Citigroup (NYSE:C) said over the long term they like Bunge Limited (NYSE:BG), citing the strong move in sugar prices recently.
Citigroup analyst David Driscoll said, "We like Bunge's new sugar business and think investors will warm to it as well. We believe that Bunges sugar ethanol investments in Brazil make sense long term, but currently see better investment opportunities in Food over the next 12 months highlighted by Kellogg, our top pick."
Analysts see bioenergy and sugar contributing about 22 percent, or $275 million, to the earnings of Bunge for 2011.
Citi is stronger in its earnings per share projections concerning Bunge for 2011 than consensus, seeing them reaching $5.70, while consensus has earnings at $5.32.
For 2010, Citi projects EPS of $3.25, with consensus at $3.01.
Showing posts with label Sugar Prices. Show all posts
Showing posts with label Sugar Prices. Show all posts
Wednesday, September 22, 2010
Friday, September 17, 2010
Goldman (NYSE:GS) Raises Sugar Estimate on Crop Damage Concerns
Based on concerns over potential crop damage, Goldman Sachs Group Inc. (NYSE:GS) said the price of sugar will rise, prompting sugar prices to increase to their highest levels in three months in New York.
Goldman analysts said, “Uncertainty over the 2010-11 crop will likely become the main driver for sugar prices over the coming months,” adding, “lower-than-previously-expected production for both Brazil, the largest producer and exporter, and Australia, the third-largest exporter,” will add to the price increase.
The three-month price estimate for raw sugar from Goldman was raised to 20 cents a pound, while their six-and 12-month estimates were increased from 12 cents a pound to 16 cents a pound.
Goldman analysts said, “Uncertainty over the 2010-11 crop will likely become the main driver for sugar prices over the coming months,” adding, “lower-than-previously-expected production for both Brazil, the largest producer and exporter, and Australia, the third-largest exporter,” will add to the price increase.
The three-month price estimate for raw sugar from Goldman was raised to 20 cents a pound, while their six-and 12-month estimates were increased from 12 cents a pound to 16 cents a pound.
Friday, August 6, 2010
Imperial Sugar (Nasdaq:IPSU) Getting Punished on Low Production Guidance
Imperial Sugar (Nasdaq:IPSU) vastly improved its performance over last year, but still are struggling with managing costs, and in getting their damaged refinery online to return to full production.
Earnings for the latest quarter came in at a loss of $5.7 million, or 48 cents a share, an improvement over the $10.5 million, or 89 cents loss a share, in the same quarter in 2009.
Revenue increased to $261 million, or 83 percent, gaining from the $142.3 million year over year.
They continue to struggle with bringing production to full levels at their Port Wentworth, Ga., refinery, where a 2008 explosion ended the lives of 14 employees, and causing heavy damage to the facility.
Some progress is being made though, as the refinery has returned to about 90 percent of its full production capacity.
News it was at 90 percent caused investors to punish the stock today, as it has plunged by higher than 15 percent at one point in the trading session, and stands at $11.80, a drop of $1.79, or 13.17 percent as of 1:50 PM EDT.
CEO John Sheptor said, "Equipment and process improvements led to better production volumes in the quarter, but the average production rate remains below our potential."
Earnings for the latest quarter came in at a loss of $5.7 million, or 48 cents a share, an improvement over the $10.5 million, or 89 cents loss a share, in the same quarter in 2009.
Revenue increased to $261 million, or 83 percent, gaining from the $142.3 million year over year.
They continue to struggle with bringing production to full levels at their Port Wentworth, Ga., refinery, where a 2008 explosion ended the lives of 14 employees, and causing heavy damage to the facility.
Some progress is being made though, as the refinery has returned to about 90 percent of its full production capacity.
News it was at 90 percent caused investors to punish the stock today, as it has plunged by higher than 15 percent at one point in the trading session, and stands at $11.80, a drop of $1.79, or 13.17 percent as of 1:50 PM EDT.
CEO John Sheptor said, "Equipment and process improvements led to better production volumes in the quarter, but the average production rate remains below our potential."
Monday, June 14, 2010
Sugar Futures Up on Low Inventory
Several things have fallen into place for sugar, and prices have responded by increasing for the fifth day in a row.
The fall in the value of the dollar has been one of those elements helping sugar, as it has all the commodities recently, as the U.S. dollar again has dropped against the euro and other major currencies.
Today prices for raw sugar increased to 15.99 cents a pound in New York, a $0.15 gain, or 0.9 percent.
White-sugar futures in London increased $2.50 for August delivery, to $526.50 on the Liffe exchange, or 0.5 percent.
Over the last couple of seasons, sugar inventory has fallen 27 million tons, as supply continued to exceed demand.
Last year there were some sugar price gains made from a drought in India and more rain than normal in Brazil.
The fall in the value of the dollar has been one of those elements helping sugar, as it has all the commodities recently, as the U.S. dollar again has dropped against the euro and other major currencies.
Today prices for raw sugar increased to 15.99 cents a pound in New York, a $0.15 gain, or 0.9 percent.
White-sugar futures in London increased $2.50 for August delivery, to $526.50 on the Liffe exchange, or 0.5 percent.
Over the last couple of seasons, sugar inventory has fallen 27 million tons, as supply continued to exceed demand.
Last year there were some sugar price gains made from a drought in India and more rain than normal in Brazil.
Friday, April 2, 2010
Sugar Futures Remain Under Pressure
Sugar futures going down in price
Even though sugar futures had a brief rally on Thursday, expectations are there will continue to be downward pressure on sugar prices, as nothing in the fundamentals have changed.
Sugar futures recently closed at nine-month lows, while closing at 16.70 cents a pound Thursday, an increase of 11 cents. It fell as low as 15.46 cents a pound earlier before rebounding.
Since February 1, sugar future prices have had no support after reaching a 29-year high of 30.40 cents on that day. In 2010 sugar future prices have plunged by 38 percent in the first three months.
Falling sugar future prices come from the huge sugar crop in Brazil and India, the two leading producers in the world.
Demand seems to be falling at the time of huge supply of sugar. It's as simple as that, and it won't change for some time.
Even though sugar futures had a brief rally on Thursday, expectations are there will continue to be downward pressure on sugar prices, as nothing in the fundamentals have changed.
Sugar futures recently closed at nine-month lows, while closing at 16.70 cents a pound Thursday, an increase of 11 cents. It fell as low as 15.46 cents a pound earlier before rebounding.
Since February 1, sugar future prices have had no support after reaching a 29-year high of 30.40 cents on that day. In 2010 sugar future prices have plunged by 38 percent in the first three months.
Falling sugar future prices come from the huge sugar crop in Brazil and India, the two leading producers in the world.
Demand seems to be falling at the time of huge supply of sugar. It's as simple as that, and it won't change for some time.
Wednesday, March 24, 2010
Raw Sugar Prices Lowest Since 2006
Raw Sugar Prices Plunge
We haven't seen raw sugar prices this low since June 2006, as the sweetener dropped to over 7 percent to finish the session at 16.57 cents a pound.
Most of the ongoing fall in raw sugar prices has come from the supply coming out of India, where it increasingly looks like a bumber crop this year.
In February raw sugar had hit its highest levels in 29 years, but now has dropped 45 percent since that time.
Anyalysts say there is panic selling now with raw sugar as there are no clues as to when it'll bottom out.
Raw Sugar Prices Plunge
We haven't seen raw sugar prices this low since June 2006, as the sweetener dropped to over 7 percent to finish the session at 16.57 cents a pound.
Most of the ongoing fall in raw sugar prices has come from the supply coming out of India, where it increasingly looks like a bumber crop this year.
In February raw sugar had hit its highest levels in 29 years, but now has dropped 45 percent since that time.
Anyalysts say there is panic selling now with raw sugar as there are no clues as to when it'll bottom out.
Raw Sugar Prices Plunge
Wednesday, March 10, 2010
Commodities: Sugar Hits 7-month Low
Sugar Futures Down
After a number of defaults, sugar futures in the U.S. dropped to 7-month lows, as sugar mills in India backed out of deals to import 100,000 tons of sugar from the U.S.
This is the eight loss for sugar in the last ten sessions, making one wonder how low it'll go before it rebounds.
Today the sugar futures sold for below 20 cents a pound, falling to 18.82 a pound at its worst; the lowest sugar futures price since the early part of August 2009.
Sugar Futures Down
After a number of defaults, sugar futures in the U.S. dropped to 7-month lows, as sugar mills in India backed out of deals to import 100,000 tons of sugar from the U.S.
This is the eight loss for sugar in the last ten sessions, making one wonder how low it'll go before it rebounds.
Today the sugar futures sold for below 20 cents a pound, falling to 18.82 a pound at its worst; the lowest sugar futures price since the early part of August 2009.
Sugar Futures Down
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
Thursday, February 4, 2010
European Union Increases Sugar Exports
Sugar Exports
In a move that has angered some of its trading competitors, the European Union decided to export and additional 500,000 metric tons of sugar, which major sugar exporters Brazil, Thailand and Australia have become upset over because of limitations imposed by the World Trade Organization.
The complaint centers around the exportation of subsidized sugar, which was supposed to be limited to 1.37 million tons based on a 2005 WTO decision.
The EU attempts to get around this by saying the exports aren't enjoying any benefits from a subsidy, and so they don't consider it to be subject to the imposed limitations.
This is another way of saying because sugar prices are high the subsidies don't apply. Other exporters will be hurt by the extra sugar on the market which will drive prices down.
Sugar Exports
In a move that has angered some of its trading competitors, the European Union decided to export and additional 500,000 metric tons of sugar, which major sugar exporters Brazil, Thailand and Australia have become upset over because of limitations imposed by the World Trade Organization.
The complaint centers around the exportation of subsidized sugar, which was supposed to be limited to 1.37 million tons based on a 2005 WTO decision.
The EU attempts to get around this by saying the exports aren't enjoying any benefits from a subsidy, and so they don't consider it to be subject to the imposed limitations.
This is another way of saying because sugar prices are high the subsidies don't apply. Other exporters will be hurt by the extra sugar on the market which will drive prices down.
Sugar Exports
Wednesday, January 27, 2010
Commodities Prices: Sugar Prices Drop
Commodity Sugar Prices
Sugar prices fell from 29-year highs as commodities as a sector fell as well as the U.S. dollar was stronger, causing most commodity prices to pull back in response.
For sugar, that won't shouldn't be a deterent to further price increases, as continuing strong demand for the sweetener should cause sugar prices to resume their upward climb.
From the early part of December sugar prices have surged by 32 percent, as supply worries along with continuing demand pushed sugar prices higher.
That hasn't stopped countries to continue buying sugar, as new orders from a number of developing countries, including Pakistan and Indonesia keep demand high. Tailand has also recently said production estimates would be lower than expected, causing concerns over the supply side too.
If sugar prices continue to climb and begin to close above 30 cent a pound consistently, it's unsure how high it could end up going. Some traders are holding back on pushing the price even higher as it could cause a huge sell-off which could move prices quickly.
Commodity Sugar Prices
Sugar prices fell from 29-year highs as commodities as a sector fell as well as the U.S. dollar was stronger, causing most commodity prices to pull back in response.
For sugar, that won't shouldn't be a deterent to further price increases, as continuing strong demand for the sweetener should cause sugar prices to resume their upward climb.
From the early part of December sugar prices have surged by 32 percent, as supply worries along with continuing demand pushed sugar prices higher.
That hasn't stopped countries to continue buying sugar, as new orders from a number of developing countries, including Pakistan and Indonesia keep demand high. Tailand has also recently said production estimates would be lower than expected, causing concerns over the supply side too.
If sugar prices continue to climb and begin to close above 30 cent a pound consistently, it's unsure how high it could end up going. Some traders are holding back on pushing the price even higher as it could cause a huge sell-off which could move prices quickly.
Commodity Sugar Prices
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, December 3, 2009
Investors Flock to Commodities, Gold
There seems to be very little concern by investors that gold will have a major correction any time soon, as the ongoing weakening of the U.S. dollar has them rushing to the yellow metal for safety and inflation concerns.
Just about every weak now gold breaks a new high, and commodities are becoming hot again, even before the economic recovery really even starts, which shows what will happen with commodity prices once that reality hits.
Spot gold rose to $1,226.10 an ounce recently, and investors like Peter Schiff believe it'll continue riding all the way up to $5,000 an ounce in the years ahead. Commodity superstar Jim Rogers also remains bullish on gold, although he thinks there's a possibility of a correction, and so while he's not buying, he's definitely not sellign either. He's hoping a correction will come and he can buy it at even a cheaper price.
Aluminum
Aluminum has been on its own run in 2009, increasing by an enormous 60 pecent just since March, to reach $2,166 a ton. Much of the reason behind the increase in aluminum price is concern over whether supply can meet the surging demand, as companies and countries will eventually start making major orders again, and stocks as of this writing are at 4.6 million tons.
Copper
Copper is primarily being driven by investors, as stocks stand at 445,400 tons, with demand down, but awaits a real recovery which could cause demand to explode.
Sugar
Supplies of sugar in the top sugar consuming area of the world, including India and Pakistan, have been struggling, and so white sugar futures have surged to a record $635.00 a ton.
Crude Oil
Even though oil increased by 44 cents to $77.04 a barrel, that won't hold, as concerns over too much supply in that case will drive prices down again. Crude stocks increased to more than the projected 2.1 million barrels.
Commodities in general, at this time, are responding to the collapsing U.S. dollar, and the surety of extraordinary inflation in the years ahead from the outrageous bailouts by governments around the world.
As far as this affects the prices of commodities, once the prices are driven by demand again, and investors pour even more into them, it's sure to make the commodity bull market of the last decade look like a calf.
Just about every weak now gold breaks a new high, and commodities are becoming hot again, even before the economic recovery really even starts, which shows what will happen with commodity prices once that reality hits.
Spot gold rose to $1,226.10 an ounce recently, and investors like Peter Schiff believe it'll continue riding all the way up to $5,000 an ounce in the years ahead. Commodity superstar Jim Rogers also remains bullish on gold, although he thinks there's a possibility of a correction, and so while he's not buying, he's definitely not sellign either. He's hoping a correction will come and he can buy it at even a cheaper price.
Aluminum
Aluminum has been on its own run in 2009, increasing by an enormous 60 pecent just since March, to reach $2,166 a ton. Much of the reason behind the increase in aluminum price is concern over whether supply can meet the surging demand, as companies and countries will eventually start making major orders again, and stocks as of this writing are at 4.6 million tons.
Copper
Copper is primarily being driven by investors, as stocks stand at 445,400 tons, with demand down, but awaits a real recovery which could cause demand to explode.
Sugar
Supplies of sugar in the top sugar consuming area of the world, including India and Pakistan, have been struggling, and so white sugar futures have surged to a record $635.00 a ton.
Crude Oil
Even though oil increased by 44 cents to $77.04 a barrel, that won't hold, as concerns over too much supply in that case will drive prices down again. Crude stocks increased to more than the projected 2.1 million barrels.
Commodities in general, at this time, are responding to the collapsing U.S. dollar, and the surety of extraordinary inflation in the years ahead from the outrageous bailouts by governments around the world.
As far as this affects the prices of commodities, once the prices are driven by demand again, and investors pour even more into them, it's sure to make the commodity bull market of the last decade look like a calf.
Thursday, October 1, 2009
Commodity Prices Surge on Demand
A falling and collapsing U.S. dollar, along with growing demand for oil has helped push up commodity prices, helping to rescue a poor performance by commodities in the third quarter.
Much of the six percent increase in oil prices came from government data showing gasoline inventories had dropped in the United States, catching some by surprise and pushing up prices. Gasoline demand also increased, having an effect on prices.
With the U.S. dollar also continuing to plunge in value, it spurred buying in other commodity sectors like sugar, cocoa, gold and copper, which also increased in price as investors took advantage of dollar-denominated commodities, which were cheaper as a result.
This will continue to go on once real recovery begins, as emerging middle classes in Asia drive demand for commodities for a long time into the future.
Much of the six percent increase in oil prices came from government data showing gasoline inventories had dropped in the United States, catching some by surprise and pushing up prices. Gasoline demand also increased, having an effect on prices.
With the U.S. dollar also continuing to plunge in value, it spurred buying in other commodity sectors like sugar, cocoa, gold and copper, which also increased in price as investors took advantage of dollar-denominated commodities, which were cheaper as a result.
This will continue to go on once real recovery begins, as emerging middle classes in Asia drive demand for commodities for a long time into the future.
Subscribe to:
Posts (Atom)