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Commodities Briefing - Category | Agriculture more

Coffee Continues To Shine In The Commodities Market

Posted on 29 October 2014 by VRS  |  Email |Print

For commodity bulls, the past several weeks have proven to be quite difficult. Market volatility has taken its toll on the underlying spot prices. One of the very few bright spots can be found on the chart of coffee, as measured by the iPath Bloomberg Coffee Subindex Total Return ETN (JO).
The fund is currently trading very near its 200-day moving average, which has historically acted as a strong level of support. Active traders will be paying close attention to the price of coffee over the coming weeks to see if the long-term uptrend is able to continue………………………………………..Full Article: Source

Have hedge funds ended wave of selling in ags?

Posted on 14 October 2014 by VRS  |  Email |Print

Hedge funds showed further signs of unwillingness to extend their negative take on agricultural commodities, with increased bearishness in corn and soybeans matched by more positive takes in cotton and sugar.
Managed money, a proxy for speculators, lifted its net long position in futures and options in the top 13 US-traded agricultural commodities, from corn to sugar, by 1,960 contracts to 251,765 lots in the week to last Tuesday, analysis of data from the Commodity Futures Trading Commission regulator shows………………………………………..Full Article: Source

Africa to become global leader in Rice production by 2031

Posted on 13 October 2014 by VRS  |  Email |Print

Between 2014 and 2031, Africa will expand its rice production area by almost 50 percent, according to new analysis on the global outlook on rice production and demand released today by IHS Inc, the leading global source of critical information and insight.
1)Africa rapid expansion of areas for rice production will be the fastest globally in percentage terms; 2)Asian demand, mainly from China, is driving a majority of the growth in rice consumption during 2014/15; 3)However, Africa’s rice import demand is driving much of the world’s long-term import growth; 4)With a lower Indian rice production estimate due to issues relating to a later monsoon, India is forecast to lose its spot as top exporter in 2014/15 to Thailand………………………………………..Full Article: Source

Investors bet the farm on agriculture

Posted on 13 October 2014 by VRS  |  Email |Print

In the biblical book of Genesis, the pharaoh of Egypt dreams of seven thin cows eating seven fat cows, which signifies seven years of famine to follow seven years of good crops. In 2014, we are seeing the reverse, as bumper crops globally have reversed the trend of rising food prices that led to riots in some countries in recent years.
This has not deterred the many institutional investors who are looking at farmland as an asset class that has hitherto been neglected. Many experts say this is just a blip in a longer-term trend that makes any weakness in prices a buying opportunity………………………………………..Full Article: Source

Agricultural Commodities

Posted on 09 October 2014 by VRS  |  Email |Print

Commodities that come from the raising of crops and/or animals are called agri commodities. While some agricultural commodities, such as corn or beef, are direct products of the Earth, others such as high fructose corn syrup are derived from them.
The US Commodity Futures Trading Commission defines agri commodties as one among the four categories: (1) the enumerated commodities listed in section 1A of the Commodity Exchange Act, including wheat, cotton, corn, the soyabean complex, livestock, etc.; (2) a general operational definition that covers: “All other commodities that are, or once were, or are derived from, living organisms, including plant, animal and aquatic life, which are generally fungible, within their respective classes, and are used primarily for human food, shelter, animal feed, or natural fibre;”……………………………………….Full Article: Source

Soft Commodities - Third-Quarter Review And Outlook For The Rest Of 2014

Posted on 07 October 2014 by VRS  |  Email |Print

The composite of five soft commodities - sugar, coffee, cocoa, cotton and frozen concentrated orange juice futures - fell by 3% during Q3. The sector is up 13.83% for the first nine months of 2014. While commodity prices in general fell, there were some bright spots for bulls in this sector of “luxury” commodities.
Let us look at the action in the softs and the outlook for the balance of 2014. The price of sugar moved 14.41% lower in Q4, but is up 2.3% through the first nine months of 2014. Sugar traded in a range of 13.32 cents to 19.83 cents per pound thus far in 2014………………………………………..Full Article: Source

Ag Commodities Pause As Rain Arrives, Buyers Move In

Posted on 07 October 2014 by VRS  |  Email |Print

Last week’s price action for the Ag commodities could best be described as a pause, following the long decline of the last few months, as the primary markets of corn, soybeans and wheat, finally found some support, moving sideways but with a mildly bullish tone. The catalyst was primarily twofold.
First was a change in the weather in the US with the recent benign conditions giving way to rain and as a result, a possible slowing of the crop harvests. The second, was bargain hunting with all three commodities looking increasingly oversold with the markets having now factored in the expectation of a record crops this year………………………………………..Full Article: Source

Hedge funds ‘caught out’ by crop price reversals

Posted on 07 October 2014 by VRS  |  Email |Print

Have hedge funds been caught out by being overbearish on agricultural commodities? On cotton, as on wheat and soybeans, late-comers to making short positions appear to be sitting on losses.
The extent of hedge funds’ negative sentiment towards cotton was unveiled by data from the Commodity Futures Trading Commission showing managed money, a proxy for speculators, undertaking a hefty sell-off in New York cotton futures and options in the last week of September………………………………………..Full Article: Source

Cotton prices to remain weak on surplus production, China policy changes: ICAC

Posted on 03 October 2014 by VRS  |  Email |Print

World cotton prices will remain weak due to predicted 1.8 mn tons of surplus production and changes in China’s cotton policy, according to International Cotton Advisory Committee (ICAC).At the end of 2013/14, international cotton prices were around 80 U.S. cents/lb and have continued falling in the first two months of the new season.
With the fall in prices, world cotton consumption is forecast to rise nearly 4% to 24.4 million tons with more of the consumption occurring in the latter half of the season as the market becomes more certain about the size of the new crop and can better determine an appropriate price for cotton………………………………………..Full Article: Source

What is Climate-Smart Agriculture?

Posted on 02 October 2014 by VRS  |  Email |Print

With a new Global Alliance dedicated to Climate-Smart Agriculture, you’ll be hearing more about this effort with a goal to improve agriculture and food security. At the end of last month, the U.N. held a one-day Climate Summit in New York City. The day was a pre-curser to next year’s 21st Conference of the Parties on Climate Change 2015 that will take place in Paris.
From what I understand, the NYC summit focused on identifying the major challenges we’re facing with climate change and mentioned some possible solutions. The longer Paris summit will attempt to provide more solutions and specific ideas on how to implement them………………………………………..Full Article: Source

Bumper Crops Continue To Drive Ag Commodities Lower

Posted on 30 September 2014 by VRS  |  Email |Print

It was another week of falling prices for soft commodities, as oversupply issues continue to dominate across all the major markets. This is clearly evident from the weekly charts. As the largest exporter, it is the US which sets the price for world markets, with the US Midwest corn belt set to produce a record harvest for a second year. soybeans too are expected to generate the largest crop ever on record.
This picture of bumper harvests is also mirrored in Canada, and even events in the Ukraine and Russia have had little impact on prices. China too, is increasingly adding storage facilities to cope with its own booming harvest and imports, with corn and rice now in plentiful supply………………………………………..Full Article: Source

World needs ‘paradigm shift’ towards sustainable agriculture, UN agency urges

Posted on 30 September 2014 by VRS  |  Email |Print

In order to move towards more sustainable agriculture, a broader approach is needed to overhaul the world’s food system, the head of the United Nations Food and Agriculture Organization (FAO) said today, as he pressed for a global reduction in the quantity of chemicals and water in contemporary agriculture.
Speaking at the opening of the 24th session of the Committee on Agriculture (COAG) in Rome, Director-General José Graziano da Silva called for a “paradigm shift” in global attitudes on agriculture, adding that only by decreasing the amounts of “inputs,” such as water and chemicals, could the sector move towards a more sustainable and productive long-term path………………………………………..Full Article: Source

How Much of World’s Greenhouse-Gas Emissions Come From Agriculture?

Posted on 30 September 2014 by VRS  |  Email |Print

Agriculture might seem green by definition, but farming accounts for a lot of greenhouse-gas emissions when the entire food production system is taken into account. Typically, estimates of greenhouse-gas emissions from agriculture are around 11%-15% of global emissions.
Estimates discussed earlier this week at the United Nations Climate Summit put that number closer to 50%. This is an important calculation as climate change issues come to the fore, with record greenhouse-gas emissions and international negotiations to halt that rise………………………………………..Full Article: Source

Global Alliance for Climate-Smart Agriculture

Posted on 26 September 2014 by VRS  |  Email |Print

The United States is a founding member of the Global Alliance for Climate-Smart Agriculture. As part of its commitment to promoting climate smart agriculture around the world, the U.S. government supports the following initiatives: In the United States, the Department of Agriculture (USDA) manages seven “Climate Hubs” around the country to deliver information to farmers, ranchers and forest landowners to help them adapt to climate change and weather variability.
The Global Research Alliance on Agricultural Greenhouse Gases, to which the United States contributes, aims to deepen and broaden mitigation research through collaboration and data sharing………………………………………..Full Article: Source

Agricultural commodity prices are crashing too

Posted on 24 September 2014 by VRS  |  Email |Print

The mining commodity price squeeze was making headlines again on Tuesday as iron ore fell to a five-year low and BHP Billiton announced that 700 Bowen Basin coalmining workers would go, but the miners are not alone in feeling the pressure.
The price of wheat, Australia’s sixth biggest export, has fallen by about 31 per cent since May, and is at a four-year low. The price of corn, a key industrial food and drink-making raw material, has fallen by 28 per cent since mid August, and is also at four-year lows. The price of sugar has fallen by 25 per cent since mid-year, and soybean prices have fallen by 39 per cent………………………………………..Full Article: Source

Commodities: Cereal excess

Posted on 24 September 2014 by VRS  |  Email |Print

Global grain supplies are soaring, which will cause an eventual slowing of food price inflation. Towering like a missile above the Illinois prairie town of Monticello, the galvanised metal silo that Topflight Grain Co-operative has just added to its storage complex can hold an awful lot of corn: 19,000 tonnes.
Yet after a mild, wet summer – perfect for growing chunky ears of yellow corn – the extra space may not be enough. Derrick Bruhn, Topflight’s grain merchandiser, warns some of it will end up piled high in outdoor mounds as farmers dump their harvests. “It will be difficult to find a place to put everything,” he says………………………………………..Full Article: Source

U.S. Wheat Prices Pushed to Four-Year Low

Posted on 22 September 2014 by VRS  |  Email |Print

U.S. wheat prices sit at the lowest level in more than four years, buffeted by sluggish demand for U.S. supplies amid abundant global stockpiles of the grain. Bumper crops around the world have added to supplies, driving global prices lower and reducing demand for U.S. wheat which, when shipping charges are added, is more expensive than grain produced in places such as the European Union and Ukraine.
“We continue to see decent demand in the Western hemisphere for wheat, but our freight rates are so much higher overseas,” said Shawn McCambridge, senior grains analyst for brokerage Jefferies Bache Commodities LLC. “You add that freight in, and we can’t be competitive in major markets.”……………………………………….Full Article: Source

The Soft-Commodity Outlook

Posted on 18 September 2014 by VRS  |  Email |Print

Almost perfect weather conditions across the principle growing regions in the U.S. and the prospect of record crops continue to push soft commodity prices lower. And with harvesting underway, this trend looks set to continue, with further good weather to come.
For U.S. Wheat, the bearish trend has been slow and steady, starting back in May with the commodity trading at 760 per bushel, before declining steadily, followed by a pause in the 580 to 620 per-bushel area, before that level was also breached, with a further move down followed by an extended phase of price congestion, which extended through the summer months in the 580 to 540 per-bushel region creating a strong and well-defined level of resistance and support…………………………………….Full Article: Source

Hedge Funds Cut Bullish Crop Bets to Lowest Since January

Posted on 15 September 2014 by VRS  |  Email |Print

Hedge funds cut bullish wagers on agricultural commodities to the lowest since January before the U.S. forecast rising grain supplies and sent wheat, corn and soybean prices to four-year lows. Money managers lowered their net-long position on crops from coffee to wheat in 10 of the past 11 weeks, U.S. government data show. Investors got more bearish on sugar and have the most-negative outlook on soybeans since 2006.
American farmers will collect the biggest corn and soybean crops ever this season, while global wheat reserves are set to reach a three-year high, the U.S. Department of Agriculture said Sept. 11. Three months of rain and mild weather created almost ideal growing conditions, spurring price declines that drove the Bloomberg Commodity Index to a five-year low last week………………………………………..Full Article: Source

Global Food prices continue to delcine on good weather, harvests

Posted on 12 September 2014 by VRS  |  Email |Print

FAO’s monthly food price index registered another drop in August, continuing a 5-month downward run and reaching its lowest level since September 2010. The index’s August average of 196.6 points represents a decrease of 7.3 points (3.6 percent) from July. With the exception of meat, prices for all of the commodities measured by the index dipped markedly.
Dairy led the pack, with FAO’s sub-index for dairy products averaging 200.8 points in August, down 25.3 points (11.2 percent) versus July and 46.8 points (18.9 percent) compared to a year ago — the result of abundant supplies for export coupled with reduced import demand………………………………………..Full Article: Source

India: Insurers bet big on agri commodities

Posted on 05 September 2014 by VRS  |  Email |Print

Non-life insurers are betting highly on the Forward Markets Commission (FMC)’s proposed norms relating to commodities trade. According to the norms, warehouse service providers (WSPs) will have to provide full insurance covers to deliverable commodities on futures exchanges.
In draft guidelines issued on August 26, the FMC said WSPs seeking accreditation with the National Multi Commodity Exchange would have to fully cover the value of goods at exchange-approved warehouses for risks such as fires, floods, cyclones, earthquakes, burglaries, thefts, etc………………………………………..Full Article: Source

Agriculture ETPs losing investors on record harvest

Posted on 03 September 2014 by VRS  |  Email |Print

The investment binge in U.S. agriculture funds has ended as record crops and the promise of improving meat supplies send prices plunging. After taking in more money than precious metals or energy funds during the first five months of 2014, exchange-traded products backed by agriculture had a net outflow for the year of $57.7 million as of Aug. 29, down 2.9 percent, data compiled by Bloomberg show.
Energy, precious-metal, industrial-metal and broad-based funds saw net inflows over the period, boosting total raw-material investment by $341 million, or 0.5 percent………………………………………..Full Article: Source

World Coton production to exceed consumption for fifth straight year

Posted on 03 September 2014 by VRS  |  Email |Print

In 2014/15, the world cotton industry is expected to enter its fifth consecutive season in which production exceeds consumption. World production is forecast to decline by 400,000 tons to 26.05 million tons while consumption could grow by 4% to 24.4 million tons, resulting in a surplus of 1.7 million tons, according to a report by International Cotton Advisory Committee (ICAC).
Since 2010/11, world production will have exceeded consumption by a cumulative 12.3 million tons and by the end of 2014/15, would reach nearly 14 million tons. Much of the surplus is held by the Chinese government, but this season, more of the surplus will shift to the private sector in China and other producing countries………………………………………..Full Article: Source

Cotton, sugar u-turns slow hedge funds’ ag selling

Posted on 02 September 2014 by VRS  |  Email |Print

Hedge funds’ selldown in the agricultural commodity complex slowed to a crawl as they turned less negative on cotton and sugar, offsetting in part continued bearish positioning in livestock and soybeans.
Managed money, a proxy for speculators, reduced its net long position in futures and options in the top 13 US-traded agricultural commodities, from cotton to corn, by 3,844 lots in the week to last Tuesday, according to data from the Commodity Futures Trading Commission regulator………………………………………..Full Article: Source

Wheat crop may fall to smallest since 2010

Posted on 28 August 2014 by VRS  |  Email |Print

South African farmers may produce 4.8 percent less wheat this season than a year earlier, making it the smallest harvest since 2010, the Crop Estimates Committee said as it lowered the area prediction for the cereal to the lowest on record. Growers may reap 1.78 million metric tons in the 2014 season compared with 1.87 million tons last year, Marda Scheepers, a spokeswoman for the committee, said.
It is less than the 1.87 million-ton median prediction by three analysts in a Bloomberg survey. While South Africa is the sub-Saharan region’s biggest producer of the grain after Ethiopia, it’s still a net importer of wheat, according to US Department of Agriculture data………………………………………..Full Article: Source

Soybean Futures Prices Tumble to Nearly Four-Year Low

Posted on 27 August 2014 by VRS  |  Email |Print

Soybeans fell to their lowest intraday price for a front-month contract in almost four years, as September futures near expiration, spurring investors to close out their positions. The so-called first-notice day is Friday, when investors who had bought contracts betting on rising price trend may be required, depending upon terms of their original transaction, to take delivery of the soybeans.
To avoid taking delivery, contract holders must sell and either liquidate their position or roll their investment into a future month. The September contract expires on Sept. 12. The bulk of soybean futures contracts traded on commodities exchanges don’t end in delivery of the underlying product………………………………………..Full Article: Source

Low Commodity Prices Could Affect 2014 Equipment Purchases

Posted on 21 August 2014 by VRS  |  Email |Print

With fall right around the corner, farmers are gearing up to harvest one of the largest crops in history. Corn production for 2014/15 is forecast 172 million bushels higher at a record 14 billion bushels. USDA’s first survey-based corn yield forecast, at a record 167.4 bushels per acre, is up 2.1 bushels from last month’s trend-based projection.
In Mid-June, more than 581 farmers across the country took part in AgWeb’s 2014 Equipment and Machinery Research survey. Participants were surveyed on product questions across eight categories, including: tractors combines, sprayers, irrigation, grain storage, implements, tillage and financial sectors………………………………………..Full Article: Source

Russian agriculture struggles to meet self-sufficiency challenge

Posted on 20 August 2014 by VRS  |  Email |Print

The harvest workers at Sovkhoz Lenina carry the apples to the trailer one bucket at a time. Soon the ripe load piles up under the balmy sun, ready for customers in nearby Moscow, who are hungry for fresh, healthy, homegrown produce.
Since the Russian government banned food imports from western countries earlier this month in retaliation for sanctions over the Ukraine crisis, Moscow has been trying to persuade consumers that domestic produce is better and telling farmers that Russian agriculture’s time has come………………………………………..Full Article: Source

Hedge Funds Extend Longest Soy Bear Run Since 2006: Commodities

Posted on 18 August 2014 by VRS  |  Email |Print

Hedge funds extended the longest bearish streak for soybeans in eight years as improving crop conditions bolster prospects for a record harvest in the U.S., the world’s largest grower.
Money managers have been betting on declines for five straight weeks, the most since October 2006. The U.S. on Aug. 12 raised its outlook for domestic production that was already forecast at an all-time high. The bumper harvest will swell global inventories to the biggest ever………………………………………..Full Article: Source

US sees record global wheat crop

Posted on 13 August 2014 by VRS  |  Email |Print

Global food supply expectations have got a boost as the US Department of Agriculture forecast a record global wheat crop and a new high mark for US corn output. Other important US crops, including rice and soybeans, were also forecast to gain significantly, likely helping to keep a lid on the rise in global food prices in the first quarter of the year.
The USDA said US wheat production was solid, and coupled with strong increases in Russia, Ukraine and China, would take the total world crop for the 2014-2015 crop year to 716.1 million tons, up 2.0 million tons from 2013-2014………………………………..Full Article: Source

Russia bans agricultural products from EU, USA, Australia, Norway, Canada

Posted on 08 August 2014 by VRS  |  Email |Print

Russian PM Dmitry Medvedev has signed a decree on the full ban for imports of beef, pork, poultry meat, fish, cheese, milk, vegetables and fruit from Australia, Canada, the EU, the US and Norway. The ban will last a year, starting August 7.
The Prime Minister also said Russia has stopped transit flights by Ukrainian airlines to such destinations as Georgia, Azerbaijan, Armenia and Turkey, adding that the country was considering a ban of transit flights for European and US Airlines to the Asia-Pacific region………………………………………..Full Article: Source

Russia to ban all U.S. agricultural imports

Posted on 07 August 2014 by VRS  |  Email |Print

Retaliating for U.S. sanctions over Ukraine, Russia will ban or limit all American agricultural products for up to a year, a Kremlin official said Wednesday. All fruits and vegetables from the European Union will also be locked out, the country’s agricultural and veterinary watchdog told RIA Novosti. Produce from Canada and Japan will also be blocked.
The complete list of banned products, to be announced Thursday, will be “very substantial,” said Alexey Alekseenko, an assistant to the head of the Federal Service for Veterinary and Phytosanitary Surveillance………………………………………..Full Article: Source

Hedge funds close to most bearish ever on wheat

Posted on 05 August 2014 by VRS  |  Email |Print

Hedge funds cut their bets on agricultural commodities to the most downbeat in six months, led by wheat, in which they came close to their most bearish positioning ever, with notable gloom over cotton price prospects too.
Managed money, a proxy for speculators, cut by more than 37,000 contracts its net long position in futures and options in the main 13 US-traded agricultural commodities in the week to last Tuesday, according to data from the Commodity Futures Trading Commission (CFTC) regulator………………………………………..Full Article: Source

Commodities: Probability of El Nino developing falls to 50%

Posted on 30 July 2014 by VRS  |  Email |Print

The commodities complex saw few changes on Monday, although geopolitical concerns buoyed gold prices while oil futures traders stayed on the sidelines ahead of weekly supply data scheduled for release on Wednesday.
President Barack Obama was expected to meet with four of his European counterparts, with the possibility of new sanctions being levied on specific sectors of the Russian economy a distinct possibility. Gold futures for delivery in December ended trading $3.4 lower at $1,305.8/oz. on COMEX. Front month West Texas crude futures slipped by 20 cents to $101.67/barrel on NYMEX………………………………………..Full Article: Source

India: FY15 agriculture growth to remain muted, says Crisil

Posted on 29 July 2014 by VRS  |  Email |Print

The country’s agriculture growth is likely to remain muted at 1 per cent in FY’2015 largely due to strong statistical base-effect, rating agency CrisilBSE -2.60 % said.
Monsoons are currently 24 per cent below the long period average, which is worse than the deficiency seen in fiscals 2009 or 2012. While 2009 turned out to be a drought year, rains recovered sharply in the latter half of the season in 2012………………………………………..Full Article: Source

Slackness in agri-commodity prices likely to be short term

Posted on 28 July 2014 by VRS  |  Email |Print

Agri-commodity counters are witnessing volatility due to the revival of monsoons in the second half of July. While this could be a short-term phenomenon, in the medium to long-term agri-commodity prices are still looking bullish.
Between June 1 and July 15 there was a 43 per cent deficit in rainfall. However in the second half of July there was some recovery and the deficit narrowed down to 25 per cent. This has led to slight correction in most of the agri-commodities and some have also remained volatile in the past week………………………………………..Full Article: Source

Global tie-up to improve agriculture

Posted on 23 July 2014 by VRS  |  Email |Print

An international partnership across India, Africa and the US has formed the ‘One Agriculture-One Science: A Global Education Consortium’ initiative aimed at revitalising global agricultural education, capacity building and technology transfer, according to the International Crops Research Institute for the Semi-Arid Tropics (Icrisat).
‘One Agriculture-One Science’ is a consortium of agricultural education institutes, research organisations and other related agencies specifically focusing on addressing changes and adaptations required for agricultural education to better contribute and more effectively impact development goals, particularly the attainment of food and nutritional security and sustainable agricultural production in developing countries, Icrisat stated in a release………………………………………..Full Article: Source

Investors swap grains for metals as flows trickle to commodities

Posted on 22 July 2014 by VRS  |  Email |Print

Investors are slowly being drawn back into commodities, attracted by stronger global economic growth and more volatility within sub-sectors, typified by current investment flows out of grains into industrial metals.
The sector has been shunned in recent years, knocked by poor returns during the financial crisis which saw commodities move in step with other assets. Commodities has benefited this year after China unleashed stimulus measures to prop up growth and recovery took hold in the United States………………………………………..Full Article: Source

Agriculture is all about horticulture

Posted on 21 July 2014 by VRS  |  Email |Print

In the Indian economy, where almost half of an average household’s expenditure goes toward food and where half of the labour force is engaged in agriculture, one cannot simply wish away the centrality of agriculture just because its contribution to GDP now hovers around 14 per cent.
That would be an overly narrow viewpoint, and perhaps a misguided one. India’s agriculture is responsible for feeding a large and growing population that numbers 1.25 billion today and that is projected to exceed that of China by 2035………………………………………..Full Article: Source

Grains lead the way as global commodity prices decline

Posted on 18 July 2014 by VRS  |  Email |Print

The prospect of a huge U.S. crop harvest has hammered crop prices down to multi-year lows. Rising supply is the main factor in grain price weakness, but commodities in general are also declining in value.
After rising to a two-year high in June and out performing the S&P 500 stock index in the first six months of the year, the Thomson Reuters/Core Commodity CRB Index, a measure of prices for 19 commodities, had declined for 11 straight trading sessions as of July 11, the longest decline in records going back to 1994………………………………………..Full Article: Source

Global agri-commodities: Cocoa, Coffee top gainers Soybean, Corn, Wheat top losers

Posted on 17 July 2014 by VRS  |  Email |Print

Bearish trend is prevailing in most agri-commodities traded in Chicago Board of Trade (CBOT) and Intercontinental Exchange (ICE) amidst rise in acreage, record production estimates and falling demand.
Soybean has slumped more than $1.50 a bushel to trade under $11 for the first time in a year. Reuters analyst said that soybean still remains at an unusually large premium to its competitor rapeseed, the second widely produced and consumed oil seed in the world. Hence investors must be ready for further drop in soybean prices, the analyst said………………………………………..Full Article: Source

What Could Climate Change Mean for Agriculture?

Posted on 16 July 2014 by VRS  |  Email |Print

World agriculture must create short and long term adaptation strategies to cope with climate change accelerating the water cycle. This is the finding of an Organisation for Economic Co-operation and Development (OECD) report that sees rainfall periods being longer and more intense in the years to come.
The recent paper Impact of Climate Change on the Water Cycle and Implications for Agriculture has tipped higher latitude areas for more rain in winter and summer. Drier summer weather is expected for mid-latitude and subtropical areas………………………………………..Full Article: Source

What Could Climate Change Mean for Agriculture?

Posted on 15 July 2014 by VRS  |  Email |Print

World agriculture must create short and long term adaptation strategies to cope with climate change accelerating the water cycle. This is the finding of an Organisation for Economic Co-operation and Development (OECD) report that sees rainfall periods being longer and more intense in the years to come.
The recent paper Impact of Climate Change on the Water Cycle and Implications for Agriculture has tipped higher latitude areas for more rain in winter and summer. Drier summer weather is expected for mid-latitude and subtropical areas……………………………………….Full Article: Source

Ag Commodity Panic Selling Creating Strong Buy Opportunities

Posted on 11 July 2014 by VRS  |  Email |Print

Agricultural commodities from Wheat to Soybeans, and from Sugar to Cotton, are going through extremely strong selling pressure as I write this. Everything is being thrown out, the baby together with the bathwater, in what appears to be a forced liquidation.
Keep in mind that Commitment of Traders positioning by hedge funds, shown in the chart above, has lagged by a whole week. It will be very interesting to see how many funds will stay net long after this recent panic selling episode………………………………………..Full Article: Source

India: Budget 2014: Agriculture sector gets a new lease of life

Posted on 11 July 2014 by VRS  |  Email |Print

Finance Minister Arun Jaitley announced a price stabilisation fund, steps to set up a national market for farm produce, irrigation schemes, new agricultural universities as well as initiatives to increase warehousing and rural internet connectivity.
Jaitley said food price volatility was a big concern, and announced a Rs 500 crore fund for farm price stabilization. He said the government wanted agriculture to grow although weak rainfall was a concern. He said state governments should encourage development of farming markets and said that national market was the way forward………………………………………..Full Article: Source

Commodities begin H2 2014 on a mixed note, agri bears heavy losses:Saxo Bank

Posted on 07 July 2014 by VRS  |  Email |Print

Commodities have begun the second half of 2014 on a mixed note with Bloomberg Commodity Index (formerly DJ-UBS) falling for second week in a row. The losses were on account of decline in corn, soybeans, soft commodities such as sugar and Arabica coffee, according to Ole S Hansen, Head of Commodity Strategy at Saxo Bank.
The price of key crops such as corn and soybeans traded on the Chicago Board of Trade (CBOT) plunged on Monday following the release of two reports from the US Department of Agriculture. Both the quarterly stock report and the latest update on planted acreage surprised the markets with the stock report showing domestic stockpiles of grains as being significantly bigger than what was forecast………………………………………..Full Article: Source

Soybean weakness on record US acreage, Soymeal bullish

Posted on 02 July 2014 by VRS  |  Email |Print

Soybean prices have weakened globally on record acreage achieved by US farmers and plenty of inventories. However, soybean meal uptrend seen since August 2013 is likely to continue after a recent correction, analysts said.
Soybeans for November delivery at Chicago Board of Trade (CBOT) fell to $11.465 a bushel before recovering to $11.51 on Tuesday. US soybean meal futures receded 10% recently but the bullish trend seen since August last year………………………………………..Full Article: Source

10 things you need to know about sustainable agriculture

Posted on 02 July 2014 by VRS  |  Email |Print

In a recent live chat, a panel of experts joined readers online to discuss the future of sustainable agriculture in the face of changing weather driven by climate change and increasing competition for food. Here are 10 things we learned:
1. We shouldn’t just “accept” climate change: Just because climate change is happening and its effects are already being felt, we shouldn’t give up on efforts to reduce greenhouse gas emissions. Agricultural GHG emissions, make up about 25% of global GHG emissions, but there’s a lot that can be done to reduce this………………………………………..Full Article: Source

Hedge funds sweeter on ag prices, led by sugar

Posted on 01 July 2014 by VRS  |  Email |Print

Hedge funds ended a run of bearish positioning on agricultural commodities as a massive switch in sugar exposure, towards bets on price rises, trumped further downbeat holding on grains.
Managed money, a proxy for speculators, raised its net long position in futures and options in the top 13 US-traded agricultural commodities, from cotton to cattle, by approaching 55,000 contracts in the week to last Tuesday, according to data from the Commodity Futures Trading Commission regulator………………………………………..Full Article: Source

U.S. Corn Reserves Expanding Most Since 2005: Commodities

Posted on 27 June 2014 by VRS  |  Email |Print

A bumper harvest in 2013 means stockpiles in the U.S., the world’s biggest grower, are rising at the fastest pace in nine years, according to traders and analysts surveyed by Bloomberg.
Ample rains and warm weather boosted early crop development for this season and allowed farmers to plant more than the government estimated in March, a separate survey showed. Prices will fall about 9.5 percent in six months, Goldman Sachs Group Inc. forecasts………………………………………..Full Article: Source

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