Stocks have recovered from the “taper” scare and the bulls are back in the driver’s seat, although sluggish growth in Japan coupled with worse-than-expected retail sales at home may bring out the bears before this trading week is over. Major equity indexes continue to grind sideways as investors remain hesitant to push strongly in either direction; looming seat changes on the board of the Federal Reserve coupled with Congress re-opening the budget debate in September have given some investors plenty of reasons to avoid jumping in long amid the ongoing euphoria [for more commodity futures news and analysis subscribe to our free newsletter].
With Summer temperatures topping out around the United States, the heat could have consequences beyond rising electric bills. Corn and soybean crops will reach maturity over the next few weeks, but the dry heat affecting growing areas of the US could erode crop conditions. As the historically largest exporter of soybeans and corn, U.S. farmers have a lot of pressure to ensure a strong harvest this year but analysts are already predicting another rough summer for the commodity supply [for more commodity news and analysis subscribe to our free newsletter].
U.S. markets have managed to rebound ferociously over the last two weeks as bargain shoppers stepped in following the Fed stimulus-fear induced sell-off which started on 5/22/2013. With earnings seasons upon us however, the bull may be in for a rude awakening as volatile trading and profit taking can sweep over Wall Street at the slightest sign of industry bellwethers missing the mark and revising their outlooks[for more commodity futures news and analysis subscribe to our free newsletter].
In the world of agribusiness, there is no name more prolific then Monsanto Company (MON) – the world’s leading producer of the herbicide glyphosate and the second biggest producer of genetically engineered seeds. With a market cap of over $54 billion, investors pay close attention to this bellwether, following the company’s news and key earnings report [for more agricultural news and analysis subscribe to our free newsletter].
When it comes to agricultural commodities, wheat is perhaps one of the most important crops, as this resource is a dietary staple throughout both the emerging market and developed world. Because of this dependence, wheat prices tend to exhibit significant volatility, which can be triggered by a wide array of issues; anything from supply disruptions to extreme weather can easily send the commodity into a tailspin [for more commodity futures news and analysis subscribe to our free newsletter].
Major U.S. equity benchmarks are looking to resume their ascent into uncharted territory following last week’s stretch of choppy trading. Although optimism is high on Wall Street, investors are having to digest mixed data that could encourage more profit taking over the coming sessions; ISM data from May hints of a contraction in the manufacturing sector while better-than-expected motor vehicle sales are resonating well among auto stocks and industrial metals [for more commodity futures news and analysis subscribe to our free newsletter]. Amid the recent pullback on Wall Street, bargain shoppers are on the prowl again in search of trending stocks at attractive levels. As such, below we take a look at three big commodity stocks that are trending higher, but have slipped in the last few trading sessions, thereby offering an attractive opportunity to “buy on the dip.”
While many traders primarily focus on resources like gold or oil, there are plenty of other opportunities in the commodity space. One such opportunity lies in cotton, which can be found in almost every textile product around the world; but as a soft commodity this constant demand does not always translate into consistent returns. The fluffy crop has enjoyed a strong start to 2013, but is well known for its large movements from day to day and for keeping investors on their toes [for more cotton news and analysis subscribe to our free newsletter].
When it comes to agribusiness stocks, there is perhaps no name bigger than Monsanto Company (MON) – the world’s leading producer of the herbicide glyphosate and the second biggest producer of genetically engineered seeds. Headquartered in St. Louis, the firm has grown into an over $55 billion company, with operations spanning across the U.S., Europe, Africa, Brazil, Asia-Pacific, Argentina, Canada and Mexico [for more agricultural news and analysis subscribe to our free newsletter].
For years now, many have been pointing out a developing trend in the U.S. farming industry: the number of farmers continues to stagnate. Though the United States was once dominated by agriculture, the nation has simply grown beyond its once economic staple and put its focus elsewhere. As this happened, farming became less of a lucrative industry, leading to fewer and fewer people who choosing it as a career path. The trend has led many to proclaim an agriculture crisis in the country, but the situation is probably less dire than many paint it [for more agricultural news and analysis subscribe to our free newsletter].