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Soft Commodities


kelt
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Hi Weej

Two companies which immediately come to mind are Incitec Pivot, of course, as well as Minemakers. Incitec Pivot are one of the, if not the largest company supplying phosphate fertiliser in Australia while it is my understanding that Minemakers are in the advanced stage of developing a phosphate mine with considerable pospects. I am sure there are many others so do your own research. Keep us informed.

Cheers Chum

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  • 1 month later...

Corn Rallies to 2-year High

NEW YORK - US corn futures surged, hitting two-year peaks and leading other agricultural commodities higher on the second session of strong gains after the US government slashed its crop outlook, sparking worries of higher prices for food and biofuels.

Copper and gold prices rose too, boosting the 19-commodity Reuters-Jefferies CRB index which extended Friday's two-year high even though although crude oil fell on profit taking. Corn, used in a wide range of food products from baby food to soda as well as animal feed and biofuels, jumped five per cent in Chicago futures trading after soaring nine per cent on Friday.

Soybeans, sugar and coffee also saw sharp gains in the two sessions on worries that agricultural supplies will tighten from smaller harvests forecast for this year. Ethanol futures in New York surged 9.9 per cent to close at $US2.18 per gallon. Corn is the main feed stock for US ethanol production.

The biggest two-day run-up for corn since 1988 brought back memories of early 2008, when record high grains prices led to sharply higher food prices.

"For sure, with higher feed grain prices there is potential for upward price pressure particularly on pork, poultry and beef," Commonwealth Bank commodity strategist Luke Mathews said.

The US dollar rose slightly, but that did not derail gains in commodities. The dollar's fall has helped key the commodities rally during the past month, as investors speculated that the Federal Reserve will soon undertake new stimulus measures to boost the US economy.

The Fed has said it is ready to launch another round of quantitative easing, or government debt purchases, to boost the US economy and head off deflation. "Market expectations for quantitative easing in November are very high and very strong," Wells Fargo head of currency strategy Nick Bennenbroek said, referring to new round of debt buying program the Federal Reserve was expected to embark on to help the US economy.

Corn futures for December settled up 27.5 US cents at $US5.55 a bushel on the Chicago Board of Trade in near record volume, after hitting the limit-up 45 US cents in pre-market electronic trade.

The trading volume topped 536,000 contracts, near the record volume of 556,034 set in September, according to preliminary Reuters data.

CBOT's November soybeans closed up 17.5 US cents at $US11.52 a bushel in record volume, rewriting an April 2008 peak. During the session, the November contract rose to $US11.80, its highest since August 2009.

http://www.businessspectator.com.au/bs.nsf...hp3&src=amm

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  • 2 years later...

I believe South American corn supply will go up. Globally weather is good and we can expect higher global corn output as well. Weather pattern in USA also is good for corn harvest this year.Only weather shock will send corn prices higher.

 

The U.S.D.A reported that corn farmers are expected to bring in a record crop this year. The agency said farmers are forecast to deliver 14 million bushels, beating the 2009 record of 13.1 billion bushels.

Now top global banks also downgraded longer-term price forecast for corn and soybean futures along with copper, gold and silver.

 

In short Corn prices may correct significantly down. Even soya bean prices will go down.

 

http://online.wsj.com/article/SB10001424127887324688404578541392694039684.html

 

Bountiful CropForecasts Weigh on Corn Prices

 

http://www.bloomberg.com/news/2013-06-19/c...ing-demand.html

 

Corn Drops as U.S. Supply Outlook Improves AmidWeakening Demand

 

http://www.bloomberg.com/news/2013-06-16/record-soybean-glut-is-seen-worsening-as-china-s-appetite-eases.html

 

Record Soybean Glut Seen Worsening asChina's Appetite Eases

 

htt://www.bloomberg.com/news/2013-06-19/eastern-australia-set-for-wetter-three-months-boosting-crops.html

 

Eastern Australia Set for Wetter ThreeMonths, Boosting Crops

 

My ideas are not a recommendation to eitherbuy or sell any security, commodity or currency. Please do your own research prior to making any investment decisions. Please note that I do not endorse ortake responsibility for material in the above hyper-linked sites.

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I believe there will be great demand for some soft commodities including emerging food related commodities in the coming decade. Just like stocks time to time there will be volatility due to change of supply and demand, over speculation and commodity derivatives.It is time to identify hidden gems in the commodity market. These hidden commodity gems will outperform other commodities in the coming decade.

 

Corn market was very beautiful in 2012. We cannot see beautiful market for corn in 2013 and2014. Corn prices will go down further. Only surprise climate threat can change the direction of corn market in the short run. . I believe there will be good demand for USA based corn this year when compare with 2012 due to attractivecorn prices.

 

http://www.cnbc.com/id/100853267

 

GRAINS- Fall-harvest corn plungesas USDA shocks with acres jump

 

http://www.supplymanagement.com/news/2013/price-of-premium-tea-rises-as-lack-of-rain-damages-crops/

 

Price of premium tea rises as lack of rain damages crops

 

http://www.businessweek.com/news/2013-06-28/coffee-falls-as-weakening-real-spurs-brazil-exports-sugar-drops

 

Coffee Falls as Weakening Real Spurs BrazilExports; Sugar Drops

 

http://www.bloomberg.com/news/2013-06-28/canola-tumbles-to-16-month-low-as-rains-seen-aiding-canada-crop.html

 

Canola Tumbles to 16-Month Low as Rains Seen Aiding Canada Crop

 

http://www.foodproductdesign.com/news/2013/06/booming-tea-market-offers-new-summer-trends.aspx

 

BoomingTea Market Offers New Summer Trends

 

http://www.foodproductdesign.com/articles/2013/06/focus-report-tea-rediscovering-an-ancient-beverag.aspx

 

FocusReportÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¡ÃƒÆ’‚¬Ãƒâہ¡ÃƒÆ’‚ÂÂTea: Rediscovering an Ancient Beverage in the 21st Century

 

My ideas are not a recommendation to eitherbuy or sell any security, commodity or currency. Please do your own researchprior to making any investment decisions. Please note that I do not endorse ortake responsibility for material in the above hyper-linked sites.

 

 

 

 

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