Even though Monsanto (NYSE:MON) was cleared by the EU to plant maize in the country in 1998, the French banned the GMO corn in 2008, citing "serious risks for the environment."
Six other EU countries: Austria, Bulgaria, Germany, Greece, Hungary and Luxembourg, also banned the seed from being used.
The European Court of Justice's attorney general concluded the ban by France on the seed was illegal.
This is only an opinion and not a legal ruling, although usually the views of the attorney general are what the court will ultimately decide.
He said that France "could not suspend the planting of Monsanto's MON810 genetically modified corn ... without having asked prior permission from the European Commission."
Monsanto is in the midst of having its 10-year license reviewed to decide on whether or not to have it renewed in the EU. The decision is expected to be reached in 2011.
Monsanto closed Tuesday at $68.95, down $0.03, or 0.04 percent.
Showing posts with label Corn. Show all posts
Showing posts with label Corn. Show all posts
Wednesday, March 23, 2011
Friday, February 11, 2011
Kraft (NYSE:KFT) to Raise Prices as Margins Squeezed
All things considered, Kraft Foods (NYSE:KFT) performed well in the last quarter, managing to meet expectations in a challenging scenario.
The company was able to generate earnings of $540 million, or 31 cents a share. While down 24 percent from last year in the same quarter, that was largely from the costs related to integrating Cadbury.
Minus costs, Kraft earned 46 cents a share, a penny off the 47 cents a share generated last year. That was the exact number analysts had been looking for.
Revenue jumped to $13.77 billion, a gain of 30 percent. Analysts had expected revenue to come in at $13.48 billion.
While Kraft cut boosted prices in the fourth quarter, they won't be enough to sustain profitability, said the food company, and they said more price hikes will be added throughout 2011.
All of that comes from commodity prices rising for corn, wheat, cocoa and sugar, among others.
Consequently, Kraft had to lower its EPS estimate for the year to 11 percent to 13 percent. In November they had estimated growth would be in the mid-teens.
Increases in prices won't help the company in the short-term, as it'll be several months before they start making a difference, so the latter part of 2011 will have margins return to wider levels.
Competitors Kellog Company (NYSE:K) and Sara Lee (NYSE:SLE) also recently announced they're going to be raising prices as well.
The company was able to generate earnings of $540 million, or 31 cents a share. While down 24 percent from last year in the same quarter, that was largely from the costs related to integrating Cadbury.
Minus costs, Kraft earned 46 cents a share, a penny off the 47 cents a share generated last year. That was the exact number analysts had been looking for.
Revenue jumped to $13.77 billion, a gain of 30 percent. Analysts had expected revenue to come in at $13.48 billion.
While Kraft cut boosted prices in the fourth quarter, they won't be enough to sustain profitability, said the food company, and they said more price hikes will be added throughout 2011.
All of that comes from commodity prices rising for corn, wheat, cocoa and sugar, among others.
Consequently, Kraft had to lower its EPS estimate for the year to 11 percent to 13 percent. In November they had estimated growth would be in the mid-teens.
Increases in prices won't help the company in the short-term, as it'll be several months before they start making a difference, so the latter part of 2011 will have margins return to wider levels.
Competitors Kellog Company (NYSE:K) and Sara Lee (NYSE:SLE) also recently announced they're going to be raising prices as well.
Saturday, January 29, 2011
Wheat Prices Fall Most in Two Months
Wheat fell the most in two months as the cost of the commodity may slow demand for U.S. supplies. Corn prices also dropped.
Wheat has soared 70 percent in the past year as bad weather damaged crops in Canada, Australia and Russia. U.S. export sales fell 13 percent in the week ended January 20 from a week earlier, Department of Agriculture data revealed. Speculators have cut back on bets on rising prices in each of the past three weeks, U.S. government data reveal.
Wheat futures for March delivery declined 20.5 cents, or 2.4 percent, to $8.2575 a bushel at 1:15 p.m. on the Chicago Board of Trade, the biggest decline since Nov. 16. The wheat price jumped 0.2 percent this week.
Prices also dropped on concerns that riots in Egypt, the world’s biggest buyer, will slow down on purchases.
Corn futures for March delivery fell 6.75 cents, or 1 percent, to $6.445 a bushel in Chicago. The price declined 2 percent this week.
Soybeans for March delivery fell 1.5 cents, or 0.1 percent, to $13.98 a bushel. The most-active contract declined 1 percent this week.
Wheat has soared 70 percent in the past year as bad weather damaged crops in Canada, Australia and Russia. U.S. export sales fell 13 percent in the week ended January 20 from a week earlier, Department of Agriculture data revealed. Speculators have cut back on bets on rising prices in each of the past three weeks, U.S. government data reveal.
Wheat futures for March delivery declined 20.5 cents, or 2.4 percent, to $8.2575 a bushel at 1:15 p.m. on the Chicago Board of Trade, the biggest decline since Nov. 16. The wheat price jumped 0.2 percent this week.
Prices also dropped on concerns that riots in Egypt, the world’s biggest buyer, will slow down on purchases.
Corn futures for March delivery fell 6.75 cents, or 1 percent, to $6.445 a bushel in Chicago. The price declined 2 percent this week.
Soybeans for March delivery fell 1.5 cents, or 0.1 percent, to $13.98 a bushel. The most-active contract declined 1 percent this week.
Friday, January 28, 2011
Potash (NYSE:POT) PT Boosted to $240, Street High
The high-flying Potash (NYSE:POT) received a big price increase from an analyst at Boenning & Scattergood, who increased his price target on the fertilizer company from $190 to $240. That's a new Street high PT on the stock.
Reasoning behing the huge uptick was the "supply/demand relationship emerging. World-wide, declared POT this morning, demand this year will climb to 55 – 60 million tons from 52 million tons in 2010, YET CURRENT GLOBAL PRODUCTION CAPACITY IS ONLY 61 MILLION TONS. In simple terms, supply is growing tighter and tighter..."
Farmers have more capital to spend this year also, after a bumper harvest last year from high soybean and corn prices.
Boenning & Scattergood reiterate an "Outperform" rating on Potash, which closed Thursday at $174.14, gaining $5.52, or 3.27 percent.
Reasoning behing the huge uptick was the "supply/demand relationship emerging. World-wide, declared POT this morning, demand this year will climb to 55 – 60 million tons from 52 million tons in 2010, YET CURRENT GLOBAL PRODUCTION CAPACITY IS ONLY 61 MILLION TONS. In simple terms, supply is growing tighter and tighter..."
Farmers have more capital to spend this year also, after a bumper harvest last year from high soybean and corn prices.
Boenning & Scattergood reiterate an "Outperform" rating on Potash, which closed Thursday at $174.14, gaining $5.52, or 3.27 percent.
Monday, November 15, 2010
JP Morgan (NYSE:JPM) Helps Caterpillar (NYSE:CAT) Land Bucyrus (Nasdaq:BUCY)
JP Morgan (NYSE:JPM), which was the sole financial advisor for Caterpillar (NYSE:CAT) in its pursuit of Bucyrus (Nasdaq:BUCY), helped the giant equipment-maker land the company for $8.6 billion. The deal includes the $7.6 billion debt held by Bucyrus.
Caterpillar will acquire Bucyrus by taking over its debt, balance sheet cash, and close to $2 billion in equity.
The deal is about a 32 percent premium over the share price of Bucyrus.
Bucyrus adds its large mining equipment business to Caterpillar, which is more concentrated in construction equipment. Mining equipment should be more in demand in the years ahead, although, depending on the sustainability of commodity prices like oil, gold, iron ore and silver, that could be strong as well.
Either way, Caterpillar will have a strong position because of the cyclical nature of both commodity sectors, allowing them to have solid performance when one or the other is down.
Caterpillar was trading up at $82.58, gaining $1.54, or 1.90 percent 2:47 PM EST. Bucyrus exploded by $20.19 a share, soaring to $89.85, gaining $20.23, or 29.06 percent as of 2:47 PM EST.
Caterpillar will acquire Bucyrus by taking over its debt, balance sheet cash, and close to $2 billion in equity.
The deal is about a 32 percent premium over the share price of Bucyrus.
Bucyrus adds its large mining equipment business to Caterpillar, which is more concentrated in construction equipment. Mining equipment should be more in demand in the years ahead, although, depending on the sustainability of commodity prices like oil, gold, iron ore and silver, that could be strong as well.
Either way, Caterpillar will have a strong position because of the cyclical nature of both commodity sectors, allowing them to have solid performance when one or the other is down.
Caterpillar was trading up at $82.58, gaining $1.54, or 1.90 percent 2:47 PM EST. Bucyrus exploded by $20.19 a share, soaring to $89.85, gaining $20.23, or 29.06 percent as of 2:47 PM EST.
Saturday, August 7, 2010
Weather Driving US Corn Crop Quality Down
The weather continues to be the story for crops across the world, as the U.S. continues to be hit by hot, dry weather for the last couple of weeks, raising questions as to where it'll be at harvest.
Weather patterns aren't expected to change any time soon either, as the outlook is for the same weather conditions to continue.
Quality is the highest concern, as bad weather could lower the level of starch the plants send to the kernal.
Corn futures for December delivery increased 2 cents, or 0.5 percent, to finish at $4.20 a bushel in Chicago, ending the week at a gain of 3.3 percent.
On Thursday corn reached its highest levels since June 15, 2009, going as high as $4.39 on the most-active contract.
The USDA said this week the amount of corn planted this year is lower than projected.
Weather patterns aren't expected to change any time soon either, as the outlook is for the same weather conditions to continue.
Quality is the highest concern, as bad weather could lower the level of starch the plants send to the kernal.
Corn futures for December delivery increased 2 cents, or 0.5 percent, to finish at $4.20 a bushel in Chicago, ending the week at a gain of 3.3 percent.
On Thursday corn reached its highest levels since June 15, 2009, going as high as $4.39 on the most-active contract.
The USDA said this week the amount of corn planted this year is lower than projected.
Sunday, January 25, 2009
Corn: Is the Ethanol Party Over?
While some commodities in the precious metals sector will enjoy a banner year in 2009, grains, and specifically corn, won't be doing to well, as least in the first half the year, as corn futures drop below $4 a bushel.
Contrast that to last year when the sky seemed the limit when corn futures reached over $8 a bushel, and money was plentiful.
Even the drought in Argentina hasn't made an impact on corn prices, as similar to wheat, the harvest globally has been so good, that losing a significant amount like that hasn't made a dent in the price holding up at all.
One major reason for the downfall was the reliance on the taxpayer subsidized ethanol industry, which unsurprisingly has been hammered from the artificial industry, which doesn't have a chance of being successful, as most government hair brained ideas aren't.
The drop in oil prices has caused the ethanol industry to collapse, and even with subsidies, many have already filed for bankruptcy. While that will help silver producers with cost inputs, it evidently won't help the costly corn production process.
Corn farmers need to learn if they suck at the government teat, they're eventually going to get sour milk.
Only the gullible couldn't see the foolishness of the government ethanol program that already has been seen to be a failure. Oil would have to be well over $200 a barrel to make it sustainable, and there would be a consumer outcry if that were to happen.
Corn farmers are now looking to get out of a lot of their corn acreage this year, and revert to soybeans, which have much less costly inputs, and a much better chance at success than the heavily subsidized corn ethynal debacle.
Unfortunately for corn producers, they've become addicted to government entitlements, and then mistakenly follow their business advice which they have no expertise in. That's why it's better to rely on yourself and your own research than dipping your hand in the public till.
Because of the mismanaged and faulty ethanol hoax, farmers will now find it difficult to optain loans for planting and inputs, as the banking system is wary, and the harvests and corn markets very volatile.
So even though we love maize, not even the drought in a major corn exporting country like Argentina who had their corn outlet cut by over 25% could bring corn futures back up again.
As far as corn prices later in 2009, one thing that could eventually help, is the fact that there probably will be quite a few less acres planted in corn this year, especially in the U.S.
Much will depend on if that remains true in other parts of the world, In Argentina, this is the worst drought since 1971, so it's hard to picture them going through something like this again. So they should rebound and have a good corn harvest next year, which will have to be included in the corn price outlook going ahead.
One thing for sure, this year will be as unpredictable as it has ever been for corn farmers, and looking ahead it could be much better to plant acreage in a more predictable crop than toss the dice on seeding fields in the volatile corn market.
Contrast that to last year when the sky seemed the limit when corn futures reached over $8 a bushel, and money was plentiful.
Even the drought in Argentina hasn't made an impact on corn prices, as similar to wheat, the harvest globally has been so good, that losing a significant amount like that hasn't made a dent in the price holding up at all.
One major reason for the downfall was the reliance on the taxpayer subsidized ethanol industry, which unsurprisingly has been hammered from the artificial industry, which doesn't have a chance of being successful, as most government hair brained ideas aren't.
The drop in oil prices has caused the ethanol industry to collapse, and even with subsidies, many have already filed for bankruptcy. While that will help silver producers with cost inputs, it evidently won't help the costly corn production process.
Corn farmers need to learn if they suck at the government teat, they're eventually going to get sour milk.
Only the gullible couldn't see the foolishness of the government ethanol program that already has been seen to be a failure. Oil would have to be well over $200 a barrel to make it sustainable, and there would be a consumer outcry if that were to happen.
Corn farmers are now looking to get out of a lot of their corn acreage this year, and revert to soybeans, which have much less costly inputs, and a much better chance at success than the heavily subsidized corn ethynal debacle.
Unfortunately for corn producers, they've become addicted to government entitlements, and then mistakenly follow their business advice which they have no expertise in. That's why it's better to rely on yourself and your own research than dipping your hand in the public till.
Because of the mismanaged and faulty ethanol hoax, farmers will now find it difficult to optain loans for planting and inputs, as the banking system is wary, and the harvests and corn markets very volatile.
So even though we love maize, not even the drought in a major corn exporting country like Argentina who had their corn outlet cut by over 25% could bring corn futures back up again.
As far as corn prices later in 2009, one thing that could eventually help, is the fact that there probably will be quite a few less acres planted in corn this year, especially in the U.S.
Much will depend on if that remains true in other parts of the world, In Argentina, this is the worst drought since 1971, so it's hard to picture them going through something like this again. So they should rebound and have a good corn harvest next year, which will have to be included in the corn price outlook going ahead.
One thing for sure, this year will be as unpredictable as it has ever been for corn farmers, and looking ahead it could be much better to plant acreage in a more predictable crop than toss the dice on seeding fields in the volatile corn market.
Monday, January 12, 2009
Corn Plunges on Department of Agriculture's Projection of Larger Supplies
Corn fell to the lowest level allowd by the Chicago Board of Trade after the u.S Department of Agriculture said supply will be larger than originally projected in December.
Consequently corn futures dropped by the 30-cent limit to $3.8075 a bushel on the CBOT. That's closing in on the lowest price in two years experienced on December 5 of $3.055.
Corn inventories in the U.S. will come in at 1.79 billion bushels on August 31, a huge 21 percent more than the 1.474 billion bushels expected in December.
Estimates for the 2008 corn crop were also revised upward, adding another 0.7 percent to the total, while also cutting its projections for exports as well. As expected, production for animal feed and ethanol were also revised downward.
In 2007, corn in the U.S. was valued at $52.1 billion, the largest crop in the country.
Globally, corn levels will also increase from Decembers estimate, growing by 9.9 percent or 136 million tons.
Consequently corn futures dropped by the 30-cent limit to $3.8075 a bushel on the CBOT. That's closing in on the lowest price in two years experienced on December 5 of $3.055.
Corn inventories in the U.S. will come in at 1.79 billion bushels on August 31, a huge 21 percent more than the 1.474 billion bushels expected in December.
Estimates for the 2008 corn crop were also revised upward, adding another 0.7 percent to the total, while also cutting its projections for exports as well. As expected, production for animal feed and ethanol were also revised downward.
In 2007, corn in the U.S. was valued at $52.1 billion, the largest crop in the country.
Globally, corn levels will also increase from Decembers estimate, growing by 9.9 percent or 136 million tons.
Monday, November 10, 2008
Where is Wheat Price Per Bushel Going in 2009
Wheat ending stocks for 2008-2009 are slightly higher than trade estimates of 594 million-bushel-average, as well as the 601 million-bushel average the USDA projected for October.
The overall global wheat production has risen, while some individual countries fluctuate. Argentina for example announced its production fell by 1 million metric tons to 11 million, while India has had such a good wheat harvest this year they're making two million tons of available for export.
Wheat supplies will also put competitive pressure on corn because of the large supply this year.
Because of the huge supply, there won't be much happening with wheat that will surprise anyone.
As far as prices, soft red winter wheat has "the most downside room; some of better classes can hold in a bit more strongly."
The global wheat market will continue to be bearish, even as drought conditions pressure certain countries like the Phillipines, Argentina and most recently China. Even with that pressure, the price for wheat per bushel in 2009 shouldn't be affected too much, and it shouldn't be counted on to push up wheat prices a bushel anytime soon.
There will be plenty of wheat for sale, and that will keep wheat prices per barrel down, as the huge wheat surplus this year, especially in the European Union and Black Sea region being major contributing factors. There has also been a huge wheat crop in Canada this year to add to the overall wheat picture.
Considering India wheat being so prolific this year as well, and you see how wheat prices per barrel in 2009 will struggle to rise, even when you take into account quality wheat. In these types of economic downturns, survival is more important than the protein content of wheat, and being able to afford the cost of food in general, and wheat in particular is the guiding factor behind where prices of wheat per barrel will lead to.
It's hard to tell how much wheat will be planted in 2009 as well, with fertilizer costs playing a big factor in the decision of whether to plant, and if wheat is planted, how much fertilizer can be used for the wheat and still be cost effective. Fertilizer prices have gone down some, but low wheat prices per barrel make it difficult to top dress wheat with nitrogen fertilizer and still be profitable in a meaningful way for those putting their wheat up for sale.
The most recent projections for wheat exports from the USDA stand at 210 million bushels, an extraordinary third less than 2008. And as of January 1, wheat sales have plunged by close to 40 percent, with only 158 million bushels sold in the U.S.
While there is some opportunity for wheat exports and wheat prices per barrel to rise in 2009, it will depend mostly on weather conditions for the U.S. wheat crop, along with the number of acres planted after a fairly poor year. The high protein sector may offer some opportunity for U.S. farmers, but wheat quality from other countries, and the above-mentioned factors will determine the price per bushel of wheat in 2009. There's no way of knowing at this time where all this will head, as weather is the key factor, and that of course has yet to be played out. Other countries have suffered quality wheat production, which could help wheat prices per bushel rise, but that will highly depend on the quality of wheat produced in the U.S., which again, will be determined by the weather conditions in the spring months of 2009.
The overall global wheat production has risen, while some individual countries fluctuate. Argentina for example announced its production fell by 1 million metric tons to 11 million, while India has had such a good wheat harvest this year they're making two million tons of available for export.
Wheat supplies will also put competitive pressure on corn because of the large supply this year.
Because of the huge supply, there won't be much happening with wheat that will surprise anyone.
As far as prices, soft red winter wheat has "the most downside room; some of better classes can hold in a bit more strongly."
The global wheat market will continue to be bearish, even as drought conditions pressure certain countries like the Phillipines, Argentina and most recently China. Even with that pressure, the price for wheat per bushel in 2009 shouldn't be affected too much, and it shouldn't be counted on to push up wheat prices a bushel anytime soon.
There will be plenty of wheat for sale, and that will keep wheat prices per barrel down, as the huge wheat surplus this year, especially in the European Union and Black Sea region being major contributing factors. There has also been a huge wheat crop in Canada this year to add to the overall wheat picture.
Considering India wheat being so prolific this year as well, and you see how wheat prices per barrel in 2009 will struggle to rise, even when you take into account quality wheat. In these types of economic downturns, survival is more important than the protein content of wheat, and being able to afford the cost of food in general, and wheat in particular is the guiding factor behind where prices of wheat per barrel will lead to.
It's hard to tell how much wheat will be planted in 2009 as well, with fertilizer costs playing a big factor in the decision of whether to plant, and if wheat is planted, how much fertilizer can be used for the wheat and still be cost effective. Fertilizer prices have gone down some, but low wheat prices per barrel make it difficult to top dress wheat with nitrogen fertilizer and still be profitable in a meaningful way for those putting their wheat up for sale.
The most recent projections for wheat exports from the USDA stand at 210 million bushels, an extraordinary third less than 2008. And as of January 1, wheat sales have plunged by close to 40 percent, with only 158 million bushels sold in the U.S.
While there is some opportunity for wheat exports and wheat prices per barrel to rise in 2009, it will depend mostly on weather conditions for the U.S. wheat crop, along with the number of acres planted after a fairly poor year. The high protein sector may offer some opportunity for U.S. farmers, but wheat quality from other countries, and the above-mentioned factors will determine the price per bushel of wheat in 2009. There's no way of knowing at this time where all this will head, as weather is the key factor, and that of course has yet to be played out. Other countries have suffered quality wheat production, which could help wheat prices per bushel rise, but that will highly depend on the quality of wheat produced in the U.S., which again, will be determined by the weather conditions in the spring months of 2009.
Friday, October 10, 2008
USDA Raises Monthly Corn Forecast
The monthly forecast by the U.S. Department of Agriculture on Friday reported corn production for the year could be a much higher 12.2 billion bushels, a significant increase over September's projection of 12.1 billion bushels.
While wetter weather has a strong impact on production, the resultant success will probably put more downward pressure on corn prices, as the agency revised its season-average per bushel to a range of $4.20 to $5.20. That's a drop of 80 cent from September's estimate.
At the end of Thursday's session on the Chicago Board of Trade, corn for December delivery ended at around $4.38 a bushel.
While wetter weather has a strong impact on production, the resultant success will probably put more downward pressure on corn prices, as the agency revised its season-average per bushel to a range of $4.20 to $5.20. That's a drop of 80 cent from September's estimate.
At the end of Thursday's session on the Chicago Board of Trade, corn for December delivery ended at around $4.38 a bushel.
Wednesday, October 1, 2008
Corn in Slight Rebound after Plunging Yesterday
Corn futures are enjoying a slight rebound today after falling by almost 5 percent in Tuesday trading.
On the Chicago Board of Trade, prices for December delivery rose by 4.75 cents to $4.88 a bushel.
Most industry watchers agree that until a decision one way or the other is made concerning a government bailout, things will remain in flux concerning most commodities. There will be another vote today to attempt to pass a bill.
Yesterday corn futures fell to $4.88 a bushel, the first time it dropped below the $5 mark since January. The almost 5 percent drop was the largest in 12 years.
Corn inventories as of September 1 has risen by 25 percent over a year ago according to the U.S. Department of Agriculture. Corn inventories stand at 1.62 billion bushels.
On the Chicago Board of Trade, prices for December delivery rose by 4.75 cents to $4.88 a bushel.
Most industry watchers agree that until a decision one way or the other is made concerning a government bailout, things will remain in flux concerning most commodities. There will be another vote today to attempt to pass a bill.
Yesterday corn futures fell to $4.88 a bushel, the first time it dropped below the $5 mark since January. The almost 5 percent drop was the largest in 12 years.
Corn inventories as of September 1 has risen by 25 percent over a year ago according to the U.S. Department of Agriculture. Corn inventories stand at 1.62 billion bushels.
Thursday, September 25, 2008
Corn Futures Drop as Market Waits on Bailout Plan
Uncertainty in the market and overall economy have investors on the sidelines in a number of categories, and concerning corn futures it's no different.
Most trading in commodities at this time aren't related to underlying fundamentals, rather they're connected to the overall economy and the wait for what the eventual bailout will entail.
As of now, it has been reported today that the House and Senate have a bipartisan agreement in principal, worth near the expected $700 billion is suggested is needed to "fix" the financial sector.
Still, investors are waiting on the sidelines until, and if, the agreement is made law.
Corn futures dropped on Thursday by 5 cents to close the day at $5.58 a bushel for December delivery on the Chicago Board of Trade (CBOT).
Most trading in commodities at this time aren't related to underlying fundamentals, rather they're connected to the overall economy and the wait for what the eventual bailout will entail.
As of now, it has been reported today that the House and Senate have a bipartisan agreement in principal, worth near the expected $700 billion is suggested is needed to "fix" the financial sector.
Still, investors are waiting on the sidelines until, and if, the agreement is made law.
Corn futures dropped on Thursday by 5 cents to close the day at $5.58 a bushel for December delivery on the Chicago Board of Trade (CBOT).
Wednesday, September 17, 2008
Corn Rides Returning Favor of Commodities as Investors run for Cover
December delivery for corn increased by 22 cents a bushel, riding the migration of investors to commodities as they seek shelter from the financial markets. Corn closed at $5.54 a bushel on the Chicago Board of Trade.
Most dollar-denominated commodities were benefactors of the exodus from equities.
Soybeans were also up on the day, increasing by 26 cents to $11.39 a bushel, a 1.3 percent jump.
The U.S. dollar index was down as the greenback fell against most major currencies.
Most dollar-denominated commodities were benefactors of the exodus from equities.
Soybeans were also up on the day, increasing by 26 cents to $11.39 a bushel, a 1.3 percent jump.
The U.S. dollar index was down as the greenback fell against most major currencies.
Tuesday, August 5, 2008
Corn Futures Drop to Lowest Level in Four Months
For the fourth straight session corn futures fell, dropping as low as $5.26 earlier in the day, the lowest level in four months on the CBOT.
The major driver of the drop is the cooling weather, as pollination will increase in response to cooler weather conditions, increasing corn yields. This helps to address the opposite concerns that hot weather would cause corn prices to surge through an even lower pollination rate.
"A forecast for relatively cooler weather this week will be beneficial for" corn's pollination, said Elaine Kub, a grain analyst at commodities research firm DTN.
Even so, according to the U.S. Department of Agriculture, as of August 3, pollination of corn was down from the five-year average of 91 percent, with 83 percent pollinating at this time. The cooler weather will increase that percentage, and probably bring it closer in line with past performance.
Another factor is the strengthening U.S. dollar, which has brought downward pressure on commodities in general, including corn.
The major driver of the drop is the cooling weather, as pollination will increase in response to cooler weather conditions, increasing corn yields. This helps to address the opposite concerns that hot weather would cause corn prices to surge through an even lower pollination rate.
"A forecast for relatively cooler weather this week will be beneficial for" corn's pollination, said Elaine Kub, a grain analyst at commodities research firm DTN.
Even so, according to the U.S. Department of Agriculture, as of August 3, pollination of corn was down from the five-year average of 91 percent, with 83 percent pollinating at this time. The cooler weather will increase that percentage, and probably bring it closer in line with past performance.
Another factor is the strengthening U.S. dollar, which has brought downward pressure on commodities in general, including corn.
Sunday, July 20, 2008
Corn Prices Come Crashing Down to Earth, Lost Over 11% in Week
Even though the flooding in June wiped away some cornfields, the warm weather after the flood receded has helped corn surge back, resulting in the steep drop in price.
December delivery for corn dropped 21 cents to finish at $6.29 a bushel on the CBOT. That's the lowest price point since May 30.
The flooding had driven up prices in June to as high as $7.96 a bushel; more than a 20 percent increase.
The specific corn-related reasons for the decline the good weather is expected to help the corn to pollinate great during the July 20 to July 30 period. That's the most critical period for the pollination period, which determines what the extent of the corn yield will be.
Another reason for the decline in prices is the decreased demand, which has offset the lower production levels.
The year-end corn production is projected at 11.7 billion bushels by the USDA. That's about 20 million bushels less than its June forecast.
December delivery for corn dropped 21 cents to finish at $6.29 a bushel on the CBOT. That's the lowest price point since May 30.
The flooding had driven up prices in June to as high as $7.96 a bushel; more than a 20 percent increase.
The specific corn-related reasons for the decline the good weather is expected to help the corn to pollinate great during the July 20 to July 30 period. That's the most critical period for the pollination period, which determines what the extent of the corn yield will be.
Another reason for the decline in prices is the decreased demand, which has offset the lower production levels.
The year-end corn production is projected at 11.7 billion bushels by the USDA. That's about 20 million bushels less than its June forecast.
Friday, April 25, 2008
Kentucky Corn Planting Behind Schedule as Rains Continue to Hinder
Kentucky corn farmers are scrambling to get their corn fields planted this week, as wet weather has continued to hamper the start of the seasonal planting.
"They're in the `go' mode right now," Kenny Perry, agricultural extension agent in Graves County in western Kentucky, said Thursday. "They're excited to finally be getting into the fields."
Across the state, only 11 percent of acreage intended for corn has been planted, that's in contrast to last year's 39 percent and the average of 47 percent over the last five years on the same date. That's according to the most recent report from the National Agricultural Statistics Service's Kentucky field office.
If Kentucky weather can remain dry, the season for corn should be ok, as there is still a couple weeks to plant without experiencing the lower yields expected if a later sowing results in summer heat influencing the pollination of the corn.
The option for Kentucky farmers would be to sow soybeans, but that isn't without risks either, as the 2007 drought has resulted in supply problems for soybean seeds. Most of those problems are connected to varieties offered, more than being able to attain some type of soybean seed.
This is the short window where major decisions have to be made whether to go ahead with corn or switch to soybeans; much of what farmers in other states around the country are facing.
Wednesday, April 16, 2008
U.S. Agriculture Secretary Ed Schafer Says No Change in Biofuels Policy
The criticism and impact of the biofuels policy in the U.S. and Europe is causing food riots and protests across the world, as the prices of food surge; mostly on the continuing price increases of corn.
For U.S. Agriculture Secretary Ed Schafer to say there will be no shift in the subsidy of corn in the U.S. and it will be business as usual with ethanol, is irresponsible at least, and, as some are calling it, "a crime against humanity."
In the U.S. alone, ethanol is expected to consume about 25 percent of the corn crop, which is estimated at 13.1 bushels this year.
Now the uncertainty of heavy rains in respect to planting season, leaves no room for error in the U.S. If anything comes along to disrupt the season, corn prices would go through the roof. They're already expected to continue rising throughout 2008.
Investors in Pilgrim's Pride Corp (NYSE:PPC) were ecstatic this week, as the company announced they were cutting production based on high feed costs for the second time in the last 30 days. The reduced supply will cause meat prices to go up, adding to the other effects of corn on the market.
It's possible that the entry of goverments into the biofuels business may be one of the most obivous and public mistakes they've made.
Not too long ago, after 30 million deaths in Africa, DDT was finally reintroduced into the continent to battle mosquitos, which spread malaria to the inhabitants. It was done very quietly, as not to reveal the outrageous results and consequences of another irresponsible government program.
For U.S. Agriculture Secretary Ed Schafer to say there will be no shift in the subsidy of corn in the U.S. and it will be business as usual with ethanol, is irresponsible at least, and, as some are calling it, "a crime against humanity."
In the U.S. alone, ethanol is expected to consume about 25 percent of the corn crop, which is estimated at 13.1 bushels this year.
Now the uncertainty of heavy rains in respect to planting season, leaves no room for error in the U.S. If anything comes along to disrupt the season, corn prices would go through the roof. They're already expected to continue rising throughout 2008.
Investors in Pilgrim's Pride Corp (NYSE:PPC) were ecstatic this week, as the company announced they were cutting production based on high feed costs for the second time in the last 30 days. The reduced supply will cause meat prices to go up, adding to the other effects of corn on the market.
It's possible that the entry of goverments into the biofuels business may be one of the most obivous and public mistakes they've made.
Not too long ago, after 30 million deaths in Africa, DDT was finally reintroduced into the continent to battle mosquitos, which spread malaria to the inhabitants. It was done very quietly, as not to reveal the outrageous results and consequences of another irresponsible government program.
Friday, April 11, 2008
Corn News Weekend Roundup
=====
Corn Falls on Improved Weather
Corn prices fell sharply Friday as forecasts for dry weather in the U.S. corn belt eased concerns that farmers will have to delay their spring planting.
=====
Corn market gains more uncertainty in April
Following the March 31, 2008 Planting Intentions report, the corn market was forecast up 20-30 cents based on fewer corn acres for 2008.
=====
CBOT Corn Review: Down On Profit-Taking, Weather Concerns
U.S. corn futures fell Friday in continued profit-taking off record highs set this week, as nervous longs exited the market ahead of the weekend on shaky weather forecasts and on widespread commodity selling, brokers and analysts said Friday.
=====
Profit taking weigh down corn futures
U.S. corn futures dropped on Thursday on profit-taking after the rally on Wednesday to record highs
=====
S Korea's Nonghyup buys 165,000 tonnes of US corn
South Korea's Nonghyup Feed Inc has bought 165,000 tonnes of US corn, traders said on Friday. The purchase was split into three lots of 55,000 tonnes each.
=====
Corn Futures Expected To Continue To Grind Higher
In their supply/demand report issued on Wednesday, April 9th, the USDA continued to raise their projections for corn use. Incredibly, feed use was increased by 200 million bushels (from just thirty days ago) and export projections were increased by 50 million.
=====
Texas A&M report clears corn from food price inflation
The U.S. ethanol industry is facing challenging times. In part because of ethanol industry demand, corn prices have hit all-time highs.
=====
Corn Falls on Improved Weather
Corn prices fell sharply Friday as forecasts for dry weather in the U.S. corn belt eased concerns that farmers will have to delay their spring planting.
=====
Corn market gains more uncertainty in April
Following the March 31, 2008 Planting Intentions report, the corn market was forecast up 20-30 cents based on fewer corn acres for 2008.
=====
CBOT Corn Review: Down On Profit-Taking, Weather Concerns
U.S. corn futures fell Friday in continued profit-taking off record highs set this week, as nervous longs exited the market ahead of the weekend on shaky weather forecasts and on widespread commodity selling, brokers and analysts said Friday.
=====
Profit taking weigh down corn futures
U.S. corn futures dropped on Thursday on profit-taking after the rally on Wednesday to record highs
=====
S Korea's Nonghyup buys 165,000 tonnes of US corn
South Korea's Nonghyup Feed Inc has bought 165,000 tonnes of US corn, traders said on Friday. The purchase was split into three lots of 55,000 tonnes each.
=====
Corn Futures Expected To Continue To Grind Higher
In their supply/demand report issued on Wednesday, April 9th, the USDA continued to raise their projections for corn use. Incredibly, feed use was increased by 200 million bushels (from just thirty days ago) and export projections were increased by 50 million.
=====
Texas A&M report clears corn from food price inflation
The U.S. ethanol industry is facing challenging times. In part because of ethanol industry demand, corn prices have hit all-time highs.
=====
Tuesday, April 8, 2008
Monsanto in Deal with Bayer CropScience LP for Corn Treatment
Monsanto Co. (NYSE:MON) and a division of Bayer AG (Other OTC:BAYRY.PK), Bayer CropScience LP, have entered an agreement in relationship to a new fungicide product which will treat corn crops.
The new treatment would be used in the early corn season, and would protect seedlings against insects and diseases during that period of growth. It's said to be a significant improvement over past remedies.
Monsanto has exclusive rights under the terms of the deal to market the new product under its Dekalb corn brand label. It will also be empowered to license the new product through its licensing division.
Friday, April 4, 2008
Weekend Corn News Roundup
=====
CBOT Corn Outlook: 1-2 Cents Lower On Light Profit-Taking
Chicago Board of Trade corn futures are expected to open 1-2 cents a bushel lower after prices reached technically overbought conditions and as traders take some profits ahead of the weekend, analysts said Friday.
=====
Corn Looks to Trend Higher
On Thursday, April 3, July corn prices were up 4.25 cents, closing just shy of the highs at $6.13 a bushel.
=====
In The Cattle Markets: Prospective Plantings Will Not Help Feeders
It has been a tough winter and early spring to make money in the cattle feeding business and Monday’s USDA Prospective Plantings Report will not likely help feeders.
=====
Japanese food processor to accept GM corn
Japanese wet miller, Kato Kagaku Co., Ltd., will start accepting non-segregated genetically modified corn for starch, sweetener and processed food production.
=====
CBOT Corn Review: Down Slightly On Pre-Weekend Profit-Taking
Chicago Board of Trade corn futures gave back a small portion of this week's gains as the market became overbought and traders decided to book profits ahead of the weekend, traders and analysts said Friday.
=====
Corn Prices Surpass $6 A Bushel: Investors, Grab Your Overalls
Corn prices have jumped dramatically during the past few months, hitting a record high of more than $6 a bushel. Demand for corn has increased, and the outlook concerning whether future supply can meet this demand is uncertain.
=====
Monsanto to build seed corn facility near Independence
On the same day it announced record-setting second-quarter revenues, Monsanto Co. announced an Iowa site for a new seed corn facility, moving forward on expansion plans within the state.
=====
CBOT Corn Outlook: 1-2 Cents Lower On Light Profit-Taking
Chicago Board of Trade corn futures are expected to open 1-2 cents a bushel lower after prices reached technically overbought conditions and as traders take some profits ahead of the weekend, analysts said Friday.
=====
Corn Looks to Trend Higher
On Thursday, April 3, July corn prices were up 4.25 cents, closing just shy of the highs at $6.13 a bushel.
=====
In The Cattle Markets: Prospective Plantings Will Not Help Feeders
It has been a tough winter and early spring to make money in the cattle feeding business and Monday’s USDA Prospective Plantings Report will not likely help feeders.
=====
Japanese food processor to accept GM corn
Japanese wet miller, Kato Kagaku Co., Ltd., will start accepting non-segregated genetically modified corn for starch, sweetener and processed food production.
=====
CBOT Corn Review: Down Slightly On Pre-Weekend Profit-Taking
Chicago Board of Trade corn futures gave back a small portion of this week's gains as the market became overbought and traders decided to book profits ahead of the weekend, traders and analysts said Friday.
=====
Corn Prices Surpass $6 A Bushel: Investors, Grab Your Overalls
Corn prices have jumped dramatically during the past few months, hitting a record high of more than $6 a bushel. Demand for corn has increased, and the outlook concerning whether future supply can meet this demand is uncertain.
=====
Monsanto to build seed corn facility near Independence
On the same day it announced record-setting second-quarter revenues, Monsanto Co. announced an Iowa site for a new seed corn facility, moving forward on expansion plans within the state.
=====
Subscribe to:
Posts (Atom)