Showing posts with label Soybeans. Show all posts
Showing posts with label Soybeans. Show all posts
Thursday, October 4, 2012
Euro Climbs to Two-Week High Against Dollar
The euro soared to a two-week high against the U.S. dollar Thursday, as that and other factors accounted for a number of commodities also climbing.
Concerning the euro, European Central Bank President Mario Draghi reaffirmed his commitment to maintain and preserve the euro, as well as the monetary system of the area.
That announcement was what pushed the euro up against the dollar, which helped boost many other commodities as well.
Not only were commodities helped though, as the news from the ECB also helped Wall Street equities to soar as well.
Precious metals gold and silver were unsurprisingly higher, as was much of energy, although that was aided by Turkish strikes on Syria, which generated supply concerns, along with a fire at the largest refinery in the U.S, which is run by Exxon Mobil (XOM), along with another refinery fire in Russia.
In agriculture, corn, wheat and soybeans were all up on the day, after hitting a three-month low the day before. Sugar was also up.
Other metals rising included platinum and palladium in the U.S.
Saturday, August 11, 2012
Corn, Soybean Projections Slashed
Once again the U.S. Department of Agriculture cut its corn yield projection, dropping it 17 percent from last month to 10.8 billion bushels. Last month the USDA projected a corn yield of 13 billion bushels.
The USDA is always conservative in its downward revisements, so it's quite possible we'll see another significant downward adjustment next month, once the data from northern parts of the country are more conclusive and a fuller picture is made available.
According to the World Agricultural Supply and Demand Estimates report from the USDA, the average farm will produce about 123.4 bushels an acre in 2012, the lowest average yield since 1995.
For soybeans, estimates are for a yield of 2.69 billion bushels, down 12 percent from 2011, and way down from the 3.05 billion bushels the USDA was looking for last month.
Soybean yields are expected to come in at 36.1 bushels an acre this year, the lowest level in 9 years.
Agriculture Secretary Tom Vilsack has foolishly called for more government interference in the markets, pushing for a farm bill that he asserts "gives farmers and ranchers more certainty in this tough time, while giving USDA tools to help those producers affected by weather-related events beyond their control."
In other words, he wants even more entitlements for farmers in order to prop up failed practices. Or to put it another way, he wants taxpayers to bail out the farmers, which of the giant farmers will be the primary beneficiaries.
This is the typical government-is-the-answer-to-everything thinking, where people and the decisions they make are not allowed to fail.
Business is all about using the best data available to see the clearest picture of the future it can. Government has no right to interfere with the true entrepreneurial spirit, and that includes in the agricultural sector.
The one thing that needs to be done is to drop all the failed ethanol supports and also the government props that cause many farmers to be lazy in their practices. They need to learn again to stand on their own and dig even deeper into best practices for the sector.
The USDA is always conservative in its downward revisements, so it's quite possible we'll see another significant downward adjustment next month, once the data from northern parts of the country are more conclusive and a fuller picture is made available.
According to the World Agricultural Supply and Demand Estimates report from the USDA, the average farm will produce about 123.4 bushels an acre in 2012, the lowest average yield since 1995.
For soybeans, estimates are for a yield of 2.69 billion bushels, down 12 percent from 2011, and way down from the 3.05 billion bushels the USDA was looking for last month.
Soybean yields are expected to come in at 36.1 bushels an acre this year, the lowest level in 9 years.
Agriculture Secretary Tom Vilsack has foolishly called for more government interference in the markets, pushing for a farm bill that he asserts "gives farmers and ranchers more certainty in this tough time, while giving USDA tools to help those producers affected by weather-related events beyond their control."
In other words, he wants even more entitlements for farmers in order to prop up failed practices. Or to put it another way, he wants taxpayers to bail out the farmers, which of the giant farmers will be the primary beneficiaries.
This is the typical government-is-the-answer-to-everything thinking, where people and the decisions they make are not allowed to fail.
Business is all about using the best data available to see the clearest picture of the future it can. Government has no right to interfere with the true entrepreneurial spirit, and that includes in the agricultural sector.
The one thing that needs to be done is to drop all the failed ethanol supports and also the government props that cause many farmers to be lazy in their practices. They need to learn again to stand on their own and dig even deeper into best practices for the sector.
Tuesday, October 12, 2010
Deere (NYSE:DE), CNH Global (NYSE:CNH), AGCO (Nasdaq:AGCO) and Lower Crop Yields
Agricultural stocks have been blazing as corn, soybean and wheat ending stocks were all lowered from prior estimates, with corn falling 21 percent and soybeans 26 percent below consensus. Wheat dropped 5 percent below former projections, 2 percent below consensus.
UBS (NYSE:UBS) said this about the changes, "USDA lowered its forecast of 2010/11 corn production to 12.664B bushels, from 13.160B bu, on lower corn yield. Also, USDA lowered its forecast of 2010/11 ending corn stocks to 902M bu, from 1.116B bu, 21% below the consensus forecast of 1.149B bu. USDA lowered its soybean ending stocks forecasts to 265M bu (26% below consensus of 356M), and lowered its wheat ending stocks forecast by 5% to 853M bu (2% below consensus of 870M). Given that forecasted corn and soybean ending stocks were well below consensus, we see the report as bullish for corn and soybean prices."
UBS kept a "Neutral" rating on Deere (NYSE:DE) and CNH Global (NYSE:CNH), while maintaining a "Sell" on AGCO (Nasdaq:AGCO), as farm as farm machinery makers go.
Lower yields should result in higher prices and margins, which could end up with farmers ordering more new machinery.
UBS (NYSE:UBS) said this about the changes, "USDA lowered its forecast of 2010/11 corn production to 12.664B bushels, from 13.160B bu, on lower corn yield. Also, USDA lowered its forecast of 2010/11 ending corn stocks to 902M bu, from 1.116B bu, 21% below the consensus forecast of 1.149B bu. USDA lowered its soybean ending stocks forecasts to 265M bu (26% below consensus of 356M), and lowered its wheat ending stocks forecast by 5% to 853M bu (2% below consensus of 870M). Given that forecasted corn and soybean ending stocks were well below consensus, we see the report as bullish for corn and soybean prices."
UBS kept a "Neutral" rating on Deere (NYSE:DE) and CNH Global (NYSE:CNH), while maintaining a "Sell" on AGCO (Nasdaq:AGCO), as farm as farm machinery makers go.
Lower yields should result in higher prices and margins, which could end up with farmers ordering more new machinery.
Archer-Daniels-Midland (NYSE:ADM) and Corn Crop
While a lot of excitement has been generated in the agriculture sector because of lower yields, especially with corn and soybeans, that doesn't necessarily mean something positive for every company connected to food, such as Archer-Daniels Midland (NYSE:ADM).
Deutsche Bank (NYSE:DB) has noted just that when downgrading Archer-Daniels-Midland from "Buy" to "Hold."
"Additionally, a tighter U.S. corn crop is incrementally negative for agricultural services segment volumes and profitability, while the current sweetener pricing letter does not appear to be adequate to offset higher corn, barring hedges. While F1Q11E (end Sept) should benefit from earlier corn harvest and fundamentals remain relatively solid, future positive catalysts are difficult to discern and valuation looks fair," said Deutsche.
ADM closed at $32.56 Monday, dropping $0.30, or 0.91 percent.
Deutsche Bank (NYSE:DB) has noted just that when downgrading Archer-Daniels-Midland from "Buy" to "Hold."
"Additionally, a tighter U.S. corn crop is incrementally negative for agricultural services segment volumes and profitability, while the current sweetener pricing letter does not appear to be adequate to offset higher corn, barring hedges. While F1Q11E (end Sept) should benefit from earlier corn harvest and fundamentals remain relatively solid, future positive catalysts are difficult to discern and valuation looks fair," said Deutsche.
ADM closed at $32.56 Monday, dropping $0.30, or 0.91 percent.
Friday, October 8, 2010
CNH (NYSE:CNH), Deere (NYSE:DE), Agco (NYSE:AGCO) Skyrocket on Lower Corn Projections
The downward adjustment of corn production by the U.S. Department of Agriculture has driven up stocks in the agriculture sector Friday, including farm equipment makers CNH Global NV, (NYSE:CNH), Deere & Co. (NYSE:DE) and Agco Corp. (NYSE:AGCO)
Major fertilizer movers are CF Industries (NYSE:CF), Mosaic (NYSE:MOS) and Agrium (NYSE:AGU).
For the farm equipment companies, leading the sector is CNH Global NV, which stood at $41.34, gaining $3.65, or 9.68 percent at 1:38 PM EDT. Agco Corp. was right behind them, rising to $42.81, a gain of $3.60, or 9.18 percent. Deere surged to $76.32, gaining $4.42, or 6.15 percent.
Corn, wheat and soybeans were all up on the downwardly revised corn expectations.
Major fertilizer movers are CF Industries (NYSE:CF), Mosaic (NYSE:MOS) and Agrium (NYSE:AGU).
For the farm equipment companies, leading the sector is CNH Global NV, which stood at $41.34, gaining $3.65, or 9.68 percent at 1:38 PM EDT. Agco Corp. was right behind them, rising to $42.81, a gain of $3.60, or 9.18 percent. Deere surged to $76.32, gaining $4.42, or 6.15 percent.
Corn, wheat and soybeans were all up on the downwardly revised corn expectations.
CF Industries (NYSE:CF), Mosaic (NYSE:MOS), Agrium (NYSE:AGU) Soar on Corn Forecast
The fertilizer industry is popping today on the U.S. Department of Agriculture’s crop forecast report which lowered its forecast for corn. CF Industries (NYSE:CF), Mosaic (NYSE:MOS) and Agrium (NYSE:AGU)
Major crops corn, wheat and soybeans all rose on shrinking corn expectations.
CF is leading the sector higher, skyrocketing by $11.72, to increase to $110.36, an 11.88 percent gain a of 1:25 PM EDT. Mosaic was next, rising a hefty $5.83 to $67.39, gaining 9.48 percent, and Agrium followed with a gain of $5.52, up to $80.92, a 7.32 percent increase.
Also helping to push up prices was a nod from mining giant Rio Tinto (NYSE:RTP) that they are starting to be impressed with the fertilizer sector, especially potash.
Major crops corn, wheat and soybeans all rose on shrinking corn expectations.
CF is leading the sector higher, skyrocketing by $11.72, to increase to $110.36, an 11.88 percent gain a of 1:25 PM EDT. Mosaic was next, rising a hefty $5.83 to $67.39, gaining 9.48 percent, and Agrium followed with a gain of $5.52, up to $80.92, a 7.32 percent increase.
Also helping to push up prices was a nod from mining giant Rio Tinto (NYSE:RTP) that they are starting to be impressed with the fertilizer sector, especially potash.
Monday, August 23, 2010
Soybean Prices Dropping on US Dollar, Strong Harvest
Soybean prices dropped to a two-week low as crops in the Midwest indicate they will exceed harvest expectations.
The U.S. Department of Agriculture’s projected a harvest of 3.43 billion bushels, while it has now been upwardly revised to 3.5 billion bushels, according to the newsletter run by the Professional Farmers of America.
In a Pro Farmer Tour which includes inspecting the fields, in Iowa alone the crop yields are up by 13 percent over projections in 2009. That's significant because Iowa is the largest producer of soybeans in the U.S.
Since the seven-month high of $10.49 reached on August 5, soybeans have declined 4.3 percent, and could go down as low as $9.60, say some analysts.
The U.S. dollar is another factor, as when it gains in value the price of soybeans in the U.S. fall to compensate for less interest from foreign buyers.
Until the dollar starts to pull back, it'll have a significant effect on the price of soybeans, combined with the larger harvest than expected.
The U.S. Department of Agriculture’s projected a harvest of 3.43 billion bushels, while it has now been upwardly revised to 3.5 billion bushels, according to the newsletter run by the Professional Farmers of America.
In a Pro Farmer Tour which includes inspecting the fields, in Iowa alone the crop yields are up by 13 percent over projections in 2009. That's significant because Iowa is the largest producer of soybeans in the U.S.
Since the seven-month high of $10.49 reached on August 5, soybeans have declined 4.3 percent, and could go down as low as $9.60, say some analysts.
The U.S. dollar is another factor, as when it gains in value the price of soybeans in the U.S. fall to compensate for less interest from foreign buyers.
Until the dollar starts to pull back, it'll have a significant effect on the price of soybeans, combined with the larger harvest than expected.
Wednesday, July 21, 2010
Soybeans Futures Rise on Worsening Condition
Soybeans in the United States in good or excellent condition dropped from 72 percent at the end of June 13 to 67 percent at the end of July 18, pushing prices up 5.5 cents today, to $9.785 a bushel, a 0.6 percent gain.
Prices for oilseed have continued to rise since government data revealed soybean reserves in the U.S. dropped to their lowest levels in six years as of June 1.
In July, soybeans are up 8.4 percent, which if it continues on, will be the first positive territory they've enjoyed since April.
It's interesting to hear conflicting viewpoints as to the condition of soybeans and corn, as it has dry weather which has driven up prices recently, although some say it was too much rain earlier in the season which is the cause of the lower condition issue.
Prices for oilseed have continued to rise since government data revealed soybean reserves in the U.S. dropped to their lowest levels in six years as of June 1.
In July, soybeans are up 8.4 percent, which if it continues on, will be the first positive territory they've enjoyed since April.
It's interesting to hear conflicting viewpoints as to the condition of soybeans and corn, as it has dry weather which has driven up prices recently, although some say it was too much rain earlier in the season which is the cause of the lower condition issue.
Monday, July 19, 2010
Soybeans Follow Other Grains Down on Improved Weather
There was no doubt corn, wheat and soybeans were going to plunge if wetter and cooler weather was going to arrive in time, and now that it has, the major agricultural products plunged in price today, with soybeans right behind corn in how deeply they dropped.
Of the major three, wheat future dropped the least, as other factors outside the United States, like the Russian drought, continues to play a role there.
Soybean futures for November delivery had a decline of 13 cent to $9.72 a bushel, or a 1.3 percent drop.
Corn for December delivery dropped 3.3 percent, or 13.25 cents, to settle at $3.94 a bushel.
Of the major three, wheat future dropped the least, as other factors outside the United States, like the Russian drought, continues to play a role there.
Soybean futures for November delivery had a decline of 13 cent to $9.72 a bushel, or a 1.3 percent drop.
Corn for December delivery dropped 3.3 percent, or 13.25 cents, to settle at $3.94 a bushel.
Friday, April 2, 2010
Monsanto (NYSE:MON) Expanding Soybean Plant in North Dakota
Monsanta soybean plant in North Dakota
Monsanto (NYSE:MON) announced it will be expanding their North Dakota soybean plant which produces their Asgrow brand. The plant used to be used for the sunflower business of Monsanto before they sold it in 2009.
"This site expansion is a critical part of our strategic direction as a seeds-and-traits business," Mark Martino, Monsanto's vice president of seeds and traits manufacturing, said in a statement.
Once completed, the expansion is estimated to increase business with local farmers by about $20 million.
Monsanto (NYSE:MON) announced it will be expanding their North Dakota soybean plant which produces their Asgrow brand. The plant used to be used for the sunflower business of Monsanto before they sold it in 2009.
"This site expansion is a critical part of our strategic direction as a seeds-and-traits business," Mark Martino, Monsanto's vice president of seeds and traits manufacturing, said in a statement.
Once completed, the expansion is estimated to increase business with local farmers by about $20 million.
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.
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