A variety of factors have generated uncertainty for corn and other agriculture futures, as corn was the only pit ending the Friday session higher.
Continual macro-economic concerns over the European debt crisis, as well as the extent of the corn production, and other crop shrinkage in South America related to weather, has made traders tentative.
Another factor in the mix is the hint of an export ban in Russia, which would offer up more support.
Expectations are grains still have some room to move upwards before leveling off or falling.
Friday corn closed 7 1/4 cent a bushel higher on the nearby contract, ended the trading day at $6.41 3/4.
Nearby contract for soybeans dropping trading 3 3/4 cents and 6 1/4 cents lower, to $12.19 and $6.47 1/4.
Showing posts with label Soybeans. Show all posts
Showing posts with label Soybeans. Show all posts
Friday, January 27, 2012
Thursday, May 5, 2011
CF Industries (CF) (IPI) (TNH) (AGU) Trade Down as Wheat, Soybeans Plunge
Fertilizer companies CF Industries (NYSE:CF), Intrepid Potash (NYSE:IPI), Terra Nitrogen Company, L.P. (NYSE:TNH) and Agrium (NYSE:AGU) were under pressure Wednesday, closing down on the day as wheat and soybean prices plummeted. Corn prices were able to generate a gain on the day.
In July agriculture contracts, wheat was down 21.25 cents to settle at $7.72 a bushel. Soybeans dropped 11.75 cents to settle at $13.52 a bushel.
Corn climbed 5.75 cents to settle at $7.295 a bushel.
Wheat and corn are expected to jump by about 5 cents to 10 cents over the next couple of days.
Companies supplying fertilizer will usually move in unison with the direction crop prices are going, as it is an indicator of the level farmers will spend on inputs.
Agrium (AGU) closed Wednesday at $84.02, falling $3.75, or 4.27 percent.
In July agriculture contracts, wheat was down 21.25 cents to settle at $7.72 a bushel. Soybeans dropped 11.75 cents to settle at $13.52 a bushel.
Corn climbed 5.75 cents to settle at $7.295 a bushel.
Wheat and corn are expected to jump by about 5 cents to 10 cents over the next couple of days.
Companies supplying fertilizer will usually move in unison with the direction crop prices are going, as it is an indicator of the level farmers will spend on inputs.
Agrium (AGU) closed Wednesday at $84.02, falling $3.75, or 4.27 percent.
Potash (POT) (CMP) (MOS) (SYT) Trade Down as Wheat, Soybeans Prices Plunge
Fertilizer companies Compass Minerals (NYSE:CMP), Mosaic (NYSE:MOS), Syngenta (NYSE:SYT), Potash Corp (NYSE:POT) were under pressure Wednesday as wheat and soybean prices plummeted. Corn prices were able to generate a gain on the day.
In July agriculture contracts, wheat was down 21.25 cents to settle at $7.72 a bushel. Soybeans dropped 11.75 cents to settle at $13.52 a bushel.
Corn climbed 5.75 cents to settle at $7.295 a bushel.
Wheat and corn are expected to jump by about 5 cents to 10 cents over the next couple of days.
Companies supplying fertilizer will usually move in unison with the direction crop prices are going, as it is an indicator of the level farmers will spend on inputs.
Potash closed Wednesday at $53.42, falling $0.77, or 1.42 percent.
In July agriculture contracts, wheat was down 21.25 cents to settle at $7.72 a bushel. Soybeans dropped 11.75 cents to settle at $13.52 a bushel.
Corn climbed 5.75 cents to settle at $7.295 a bushel.
Wheat and corn are expected to jump by about 5 cents to 10 cents over the next couple of days.
Companies supplying fertilizer will usually move in unison with the direction crop prices are going, as it is an indicator of the level farmers will spend on inputs.
Potash closed Wednesday at $53.42, falling $0.77, or 1.42 percent.
Friday, April 15, 2011
Fertilizers (POT) (MOS) (AGU) Down on Falling Corn, Wheat Soybean Prices
Corn, wheat and soybean prices all dropped on Thursday, as did the major fertilizer companies Potash Corp. (NYSE:POT), Mosaic (NYSE:MOS) and Agrium (NYSE:AGU).
In May contracts, wheat dropped 12.25 cents to settle at $7.405 a bushel, corn fell 1.25 cents to $7.5425 a bushel and soybeans lost 2.5 cents to $13.31 a bushel.
For the first time since 1996, Corn prices were higher than wheat Wednesday and Thursday, as corn was also short supply at that time, although this time it's a man-made problem from the misguided and highly controversial forcing of ethanol into the gas tanks of American car, pressuring the corn supply and pushing corn prices up.
Some farmers are buying wheat against corn to feed their livestock because corn prices have risen so quickly because of tight supplies,
Fertilizer companies usually fall when the price of wheat, corn and soybeans fall, as it's perceived farmers will cut back on spending on inputs.
Mosaic was trading at $75.49, falling $1.30, or 1.69 percent. Agrium was trading at $88.20, down $0.70, or 0.79 percent. Potash was trading at $56.19, dropping $0.49, or 0.86 percent.
In May contracts, wheat dropped 12.25 cents to settle at $7.405 a bushel, corn fell 1.25 cents to $7.5425 a bushel and soybeans lost 2.5 cents to $13.31 a bushel.
For the first time since 1996, Corn prices were higher than wheat Wednesday and Thursday, as corn was also short supply at that time, although this time it's a man-made problem from the misguided and highly controversial forcing of ethanol into the gas tanks of American car, pressuring the corn supply and pushing corn prices up.
Some farmers are buying wheat against corn to feed their livestock because corn prices have risen so quickly because of tight supplies,
Fertilizer companies usually fall when the price of wheat, corn and soybeans fall, as it's perceived farmers will cut back on spending on inputs.
Mosaic was trading at $75.49, falling $1.30, or 1.69 percent. Agrium was trading at $88.20, down $0.70, or 0.79 percent. Potash was trading at $56.19, dropping $0.49, or 0.86 percent.
Friday, February 25, 2011
Monsanto (MON), Mosaic (MOS) Leading (MOO) Up
Shares of Monsanto (NYSE:MON) and Mosaic (NYSE:MOS) are helping push Market Vectors Agribusiness ETF (MOO) up, while the iPath DJ-UBS Cotton ETN (BAL) is up over 5 percent today on positive production comments.
The Department of Agriculture reported greater production by U.S. cotton farmers, as well as for soybean and wheat farmers as well, as agricultural prices are jumping again.
Farmers have been increasing inputs on the basis of rising food prices and demand, which appears to be not going away any time soon.
Even with the unrest in the Middle East and other concerns, people have to eat, and governments will do what they must to be sure they are in order to quell potential riots which is already unseating leaders.
The Department of Agriculture reported greater production by U.S. cotton farmers, as well as for soybean and wheat farmers as well, as agricultural prices are jumping again.
Farmers have been increasing inputs on the basis of rising food prices and demand, which appears to be not going away any time soon.
Even with the unrest in the Middle East and other concerns, people have to eat, and governments will do what they must to be sure they are in order to quell potential riots which is already unseating leaders.
Thursday, February 24, 2011
Record Corn Crop Won't Solve Supply Challenges
Corn supplies will stay tight in the U.S., the largest grower and exporter, even as greater planting spurs record production, the U.S. Department of Agriculture’s chief economist said. Soybean and cotton crops may also increase.
Farmers will harvest a record 13.73 billion bushels of corn this year, up from 12.447 billion last year, on 92 million planted acres, Joe Glauber, the economist, said today at a USDA forum near Washington. Greater demand for livestock feed and ethanol will limit gains in stockpiles next year, after dropping to the lowest level since 1996, he said. Prices are up 80 percent in the past year on the Chicago Board of Trade.
“Despite an increase in acres, the corn market is going to remain tight,” Glauber said. “It points to the fierce competition for acreage this spring.”
Tighter supplies helped boost global food costs by 25 percent last year, reaching the highest ever last month, according to the United Nations. Rising demand also is helping to boost net-farm income in the U.S. by 20 percent this year to a record $94.7 billion, the USDA said earlier this month. U.S. farm exports will jump 25 percent to a record $135.5 billion in fiscal 2011, Glauber said today.
Full Story
Farmers will harvest a record 13.73 billion bushels of corn this year, up from 12.447 billion last year, on 92 million planted acres, Joe Glauber, the economist, said today at a USDA forum near Washington. Greater demand for livestock feed and ethanol will limit gains in stockpiles next year, after dropping to the lowest level since 1996, he said. Prices are up 80 percent in the past year on the Chicago Board of Trade.
“Despite an increase in acres, the corn market is going to remain tight,” Glauber said. “It points to the fierce competition for acreage this spring.”
Tighter supplies helped boost global food costs by 25 percent last year, reaching the highest ever last month, according to the United Nations. Rising demand also is helping to boost net-farm income in the U.S. by 20 percent this year to a record $94.7 billion, the USDA said earlier this month. U.S. farm exports will jump 25 percent to a record $135.5 billion in fiscal 2011, Glauber said today.
Full Story
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, January 24, 2011
Archer Daniels Midland (NYSE:ADM), Bunge Ltd (NYSE:BG), Cargill Land Deal with Chinese Importers
With the backdrop of a huge and surprising deal by China to acquire soybeans from American farmers, valued at $6.7 billion, companies like Archer Daniels Midland (NYSE:ADM), Bunge Ltd (NYSE:BG) and Cargill signed deals with major Chinese importers, including COFCO and Sinograin.
The deal for soybeans by China was the largest it has ever entered in as a one-off deal.
Dealers responded saying they thought there would be a symbolic purchase of soybeans, but not a legitimate, major deal like the one entered into.
It is believed the Chinese made it over concerns soybean prices could rise significantly throughout 2011, so they locked in prices now.
The overall deal represents 11.5 million tons of soybeans to be delivered in 2011 incrementally. The overall total is enough to meet the import demand of the Chinese for up to three months.
Soybeans acquired by China will be for delivery in the 2011/12 (September-to-August) marketing year.
Prices for soybeans have reached a 30-month high in January on Chinese demand and production concerns in South America.
The deal for soybeans by China was the largest it has ever entered in as a one-off deal.
Dealers responded saying they thought there would be a symbolic purchase of soybeans, but not a legitimate, major deal like the one entered into.
It is believed the Chinese made it over concerns soybean prices could rise significantly throughout 2011, so they locked in prices now.
The overall deal represents 11.5 million tons of soybeans to be delivered in 2011 incrementally. The overall total is enough to meet the import demand of the Chinese for up to three months.
Soybeans acquired by China will be for delivery in the 2011/12 (September-to-August) marketing year.
Prices for soybeans have reached a 30-month high in January on Chinese demand and production concerns in South America.
Monday, December 13, 2010
Goldman (NYSE:GS) Says Precious Metals Will Lead Commodities in 2011
Talking commodities today concerning 2011, Goldman Sachs (NYSE:GS) said they see precious metals leading the way, with gold reaching $1,690 in 12 months, while livestock performing the worst in the commodity sector.
Over the next year, Goldman sees precious metals rising 28 percent and livestock increasing by only 4 percent.
Goldman said in the report, “Extreme weakness in U.S. demand over the past two years has allowed China to grow unconstrained without any competition for raw materials. This is likely to change in 2011 with a stronger U.S. that is likely to bump up against a China that is consuming dramatically more commodities than pre-crisis.”
In order to cut back on American consumption, commodity prices will probably be pushed up in order to “to make room for further Chinese demand,” according to Goldman.
Precious metals specifically identified as being most affected were platinum and copper, and other commodities to be affected said Goldman, will be soybeans, cotton and crude oil.
As far as gold demand and prices, Goldman concluded, “A low U.S. real interest-rate environment will continue in 2011, particularly given the resumption of quantitative easing measures in the U.S.,” the analysts wrote. “However, as we look toward 2012, we find it timely to reiterate our view that at current price levels gold remains a compelling trade, but not a long-term investment.”
Over the next year, Goldman sees precious metals rising 28 percent and livestock increasing by only 4 percent.
Goldman said in the report, “Extreme weakness in U.S. demand over the past two years has allowed China to grow unconstrained without any competition for raw materials. This is likely to change in 2011 with a stronger U.S. that is likely to bump up against a China that is consuming dramatically more commodities than pre-crisis.”
In order to cut back on American consumption, commodity prices will probably be pushed up in order to “to make room for further Chinese demand,” according to Goldman.
Precious metals specifically identified as being most affected were platinum and copper, and other commodities to be affected said Goldman, will be soybeans, cotton and crude oil.
As far as gold demand and prices, Goldman concluded, “A low U.S. real interest-rate environment will continue in 2011, particularly given the resumption of quantitative easing measures in the U.S.,” the analysts wrote. “However, as we look toward 2012, we find it timely to reiterate our view that at current price levels gold remains a compelling trade, but not a long-term investment.”
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.
Tuesday, January 20, 2009
Corn Results | Wheat, Soybeans Pressuring Prices
Corn results today are wheat and soybeans pressuring the prices down, along with a stronger U.S. dollar.
Chicago Board of Trade corn futures succumbed to outside pressure Tuesday, ending lower amid falling wheat and soybean markets, traders said.
March corn ended down 7 1/2 cents to $3.83 1/2 per bushel, May corn ended down 7 cents to $3.94 3/4 and July corn ended down 7 cents to $4.05 1/2.
The market had been higher for much of the day despite lower wheat and soybeans, but corn sank as those markets extended their losses.
"Wheat and beans are slam-dunking corn," said Vic Lespinasse, analyst for grainanalyst.com.
Weak crude oil and a stronger dollar weighed on corn and other commodities, analysts said.
The market climbed in early trading on technical strength and follow-through from Friday's sharp gains, said Shawn McCambridge, senior grains analyst for Prudential Bache. But McCambridge and other analysts said the market does not have a good reason to rally sharply.
"I think we're going to have to have some kind of a fundamental backing in order to continue to extend these gains," McCambridge said.
The demand outlook remains weak, with exports, ethanol and feed demand all suffering.
Traders noted a continued unwinding of the corn-soybean spread due to concerns that corn is losing acres to soybeans. Those concerns flared again with Informa Economics acreage projection released on Friday, a trader said. Some analysts said concerns about corn losing acreage are overblown, however.
Corn climbed above $4 in the March contract overnight and again early Tuesday, but retreated each time.
A trader called $4 "massive resistance," although McCambridge called it "a psychological benchmark we continue to watch."
South American weather remains a key focus of both corn and soybeans, and continued dry weather in Argentina is fueling concerns about crop damage. But support from the continuing dry weather there was mitigated by beneficial rains in Brazil, traders said.
CBOT oats futures ended lower. March oats were down 8 1/2 cents to $2.14 per bushel and May oats were down 8 1/2 cents to $2.23 1/4.
Ethanol futures were unchanged to slightly lower. February ethanol ended flat at $1.612 per gallon and March ethanol ended down $0.013 to $1.617.
-By Ian Berry, Dow Jones Newswires; 312-341-5778; ian.berry@dowjones.com
(END) Dow Jones Newswires
01-20-09 1527ET
Copyright (c) 2009 Dow Jones & Company, Inc.
Conclusion:
Results for corn will continue to push downward in conjunction with wheat and soybeans. Oil prices didn't help, also falling, neither did the U.S. dollar getting stronger today help.
Chicago Board of Trade corn futures succumbed to outside pressure Tuesday, ending lower amid falling wheat and soybean markets, traders said.
March corn ended down 7 1/2 cents to $3.83 1/2 per bushel, May corn ended down 7 cents to $3.94 3/4 and July corn ended down 7 cents to $4.05 1/2.
The market had been higher for much of the day despite lower wheat and soybeans, but corn sank as those markets extended their losses.
"Wheat and beans are slam-dunking corn," said Vic Lespinasse, analyst for grainanalyst.com.
Weak crude oil and a stronger dollar weighed on corn and other commodities, analysts said.
The market climbed in early trading on technical strength and follow-through from Friday's sharp gains, said Shawn McCambridge, senior grains analyst for Prudential Bache. But McCambridge and other analysts said the market does not have a good reason to rally sharply.
"I think we're going to have to have some kind of a fundamental backing in order to continue to extend these gains," McCambridge said.
The demand outlook remains weak, with exports, ethanol and feed demand all suffering.
Traders noted a continued unwinding of the corn-soybean spread due to concerns that corn is losing acres to soybeans. Those concerns flared again with Informa Economics acreage projection released on Friday, a trader said. Some analysts said concerns about corn losing acreage are overblown, however.
Corn climbed above $4 in the March contract overnight and again early Tuesday, but retreated each time.
A trader called $4 "massive resistance," although McCambridge called it "a psychological benchmark we continue to watch."
South American weather remains a key focus of both corn and soybeans, and continued dry weather in Argentina is fueling concerns about crop damage. But support from the continuing dry weather there was mitigated by beneficial rains in Brazil, traders said.
CBOT oats futures ended lower. March oats were down 8 1/2 cents to $2.14 per bushel and May oats were down 8 1/2 cents to $2.23 1/4.
Ethanol futures were unchanged to slightly lower. February ethanol ended flat at $1.612 per gallon and March ethanol ended down $0.013 to $1.617.
-By Ian Berry, Dow Jones Newswires; 312-341-5778; ian.berry@dowjones.com
(END) Dow Jones Newswires
01-20-09 1527ET
Copyright (c) 2009 Dow Jones & Company, Inc.
Conclusion:
Results for corn will continue to push downward in conjunction with wheat and soybeans. Oil prices didn't help, also falling, neither did the U.S. dollar getting stronger today help.
Tuesday, October 28, 2008
USDA Corrects Corn Production, Will Lift Prices
Stronger cash corn prices are being predicted as a result of unprecedented corrections to an official crop report Tuesday by the U.S. Department of Agriculture.
The report said that U.S. farmers will probably harvest about 1 million acres less of corn than they said in the last report, with soybeans also being much less than the previous report.
What this effectively does is cut expected production by close to 1.5 percent than what was projected on October 10.
"Corn production is forecast at 12.033 billion bushels, down 167 million from the Oct. 10 forecast," said the USDA. "Soybean production is forecast at 2.938 billion bushels, up slightly from the September forecast, and up 10% from last year. If realized, this will be the fourth largest production on record."
As a result of the corrections, corn will ending stocks of about 1.088 billion bushels, a drop of 6 percent. That should push corn prices up a little going ahead.
With the new statistics, expectations are the average bushel of corn will increase by about 5 cents to $4.25 to $5.25 a bushel.
For only the third time since 1980, over 60 percent of the corn crop in the U.S. still has to be picked as of October 26.
The report said that U.S. farmers will probably harvest about 1 million acres less of corn than they said in the last report, with soybeans also being much less than the previous report.
What this effectively does is cut expected production by close to 1.5 percent than what was projected on October 10.
"Corn production is forecast at 12.033 billion bushels, down 167 million from the Oct. 10 forecast," said the USDA. "Soybean production is forecast at 2.938 billion bushels, up slightly from the September forecast, and up 10% from last year. If realized, this will be the fourth largest production on record."
As a result of the corrections, corn will ending stocks of about 1.088 billion bushels, a drop of 6 percent. That should push corn prices up a little going ahead.
With the new statistics, expectations are the average bushel of corn will increase by about 5 cents to $4.25 to $5.25 a bushel.
For only the third time since 1980, over 60 percent of the corn crop in the U.S. still has to be picked as of October 26.
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.
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