Corn production in South Dakota climbed in a big way in 2011, as the value of corn soared for the year.
According to estimates from the U.S. Department of Agriculture, corn jumped in value in South Dakota to $3.95 billion, a huge improvement of 36 percent over corn value in the state for 2010.
Other production results had soybeans ending 2011 valued at $1.72 billion, while hay came in at a value of $1 billion. Wheat came in just shy of $800 million, finishing the year at $799.5 million. Alfalfa hay was just behind wheat in value for South Dakoto, closing 2011 at $793.1 million.
Showing posts with label Wheat. Show all posts
Showing posts with label Wheat. Show all posts
Friday, February 17, 2012
Wednesday, April 20, 2011
Caterpillar (CAT) (AGCO) (DE) (MON) Jump on Rising Wheat Prices
Shares of Caterpillar (NYSE:CAT) and AGCO (NYSE:AGCO) Deere (NYSE:DE) and Monsanto (NYSE:MON) are all trading up today on news wheat is helping farmers generate profits which should boost the bottom line of the Ag companies.
Wheat is now trading at about $8 a bushel, the highest level in three years. Poor weather conditions should help wheat to continue to rise in price over the next month or so.
Wheat exports from America are also estimated to rise by 18 percent over last year, according to a Bloomberg report.
Jefferies analyst Stephen Volkmann wrote, “Going into the winter, the US winter wheat crop condition was already well below last year, with only 47% in good/excellent condition and 17% in poor/very poor condition, compared to 63% good/excellent and 6% poor/very poor last year. With the spring thaw, this has now declined to only 36% in good/excellent condition, and 38% in poor or very poor condition. At the same time, most of the poor crops are concentrated in prime wheat producing states – Kansas, Oklahoma, Texas, and to a lesser extent, Nebraska – suggesting that the impact on yields could be larger.”
Higher crop prices provide more confidence and capital for farmers to spend on a variety of needed inputs.
Caterpillar was trading at $107.89, gaining $2.22, or 2.11 percent, as of 2:44 PM EDT. AGCO was at $53.17, up $1.35, or 2.61 percent. Deere was trading at $93.71, rising $1.33, or 2.11 percent. Monsanto was trading at $67.48, increasing $0.63, or 0.94 percent.
Wheat is now trading at about $8 a bushel, the highest level in three years. Poor weather conditions should help wheat to continue to rise in price over the next month or so.
Wheat exports from America are also estimated to rise by 18 percent over last year, according to a Bloomberg report.
Jefferies analyst Stephen Volkmann wrote, “Going into the winter, the US winter wheat crop condition was already well below last year, with only 47% in good/excellent condition and 17% in poor/very poor condition, compared to 63% good/excellent and 6% poor/very poor last year. With the spring thaw, this has now declined to only 36% in good/excellent condition, and 38% in poor or very poor condition. At the same time, most of the poor crops are concentrated in prime wheat producing states – Kansas, Oklahoma, Texas, and to a lesser extent, Nebraska – suggesting that the impact on yields could be larger.”
Higher crop prices provide more confidence and capital for farmers to spend on a variety of needed inputs.
Caterpillar was trading at $107.89, gaining $2.22, or 2.11 percent, as of 2:44 PM EDT. AGCO was at $53.17, up $1.35, or 2.61 percent. Deere was trading at $93.71, rising $1.33, or 2.11 percent. Monsanto was trading at $67.48, increasing $0.63, or 0.94 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.
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.
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, July 3, 2010
Toxins Cutting into Wheat Income in Ohio
Higher than normal level of toxins are slashing the income of some farmers in Ohio.
According to representatives of the Ohio State University Extension Service, vomitoxin levels are the worst in seven to ten years in some areas of the state, especially areas where it's cooler and wet.
A wet May in particular produced conditions for the fungus to thrive.
The high levels of toxins limit the use of wheat for people, and also in livestock, especially pigs, which could cause a lot of problems in them.
According to representatives of the Ohio State University Extension Service, vomitoxin levels are the worst in seven to ten years in some areas of the state, especially areas where it's cooler and wet.
A wet May in particular produced conditions for the fungus to thrive.
The high levels of toxins limit the use of wheat for people, and also in livestock, especially pigs, which could cause a lot of problems in them.
Friday, June 11, 2010
USDA Confirms Too Much Wheat
The wheat ending stocks are projected to be at 991 million bushels, according to the latest USDA figures, down a little from May, but irrelevant because of the enormous supply.
Even with the news out of Canada that wheat production is lower because of less acreage planted than originally thought, it's not going to do much to move prices at all.
And there is so much wheat the wet weather keeping farmers from planting their fields won't do anything either.
I talked about this last year, and it continues to puzzle me why farmers don't move out of their wheat planting and into a more profitable crop.
Add to this the increasing number of wheat farmers and production around the world and there is little reason to pursue wheat at this time.
Even with the news out of Canada that wheat production is lower because of less acreage planted than originally thought, it's not going to do much to move prices at all.
And there is so much wheat the wet weather keeping farmers from planting their fields won't do anything either.
I talked about this last year, and it continues to puzzle me why farmers don't move out of their wheat planting and into a more profitable crop.
Add to this the increasing number of wheat farmers and production around the world and there is little reason to pursue wheat at this time.
Wednesday, July 15, 2009
Monsanto Looking to wheat
Monsanto Looking to wheat to drive share prices up
Looking for more ways to increase their share price, Monsanto is looking to wheat as a significant means of doing that, and recent aquisition of WestBred LLC is the first significant step in that direction, although it could take a decade before the investment pays off.
Knowing it needs a way to expand market share in wheat, Monsanto a Monsanto analyst, citing expectations that the company's $45 million acquisition of WestBred LLC won't add to earnings until 2016, and will add less than a dime a share by 2025.
Privately held WestBred, with offices in Montana, specializes in wheat germplasm, the genetic material of a seed.
Monsanto said about the investment that it will strengthen the future growth of Monsanto's seeds and traits platform; and allow farmers to benefit from the company's experience in drought-, disease- and pest-tolerance innovations.
This action by Monsanto, the world's biggest provider of seeds, signifies the company's re-entry to the wheat market, but will only increase earnings several years down the road at best.
Assuming Monsanto has a 20 percent share of the certified seed market by 2025, estimates are wheat could only add between 7 cents and 9 cents a share to earnings a share by 2025.
"Clearly, Monsanto needs to find ways to drive significant market share gains, wheat platform should not be accretive to earnings until 2016 or later."
Managing expectations, Monsanto is calling the acquisition a long-term investment that won't add to earnings until the middle or latter part of the next decade.
Monsanto Looking to wheat to drive share prices up
Looking for more ways to increase their share price, Monsanto is looking to wheat as a significant means of doing that, and recent aquisition of WestBred LLC is the first significant step in that direction, although it could take a decade before the investment pays off.
Knowing it needs a way to expand market share in wheat, Monsanto a Monsanto analyst, citing expectations that the company's $45 million acquisition of WestBred LLC won't add to earnings until 2016, and will add less than a dime a share by 2025.
Privately held WestBred, with offices in Montana, specializes in wheat germplasm, the genetic material of a seed.
Monsanto said about the investment that it will strengthen the future growth of Monsanto's seeds and traits platform; and allow farmers to benefit from the company's experience in drought-, disease- and pest-tolerance innovations.
This action by Monsanto, the world's biggest provider of seeds, signifies the company's re-entry to the wheat market, but will only increase earnings several years down the road at best.
Assuming Monsanto has a 20 percent share of the certified seed market by 2025, estimates are wheat could only add between 7 cents and 9 cents a share to earnings a share by 2025.
"Clearly, Monsanto needs to find ways to drive significant market share gains, wheat platform should not be accretive to earnings until 2016 or later."
Managing expectations, Monsanto is calling the acquisition a long-term investment that won't add to earnings until the middle or latter part of the next decade.
Monsanto Looking to wheat to drive share prices up
Sunday, January 25, 2009
Wheat: Argentina Wheat Market Crumbling
Although a number of crops are failing in Argentina, including corn and soy, wheat is also participating in the destructive drought that is crushing the entire agriculture sector of Argentina.
The commodity grain sector hasn't moved with the metals market, as demand for everything is down, even though people still need to eat, as well as their livestock.
This is particularly difficult for Argentina, who is one of the top exporters of grains in the world, and so depend on so much on it for the welfare of the country.
At this time things are so bad that farmers have given up trying to salvage their wheat crop, and instead are focusing on saving their cattle. Even if the cattle are saved, they will be difficult to breed because of the lack of food for them.
According to farmers in Argentina, wheat fields are as dried as they can be, with little hope of salvaging a wheat crop, as there is little to put in storage.
Unfortunately for everyone involved, the wheat planting, wheat yield and wheat harvest around the world has been huge, and so the drought in Argentina is hurting them without benefiting anyone else.
Even though farmers in the U.S. were hoping to get some of the trade usually done by Argentina with Brazil, it looks like it won't have much impact on wheat exports from the U.S., and so Argentines will be the ones to suffer.
So in spite of this, wheat futures aren't moving much because of this, although there was a slight move upward recently based on wheat news from the country. But it's not sustainable.
Weather predictions in the country are, as usual, contradictory, and so some say the drought will end with rain coming, and others say it won't amount to much. Either way, wheat farmers in Argentina, and its people, are in for a long struggle as grain prices continue to fall.
For Argentina, this is the worst year for drought and lack of rain since 1971, and even if there is a major change in the weather patterns, the wheat harvest will be way down, as wheat production grinds to a halt.
Along with the wheat crop, other crops suffering are corn and soy, with silos there to store the crops are in many cases empty or half full.
Even though soy is down, it is still on the positive side, and is projected to increase in production by 7 percent. The corn harvest will fall by about 27 percent, and wheat production will be hit the most from the poor growing season projected to plunge by 44 percent over the 2008-2009 harvesting season.
Grains are so scarce in the country, that the Argentine government is has even lowered the minimum weight requirements to slaughter cattle so the farmers can make some money off them before they are worthless or die.
It'll take some time to recover from this wheat disaster, as Argentina will suffer probably for a couple years or more trying to come back from this natural disaster.
In a normal year this would have boosted wheat prices tremendously, but the wheat harvest has been so plentiful globally, that it will easily absorb the losses without making a difference in wheat prices.
The commodity grain sector hasn't moved with the metals market, as demand for everything is down, even though people still need to eat, as well as their livestock.
This is particularly difficult for Argentina, who is one of the top exporters of grains in the world, and so depend on so much on it for the welfare of the country.
At this time things are so bad that farmers have given up trying to salvage their wheat crop, and instead are focusing on saving their cattle. Even if the cattle are saved, they will be difficult to breed because of the lack of food for them.
According to farmers in Argentina, wheat fields are as dried as they can be, with little hope of salvaging a wheat crop, as there is little to put in storage.
Unfortunately for everyone involved, the wheat planting, wheat yield and wheat harvest around the world has been huge, and so the drought in Argentina is hurting them without benefiting anyone else.
Even though farmers in the U.S. were hoping to get some of the trade usually done by Argentina with Brazil, it looks like it won't have much impact on wheat exports from the U.S., and so Argentines will be the ones to suffer.
So in spite of this, wheat futures aren't moving much because of this, although there was a slight move upward recently based on wheat news from the country. But it's not sustainable.
Weather predictions in the country are, as usual, contradictory, and so some say the drought will end with rain coming, and others say it won't amount to much. Either way, wheat farmers in Argentina, and its people, are in for a long struggle as grain prices continue to fall.
For Argentina, this is the worst year for drought and lack of rain since 1971, and even if there is a major change in the weather patterns, the wheat harvest will be way down, as wheat production grinds to a halt.
Along with the wheat crop, other crops suffering are corn and soy, with silos there to store the crops are in many cases empty or half full.
Even though soy is down, it is still on the positive side, and is projected to increase in production by 7 percent. The corn harvest will fall by about 27 percent, and wheat production will be hit the most from the poor growing season projected to plunge by 44 percent over the 2008-2009 harvesting season.
Grains are so scarce in the country, that the Argentine government is has even lowered the minimum weight requirements to slaughter cattle so the farmers can make some money off them before they are worthless or die.
It'll take some time to recover from this wheat disaster, as Argentina will suffer probably for a couple years or more trying to come back from this natural disaster.
In a normal year this would have boosted wheat prices tremendously, but the wheat harvest has been so plentiful globally, that it will easily absorb the losses without making a difference in wheat prices.
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.
Wednesday, October 8, 2008
New Gascoigne wheat Strain May Work Well in Dry Australian Climate
Australian farmers should have another arrow in their wheat quiver as a new variety named Gascoigne has been developed that has worked well in past trials.
According to CSIRO it will probably perform best in the south-east New South Wales area.
CSIRO wheat breeder Garry Rosewarne said:
"It topped two trial sites in a very dry environment, but we've also had this in trials in 2004 and 2005 when they were quite good years and it was also yielding very well then.
"It's also got quite a large seed size, so we think that's certainly an advantage, particularly in dry finishes where you might get a lot of screenings.
"And it seems to perform well against all of the three rusts; leaf rust, stripe rust and stem rust."
According to CSIRO it will probably perform best in the south-east New South Wales area.
CSIRO wheat breeder Garry Rosewarne said:
"It topped two trial sites in a very dry environment, but we've also had this in trials in 2004 and 2005 when they were quite good years and it was also yielding very well then.
"It's also got quite a large seed size, so we think that's certainly an advantage, particularly in dry finishes where you might get a lot of screenings.
"And it seems to perform well against all of the three rusts; leaf rust, stripe rust and stem rust."
Monday, October 6, 2008
US Wheat Plunges on Economic Fears and Pressure
Commodities continue to take a beating as the markets worldwide become under increasing pressure. Wheat suffered along with most others as they tumbled on all the exchanges.
Along with the economic conditions, other factors were the stronger U.S. dollar and the drop in price of soybeans and corn. A stronger U.S. dollar makes investments in commodities less attractive to foreign traders.
The outlook for 2008 through 2009 looks somewhat grim for wheat, as outside pressures of the global economy continue and the projected record wheat crop drives prices further down.
Along with U.S. wheat production, Canada is raising its wheat production forecast, as are many other countries.
Much of that is because of increased number of acres being planted in wheat as well as expected good weather conditions.
On the Chicago Board of Trade December wheat dropped by 45 cents to $5.95 1/4 a bushel for December. December wheat on the Kansas City Board of Trade fell 42 1/4 cents to $6.28 1/4 a bushel, while December wheat declined by 38 cents to $6.64 3/4 on the Minneapolis Grain Exchange.
Along with the economic conditions, other factors were the stronger U.S. dollar and the drop in price of soybeans and corn. A stronger U.S. dollar makes investments in commodities less attractive to foreign traders.
The outlook for 2008 through 2009 looks somewhat grim for wheat, as outside pressures of the global economy continue and the projected record wheat crop drives prices further down.
Along with U.S. wheat production, Canada is raising its wheat production forecast, as are many other countries.
Much of that is because of increased number of acres being planted in wheat as well as expected good weather conditions.
On the Chicago Board of Trade December wheat dropped by 45 cents to $5.95 1/4 a bushel for December. December wheat on the Kansas City Board of Trade fell 42 1/4 cents to $6.28 1/4 a bushel, while December wheat declined by 38 cents to $6.64 3/4 on the Minneapolis Grain Exchange.
Thursday, August 21, 2008
Wheat Climbs to Eight-week High On Weak Dollar, Surge in Crude Oil
Wheat enjoyed a comeback on Thursday, as it reached an eight-week high, as crude oil helped lift it up, along with a weakening U.S. dollar. Corn and soybean increases also helped push the commodity upwards.
On the CBOT, December wheat ended the session up 22 3/4 cents at $9.22 1/4 a bushel. December wheat at the Kansas City Board of Trade finished at 23 1/2 cents higher at $9.50 3/4, while December wheat at the Minneapolis Grain Exchange ended the session at $9.82 1/4, a 27 1/4 cent increase.
U.S. wheat export demand should remain strong, as weekly export sales for 2008-09 for the U.S. is at a marketing year high of 916,500 tons. The average of 522 million bushels of export wheat sales is about 10 percent above the five-year average. Wheat shipments are running at about 37 percent higher than the five-year average.
On the CBOT, December wheat ended the session up 22 3/4 cents at $9.22 1/4 a bushel. December wheat at the Kansas City Board of Trade finished at 23 1/2 cents higher at $9.50 3/4, while December wheat at the Minneapolis Grain Exchange ended the session at $9.82 1/4, a 27 1/4 cent increase.
U.S. wheat export demand should remain strong, as weekly export sales for 2008-09 for the U.S. is at a marketing year high of 916,500 tons. The average of 522 million bushels of export wheat sales is about 10 percent above the five-year average. Wheat shipments are running at about 37 percent higher than the five-year average.
Monday, July 14, 2008
Wheat Crop 62 Percent in, Compared to 67 Percent Last Year
The winter wheat harvest has fallen behind last years pace, as the USDA reports as of Sunday, only 62 percent is in the bins, while last year at the same time 67 percent had been stored.
It is also significantly below the 5-year average of 70 percent. The good news is it did increase by 10 percent over last week.
It is also significantly below the 5-year average of 70 percent. The good news is it did increase by 10 percent over last week.
Friday, May 2, 2008
Wheat Climbs for First Time in Four Days
For the first time in four days, wheat increased in price, as investors think importers may start to increase acquisitions from the U.S. as wheat prices fave declined.
On Thursday the grain fell to $7.765 a bushel, the lowest price since November 20, 2007. It's also down over 40 percent in price from the record it attained in the latter part of February.
"Below $8 a bushel, we may see some buying interest from importers, who have been delaying purchases," said Kenji Kobayashi, a grain analyst at Kanetsu Asset Management Co.
Sales of U.S. wheat grew by 12 percent this week over last week, as they increased to 176,100 metric tons for the week ending April 24, according to the U.S. Department of Agriculture.
July delivery for wheat gained 2.5 cents, to reach $7.925 a bushel, as of 3:28 p.m. Singapore time. It gravitated from $7.90 and $7.9525 in CBOT after-hours trading.
Even with recent price decreases, wheat is still up by over 65 percent over last year. It reached a high of $13.495 on February 27 before falling back.
On Thursday the grain fell to $7.765 a bushel, the lowest price since November 20, 2007. It's also down over 40 percent in price from the record it attained in the latter part of February.
"Below $8 a bushel, we may see some buying interest from importers, who have been delaying purchases," said Kenji Kobayashi, a grain analyst at Kanetsu Asset Management Co.
Sales of U.S. wheat grew by 12 percent this week over last week, as they increased to 176,100 metric tons for the week ending April 24, according to the U.S. Department of Agriculture.
July delivery for wheat gained 2.5 cents, to reach $7.925 a bushel, as of 3:28 p.m. Singapore time. It gravitated from $7.90 and $7.9525 in CBOT after-hours trading.
Even with recent price decreases, wheat is still up by over 65 percent over last year. It reached a high of $13.495 on February 27 before falling back.
Friday, April 25, 2008
Wheat Down 40 Percent from February High
Since the record price of wheat in February, prices have continued to fall as an expected large harvest has caused the golden grain to fall by 40 percent since the $13.50 a bushel record.
On the Chicago Board of Trade (CBOT) soft red winter wheat has plunged to $8.01 a bushel, the lowest since November 2007.
According to the International Grain Council, wheat will probably reach a record harvest of 645 million tons in 2008-09.
"The big rise in prices in 2007 and early 2008 was a strong incentive to increase the planting of wheat," said Sudakshina Unnikrishnan, an agricultural analyst at Barclays Bank.
"The market is pricing-in expectations of a bigger crop from summer onwards."
Government subidies by the U.S. and Europe for corn-based ethanol has been a major contributor to the price increases, as farmers over the last several years have taken acreage out of wheat production and put it into corn.
Wheat farmers will probably be a year too late to get the huge prices, as their huge harvest will cause price decreases, as is already being factored into the market.
Thursday, April 17, 2008
Nations Continue to buy Domestic Wheat to Combat Inflation, High Food Prices
Nations continue to acquire domestic wheat from their farmers in an effort to boost reserves as food prices wreak havoc across the world.
India has bought 7 percent more wheat than usual from its domestic farmers, in an effort to combat inflation, which has reached a three-year high in the country. A number of state firms bought a combined 3.1 million metric tons of wheat from farmers since April 1. Eventually the figure may reach as high as 15 million tons, according to Food Corp. Chairman Alok Sinha.
Inflation for India has climbed to 7.14 percent over the same week a year ago.
Kazakhstan also announced today that they have instituted a four-month ban on wheat exports, also in an attempt to curb inflation and social unrest. While that would help Kazakhstan, it could hurt other nations in the region which have traditionally relied on Kazakh wheat.
India has bought 7 percent more wheat than usual from its domestic farmers, in an effort to combat inflation, which has reached a three-year high in the country. A number of state firms bought a combined 3.1 million metric tons of wheat from farmers since April 1. Eventually the figure may reach as high as 15 million tons, according to Food Corp. Chairman Alok Sinha.
Inflation for India has climbed to 7.14 percent over the same week a year ago.
Kazakhstan also announced today that they have instituted a four-month ban on wheat exports, also in an attempt to curb inflation and social unrest. While that would help Kazakhstan, it could hurt other nations in the region which have traditionally relied on Kazakh wheat.
Wednesday, April 9, 2008
U.S. Wheat Closes Mixed - Weather, Nearby Markets Key Factors
U.S. wheat borrowed from its commodity neighbors corn and soybeans on the CBOT, helping it to gains, even though it was the "the weakest link in there, of all the grains," said Larry Glenn, owner of Glenn Commodities. "It's been following."
On the Chicago Board of Trade, May wheat remained at $9.34 a bushel. Minneapolis Grain Exchange May wheat ended at $13.20, a 5 cent increase, and May Wheat on the Kansas City Board of Trade settled 1 cent higher.
Continued forecasts of rain for the U.S. plains dampened expectations for a large, new crop, causing wheat to pull back from its borrowed surge earlier in the day.
According to the U.S. Department of Agriculture, expected supply and demand continues on course U.S wheat carryout, and remains at 242 million bushels; the same as in March.
Some analysts said the data from the USDA had no significant impact on the wheat markets, as weather, along with nearby markets are the what's affecting the wheat market more than anything else.
Another key factor is the expected huge global harvest this year, which could also hinder prices. Others think importers may keep old wheat inventory minimized, while waiting for the new crop to enter the market.
On the Chicago Board of Trade, May wheat remained at $9.34 a bushel. Minneapolis Grain Exchange May wheat ended at $13.20, a 5 cent increase, and May Wheat on the Kansas City Board of Trade settled 1 cent higher.
Continued forecasts of rain for the U.S. plains dampened expectations for a large, new crop, causing wheat to pull back from its borrowed surge earlier in the day.
According to the U.S. Department of Agriculture, expected supply and demand continues on course U.S wheat carryout, and remains at 242 million bushels; the same as in March.
Some analysts said the data from the USDA had no significant impact on the wheat markets, as weather, along with nearby markets are the what's affecting the wheat market more than anything else.
Another key factor is the expected huge global harvest this year, which could also hinder prices. Others think importers may keep old wheat inventory minimized, while waiting for the new crop to enter the market.
Friday, April 4, 2008
The Weekend Wheat News
Wheat outlook and news
=====
Grant Given to Cornell to Fight Wheat Disease
Bill and Melinda Gates Foundation awards Cornell $26.8 million.
=====
US Wheat Review: Up On Short-Covering; MGE May Rises Limit
U.S. wheat futures ended higher Friday on technical buying and short-covering, with the nearby Minneapolis Grain Exchange contract closing limit-up for the third consecutive day.
=====
Strength in beans and wheat could not rally corn
Wheat opened higher and closed sharply higher. Minneapolis wheat was limit up again and synthetically trading another $1 higher. This carried the HRW and SRW contracts sharply higher on the day.
=====
Wheat planting up; corn down
The release of the 2008 U.S. Department of Agriculture prospective planting report this week shows wheat acreage up and corn acreage down, which led at least one analyst to predict corn rationing.
=====
Triticum Mosaic Virus adds new wrinkle to wheat disease picture
Kansas wheat producers needing another reason to control volunteer wheat have a new reason for consideration. First found by Kansas State University researchers in 2006, a newly discovered virus affecting wheat was officially recognized and named Triticum Mosaic Virus in 2007.
=====
Wheat Jumps on Weather Concerns
Wheat prices shot up Friday as investors bet that a mix of wet and dry weather in wheat-growing U.S. states will damage crops and tighten supplies of the grain used to make bread, pasta and other foods.
=====
Wheat Acres
The USDA reported planting intention estimates on Monday, March 31. The highly anticipated report held little in the way of major surprises, but the current supply situation and high prices require market participants to look at this report with a great deal of scrutiny. While it appears the marketplace has quickly forgotten about the bearish aspects of the report, market participants will continue to measure factors such as domestic and global demand and weather problems against the potential wheat production set forth by this report.
=====
Wheat rated in mostly fair to good condition
Winter wheat was 9 percent pastured last week, with the crop rated in mostly fair to good condition.
=====
=====
Grant Given to Cornell to Fight Wheat Disease
Bill and Melinda Gates Foundation awards Cornell $26.8 million.
=====
US Wheat Review: Up On Short-Covering; MGE May Rises Limit
U.S. wheat futures ended higher Friday on technical buying and short-covering, with the nearby Minneapolis Grain Exchange contract closing limit-up for the third consecutive day.
=====
Strength in beans and wheat could not rally corn
Wheat opened higher and closed sharply higher. Minneapolis wheat was limit up again and synthetically trading another $1 higher. This carried the HRW and SRW contracts sharply higher on the day.
=====
Wheat planting up; corn down
The release of the 2008 U.S. Department of Agriculture prospective planting report this week shows wheat acreage up and corn acreage down, which led at least one analyst to predict corn rationing.
=====
Triticum Mosaic Virus adds new wrinkle to wheat disease picture
Kansas wheat producers needing another reason to control volunteer wheat have a new reason for consideration. First found by Kansas State University researchers in 2006, a newly discovered virus affecting wheat was officially recognized and named Triticum Mosaic Virus in 2007.
=====
Wheat Jumps on Weather Concerns
Wheat prices shot up Friday as investors bet that a mix of wet and dry weather in wheat-growing U.S. states will damage crops and tighten supplies of the grain used to make bread, pasta and other foods.
=====
Wheat Acres
The USDA reported planting intention estimates on Monday, March 31. The highly anticipated report held little in the way of major surprises, but the current supply situation and high prices require market participants to look at this report with a great deal of scrutiny. While it appears the marketplace has quickly forgotten about the bearish aspects of the report, market participants will continue to measure factors such as domestic and global demand and weather problems against the potential wheat production set forth by this report.
=====
Wheat rated in mostly fair to good condition
Winter wheat was 9 percent pastured last week, with the crop rated in mostly fair to good condition.
=====
Subscribe to:
Posts (Atom)