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Great job by Dan Denning and the Rude Awakening crew on today’s article. They make the case that a steep decline in agriculture is unlikely. Only a decrease in demand would trigger that, and that does not appear likely at this point in time.
Shout out to my boy Marcos for forwarding this one along. A BB&T Capital Markets analyst said Monday corn rationing may be necessary this year, following a U.S. Department of Agriculture report predicting farmers would plant far fewer acres of corn in 2008. Full article
3/31 Editor’s note – Click here for coverage on the latest USDA Planting Intentions Report. Report looks to be bullish for corn, bearish for what and beans. Full article from Farm Futures. And the markets are trading accordingly. I just picked up a May corn contract at 576 – like the report, and overall […]
Full article Summary: UN says world food production must increase by 60% over next 20 years to meet demand Grain and meat production is extremely water intensive – many areas in the world do not have the excess water to ramp up grains and meats Brazil will be the key – it has 23% of […]
Full story Summary: Kerr believes a sharp correction could arrive at anytime Corn prices are likely to remain high as long as the US gov’t continues to subsidize ethanol Longer term, the bull market in ag commodities should continue for some time
Well…duh. Full story Summary: US retail prices in 2007 rose about 4% – highest gain in 17 years Similar gains expected for 2008 Reduced production of meat and poultry expected in 2009 (our next investment theme, maybe?)
Full stories: Theglobeandmail.com Bloomberg Summary: Potash CEO William Doyle says grain farmers need to harvest record crops every year to meet demand and avoid famine Potash execs are so confident in long term demand that they considered taking the company private in mid-January “We need a record crop in 2008 just to stay even with […]
Article in today’s Daily Wealth about how the bull market in commodities is hurting the fortunes of food companies. Summary: Gov’t mandates for corn-based ethanol have driven up all grain prices For the forseeable future, consumers will pay more for food The stock prices of food producers have been hammered, as they struggle to deal […]
By JULIE JARGON February 15, 2008; Page A1 ALBION, Neb. — The U.S. economy may be teetering on the brink of recession. But there’s a bountiful harvest down on the farm. Grain prices are surging to historic levels. Spring wheat, a variety often used in bread, hit a record $18.53 per bushel yesterday. Corn is […]
Great essay (as always) by Bill Bonner in today’s Daily Reckoning. Very interesting that corn stocks are still near a 33-year low, even with the “high” corn prices over the last year. Even the bumper harvest of last year couldn’t low down the rising prices – too much of it is going into gas tanks.
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