Tag: agriculture

Cotton Closes Above $2 per Pound as Market Remains in Chaos

Filed in commodities, New Gold, o, South African Gold, Spot Gold by on February 18, 2011 0 Comments
Cotton Closes Above $2 per Pound as Market Remains in Chaos

Filed under: Major Movement , Industry , Market Matters , Commodities , Agriculture The cotton market is in a state of chaos. On Friday, March cotton on the ICE exchange closed at $2.1102 per pound, up the 7 cent daily limit, the Financial Times reported. The market opened limit up at $2.1102. That means that you cannot buy cotton even if you wanted to. The market is frozen. Commodities are much different from stocks. Commodities are a zero sum game. Contracts usually last for three months. At the end of the three months, the longs take delivery from the shorts who deliver their cotton, and zero contracts are left. Continue reading Cotton Closes Above $2 per Pound as Market Remains in Chaos Cotton Closes Above $2 per Pound as Market Remains in Chaos originally appeared on BloggingStocks on Fri, 18 Feb 2011 10:30:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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Urban Magnets for Disaster

Filed in BP, deflation, economy, Ford, Gold, inflation, o, silver, ubs, US Dollar by on February 18, 2011 0 Comments

When it comes to bad stuff the sky’s the limit. It’s gonna happen, eventually…one way or another. And it could be real bad. And when bad stuff happens, you’re better off being somewhere else. Where? Generally, bad stuff seems to happen most often in cities. Why is that? Cities are where most people live. It is where governments are. And it is where the labor force is most specialized. There are no subsistence farmers living in cities. Nor do urban populations “live off the land.” Instead, they depend on complex networks of commerce. The typical city dweller produces neither food nor energy. He sits all day in an office — completely dependent on others to provide power and food. Then, he goes home — still completely dependent on the division of labor for his most important needs. Progress can be described as the elaboration of the division of labor. In man’s most primitive state, specialization is extremely limited. From what we’ve been told, the early man was the hunter. Early woman gathered…that’s about the extent of it. As the tribe grows larger, specialization increases. One person might tend the fire. Another might be in charge of making clothes or arrows. The advent of sedentary agriculture and towns caused a big leap forward in human progress and, not coincidentally, the division of labor. Some townspeople went out to tend the fields. Others began to focus on woodworking…or iron mongering…or making weapons…or clothes. Some played cards and hung around at bars. There was soon a homebuilding industry…and, not long after, merchants, prostitutes and bankers…and even shyster lawyers and tax collectors. As the division of labor expanded, the average person became richer…and more dependent on others. In order to eat, someone else had to plant…and till…and harvest…and hunt…and gather. And then, when agriculture became mechanized, he depended on faraway people who produced oil and gasoline…and people who built …

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How to Profit as Your Food Bill Explodes

I hate to say I told you so. But with food companies no longer able to absorb the margin drops, and being forced to pass higher costs to the consumer… I told you so. General Mills, Kraft and Kellogg, for examples are already hiking prices… and it’ll get a lot worse, as we said in this Wealth Daily article: If you thought your $200 weekly grocery bill was bad, just wait. It’s about to jump 20% to 30% next month, as the Fed embraces another round of quantitative easing to combat global currency manipulation and devaluation. But that very move could do more harm than good. It’s likely to create another food price bubble, similar to what we saw in 2007-2008. Three years ago, wheat prices skyrocketed even as the consumption-to-stock ratio warranted falling prices… Bread was up to $1.32 at the time — a 32% rise in less than three years… The price of eggs rocketed 50%. Overall, food prices rose more than 5% and the average family’s grocery bill rang in $80 higher. And we’re going to see it happen again, as historically high corn prices drive the cost of beef to twenty-five-year highs… The sad fact is, this situation has no chance of improvement if the Fed floods the global economy with more dollars. What the move will do is further damage the U.S. economy Apparently, we’re not paying enough for food, energy, or clothing… It doesn’t matter that 20% of Americans are unemployed or under-employed. It doesn’t matter that, since the Fed last spoke, gold and other commodities have spiked… Crude oil has already soared some 27%. Wheat is up 84%. Sugar is up 55%. Soybeans are up some 24%. And corn just rocketed another 15% in two days — the biggest move in recent history, and a move that prompted some to warn of another food crisis. The meat industry just warned of a game-changer in pricing and profitability; the cost and contraction of corn supplies could mean higher prices for…

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China Signs a Deal to Buy Soybeans from U.S. Companies

Filed in New Gold, o, Spot Gold by on January 21, 2011 0 Comments
China Signs a Deal to Buy Soybeans from U.S. Companies

Filed under: China , Archer-Daniels-Midland (ADM) , Agriculture , Bunge Ltd. (BG) Chinese Vice Minister of Commerce, Wang Chao, led a business delegation that signed agreements with grain companies to buy just over 3 million tons of soybeans from the U.S., Reuters reported . The U.S. trading companies involved in the $1.8 billion deal are Cargill, Archer Daniels Midland ( ADM ) and Bunge ( BG ). No details about price and delivery were given. When dealing with state-run companies, there is a protocol that must be followed. In this case, a government official, Chao, was present to sign off the deal with the two state-run grain companies allowed to import agricultural products into China. Continue reading China Signs a Deal to Buy Soybeans from U.S. Companies China Signs a Deal to Buy Soybeans from U.S. Companies originally appeared on BloggingStocks on Fri, 21 Jan 2011 11:00:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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When will it end?

Filed in economy, euro, Gold, Gold Futures, Gold Investing, o, silver, silver futures, ubs by on January 8, 2011 0 Comments
When will it end?

We had expected trading to slow down by this time but the volumes are still there and we’re seeing plenty of tradable action. $87.50-88 has served as major support in February Crude for the last week and that continued in today’s session. We’re starting to think we may not get a break lower, on a settlement above $90 we will advise clients to start initiating longs again. February natural gas was higher by 4.2% today trading back over the 50 day MA. Aggressive traders could scale into February futures or purchase February or March 50 cent call spreads. If trading futures place stops below the contract lows; which also may serve as a triple bottom…stay tuned. A fresh 10′ high in the indices but we’re still looking for a correction in the coming weeks. We’ve yet to advise clients to short futures but do still like the idea of purchasing March ES put spreads. Looking at the charts it appears we may get a 2-3% appreciation in the dollar index in the coming weeks. If that plays out we feel the best way to trade is selling rallies in the Euro, Swissie or Pound. Live cattle traded back above the 20 day MA but settled just below that level. Aggressive traders can start re-establishing longs as we feel into next year we could see new contract highs followed by

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Top Picks 2011: PowerShares DB Agriculture ETF (DBA)

Filed in Bank Gold, commodities, o, shares by on January 2, 2011 0 Comments
Top Picks 2011: PowerShares DB Agriculture ETF (DBA)

Filed under: Newsletters , ETF Investing , Commodities , Agriculture , Best Stocks for 2011 This post is one in a series in which more than 60 newsletter advisors share their Top Stock Picks for 2011 . This special report is courtesy of TheStockAdvisors.com . “One of the easiest ways to participate in the long-term demand for corn, wheat, cotton etc. is with a soft commodity-based exchange traded fund,” says Gene Inger . The editor of The Inger Letter explains, “We recommend the PowerShares DB Agriculture ETF ( DBA ) as our top pick for 2011. Continue reading Top Picks 2011: PowerShares DB Agriculture ETF (DBA) Top Picks 2011: PowerShares DB Agriculture ETF (DBA) originally appeared on BloggingStocks on Sun, 02 Jan 2011 09:00:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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Sell Intrepid Potash (NYSE:IPI) Says Stifel Nicolaus

Stifel Nicolaus recommends investors to sell Intrepid Potash (NYSE:IPI), saying the company is overvalued at this time. Intrepid is trading at over 78x the EPS estimate of the company for 2010. That’s about 105 percent above the PE of its peers in the agriculture sector. They’re also about 62 percent over the average EV/EBITDA multiple for the Ag sector. Stifel maintains their “Sell” rating on

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Inflation isn’t here yet?

Filed in BP, economy, GOld juniors, inflation, o by on December 1, 2010 0 Comments

From our new site, Wealth Wire : Just as we said here , inflation is here… and it’s likely to stick around for a while. And, according to USA Today: “Have a big, juicy ham on the Christmas menu? Need some butter to bake those holiday cookies? Hope you’re willing to pay a little — and in some cases a lot — more. Just as the holiday season hits, food prices are rising — especially on those items you’ll need to cook for all those gatherings and the staples you always keep stocked in the kitchen. Think meats, milk, eggs, cheese and sugar. Overall, food prices are increasing, and economists say they will keep climbing next year. The increase is nothing astronomical when you look at food prices as a whole. The U.S. Department of Agriculture is predicting that food prices this year will rise 0.5% to 1.5%, the lowest annual rate of inflation since 1992. Next year, the forecast is for an increase of 2% to 3%. “That’s a reasonable amount of increase, especially considering prices last year were a bargain,” said Jerry Conover, director of the Indiana Business Research Center at Indiana University’s Kelley School of Business. But it’s not as reasonable when you look at some individual items or categories, such as meats and dairy, where the jump is significant. Pork, for example, is up 13% from a year ago; butter …

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Commodity Markets Get Slammed

Commodity Markets Get Slammed

Filed under: Major Movement , International Markets , China , Market Matters , Commodities , Oil , Agriculture , S and P 500 , Federal Reserve , Currency It was a classic commodity rout. Speculators were stopped out. Hedge funds started bailing out and traders simply sold short, short short. The reason given was a fear that China would curb inflation which was stated at 4.4% for October, as reported in the Wall Street Journal . Worry over Ireland and Portugal were thrown in as supporting reasons for the sell off. Except for the bond market, and the US Dollar virtually no sector was left unscathed. Let’s look at the numbers: Continue reading Commodity Markets Get Slammed Commodity Markets Get Slammed originally appeared on BloggingStocks on Tue, 16 Nov 2010 18:00:00 EST. Please see our terms for use of feeds . Read | Permalink | Email this | Comments

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Commodity Prices Soar

Commodity Prices Soar

Filed under: Major Movement , International Markets , Economic Data , Commodities , Oil , Agriculture , Federal Reserve , ETF There are two primary forces at work in world economies. At this time they are driving commodities prices higher. One is the continuing need and demand by emerging nations for raw materials, a trend that is not about to subside. The second is the extra pile of money that the U.S. Federal Reserve is printing that is finding its way into the commodity markets, a driving force for higher prices. Let’s take oil as an example. The International Energy Agency said that that China’s needs could drive oil to $110 per barrel by 2015, a 27% premium to the current price, as reported in the Wall Street Journal . On Tuesday, the U.S. Department of Agriculture (USDA) cut harvest estimates for soybeans and corn. Continue reading Commodity Prices Soar Commodity Prices Soar originally appeared on BloggingStocks on Wed, 10 Nov 2010 12:40:00 EST. Please see our terms for use of feeds . Read | Read | Permalink | Email this | Comments

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Deere & Co. (DE): Bet on ‘Big Green’

Filed in Bank Gold, commodities by on November 2, 2010 0 Comments
Deere & Co. (DE): Bet on ‘Big Green’

Filed under: Newsletters , Deere and Co (DE) , Commodities , Agriculture , Stocks to Buy “Commodity prices are surging. But rather than recommending a pure commodity play, I’m intrigued by Deere & Co. ( DE ), the world’s largest manufacturer of lawn and farm equipment,” says Dr. Melvin Pasternak . The editor of Trade of the Week explains, “The stock not only benefits from strong commodity prices, but also more profits for farmers. And with farmers seeing fatter profits from their crops, many are taking the money and putting it into new farm equipment. “According to the Association of Equipment Manufacturers, September sales of row-crop tractors increased by +46.9% from August, while four-wheel drive tractor sales rose +20.5%. Continue reading Deere & Co. (DE): Bet on ‘Big Green’ Deere & Co. (DE): Bet on ‘Big Green’ originally appeared on BloggingStocks on Tue, 02 Nov 2010 10:20:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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Investing in Chile: From Mines to Wines

Filed in Bank Gold, commodities, copper by on October 27, 2010 0 Comments
Investing in Chile: From Mines to Wines

Filed under: International Markets , Newsletters , ETF Investing , Freep’t McMoRan Copper (FCX) , Commodities , Oil , Agriculture , Stocks to Buy “Last year’s Chilean earthquake and the recent mine disaster have an important lesson: Countries with really good management should be strongly considered by investors,” says Martin Hutchinson . Hutchinson adds, “Well managed countries will be more efficient. they will use resources and labor better, there will be fewer sink-holes of value destruction in the public sector and the uncompetitive private sector and they will generally be more open to new ideas and new techniques. Continue reading Investing in Chile: From Mines to Wines Investing in Chile: From Mines to Wines originally appeared on BloggingStocks on Wed, 27 Oct 2010 10:00:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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