All Posts Tagged With: "Corn Prices"

Topsoil Crisis Makes Cresud (CRESY) a Great Resource Play

Crude oil’s masive one-day climb yesterday resurrected fears over the impact of soaring fuel costs on farming and food prices.

Other factors are at play in the volatile agricultural industry. According to Chris Mayer, “Fertile soil - good dirt - may become more important to land values than oil or minerals in the ground.”

Chris says fertile farmland has been in decline since the 1980s due to urban sprawl and soil erosion. This makes it a lucrative asset. And it makes companies like Cresud (NASDAQ:CRESY), which owns large swathes of farmland in Argentina, a great stock play.

August Data: Short-Term Relief from Long-Term Problems

PPI inflation and retail sales for August could show signs of encouragement, thanks to falling commodity prices and back-to-school demand. Although a welcome relief from the deluge of grim headlines, we’re looking at short-term relief from long-term problems, says Christian Hill at Investor’s Daily Edge

Byron King Says Commodities in a Short-Term Correction

It’s a difficult time for commodities bulls. Crude oil is off more than 20% from its July peak. Gold is going for about $830 an ounce, way off its Spring highs. And the Reuters/Jefferies CRB Index is down 19% from its June high.

Energy expert Byron King says investors shouldn’t panic over the drop in prices. For a start, August is a notoriously poor month for commodities. It tends to be a month of net selling.

Despite some demand issues caused by the global slowdown, Byron says commodities are in a short-term correction. And that means plenty of great bargains on offer…

Get Ready for a Rebound in Corn Prices

Commodities have been tumbling for more than one month. Energy, metals and agricultural products have dropped by double-digit percentages. This means there are potential technical rebounds on their way and opportunities to take profit for more or less short-term corrections, says Gabriel Andre in The Daily Reckoning Australia. Corn may be one of those opportunities.

EPA Rejects Ethanol Waiver

The Environmental Protection Agency has denied a request from several U.S. policymakers to temporarily waive ethanol requirements for gasoline in hopes of bringing down corn prices.

Buy Cheap Groupe Danone (BN) Stock on an Uptrend

There has been a lot of talk lately about food stocks. Spam-maker Hormel (NYSE:HRL) and egg producer Cal-Maine (CALM) are two downturn picks we’ve published in recent days. Even in a recession, the logic goes, people still have to eat.

Today, The Sovereign Society’s Investment Director, Eric Roseman, says France’s Groupe Danone (EPA:BN) is another excellent way to play the downturn.

The world’s largest fresh dairy company posted strong earnings last week. And it is set to benefit from a correction in commodity prices.

Expect a Big Fall in Corn Prices

High grain prices aren’t just hurting hog farmers, they’re damaging ethanol producers too.

If prices causes ethanol plants in the Midwest to close, it could flood the market with unused corn, says Tom Dyson. Expect to see a big fall in corn prices in the near future…

Even without ethanol plants closing corn prices are already starting to fall…

Corn Prices Could Hit $10 a Bushel If Bad Weather Stays

Corn prices could hit $10 a bushel this year, reports MarketWatch.

According to the report: “A large loss of acreage could slash U.S. corn production and push next season’s year-end stocks to the lowest level since just after World War II, some analysts said.” If bad weather continues in July and August, corn prices could rise to $10 a bushel, said Shawn Hackett, president of agriculture futures brokerage Hackett Financial Advisors.”

On Thursday, Jennifer Yousfi told Money Morning readers three ways to profit from record meat and dairy prices — both of which are closely connected to the price of corn.

Three Ways to Play Peak Food

Editor’s Note: Money Morning’s Jennifer Yousfi has been talking a lot about the impact of rising corn prices on US food producers. With input costs of animal feed spiraling out of control, many producers are struggling to keep their heads above water. For investors, says Jennifer, this means no “slam-dunk” profit play. But Jennifer says she’s found three companies that she thinks offer good bargains…

Food Producers Fail to Benefit from Spike in Market Prices

Although meat-and-dairy prices are expected to zoom even higher from their current record levels, this slice of the commodities boom won’t be a slam-dunk profit play for investors: Many food producers are watching the revenue gains they’re reaping from the rising market prices get wiped by even bigger spikes in commodity-related expenses.

“We are in the early stages of what will become a big mess for producers” of food products, including meat-and-dairy offerings, Greg Wagner, a senior analyst at Ag Resource Co., told the Dow Jones News Service. Over the next few years, retail food prices “will rise like never before.”

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