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.
Showing posts with label US Department of Agriculture. Show all posts
Showing posts with label US Department of Agriculture. Show all posts
Friday, October 8, 2010
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, September 27, 2010
Beet Farmers Devastated Over Monsanto (NYSE:MON) Seed Ban
The decision by seemingly activist Federal District Court Judge Jeffrey White to ban genetically modified sugar beet seeds from Monsanto (NYSE:MON) has farmers crushed under the uncertainty of what will happen to their industry going forward.
White stated in his ruling, agreeing with the Center for Food Safety, which filed the lawsuit against Monsanto, that they had not been tested thoroughly enough to ensure safety of human consumption and possible environmental risks.
The Animal and Plant Health Inspection Service or APHIS, a unit of the USDA, deregulated the sugar beet seeds, leading to the lawsuit.
White ordered the USDA to prepare an environmental impact statement and to approve the crop again. That could take up to a period of two years, or possibly more.
Similar to their other genetically modified seeds, Monsanto makes them strongly resistant to their Roundup herbicide, which allows farmers to spray the beets without concern of damaging the crop.
The benefit is much higher yields and significantly lower cost inputs, as the need to water as much, use fuel and labor costs are lowered.
Proponents of the lawsuit and decision say it shouldn't be a problem for sugar beet farmers, as they can just go out and buy sugar beet seed, which they assert is plentiful.
According to Luther Markwart, executive director of the American Sugar Beet Growers Association, it's far from as simple as that.
As far as the seed part of it goes, finding non-genetically modified seed isn't as easy as stated. And once it is found, Markwart said it will be at least two to three years old, with no guarantees as to the viability of the seed. That assumes all sugar beet growers can even obtain the seed in the first place.
Markwart added that very little conventional seed has been grown for planting in the last couple of years, making it nowhere near as easy to find as some say.
He said, "If you can even get conventional seed it would be two to three years old, so its viability is a question."
That's only the beginning of problems for sugar beet growers though. New equipment like weed sprayers have been acquired to make way for the Roundup Ready seed. Farmers would have to go out and buy old equipment to use on the old seeds.
Just as difficult will be finding past herbicides used on conventional sugar beets, said Markwart. The market is no longer there, as approximately 95 percent of sugar beets are grown in the U.S. using genetically modified seed.
He concluded, only the Animal and Plant Health Inspection Service can save things for American sugar beet farmers, which has the authority to deregulate the beets partially or conditionally, which would pave the way to planting them in the coming spring season.
White stated in his ruling, agreeing with the Center for Food Safety, which filed the lawsuit against Monsanto, that they had not been tested thoroughly enough to ensure safety of human consumption and possible environmental risks.
The Animal and Plant Health Inspection Service or APHIS, a unit of the USDA, deregulated the sugar beet seeds, leading to the lawsuit.
White ordered the USDA to prepare an environmental impact statement and to approve the crop again. That could take up to a period of two years, or possibly more.
Similar to their other genetically modified seeds, Monsanto makes them strongly resistant to their Roundup herbicide, which allows farmers to spray the beets without concern of damaging the crop.
The benefit is much higher yields and significantly lower cost inputs, as the need to water as much, use fuel and labor costs are lowered.
Proponents of the lawsuit and decision say it shouldn't be a problem for sugar beet farmers, as they can just go out and buy sugar beet seed, which they assert is plentiful.
According to Luther Markwart, executive director of the American Sugar Beet Growers Association, it's far from as simple as that.
As far as the seed part of it goes, finding non-genetically modified seed isn't as easy as stated. And once it is found, Markwart said it will be at least two to three years old, with no guarantees as to the viability of the seed. That assumes all sugar beet growers can even obtain the seed in the first place.
Markwart added that very little conventional seed has been grown for planting in the last couple of years, making it nowhere near as easy to find as some say.
He said, "If you can even get conventional seed it would be two to three years old, so its viability is a question."
That's only the beginning of problems for sugar beet growers though. New equipment like weed sprayers have been acquired to make way for the Roundup Ready seed. Farmers would have to go out and buy old equipment to use on the old seeds.
Just as difficult will be finding past herbicides used on conventional sugar beets, said Markwart. The market is no longer there, as approximately 95 percent of sugar beets are grown in the U.S. using genetically modified seed.
He concluded, only the Animal and Plant Health Inspection Service can save things for American sugar beet farmers, which has the authority to deregulate the beets partially or conditionally, which would pave the way to planting them in the coming spring season.
Friday, September 10, 2010
USDA Sued Over Monsanto (NYSE:MON) Sugar Beet Permits
Several groups who resist the introduction of genetically modified seeds has sued the U.S. Department of Agriculture over the decision to allow Monsanto (NYSE:MON) to plant limited amounts of sugar beets.
Allegedly the approval is in opposition to a court ruling in August which disallowed the future planting of genetically modified sugar beets.
This is in response to the USDA giving Monsanto the go ahead to plant sugar beet seeds which weren't allowed to go to flower.
If allowed to go forward, supposedly the plantings could contaminate nearby crops, said the complaint.
Monsanto isn't a defendant in the lawsuit, although the case centers around their sugar beet seeds which are resistant to the herbicide Roundup.
Allegedly the approval is in opposition to a court ruling in August which disallowed the future planting of genetically modified sugar beets.
This is in response to the USDA giving Monsanto the go ahead to plant sugar beet seeds which weren't allowed to go to flower.
If allowed to go forward, supposedly the plantings could contaminate nearby crops, said the complaint.
Monsanto isn't a defendant in the lawsuit, although the case centers around their sugar beet seeds which are resistant to the herbicide Roundup.
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.
Friday, April 10, 2009
Commodities | Commodity Loan Repayment Rates
Payment rates for a number of commodities will be the recipients of a new USDA repayment program, in an attempt to offer a more stable system for making a decision on "non-recourse marketing assistance loan repayment rates and loan deficiency payment rates," according to a press release from the USDA.
Included in the commodities that could benefit from the latest system would be feed grains, wheat, mohair, pulse crops, wool and oilseeds. Commodities not being affected by the change are cotton, peanuts and rice.
Supposedly the new system will keep fluctuations in the loan repayment rate from swinging too widely, and will 'moderate' those actions.
Taking into account the 2008 Farm Bill, the loan repayment rate could in reality be anything, as it's determined by either the average market prices over the prior 30 days, or any type of alternative method a Secretary of Agriculture decides.
In mid April, the USDAs Commodity Credit Corporation will list the repayment rates from the last month for wheat, corn, grain sorghum, soybeans, barley, oats, canola, flaxseed and sunflower seed.
During the same period, evidently the Commodity Credit Corporation will also list a repayment rate in relationship to the last five days.
The existing method of determining repayments is based on the market rates of the day before. Now it will be the lower of the two methods mentioned.
There are other elements of the 2008 Farm Bill which eliminated the Secretary of Agriculture from establishing loan and repayment rates for other cops as well. Some crops will have loan repayment rates based on U.S. grade #1.
Included in the commodities that could benefit from the latest system would be feed grains, wheat, mohair, pulse crops, wool and oilseeds. Commodities not being affected by the change are cotton, peanuts and rice.
Supposedly the new system will keep fluctuations in the loan repayment rate from swinging too widely, and will 'moderate' those actions.
Taking into account the 2008 Farm Bill, the loan repayment rate could in reality be anything, as it's determined by either the average market prices over the prior 30 days, or any type of alternative method a Secretary of Agriculture decides.
In mid April, the USDAs Commodity Credit Corporation will list the repayment rates from the last month for wheat, corn, grain sorghum, soybeans, barley, oats, canola, flaxseed and sunflower seed.
During the same period, evidently the Commodity Credit Corporation will also list a repayment rate in relationship to the last five days.
The existing method of determining repayments is based on the market rates of the day before. Now it will be the lower of the two methods mentioned.
There are other elements of the 2008 Farm Bill which eliminated the Secretary of Agriculture from establishing loan and repayment rates for other cops as well. Some crops will have loan repayment rates based on U.S. grade #1.
Monday, November 10, 2008
DJ USDA Report: Corn To Find Competition From Wheat Feeding
CHICAGO, Nov 10, 2008 (Dow Jones Commodities News via Comtex) -- U.S. corn exports will face tough competition from ample world wheat supplies, but demand for U.S. soybeans should stave off any price slumps in that market, analysts said following new government crop data released Monday.
Issued less than a week after the U.S. Department of Agriculture revised its October crop production report, the November report offered "very little new information," said Gavin Maguire, an EHedger analyst in a post-report conference call sponsored by the CME Group.
The USDA slightly cut corn and soybean production estimates.
Corn export forecasts were "less-than-desired and there is world wheat feed competition; there's plenty of wheat around in world," said Jack Scoville of Price Futures Group. "Wheat prices will struggle to do much very interesting."
The USDA expects farmers to harvest 12.020 billion bushels of corn on a yield of 153.8 bushels per acre. This undercuts the October USDA estimate of 12.033 billion on a 153.9 bushel-per-acre yield. Monday's data also fell below the average trade estimate of 12.066 billion bushels on a 154.3-bushel-per-acre yield.
Output for 2007 was 13.074 billion.
U.S. export estimates were cut 50 million bushels to 1.900 billion from the October report.
The USDA estimated the U.S. soybean crop at 2.921 billion bushels on a 39.3 bushel/acre yield. This is greater than the average trade estimate of 2.916 billion bushels on a 39.2 bushel/acre yield. But the USDA estimates was down from the October forecast of 2.938 billion bushels and yield of 39.5 bushels/acre. Output for 2007 was 2.676 billion and the average yield was 41.7.
"Production is slightly friendly; ending stocks are not," Scoville said.
Ending stocks for the 2008-09corn marketing year were pegged at 1.124 billion bushels, below the 1.160-billion-bushel trade estimate and above than 1.088 billion October estimate.
The ending stocks forecast for the 2008-09 soybean marketing year was 205 million bushels, above the 189 million-bushel-average trade estimate and equal to the October figure.
The ending stocks forecast for the 2008-09 wheat marketing year was 603 million bushels, above the 594 million-bushel-average trade estimate and the USDA's 601-million-bushel October figure.
"I feel that strength will be sold into," Maguire said, for corn and soybeans. "We're in a range where we'll test upper limits near recent highs and encounter pretty decent selling pressure."
If any market will press higher into the new year, it will be soybeans, he said, noting U.S. farmers will be closely watching Brazil's weather to watch for problems that could signal the need for greater plantings.
Maguire also said he thought the economics of winter wheat-soybean planting was more attractive than corn.
"I think we're trying to put a seasonal bottom in now for corn," Scoville said, marking his bearish range low around $3.75 or $3.50, even though he'd heard lower.
When planting season rolls around Scoville said he thinks corn could head to $5.
"Beans are probably the leader to the upside," he said, saying he could see them "with good luck" rising back to $11.50-11.75 areas. "I think we're at lower end of bean trading range for now. Wheat, once again we're at the lower end of the trading range."
Maguire added that soft red winter wheat has "the most downside room; some of better classes can hold in a bit more strongly."
While Argentina's projected wheat output was cut in Monday's report by 1 million metric tons to 11 million, the world's overall production rose.
Regarding soybean yield estimates, Scoville said the USDA should "have a pretty good handle, but yields have been pretty uneven, at least to reports I've been hearing, and uneven reports leads to uneven data calculations."
-By Rebecca Townsend, Dow Jones Newswires; 312-750-4118; rebecca.townsend@dowjones.com
Issued less than a week after the U.S. Department of Agriculture revised its October crop production report, the November report offered "very little new information," said Gavin Maguire, an EHedger analyst in a post-report conference call sponsored by the CME Group.
The USDA slightly cut corn and soybean production estimates.
Corn export forecasts were "less-than-desired and there is world wheat feed competition; there's plenty of wheat around in world," said Jack Scoville of Price Futures Group. "Wheat prices will struggle to do much very interesting."
The USDA expects farmers to harvest 12.020 billion bushels of corn on a yield of 153.8 bushels per acre. This undercuts the October USDA estimate of 12.033 billion on a 153.9 bushel-per-acre yield. Monday's data also fell below the average trade estimate of 12.066 billion bushels on a 154.3-bushel-per-acre yield.
Output for 2007 was 13.074 billion.
U.S. export estimates were cut 50 million bushels to 1.900 billion from the October report.
The USDA estimated the U.S. soybean crop at 2.921 billion bushels on a 39.3 bushel/acre yield. This is greater than the average trade estimate of 2.916 billion bushels on a 39.2 bushel/acre yield. But the USDA estimates was down from the October forecast of 2.938 billion bushels and yield of 39.5 bushels/acre. Output for 2007 was 2.676 billion and the average yield was 41.7.
"Production is slightly friendly; ending stocks are not," Scoville said.
Ending stocks for the 2008-09corn marketing year were pegged at 1.124 billion bushels, below the 1.160-billion-bushel trade estimate and above than 1.088 billion October estimate.
The ending stocks forecast for the 2008-09 soybean marketing year was 205 million bushels, above the 189 million-bushel-average trade estimate and equal to the October figure.
The ending stocks forecast for the 2008-09 wheat marketing year was 603 million bushels, above the 594 million-bushel-average trade estimate and the USDA's 601-million-bushel October figure.
"I feel that strength will be sold into," Maguire said, for corn and soybeans. "We're in a range where we'll test upper limits near recent highs and encounter pretty decent selling pressure."
If any market will press higher into the new year, it will be soybeans, he said, noting U.S. farmers will be closely watching Brazil's weather to watch for problems that could signal the need for greater plantings.
Maguire also said he thought the economics of winter wheat-soybean planting was more attractive than corn.
"I think we're trying to put a seasonal bottom in now for corn," Scoville said, marking his bearish range low around $3.75 or $3.50, even though he'd heard lower.
When planting season rolls around Scoville said he thinks corn could head to $5.
"Beans are probably the leader to the upside," he said, saying he could see them "with good luck" rising back to $11.50-11.75 areas. "I think we're at lower end of bean trading range for now. Wheat, once again we're at the lower end of the trading range."
Maguire added that soft red winter wheat has "the most downside room; some of better classes can hold in a bit more strongly."
While Argentina's projected wheat output was cut in Monday's report by 1 million metric tons to 11 million, the world's overall production rose.
Regarding soybean yield estimates, Scoville said the USDA should "have a pretty good handle, but yields have been pretty uneven, at least to reports I've been hearing, and uneven reports leads to uneven data calculations."
-By Rebecca Townsend, Dow Jones Newswires; 312-750-4118; rebecca.townsend@dowjones.com
Tuesday, October 28, 2008
Commodities: USDA MIsses Big on Corn Estimate
USDA misses big on acres planted in corn
It's hard to believe, but the U.S. Department of Agriculture missed the number of acres planted in corn this year by 1 million less than asserted on October 10.
That will bring the number of expected bushels down by 167 million from the last report.
Consequently, that could be good news for farmers, who can now expect about 5 cents more a bushel than thought, coming in at between $4.35 to $5.35 a bushel going ahead.
The USDA hasn't done too well this year in its corn estimates and other grain estimates as well.
It's hard to believe, but the U.S. Department of Agriculture missed the number of acres planted in corn this year by 1 million less than asserted on October 10.
That will bring the number of expected bushels down by 167 million from the last report.
Consequently, that could be good news for farmers, who can now expect about 5 cents more a bushel than thought, coming in at between $4.35 to $5.35 a bushel going ahead.
The USDA hasn't done too well this year in its corn estimates and other grain estimates as well.
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