CHICAGO— Grain futures were lower Friday in early trading on the Chicago Board of Trade. Wheat for March delivery was 7.5 cents lower at $4.80 a bushel; March corn was off 3.75 cents to $3.69 a bushel; March oats were 2.25 cents lower at $2.3450 a bushel; while January soybeans lost 2.25 cents to 8.73 a bushel. February live cattle was. 60 cent higher at $1.3372 a pound;...» Read More
The world is facing a new food crisis as the worst US drought in more than 50 years pushes agricultural commodity prices to record highs.
Record high prices of corn and soybean brought on by the worst U.S. drought in 56 years may be triggering a sense of de ja vu for Asia concerned about a repeat of the food scare in 2008, but most economists are downplaying those fears, for now.
From breakfast cereal to chips to Coca-Cola, the price of corn has an impact on a wide range of food products at the grocery store, but commodities investor Dennis Gartman says it’s the cost of packaging that tends to impact consumer’s wallet more.
The worst drought in U.S. history is hurting food companies in China and margins are likely to suffer in the second half of the year, even as firms battle rising wages, analysts tell CNBC.
Jobless claims and increasingly soggy-looking earnings news could set the tone for stocks Thursday, after a two-day rally fueled by the prospect of more Fed easing.
Last year, David Struthers’ Iowa corn crop got flattened by wind. This year, it’s getting hit by drought.
Corn futures are heading to record highs on reports of wider crop devastation, and as forecasts show continued hot, dry weather threatening even more of this year’s crop.
Dennis Gartman of The Gartman Letter, offers investment advice for corn and grain traders. "I think corn might still go higher," says Gartman.
The Weather Channel's Carl Parker reports on the worst drought in years, and the state of agriculture in the Midwest.
The price of grains continues its rise on prolonged drought worries, and Mike Harris of Campbell & Company, checks the charts for an investment opportunity. Amelia Bourdeau of Wespac, discusses whether the euro has hit bottom.
With nearly two-thirds of the US enduring drought conditions, food prices are expected to jump ahead of the November election. That could add to voter anxieties about the economy, the Christian Science Monitor reports.
Carl Icahn upped his stake in Navistar, with the Fast Money traders; and Barclays and Goldman Sachs are increasing their price forecast for grain futures as corn continues to rally, with Jim Bower, Bower Trading. "If this weather stays inflammatory, and we keep dropping this yield down on soybeans, we could be faced with a protein shortage worldwide in the months to come," says Bower.
Both corn and soybean prices have slid from Monday’s record highs and should be considered a buying opportunity if this pull-back continues in the short term, Erin FitzPatrick, Commodity Analyst at Rabobank, told CNBC.
Over the last 30 days corn is up 18.9 percent, wheat is up 30.9 percent, and soybeans have seen a 6.8 percent rise. These big moves are sparking concerns that products that use them will see price increases, especially with respect to corn.
CNBC's Jackie DeAngelis and Jane Wells report on the agriculture department's response to widespread drought conditions, Merck's new osteoporosis drug, and the buyer of Edvard Munch's "The Scream."
The U.S. government declared more than 1,000 counties in 26 states drought disasters, as the economic impact of the worst crop conditions in 24 years begins to be felt.
The USDA slashed projections of corn production by a larger than expected amount, now predicting an average yield of 146 bushels an acre. "My concern is we're underestimating the scope of the problem," says Gulke, who also advises farmers on risk management tools like futures with The Gulke Group.
After a multi-week rally, grain prices slumped Tuesday, as traders caught a whiff of summer rain in the forecast, ahead of a major government crop report Wednesday.
If you thought JPMorgan and agriculture prices have little in common, you’d probably be right. But they do share one characteristic — they are both headed lower, if the traders on Friday’s "Options Action" are correct.
Gillian Tett of the Financial Times says markets may be headed for another "summer curse" and she points to five reasons why.