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Tampilkan postingan dengan label commodity prices 2011. Tampilkan semua postingan
Tampilkan postingan dengan label commodity prices 2011. Tampilkan semua postingan
08.08
Cotton Prices Fall Orange Juice Rose on trim commodity Demand
Written By mine on Jumat, 18 November 2011 | 08.08
Commodity cotton fell the most in more than eight weeks on concern that Europe?s debt crisis will slow global growth and trim commodity demand.Orange juice rose. Orange-juice futures for January delivery advanced 1.8 percent to $1.7185 a pound in New York, the biggest gain since Oct. 24. The commodity has advanced 13 percent in the past year.
The Standard & Poor?s GSCI Index of 24 raw materials fell as much as 3.2 percent as European borrowing costs surged amid mounting concern the region?s leaders will fail to stem fiscal woes. World cotton demand will be 1.7 percent lower than forecast last month, leaving a ?massive? surplus of more than 3.5 million metric tons, according to Cotlook Ltd., a research company in Birkenhead, England.
?The world?s going to have enough cotton to meet its demands,? John Flanagan, the president of Flanagan Trading Corp. in Fuquay-Varina, North Carolina, said in a telephone interview. ?Demand is slow because of the economic situation in the U.S. and Europe.?
Cotton for March delivery declined by the exchange?s 4-cent limit, or 4 percent, to settle at 96.48 cents a pound at 2:46 p.m. on ICE Futures U.S. in New York, marking the biggest loss since Sept. 19.
The fiber has tumbled 56 percent from a record $2.197 on March 7. A bale weighs 480 pounds (218 kilograms)
?The commercial sector is still ailing, as evidenced by the complete lack of demand outside of China,? Andy Ryan, a senior-risk management consultant at INTL FCStone Inc. in Nashville, Tennessee, said in a report.
Inventories of frozen orange juice monitored by ICE have dropped 59 percent to 24.4 million pounds from a year earlier, exchange data show. ?Supplies have been a little tight,? Jack Scoville, a vice president at Price Futures Group in Chicago, said in a telephone interview.
The Standard & Poor?s GSCI Index of 24 raw materials fell as much as 3.2 percent as European borrowing costs surged amid mounting concern the region?s leaders will fail to stem fiscal woes. World cotton demand will be 1.7 percent lower than forecast last month, leaving a ?massive? surplus of more than 3.5 million metric tons, according to Cotlook Ltd., a research company in Birkenhead, England.
?The world?s going to have enough cotton to meet its demands,? John Flanagan, the president of Flanagan Trading Corp. in Fuquay-Varina, North Carolina, said in a telephone interview. ?Demand is slow because of the economic situation in the U.S. and Europe.?
Cotton for March delivery declined by the exchange?s 4-cent limit, or 4 percent, to settle at 96.48 cents a pound at 2:46 p.m. on ICE Futures U.S. in New York, marking the biggest loss since Sept. 19.
The fiber has tumbled 56 percent from a record $2.197 on March 7. A bale weighs 480 pounds (218 kilograms)
?The commercial sector is still ailing, as evidenced by the complete lack of demand outside of China,? Andy Ryan, a senior-risk management consultant at INTL FCStone Inc. in Nashville, Tennessee, said in a report.
Inventories of frozen orange juice monitored by ICE have dropped 59 percent to 24.4 million pounds from a year earlier, exchange data show. ?Supplies have been a little tight,? Jack Scoville, a vice president at Price Futures Group in Chicago, said in a telephone interview.
12.01
Prices Commodity Rocketing due Supply Constraints Begin Decline
Written By mine on Senin, 07 Maret 2011 | 12.01
Prices commodity which were sky rocketing due to supply constraints have begun declining. Director Price and Wages of the Department of Census and Statistics (DCS) D.C.A. Gunawardena said that vegetable prices slightly declined last week. He said that prices of items such as red onions have declined with supplies reaching from Jaffna. The DCS regularly monitors consumer prices in Colombo markets.
Meanwhile inflation figures for February reflect the impact of high commodity prices that prevailed last month.
Annual average inflation, for February as per the Colombo Consumer Price Index (CCPI) (2002=100), increased to 6.1 percent in February from 6.0 percent in January. Year-on-year basis, inflation increased to 7.8 percent.
However, the core inflation, both in terms of year-on-year and annual average bases decelerated further to 2.9 percent and 5.5 percent, in February 2011 compared to 3.6 percent and 6.06 percent in January, according to the Central Bank. This reflects the stability in the general price level because in calculating core inflation it excludes certain items that face volatile price movements.
Increase in inflation is mainly due to the increase in prices of most varieties of vegetables, coconut, coconut oil, red onions and rice, the Central Bank said. However, the price of many commodities showed a declining trend last week.
Wholesellers of the Pettah market said that the wholesale price of many commodities have declined compared to the previous week. Red and white Kekulu rice declined from Rs.58-59 to Rs.54-55 last week.
The wholesale price of Samba No.1 was Rs.69, Samba No.2 Rs.68, Samba Kekulu (White) No.1 Rs.69, Red Samba Rs.69, Red Nadu Rs.59, Keeri Samba No.1 Rs.98 and Keeri Samba No.2 Rs.95.
Big onion and red onion prices too have declined with imports from India being restored. The wholesale price of Indian big onions was recorded at Rs.95/kg while Pakistani big onions was sold at Rs.75/kg. Red onions and chilie imports from India too have been instrumental in bringing down market prices.
The price of red onions which was over Rs.400/kg a week ago has declined sharply. The wholesale price of Indian red onions was Rs.95-100 last week and the supply from Jaffna was Rs.80/kg, traders said.
Traders said that the main reason for decline in prices is that India has relaxed export restrictions on food items.
They said that rice prices have declined with Maha season harvesting and this trend will be temporary. Prices will increase again by mid March unless the government allows rice imports.
Meanwhile inflation figures for February reflect the impact of high commodity prices that prevailed last month.
Annual average inflation, for February as per the Colombo Consumer Price Index (CCPI) (2002=100), increased to 6.1 percent in February from 6.0 percent in January. Year-on-year basis, inflation increased to 7.8 percent.
However, the core inflation, both in terms of year-on-year and annual average bases decelerated further to 2.9 percent and 5.5 percent, in February 2011 compared to 3.6 percent and 6.06 percent in January, according to the Central Bank. This reflects the stability in the general price level because in calculating core inflation it excludes certain items that face volatile price movements.
Increase in inflation is mainly due to the increase in prices of most varieties of vegetables, coconut, coconut oil, red onions and rice, the Central Bank said. However, the price of many commodities showed a declining trend last week.
Wholesellers of the Pettah market said that the wholesale price of many commodities have declined compared to the previous week. Red and white Kekulu rice declined from Rs.58-59 to Rs.54-55 last week.
The wholesale price of Samba No.1 was Rs.69, Samba No.2 Rs.68, Samba Kekulu (White) No.1 Rs.69, Red Samba Rs.69, Red Nadu Rs.59, Keeri Samba No.1 Rs.98 and Keeri Samba No.2 Rs.95.
Big onion and red onion prices too have declined with imports from India being restored. The wholesale price of Indian big onions was recorded at Rs.95/kg while Pakistani big onions was sold at Rs.75/kg. Red onions and chilie imports from India too have been instrumental in bringing down market prices.
The price of red onions which was over Rs.400/kg a week ago has declined sharply. The wholesale price of Indian red onions was Rs.95-100 last week and the supply from Jaffna was Rs.80/kg, traders said.
Traders said that the main reason for decline in prices is that India has relaxed export restrictions on food items.
They said that rice prices have declined with Maha season harvesting and this trend will be temporary. Prices will increase again by mid March unless the government allows rice imports.
04.48
Global Food Cost Jump in 2010 Retail Prices Gain in 2011
Written By mine on Rabu, 19 Januari 2011 | 04.48
Global food costs jumped 25 percent in 2010 to an all- time high in December, according to the United Nations. Countries probably spent at least $1 trillion on imports, with the poorest paying as much as 20 percent more than in 2009, the UN says. In the U.S., the largest exporter, retail food rose 1.5 percent last year and will gain as little as 2 percent in 2011, the Department of Agriculture estimates.
The same record food prices causing riots in Algeria and export bans in India are allowing President Barack Obama to combine the biggest-ever U.S. farm exports with the tamest inflation since the 1960s.
Governments from Beijing to Belgrade are boosting imports, limiting sales or releasing stockpiles to curb food inflation. Higher prices will push U.S. agricultural exports up 16 percent to a record $126.5 billion this year, according to a USDA forecast. While U.S. consumers haven?t been squeezed so far, grocers from Winn-Dixie Stores Inc. to SuperValu Inc. have said they plan increases. Commodities will keep rising, according to a Bloomberg survey of more than 100 analysts and traders.
?We are absolutely spoiled,? said Jason Britt, president of Central States Commodities Inc., a research and analysis company in Kansas City, Missouri. ?We have the luxury that we spend a small percentage on food. But I wouldn?t be surprised to see larger bites of our incomes used.?
Farm Income
The farm boom is aiding Obama?s goal of doubling U.S. exports in five years, with this year?s shipments accounting for 4 percent of the $3.14 trillion needed to meet the target.
U.S. farm income last year probably exceeded the 2004 record of $87.3 billion, and cropland values gained as much as 10 percent, according to Neil Harl, an agricultural economist at Iowa State University and former adviser to the governments of Ukraine and the Czech Republic.
Moline, Illinois-based Deere & Co., the world?s largest farm-equipment maker, will report record profit of $5.47 a share this year, according to the mean of 11 analyst estimates compiled by Bloomberg. Earnings for Plymouth, Minnesota-based Mosaic Co., North America?s second-largest fertilizer producer, will more than double to $4.57 a share in the year ending in May, the mean of seven estimates shows.
Raw-Material Costs
About 19 cents of every dollar spent on food covers raw- material costs in the U.S., so retailers can limit increases by cutting spending on labor or marketing, said Ephraim Leibtag, a food economist at the USDA in Washington. The consumer price index rose 4.2 percent since the end of 2007, the smallest three-year increase since 1965, Labor Department data show.
Producer spending for processed foods rose 4.9 percent in the U.S. last year, while consumer prices increased 1.5 percent, Labor Department data show. A record 43.2 million Americans received food stamps in October. The jobless rate is running at 9.4 percent, and Federal Reserve Chairman Ben S. Bernanke said Jan. 7 the labor market may take five years to recover.
Corn advanced 52 percent last year in Chicago, wheat jumped 47 percent and soybeans gained 34 percent. Cattle futures touched a record on Jan. 13 in Chicago, a day after coffee reached a 13-year high in New York. Rice futures jumped as much as 3.6 percent in Chicago today.
Wheat may rise as much as another 16 percent this year, with sugar, corn, soybeans, coffee and cocoa also gaining, according to the Bloomberg survey of analysts, traders and investors in December.
Cover Costs
Northfield, Illinois-based Kraft Foods Inc., the world?s second-biggest food company, raised prices of Maxwell House and Yuban coffee in the U.S. three times last year. General Mills Inc., the Minneapolis-based maker of Cheerios and Lucky Charms, said in November it would increase some cereal prices.
Products for supermarkets rose 1.8 percent in the three months ended Sept. 22, while consumer prices gained 1.6 percent, Winn-Dixie Chief Executive Officer Peter Lynch said on a Nov. 2 conference call. Some will probably keep increasing to cover costs, and the Jacksonville, Florida-based company has a ?relatively good? chance of passing that to consumers, he said.
Starbucks Corp., the world?s largest coffee-shop operator, said in September it would raise some prices after the jump in coffee and milk costs. Domino?s Pizza Inc., the biggest U.S. pizza-delivery chain, said in October it would charge customers more after a 29 percent jump in cheese.
Steaks, ?Baconator?
Morton?s Restaurant Group Inc., a Chicago-based steakhouse chain, is considering its third increase in the past year, Chief Financial Officer Ronald DiNella said at a conference in Dana Point, California, on Jan. 12. Wendy?s/Arby?s Group Inc., the maker of the 1,360-calorie Baconator Triple burger, said in November it was raising prices in some stores.
SuperValu, the owner of Save-A-Lot and Cub Foods stores, expects most of its rises to be in the ?lower single-digit range,? with ?double-digit increases? for some commodity items, Chief Executive Officer Craig Herkert said on a conference call Jan. 11.
Some increases may not stick as companies compete for market share. ?Low price is the focus in food,? said Bill Simon, president and chief executive of U.S. stores at Wal-Mart Stores Inc., the world?s largest retailer.
While the deflation of last year will shift in 2011 to a ?slightly inflationary environment? in food, Bentonville, Arkansas-based Wal-Mart expects to provide as much as 20 percent savings per shopping trip compared with competitors, Simon said on a conference call Oct. 13. ?We?re not going to get beat.?
Wholesale Prices Rising
Wholesale costs in the U.S. rose 1.1 percent in December from November, the most in 11 months, led by rising commodities including fuel and food, the Labor Department reported Jan. 13. Food rose 0.8 percent in December from a month earlier, spurred by the biggest gain in soft drinks since January 2007 and the largest surge in fruit in three years. Energy jumped 3.7 percent.
?At the margin, the consumer will swap down from rib eye steak to butt steak and then to chicken, but in reality very little shall happen,? said Dennis Gartman, a Suffolk, Virginia- based economist and author of the Gartman Letter LC. ?Of far greater concern to the consumer is rising gasoline.?
The Standard & Poor?s GSCI Agriculture Index of eight futures climbed 52 percent in the last 12 months, led by cotton, corn and wheat, as flooding in Canada, China and Australia and drought in Russia and Europe ruined crops. The UN food index, which tracks wholesale costs of 55 foods, now exceeds levels seen in 2008, when violence erupted from Haiti to Egypt.
Algeria, Tunisia
Unrest is starting again. Three people were killed and 420 injured in protests over milk and flour costs in Algeria this month. Tunisian President Zine El Abidine Ben Ali tried to end a month of protests by promising lower prices for bread, milk and sugar, before handing over power to his prime minister on Jan. 14 and leaving the country.
The Serbian government said Jan. 10 it will consider an export duty on wheat to discourage shipments. South Korea said the following day it plans to increase the supply of some food products to help damp prices.
India, home to 1.2 billion people, halted onion exports in December after prices more than doubled in a year. Opposition parties have said they plan nationwide protests. China sold commodities including sugar and corn from strategic reserves last year to contain inflation that reached 5.1 percent in November, the most in 28 months.
No such problems are emerging in the U.S. for now. Consumer prices will rise 1.5 percent this year, compared with 1.6 percent in 2010, according to the median of as many as 61 economists? estimates compiled by Bloomberg. While the USDA is forecasting gains in retail food prices of 2 percent to 3 percent in 2011, even at the top of that range the gains would still be below the average over the last decade.
?We are a food-abundant country and the last place where food inflation is going to rise,? said Erick Erickson, an economist at the Washington-based U.S. Grains Council, which promotes crop exports. ?We have such a rich and robust food- supply situation compared to other countries.?
The same record food prices causing riots in Algeria and export bans in India are allowing President Barack Obama to combine the biggest-ever U.S. farm exports with the tamest inflation since the 1960s.
Governments from Beijing to Belgrade are boosting imports, limiting sales or releasing stockpiles to curb food inflation. Higher prices will push U.S. agricultural exports up 16 percent to a record $126.5 billion this year, according to a USDA forecast. While U.S. consumers haven?t been squeezed so far, grocers from Winn-Dixie Stores Inc. to SuperValu Inc. have said they plan increases. Commodities will keep rising, according to a Bloomberg survey of more than 100 analysts and traders.
?We are absolutely spoiled,? said Jason Britt, president of Central States Commodities Inc., a research and analysis company in Kansas City, Missouri. ?We have the luxury that we spend a small percentage on food. But I wouldn?t be surprised to see larger bites of our incomes used.?
Farm Income
The farm boom is aiding Obama?s goal of doubling U.S. exports in five years, with this year?s shipments accounting for 4 percent of the $3.14 trillion needed to meet the target.
U.S. farm income last year probably exceeded the 2004 record of $87.3 billion, and cropland values gained as much as 10 percent, according to Neil Harl, an agricultural economist at Iowa State University and former adviser to the governments of Ukraine and the Czech Republic.
Moline, Illinois-based Deere & Co., the world?s largest farm-equipment maker, will report record profit of $5.47 a share this year, according to the mean of 11 analyst estimates compiled by Bloomberg. Earnings for Plymouth, Minnesota-based Mosaic Co., North America?s second-largest fertilizer producer, will more than double to $4.57 a share in the year ending in May, the mean of seven estimates shows.
Raw-Material Costs
About 19 cents of every dollar spent on food covers raw- material costs in the U.S., so retailers can limit increases by cutting spending on labor or marketing, said Ephraim Leibtag, a food economist at the USDA in Washington. The consumer price index rose 4.2 percent since the end of 2007, the smallest three-year increase since 1965, Labor Department data show.
Producer spending for processed foods rose 4.9 percent in the U.S. last year, while consumer prices increased 1.5 percent, Labor Department data show. A record 43.2 million Americans received food stamps in October. The jobless rate is running at 9.4 percent, and Federal Reserve Chairman Ben S. Bernanke said Jan. 7 the labor market may take five years to recover.
Corn advanced 52 percent last year in Chicago, wheat jumped 47 percent and soybeans gained 34 percent. Cattle futures touched a record on Jan. 13 in Chicago, a day after coffee reached a 13-year high in New York. Rice futures jumped as much as 3.6 percent in Chicago today.
Wheat may rise as much as another 16 percent this year, with sugar, corn, soybeans, coffee and cocoa also gaining, according to the Bloomberg survey of analysts, traders and investors in December.
Cover Costs
Northfield, Illinois-based Kraft Foods Inc., the world?s second-biggest food company, raised prices of Maxwell House and Yuban coffee in the U.S. three times last year. General Mills Inc., the Minneapolis-based maker of Cheerios and Lucky Charms, said in November it would increase some cereal prices.
Products for supermarkets rose 1.8 percent in the three months ended Sept. 22, while consumer prices gained 1.6 percent, Winn-Dixie Chief Executive Officer Peter Lynch said on a Nov. 2 conference call. Some will probably keep increasing to cover costs, and the Jacksonville, Florida-based company has a ?relatively good? chance of passing that to consumers, he said.
Starbucks Corp., the world?s largest coffee-shop operator, said in September it would raise some prices after the jump in coffee and milk costs. Domino?s Pizza Inc., the biggest U.S. pizza-delivery chain, said in October it would charge customers more after a 29 percent jump in cheese.
Steaks, ?Baconator?
Morton?s Restaurant Group Inc., a Chicago-based steakhouse chain, is considering its third increase in the past year, Chief Financial Officer Ronald DiNella said at a conference in Dana Point, California, on Jan. 12. Wendy?s/Arby?s Group Inc., the maker of the 1,360-calorie Baconator Triple burger, said in November it was raising prices in some stores.
SuperValu, the owner of Save-A-Lot and Cub Foods stores, expects most of its rises to be in the ?lower single-digit range,? with ?double-digit increases? for some commodity items, Chief Executive Officer Craig Herkert said on a conference call Jan. 11.
Some increases may not stick as companies compete for market share. ?Low price is the focus in food,? said Bill Simon, president and chief executive of U.S. stores at Wal-Mart Stores Inc., the world?s largest retailer.
While the deflation of last year will shift in 2011 to a ?slightly inflationary environment? in food, Bentonville, Arkansas-based Wal-Mart expects to provide as much as 20 percent savings per shopping trip compared with competitors, Simon said on a conference call Oct. 13. ?We?re not going to get beat.?
Wholesale Prices Rising
Wholesale costs in the U.S. rose 1.1 percent in December from November, the most in 11 months, led by rising commodities including fuel and food, the Labor Department reported Jan. 13. Food rose 0.8 percent in December from a month earlier, spurred by the biggest gain in soft drinks since January 2007 and the largest surge in fruit in three years. Energy jumped 3.7 percent.
?At the margin, the consumer will swap down from rib eye steak to butt steak and then to chicken, but in reality very little shall happen,? said Dennis Gartman, a Suffolk, Virginia- based economist and author of the Gartman Letter LC. ?Of far greater concern to the consumer is rising gasoline.?
The Standard & Poor?s GSCI Agriculture Index of eight futures climbed 52 percent in the last 12 months, led by cotton, corn and wheat, as flooding in Canada, China and Australia and drought in Russia and Europe ruined crops. The UN food index, which tracks wholesale costs of 55 foods, now exceeds levels seen in 2008, when violence erupted from Haiti to Egypt.
Algeria, Tunisia
Unrest is starting again. Three people were killed and 420 injured in protests over milk and flour costs in Algeria this month. Tunisian President Zine El Abidine Ben Ali tried to end a month of protests by promising lower prices for bread, milk and sugar, before handing over power to his prime minister on Jan. 14 and leaving the country.
The Serbian government said Jan. 10 it will consider an export duty on wheat to discourage shipments. South Korea said the following day it plans to increase the supply of some food products to help damp prices.
India, home to 1.2 billion people, halted onion exports in December after prices more than doubled in a year. Opposition parties have said they plan nationwide protests. China sold commodities including sugar and corn from strategic reserves last year to contain inflation that reached 5.1 percent in November, the most in 28 months.
No such problems are emerging in the U.S. for now. Consumer prices will rise 1.5 percent this year, compared with 1.6 percent in 2010, according to the median of as many as 61 economists? estimates compiled by Bloomberg. While the USDA is forecasting gains in retail food prices of 2 percent to 3 percent in 2011, even at the top of that range the gains would still be below the average over the last decade.
?We are a food-abundant country and the last place where food inflation is going to rise,? said Erick Erickson, an economist at the Washington-based U.S. Grains Council, which promotes crop exports. ?We have such a rich and robust food- supply situation compared to other countries.?
13.37
Potash Prices Growth in 2011 as Agriculture Commodity Gains
Written By mine on Sabtu, 01 Januari 2011 | 13.37
Potash prices in 2011 growth as analysts at Potash Corp. of Saskatchewan Inc., the world?s largest producer of its namesake crop nutrient, in more than four months in New York amid speculation corn and soybean futures will extend price gains into 2011.
Potash Corp. climbed $7.40, or 5.1 percent, to $152.07 at 4:15 p.m. in New York Stock Exchange composite trading. The percentage gain was the biggest since Aug. 17. The Saskatoon, Saskatchewan-based company has risen 40 percent this year.
?Supply and demand balances in corn and soybeans are tight and are expected to remain tight,? Horst Hueniken, a Toronto- based analyst at Stifel Nicolaus Canada Inc., said today in a telephone interview. ?Crop prices are the only tangible explanation for higher Potash Corp. shares.?
Corn and soybeans, which both climbed to 28-month records this week in Chicago, are among the world?s most fertilizer- intensive crops, according to the Paris-based International Fertilizer Industry Association.
Mosaic Co., the world?s largest maker of phosphate-based fertilizers, advanced $3.36, or 4.7 percent, to $74.80 in New York. Agrium Inc., the largest retailer to U.S. farmers, increased $3.90, or 4.5 percent, to $90.16.
World supplies of grain are likely to be tight until well into 2011, according to Alberto Weisser, chief executive officer of Bunge Ltd., the Financial Times reported. Weisser predicted in an interview with the newspaper that grain prices will stay volatile in the next 12 months.
?Rising crop prices will lead farmers to plant more acreage and spend more on fertilizer and the best-available seeds to maximize crop yields,? Hueniken said.
Shares of crop-nutrient producers may also be rising because of expectations that Canpotex Ltd., the international potash marketing arm of Potash Corp., Mosaic and Agrium, may soon sign a supply agreement with China for the first six months of 2011, Hueniken said.
Potash Corp. CEO Bill Doyle told an investor conference earlier this month in New York that a deal with China was possible before the end of this year or early in 2011.
Corn futures for March delivery rose 0.75 cent, or 0.1 percent, to $6.24 a bushel on the Chicago Board of Trade. Earlier, corn advanced as high as $6.265, the highest since August 2008.
Soybean futures for March delivery fell 10 cents, or 0.7 percent, to $13.77 a bushel in Chicago. Yesterday, the price reached $13.9675, the highest for the most-active contract since August 2008.
In 2011, potash will benefit from a rapid ascent in the price of ?input intensive grains.? As the price of grains rises, so does the incentive for farmers to apply fertilizers to their fields. The three crops that use the most potash per hectare planted are corn, sugar cane and palm oil," said Mohr. All three of these crops have already enjoyed a rally.
According to the recent report by Scotiabank, an increased demand for potash as crop prices rise has potash poised to be a top commodity pick in 2011. ?The price of potash coming into the Port Metro Vancouver topped out in 2008, at about $1000 US per tonne in late 2008,? said Patricia Mohr, a commodities specialist at Scotiabank. However, after the recession hit, potash prices took a significant hit, added Mohr. Potash dropped down to around $350 per tonne
Russia's ban on exporting wheat and barley products rallied grain prices this spring, said Mohr. At the same time, corn prices have increased, as China demands more corn to feed livestock for a population looking for more meat. An increasing demand for ethanol is also driving corn prices, said Mohr. With fertilizer applications for these crops in the Northern Hemisphere around 3-1/2 months away, Mohr anticipates that potash values will rise in the first quarter
For Phosphate, the picture is not quite as rosy. Phosphate prices have dropped slightly in recent weeks, but are predicted to be flat for the winter. When spring planting season comes around, analyst's project prices will rise $100 to $200 per tonne.
Western Potash Corp. (CVE: WPX) is pleased to announce that it has closed its previously announced private placement bought deal offering. The company sold 18,182,000 units at a price of $1.10 per unit, for aggregate gross proceeds to the Company of $20,000,200. Each unit consists of one common share in the capital of the Company (and one-half of one common share purchase warrant). Each warrant shall entitle the holder to purchase one common share of the Company at an exercise price of $1.75 at any time up to and including the close of business on June 21, 2013, being the day which is 30 months from the closing of the offering. All securities issued under the offering are subject to a hold period ending April 22, 2011.The net proceeds received by the Company from the sale of the units will be used to advance the Company's Milestone Potash Development Project located in the Province of Saskatchewan, and for general working capital purposes.
CF Industries Holdings Inc. has signed an agreement with Shell Oil Company to use Shell's Thiogro process technology to produce a sulfur-enhanced phosphate product. The product manufactured with this technology will be a sulfur-enhanced monoammonium phosphate (MAPS) with a nutrient content of 11 percent nitrogen, 40 percent phosphorus, and 12 percent sulfur. This new technology incorporates sulfur with the fertilizer granule, which provides a highly utilizable form of nutrient that persists in the soil. According to CF Industries president and CEO Stephen R. Wilson, "There is a growing agronomic need for this kind of product. Alternative products, most made in Poland, China and Russia, have not been available to growers consistently in our target markets. CF Industries identified the need and is now positioning itself to meet it with a high-quality product that is easy to handle. The product's superior traits also present CF Industries with a higher margin opportunity over competitive MAP products."
Uralkali officially launched a $7.8 billion friendly takeover of domestic rival Silvinit on Monday. Pavel Grachev, Uralkali's chief executive, said in a statement that the merger is a ?critical step toward the creation of a leader in the global potash sector. The new company, with an estimated market capitalization of $23.9 billion will be the second-largest potash producer in the world, behind Potash Corp. of Saskatchewan (NYSE:POT). Completion of the deal is expected in May, pending shareholder and regulatory approvals. Shareholders will receive 133.4 Uralkali ordinary shares for each ordinary share in Silvinit and 51.8 Uralkali ordinary shares for each preferred Silvinit share. A 75 percent majority approval by shareholders is necessary for the deal to go through. Extraordinary shareholders meetings for both companies are scheduled for the first week of February; the deal has already received binding approval from 53 percent of Uralkali and 67 percent of Silvinit shareholders.
Potash Corp. climbed $7.40, or 5.1 percent, to $152.07 at 4:15 p.m. in New York Stock Exchange composite trading. The percentage gain was the biggest since Aug. 17. The Saskatoon, Saskatchewan-based company has risen 40 percent this year.
?Supply and demand balances in corn and soybeans are tight and are expected to remain tight,? Horst Hueniken, a Toronto- based analyst at Stifel Nicolaus Canada Inc., said today in a telephone interview. ?Crop prices are the only tangible explanation for higher Potash Corp. shares.?
Corn and soybeans, which both climbed to 28-month records this week in Chicago, are among the world?s most fertilizer- intensive crops, according to the Paris-based International Fertilizer Industry Association.
Mosaic Co., the world?s largest maker of phosphate-based fertilizers, advanced $3.36, or 4.7 percent, to $74.80 in New York. Agrium Inc., the largest retailer to U.S. farmers, increased $3.90, or 4.5 percent, to $90.16.
World supplies of grain are likely to be tight until well into 2011, according to Alberto Weisser, chief executive officer of Bunge Ltd., the Financial Times reported. Weisser predicted in an interview with the newspaper that grain prices will stay volatile in the next 12 months.
?Rising crop prices will lead farmers to plant more acreage and spend more on fertilizer and the best-available seeds to maximize crop yields,? Hueniken said.
Shares of crop-nutrient producers may also be rising because of expectations that Canpotex Ltd., the international potash marketing arm of Potash Corp., Mosaic and Agrium, may soon sign a supply agreement with China for the first six months of 2011, Hueniken said.
Potash Corp. CEO Bill Doyle told an investor conference earlier this month in New York that a deal with China was possible before the end of this year or early in 2011.
Corn futures for March delivery rose 0.75 cent, or 0.1 percent, to $6.24 a bushel on the Chicago Board of Trade. Earlier, corn advanced as high as $6.265, the highest since August 2008.
Soybean futures for March delivery fell 10 cents, or 0.7 percent, to $13.77 a bushel in Chicago. Yesterday, the price reached $13.9675, the highest for the most-active contract since August 2008.
In 2011, potash will benefit from a rapid ascent in the price of ?input intensive grains.? As the price of grains rises, so does the incentive for farmers to apply fertilizers to their fields. The three crops that use the most potash per hectare planted are corn, sugar cane and palm oil," said Mohr. All three of these crops have already enjoyed a rally.
According to the recent report by Scotiabank, an increased demand for potash as crop prices rise has potash poised to be a top commodity pick in 2011. ?The price of potash coming into the Port Metro Vancouver topped out in 2008, at about $1000 US per tonne in late 2008,? said Patricia Mohr, a commodities specialist at Scotiabank. However, after the recession hit, potash prices took a significant hit, added Mohr. Potash dropped down to around $350 per tonne
Russia's ban on exporting wheat and barley products rallied grain prices this spring, said Mohr. At the same time, corn prices have increased, as China demands more corn to feed livestock for a population looking for more meat. An increasing demand for ethanol is also driving corn prices, said Mohr. With fertilizer applications for these crops in the Northern Hemisphere around 3-1/2 months away, Mohr anticipates that potash values will rise in the first quarter
For Phosphate, the picture is not quite as rosy. Phosphate prices have dropped slightly in recent weeks, but are predicted to be flat for the winter. When spring planting season comes around, analyst's project prices will rise $100 to $200 per tonne.
Western Potash Corp. (CVE: WPX) is pleased to announce that it has closed its previously announced private placement bought deal offering. The company sold 18,182,000 units at a price of $1.10 per unit, for aggregate gross proceeds to the Company of $20,000,200. Each unit consists of one common share in the capital of the Company (and one-half of one common share purchase warrant). Each warrant shall entitle the holder to purchase one common share of the Company at an exercise price of $1.75 at any time up to and including the close of business on June 21, 2013, being the day which is 30 months from the closing of the offering. All securities issued under the offering are subject to a hold period ending April 22, 2011.The net proceeds received by the Company from the sale of the units will be used to advance the Company's Milestone Potash Development Project located in the Province of Saskatchewan, and for general working capital purposes.
CF Industries Holdings Inc. has signed an agreement with Shell Oil Company to use Shell's Thiogro process technology to produce a sulfur-enhanced phosphate product. The product manufactured with this technology will be a sulfur-enhanced monoammonium phosphate (MAPS) with a nutrient content of 11 percent nitrogen, 40 percent phosphorus, and 12 percent sulfur. This new technology incorporates sulfur with the fertilizer granule, which provides a highly utilizable form of nutrient that persists in the soil. According to CF Industries president and CEO Stephen R. Wilson, "There is a growing agronomic need for this kind of product. Alternative products, most made in Poland, China and Russia, have not been available to growers consistently in our target markets. CF Industries identified the need and is now positioning itself to meet it with a high-quality product that is easy to handle. The product's superior traits also present CF Industries with a higher margin opportunity over competitive MAP products."
Uralkali officially launched a $7.8 billion friendly takeover of domestic rival Silvinit on Monday. Pavel Grachev, Uralkali's chief executive, said in a statement that the merger is a ?critical step toward the creation of a leader in the global potash sector. The new company, with an estimated market capitalization of $23.9 billion will be the second-largest potash producer in the world, behind Potash Corp. of Saskatchewan (NYSE:POT). Completion of the deal is expected in May, pending shareholder and regulatory approvals. Shareholders will receive 133.4 Uralkali ordinary shares for each ordinary share in Silvinit and 51.8 Uralkali ordinary shares for each preferred Silvinit share. A 75 percent majority approval by shareholders is necessary for the deal to go through. Extraordinary shareholders meetings for both companies are scheduled for the first week of February; the deal has already received binding approval from 53 percent of Uralkali and 67 percent of Silvinit shareholders.
12.20
International Soybean Prices and Production Commodity
Written By mine on Minggu, 31 Oktober 2010 | 12.20
Soybean production for 2010-2011 is forecast at 3.408 billion bushels, down 75 million based on both lower harvested area and yield. Soybean ending stocks are projected at 265 million bushels, down 85 million from last month, as per last wasde report. U.S. soybean exports are increased 35 million bushels to 1.520 billion reflecting strong export sales and reduced export prospects for Argentina resulting from lower beginning stocks. All this factors led to the bull run which is yet to show the correction.
Soybean Meal International Prices
U.S. - 48% - US$ 399-404 per ton fob
U.S. - 44% - US$ 388-393 per ton fob
India US$ 418-422 per ton fob/fas
Robust oil meal demand from local traders as well as exporters supported the rise in the prices. The delay in harvesting due to rains in producing regions and international factors pushed the beans prices up in Indian market. U.S. December soybean meal futures closed at US$ 330.90 per short ton up by $ 2.70 from last week's closing of $ 328.20.
Brazil Soybean Meal International Prices US$ 390-400 per ton fob
CONAB estimated Brazil?s 2010/11 soybean crop was estimated between 67.6 million and 68.9 million tonnes, the government?s crop supply agency Conab said last week, against the record 68.7 million tonnes harvested last season. CONAB said planted area for soybeans would grow by between 1.3 and 3.1 percent this year to 23.8 million to 24.2 million hectares (58.7 to 59.8 million.
Brazil?s soybean exports forecast for 2010-11 as per usda are up 1.0 million to a record 31.4 million on a larger crop and strong foreign demand.
China
China?s imports of soybean oil have dropped in 2009/10 as trade disputes with Argentina. In an effort to offset that shortfall of the most commonly consumed oil, processors have increased their imports of soybeans and accelerated crushing activities to boost oil production, and have also purchased large volumes of soy oil from the United States. This Chinese demand along with last wasde report are the main factors for bean's bull run.
While expanding soybean crush helps to partially moderate the oil import shortfall, it also can lead to strengthening exports of soybean meal. China is expected to export 1.2 million tonnes of meal in 2010-11.s
As per one news, China restarted cooking oil imports from Argentina earlier this month and have bought at least 70000 tons of Argentine soybean oil.
Argentina US$ 385-387 per ton fob
Soybean crop is being planted at a quicker pace than a year earlier as farmers take advantage of rains in September and October to sow before the Southern Hemisphere summer begins.
Argentina?s soybean exports are cut 1.5 million tons to 12.0 million in response to intense competition from other exporting countries, as per last usda oilseeds report.
Soybean Meal International Prices
U.S. - 48% - US$ 399-404 per ton fob
U.S. - 44% - US$ 388-393 per ton fob
India US$ 418-422 per ton fob/fas
Robust oil meal demand from local traders as well as exporters supported the rise in the prices. The delay in harvesting due to rains in producing regions and international factors pushed the beans prices up in Indian market. U.S. December soybean meal futures closed at US$ 330.90 per short ton up by $ 2.70 from last week's closing of $ 328.20.
Brazil Soybean Meal International Prices US$ 390-400 per ton fob
CONAB estimated Brazil?s 2010/11 soybean crop was estimated between 67.6 million and 68.9 million tonnes, the government?s crop supply agency Conab said last week, against the record 68.7 million tonnes harvested last season. CONAB said planted area for soybeans would grow by between 1.3 and 3.1 percent this year to 23.8 million to 24.2 million hectares (58.7 to 59.8 million.
Brazil?s soybean exports forecast for 2010-11 as per usda are up 1.0 million to a record 31.4 million on a larger crop and strong foreign demand.
China
China?s imports of soybean oil have dropped in 2009/10 as trade disputes with Argentina. In an effort to offset that shortfall of the most commonly consumed oil, processors have increased their imports of soybeans and accelerated crushing activities to boost oil production, and have also purchased large volumes of soy oil from the United States. This Chinese demand along with last wasde report are the main factors for bean's bull run.
While expanding soybean crush helps to partially moderate the oil import shortfall, it also can lead to strengthening exports of soybean meal. China is expected to export 1.2 million tonnes of meal in 2010-11.s
As per one news, China restarted cooking oil imports from Argentina earlier this month and have bought at least 70000 tons of Argentine soybean oil.
Argentina US$ 385-387 per ton fob
Soybean crop is being planted at a quicker pace than a year earlier as farmers take advantage of rains in September and October to sow before the Southern Hemisphere summer begins.
Argentina?s soybean exports are cut 1.5 million tons to 12.0 million in response to intense competition from other exporting countries, as per last usda oilseeds report.
