China and ethanol producers.
Wheat had also been going higher because of the possibility it would have to be used as a supplement for animal feed if corn faltered.
That has changed now as longer term contracts dropped on news the majority of the Midwest should receive up to 3 inches of rain over the next week, essentially eliminating the potential for damage.
Approximately 90 percent of the fields north of Omaha, Nebraska and Columbus, Ohio are expected to receive the rain.
Soybean delivery for November dropped 2.75 cents, or 0.3 percent, to $9.8525 a bushel, while corn futures for December delivery declined 1 cent, or 0.2 percent, 50 $4.0425 a bushel early in the Friday trading session on the Chicago Board of Trade.
Since the end of June, corn futures have gained 18 percent on revised production, weather concerns and demand from China and ethanol producers.
Wheat had also been going higher because of the possibility it would have to be used as a supplement for animal feed if corn faltered.
September Corn Futures Up on Perceived Demand
Several factors have been moving the price of grains lately, not the least of which has been dry and hot weather in the western and eastern portions of the Midwest in the United States. That has resulted in corn prices going higher, as uncertainty concerning the needed rain and if it'll come remains.
But corn has been unwound some from its grain cousins, with the ethanol factor being always in play, as well as the growing demand from China. Both of these are been increasing in 2010.
Recent data from the USDA shows there was less corn acreage planted than originally estimated, and production estimates were also lowered on July 9 by almost 1 percent, to 13,245 billion bushels. The corn production estimate cut came from the corn acreage report.
Even so, we're still on a production course to reach record highs this year, which means there is a lot of optimism concerning surging demand.
Another factor on the negative side, as far as corn prices go, is the possibility of cutting the ethanol subsidy program, which has increasingly come under fire for its costs and controversy over damage to power equipment and some cars, as well as the environment.
The budget crisis and outrageous spending of the Obama administration has led us to that place.
There is mounting pressure to eliminate the ethanol tax subsidies, and even proponents are talking of cutting it by 9 cents from the current 45 cents a gallon, to possibly 36 cents a gallon for the subsidy.
But corn has been unwound some from its grain cousins, with the ethanol factor being always in play, as well as the growing demand from China. Both of these are been increasing in 2010.
Recent data from the USDA shows there was less corn acreage planted than originally estimated, and production estimates were also lowered on July 9 by almost 1 percent, to 13,245 billion bushels. The corn production estimate cut came from the corn acreage report.
Even so, we're still on a production course to reach record highs this year, which means there is a lot of optimism concerning surging demand.
Another factor on the negative side, as far as corn prices go, is the possibility of cutting the ethanol subsidy program, which has increasingly come under fire for its costs and controversy over damage to power equipment and some cars, as well as the environment.
The budget crisis and outrageous spending of the Obama administration has led us to that place.
There is mounting pressure to eliminate the ethanol tax subsidies, and even proponents are talking of cutting it by 9 cents from the current 45 cents a gallon, to possibly 36 cents a gallon for the subsidy.
Thursday, July 15, 2010
Corn, Soybean Prices Soar on Weather Concerns
Prices for soybeans increased to their highest price levels since the early part of May, while corn soared to its highest level in six months on forecasts of continue hot, dry weather in parts of the U.S. over the next month and a half. That could cause some major damage to crops if the weather projections hold up.
Corn futures for December delivery increased 7.75 cents, or 2 percent, to $4.04 a bushel at 10:17 AM CDT on the Chicago Board of Trade, after rising to $4.10, the highest price since January 12.
Soybean futures for November delivery exploded by 15.75 cents, or 1.6 percent, to $9.7775 a bushel in Chicago after going as high as $9.855, the highest price level since May 5.
Analysts say rain will have to come soon to prevent significant damage to both crops, which together account for close $80 billion in value, both of which the U.S. leads the world in production and exports.
The western and eastern parts of the Midwest are being hit the hardest by the weather.
Corn futures for December delivery increased 7.75 cents, or 2 percent, to $4.04 a bushel at 10:17 AM CDT on the Chicago Board of Trade, after rising to $4.10, the highest price since January 12.
Soybean futures for November delivery exploded by 15.75 cents, or 1.6 percent, to $9.7775 a bushel in Chicago after going as high as $9.855, the highest price level since May 5.
Analysts say rain will have to come soon to prevent significant damage to both crops, which together account for close $80 billion in value, both of which the U.S. leads the world in production and exports.
The western and eastern parts of the Midwest are being hit the hardest by the weather.
Tuesday, March 2, 2010
Corn Futures Down on Dollar, Inventory
Corn Futures, Dollar, Corn Inventory
Corn futures dropped again as the stronger U.S. dollar made investments and exports unattractive, and the significant global corn inventory has left no base to work from.
As with wheat, as mentioned in my last post, when the prices of grains surged in 2008, farmers seeded huge amounts of wheat, corn, soybeans and rice, which all but assured there would be downward pressure on grain prices in the years ahead.
I'm not sure why the farmers continue to do this, or if they're being told wrongly, but farmers need to understand that if they put huge seedings of crops in the year after a big price increase, they can be sure huge numbers of farmers around the world will do the same.
While there is always the possibility of weather having a devastating impact on some crops, as last year showed, there was so much grain on the market that even when their were droughts or other weather problems, there was so much available it didn't have much of an impact.
With corn this is the story, and will continue to be a bearish story until some farmers drop planting it based on past performance.
Eventually there will be major demand around the world for food, but we are far from that with grains at this time, even though analysts and wealthy investors like Jim Rogers tout food and agriculture in general as a great future investment.
It will be all of that, but when farmers plant far more than global demand warrants, we're always going see downward pressure on corn futures and other grains until it corrects itself.
Corn Futures, Dollar, Corn Inventory
Corn futures dropped again as the stronger U.S. dollar made investments and exports unattractive, and the significant global corn inventory has left no base to work from.
As with wheat, as mentioned in my last post, when the prices of grains surged in 2008, farmers seeded huge amounts of wheat, corn, soybeans and rice, which all but assured there would be downward pressure on grain prices in the years ahead.
I'm not sure why the farmers continue to do this, or if they're being told wrongly, but farmers need to understand that if they put huge seedings of crops in the year after a big price increase, they can be sure huge numbers of farmers around the world will do the same.
While there is always the possibility of weather having a devastating impact on some crops, as last year showed, there was so much grain on the market that even when their were droughts or other weather problems, there was so much available it didn't have much of an impact.
With corn this is the story, and will continue to be a bearish story until some farmers drop planting it based on past performance.
Eventually there will be major demand around the world for food, but we are far from that with grains at this time, even though analysts and wealthy investors like Jim Rogers tout food and agriculture in general as a great future investment.
It will be all of that, but when farmers plant far more than global demand warrants, we're always going see downward pressure on corn futures and other grains until it corrects itself.
Corn Futures, Dollar, Corn Inventory
Friday, February 26, 2010
Corn Prices Rise on Weather
Corn Prices 2010
Although it's only speculation at this time, corn prices surged on the possibility melting show in the mid-west will result in flooding, which will in turn cause a smaller planting of corn by farmers in the spring.
A smaller planting of course will end up with a smaller yield of corn.
Even so, estimates from the USDA have corn acreage to be planted this year at some 89 million, up from the 86.5 million acres in 2009.
With weather expected to be at very cold levels in the region for the next three weeks, along with a potential 6 inches of water inherent in the snow laying on the ground of the great plains and the mid-west, that will put back the normal time of the spring thaw, making it harder to plant as well as harvest corn.
Taking that all into consideration, the question is whether the additional corn acreage planted in 2010 will make up for the late season and possible crop shortage in some areas.
Corn Prices 2010
Although it's only speculation at this time, corn prices surged on the possibility melting show in the mid-west will result in flooding, which will in turn cause a smaller planting of corn by farmers in the spring.
A smaller planting of course will end up with a smaller yield of corn.
Even so, estimates from the USDA have corn acreage to be planted this year at some 89 million, up from the 86.5 million acres in 2009.
With weather expected to be at very cold levels in the region for the next three weeks, along with a potential 6 inches of water inherent in the snow laying on the ground of the great plains and the mid-west, that will put back the normal time of the spring thaw, making it harder to plant as well as harvest corn.
Taking that all into consideration, the question is whether the additional corn acreage planted in 2010 will make up for the late season and possible crop shortage in some areas.
Corn Prices 2010
Monday, December 14, 2009
Agriculture Commodities Prices Going Up in 2010
It looks like 2010 could be a good year for agricultural commodities investors, especially those hitting it right for those food prices going up. Soybeans seems to be one of those agricultural commodities sure to rise in price in 2010, based on nothing more than continued demand from China. That's enough of a reason to believe soybean prices will continue to rise.
Another factor many are considering is in reference to a number of funds possibly having a lot of interest in the agricultural commodity sector in 2010, making it highly likely for many food prices to increase. While that's a real factor, it's not as important as what these funds are making their determinations by.
If there is a real growing demand for a number of agricultural products, then there will be a corresponding increase in prices. But to base a strategy on attempting to invest along with big funds in the sector is a risk. We should always look at the long term factor and not short term ones. Even so, it's not a certainty, and only a guess that the big funds will go this route. It's a gamble at best to follow as if that's going to be the reality.
Sugar continues its rise in price, and that could definitely be a long term trend based on the growing middle classes in China and India. Usually a growing middle class likes to spend money on sweets and things like that when they have the money to. And that should be the case in these countries, as demand for sugar rises along with sugar prices.
Based on the foolish ethanol policies of the U.S., it is expected that demand for corn will continue to rise, along with corn prices. Wheat prices probably won't fare near as well for some time, as countries continue to over-plant and over-harvest, creating downward pressures on wheat prices, which don't look like they're going to abate any time soon.
Another factor many are considering is in reference to a number of funds possibly having a lot of interest in the agricultural commodity sector in 2010, making it highly likely for many food prices to increase. While that's a real factor, it's not as important as what these funds are making their determinations by.
If there is a real growing demand for a number of agricultural products, then there will be a corresponding increase in prices. But to base a strategy on attempting to invest along with big funds in the sector is a risk. We should always look at the long term factor and not short term ones. Even so, it's not a certainty, and only a guess that the big funds will go this route. It's a gamble at best to follow as if that's going to be the reality.
Sugar continues its rise in price, and that could definitely be a long term trend based on the growing middle classes in China and India. Usually a growing middle class likes to spend money on sweets and things like that when they have the money to. And that should be the case in these countries, as demand for sugar rises along with sugar prices.
Based on the foolish ethanol policies of the U.S., it is expected that demand for corn will continue to rise, along with corn prices. Wheat prices probably won't fare near as well for some time, as countries continue to over-plant and over-harvest, creating downward pressures on wheat prices, which don't look like they're going to abate any time soon.
Thursday, February 5, 2009
Commodities: Trading Commodities
Just like in trading equities or any other investment, an investor without a long term outlook and time horizon will far underperform those that are in it for the longer term. Trading commodities is no different, as those going in and out of the market find themselves on the loosing end of deals, and wonder why other commodity futures traders are so successful while they linger on the sidelines licking their wounds.
It doesn't matter if it's trading currencies, agriculture futures or precious metals futures, it's all the same. Those measuring success in short term increments will find themselves never making any money, and only looking for someone to balme for their wrong decisions.
Commodities markets are no different than any other investment market, and we need to do our homework and have a solid handle on what commodity or commodities were investing in.
Whether its gold or silver futures, wheat or corn futures, or platinum or palladium futures, it's all the same. Understand what it is that relates to the underlying fundamentals and invest accordingly.
No matter what commodities exchange you're working with, commodities brokerage or broker, if you don't have a long term outlook and investigate the commodity or commodities you're interested in, you're going to fail miserably and not understand why.
Check out the commodity news and commoditey charts, look for patterns and changes in commodity demand and surplus. Look for any information on the commodity you're going to invest in, and make a decision on whether you want to invest in options or futures. You could in the case of ETFs of course go that route.
Commodity futures trading or commodity options trading isn't for the faint of heart, which is why it's even more important not to just throw your money at something hoping it will stick. If you don't have the time or are clueless, research commodity brokerages and individual commodity brokers to see which is the best fit for your desired strategy and risk tolerance. Also don't throw all your money into one commodity trade, as you could lose it all.
Over the long term, gold commodities, silver commodities, oil commodities look good for futures rising, while over the longer term a number of grain like wheat commodities, corn commodities and soybean commodities should perform well as middle classes grow in Asian countries.
Gas as a commodity investment should also do well over the long term.
The U.S. dollar is not a place you want to place your money, as over the long haul it's going to be under tremendous downward pressure, and other currencies would be better to invest in if you're interested in the currency sector.
Commodity funds, commodity investments, commodity indexes, commodity stocks, commodity exchanges, ETFs, commodities prices and so on, are going to rise, and will outperform in general all other investment vehicles and sectors over the next five to ten years. There will obviously be individual commodities that won't partake in that success, which is why learning to be a futures trader or options trader and understanding the overall commodity market in relationship to supply and demand is so important.
Taking a consistent look at gold as a commodity people are looking to park their money safely, as well as the commodity silver is a must going forward. Both of those should do well in the near and long term.
Commodities will continue to be hot, and those who prepare and are ready and willing to take the risk, should experience extraordinary success in commodity options, futures, funds and ETFs in the near and long term.
It doesn't matter if it's trading currencies, agriculture futures or precious metals futures, it's all the same. Those measuring success in short term increments will find themselves never making any money, and only looking for someone to balme for their wrong decisions.
Commodities markets are no different than any other investment market, and we need to do our homework and have a solid handle on what commodity or commodities were investing in.
Whether its gold or silver futures, wheat or corn futures, or platinum or palladium futures, it's all the same. Understand what it is that relates to the underlying fundamentals and invest accordingly.
No matter what commodities exchange you're working with, commodities brokerage or broker, if you don't have a long term outlook and investigate the commodity or commodities you're interested in, you're going to fail miserably and not understand why.
Check out the commodity news and commoditey charts, look for patterns and changes in commodity demand and surplus. Look for any information on the commodity you're going to invest in, and make a decision on whether you want to invest in options or futures. You could in the case of ETFs of course go that route.
Commodity futures trading or commodity options trading isn't for the faint of heart, which is why it's even more important not to just throw your money at something hoping it will stick. If you don't have the time or are clueless, research commodity brokerages and individual commodity brokers to see which is the best fit for your desired strategy and risk tolerance. Also don't throw all your money into one commodity trade, as you could lose it all.
Over the long term, gold commodities, silver commodities, oil commodities look good for futures rising, while over the longer term a number of grain like wheat commodities, corn commodities and soybean commodities should perform well as middle classes grow in Asian countries.
Gas as a commodity investment should also do well over the long term.
The U.S. dollar is not a place you want to place your money, as over the long haul it's going to be under tremendous downward pressure, and other currencies would be better to invest in if you're interested in the currency sector.
Commodity funds, commodity investments, commodity indexes, commodity stocks, commodity exchanges, ETFs, commodities prices and so on, are going to rise, and will outperform in general all other investment vehicles and sectors over the next five to ten years. There will obviously be individual commodities that won't partake in that success, which is why learning to be a futures trader or options trader and understanding the overall commodity market in relationship to supply and demand is so important.
Taking a consistent look at gold as a commodity people are looking to park their money safely, as well as the commodity silver is a must going forward. Both of those should do well in the near and long term.
Commodities will continue to be hot, and those who prepare and are ready and willing to take the risk, should experience extraordinary success in commodity options, futures, funds and ETFs in the near and long term.
Sunday, January 25, 2009
Commodities: Corn Futures Under Pressure
There are many reasons and variables why commodities in general are making an expected comeback, while agricultural commodity grains continue to struggle.
Corn is one of those, as it dropped for the second day in a row, while its commodity counterparts outside of grains made significant increases, including oil, gold and silver.
Corn futures, and other grain futures will continue to battle to retain price thresholds as the economic slowdown cuts back on governments spending money in the U.S., which in general has higher grain prices.
The price of corn futures has already fallen over 50 percent since early summer, and there's nothing in play that will keep that from continuing on.
While the Argentine drought has cut into wheat, corn and soy production, it doesn't look like it'll cause any shortages, as global production has been up this year.
There has been nothing wrong with the grain this year, as the yield for corn has been good, and production solid. That's not the problem, as with oil. There's just so much people are willing to spend this year across the world, and demand, more than anything else is what's driving corn futures, as well as most other commodity markets.
Now that government spending have been irresponsibly brought into the mix, farmers, companies and investors are looking to them for solace, rather than allowing the market to clean itself out and poorly run businesses to fail.
So with corn storage, production and yield being fine, the deciding factor will be the economies of the individual countries and the willingness to spend on grains, including corn.
Until the pocketbooks are opened up again, corn futures, along with all grain futures, will continue to be under downward pressure.
Accordingly commodity grains and the corn belt that produces them will struggle until the economic conditions improve. From what it looks like, it'll be some time before that battle will be over.
Corn is one of those, as it dropped for the second day in a row, while its commodity counterparts outside of grains made significant increases, including oil, gold and silver.
Corn futures, and other grain futures will continue to battle to retain price thresholds as the economic slowdown cuts back on governments spending money in the U.S., which in general has higher grain prices.
The price of corn futures has already fallen over 50 percent since early summer, and there's nothing in play that will keep that from continuing on.
While the Argentine drought has cut into wheat, corn and soy production, it doesn't look like it'll cause any shortages, as global production has been up this year.
There has been nothing wrong with the grain this year, as the yield for corn has been good, and production solid. That's not the problem, as with oil. There's just so much people are willing to spend this year across the world, and demand, more than anything else is what's driving corn futures, as well as most other commodity markets.
Now that government spending have been irresponsibly brought into the mix, farmers, companies and investors are looking to them for solace, rather than allowing the market to clean itself out and poorly run businesses to fail.
So with corn storage, production and yield being fine, the deciding factor will be the economies of the individual countries and the willingness to spend on grains, including corn.
Until the pocketbooks are opened up again, corn futures, along with all grain futures, will continue to be under downward pressure.
Accordingly commodity grains and the corn belt that produces them will struggle until the economic conditions improve. From what it looks like, it'll be some time before that battle will be over.
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