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
Showing posts with label Cotton Prices. Show all posts
Showing posts with label Cotton Prices. Show all posts
Wednesday, March 10, 2010
Friday, February 26, 2010
Cotton Acreage Up This Year?
Cotton Planting and Cotton Prices 2010
Reports from the Mid-South Farm and Gin Show revealed that cotton acres planted could come to an estimated 10.1 million in 2010, according to the National Cotton Council.
Estimates are cotton consequently could sell for about $1 a pound if projections hold, as stocks would tighten up.
Other consequences could be less acreage planted in soybeans.
Cotton Planting and Cotton Prices 2010
Reports from the Mid-South Farm and Gin Show revealed that cotton acres planted could come to an estimated 10.1 million in 2010, according to the National Cotton Council.
Estimates are cotton consequently could sell for about $1 a pound if projections hold, as stocks would tighten up.
Other consequences could be less acreage planted in soybeans.
Cotton Planting and Cotton Prices 2010
Monday, February 1, 2010
Will Agricultural Commodity Prices Rise?
Agricultural Commodity Supply and Demand
It seems on every turn the idea of agricultural commodity prices rising are an illusion rather than a reality, as recent data from the United States Department of Agriculture (USDA) confirms crop production was close to record levels, as supply continues to outstrip demand in the short term.
Even so, agriculture should be a great investment over the long haul, as there is no more land being made and the population of the world continues to grow. There is no way this can be stopped from eventually driving up agricultural prices, as they've been some of the worst performing sectors of all over the last 30 years or so.
There is no doubt grains are beaten down and out of favor, and that represents a buying opportunity.
Once supply and demand sorts itself out, we should see the beginning of a long-term bull market in agriculture, with little to hold it back.
It may take a little longer because of the tightness of the global economy and the near-record crop results this year. But we can be sure it will kick in sometime soon, and when that happens, those that have positioned themselves accordingly will make a fortune through their investments in agriculture.
Agricultural Commodity Supply and Demand
It seems on every turn the idea of agricultural commodity prices rising are an illusion rather than a reality, as recent data from the United States Department of Agriculture (USDA) confirms crop production was close to record levels, as supply continues to outstrip demand in the short term.
Even so, agriculture should be a great investment over the long haul, as there is no more land being made and the population of the world continues to grow. There is no way this can be stopped from eventually driving up agricultural prices, as they've been some of the worst performing sectors of all over the last 30 years or so.
There is no doubt grains are beaten down and out of favor, and that represents a buying opportunity.
Once supply and demand sorts itself out, we should see the beginning of a long-term bull market in agriculture, with little to hold it back.
It may take a little longer because of the tightness of the global economy and the near-record crop results this year. But we can be sure it will kick in sometime soon, and when that happens, those that have positioned themselves accordingly will make a fortune through their investments in agriculture.
Agricultural Commodity Supply and Demand
Tuesday, January 5, 2010
Cotton Futures Prices Not Manipulated
Cotton Futures Prices Not Manipulated
After a 20-month study, the Commodity Futures Trading Commission concluded there was no market manipulation which resulted in the huge spike in cotton prices in 2008.
The CFTC could find no one reason for the large increase in cotton prices, but said it was probably a great number of factors which ended in the failure of two of the top cotton producers in America.
At the time of the crazy price swings, cotton contracts were traded on the IntercontinentalExchange's Futures U.S., which used to be called the New York Board of Trade.
This was good to hear as the government can't protect grownups from losing money when they invest, and it shouldn't have wasted all this time checking into this when you consider that a lot of commodities surged in price during that time period such as copper, oil and wheat. It's called supply and demand.
Here were some of the conclusions of the CFTC:
- The trading activity of the largest longs was not consistent with activity that would cause an increase in the price of cotton futures or options.
- Many market participants active in the futures and option markets before futures prices reached limit up were cotton merchants, who held significant short positions. They would not benefit financially from manipulating the price of cotton.
- During critical time periods before futures prices reached limit up, no participant in the option market had a significant long position or sold a significant existing option position.
- The merchants with large short positions were hedged, holding sufficient physical cotton to deliver against their contracts. There was no shortage of physical cotton, certificated stocks were rising. Little interest in March contract.
Per the report, some of the reasons for the increase in prices included the increase in commodity prices, tight credit, migration to electronic trading from pit trading, large market participants and limits on cotton market prices.
Cotton Futures Prices Not Manipulated
After a 20-month study, the Commodity Futures Trading Commission concluded there was no market manipulation which resulted in the huge spike in cotton prices in 2008.
The CFTC could find no one reason for the large increase in cotton prices, but said it was probably a great number of factors which ended in the failure of two of the top cotton producers in America.
At the time of the crazy price swings, cotton contracts were traded on the IntercontinentalExchange's Futures U.S., which used to be called the New York Board of Trade.
This was good to hear as the government can't protect grownups from losing money when they invest, and it shouldn't have wasted all this time checking into this when you consider that a lot of commodities surged in price during that time period such as copper, oil and wheat. It's called supply and demand.
Here were some of the conclusions of the CFTC:
- The trading activity of the largest longs was not consistent with activity that would cause an increase in the price of cotton futures or options.
- Many market participants active in the futures and option markets before futures prices reached limit up were cotton merchants, who held significant short positions. They would not benefit financially from manipulating the price of cotton.
- During critical time periods before futures prices reached limit up, no participant in the option market had a significant long position or sold a significant existing option position.
- The merchants with large short positions were hedged, holding sufficient physical cotton to deliver against their contracts. There was no shortage of physical cotton, certificated stocks were rising. Little interest in March contract.
Per the report, some of the reasons for the increase in prices included the increase in commodity prices, tight credit, migration to electronic trading from pit trading, large market participants and limits on cotton market prices.
Cotton Futures Prices Not Manipulated
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