The U.S. Department of Agriculture (USDA) cut its estimates of last fall's corn and soybean crops.The soybean harvest was revised sharply downward to 3.33 billion bushels from 3.38 billion. Corn inventories are already at a 15 year low, were cut by more than 10% to 745 million bushels, as reported in theWall Street Journal.

Let's look at what happened around the world to the grain harvests:

Continue reading USDA Cuts Crop Estimates for Corn and Soybeans -- Prices Soar

USDA Cuts Crop Estimates for Corn and Soybeans -- Prices Soar originally appeared on BloggingStocks on Wed, 12 Jan 2011 17:00:00 EST. Please see our terms for use of feeds.

The next year may bring higher global grain prices. Several factors are coming together to create supply-demand shortages. Let's first look at the demand side.

Globally, the demand for grains, both feed and consumer products, is increasing rapidly. Developing countries are coming out of the recession and their people are demanding more food products. Food prices are rising across the globe. A Wall Street Journal (subscription required) article states that the United Nations Food and Agriculture Organization said its Food Price Index rose 3.7% to 205 -- 44 points in November -- the fifth straight monthly increase. This takes the index to just 8 points below its peak in June 2008.

Continue reading Global Grain Prices Likely to Rise in 2011

Global Grain Prices Likely to Rise in 2011 originally appeared on BloggingStocks on Thu, 02 Dec 2010 11:30:00 EST. Please see our terms for use of feeds.

Grain markets have been on a roller coaster since the summer, when Russia banned exports due to drought conditions. Friday, the United States Department of Agriculture (USDA) cut its projection for this year's corn harvest by 3.8%, as reported in the Wall Street Journal.

That news was like pouring gasoline on a fire. The grain markets exploded to the upside, closing limit up. Some exchanges place a limit on how high or low prices can trade on a given day. The limit for corn is 30 cents, for wheat 60 cents and for soybeans 70 cents (each penny equals $50).

Continue reading USDA Forecast Drives Grain Prices Limit Up

USDA Forecast Drives Grain Prices Limit Up originally appeared on BloggingStocks on Sat, 09 Oct 2010 12:40:00 EST. Please see our terms for use of feeds.

The grain markets are weather related. Any change in the normal growing weather pattern sends the markets into turmoil.

The story of the day is Russia. The farm ministry said that Russia will harvest 85 million metric tons of grain, down 5 million tons from the previous forecast. Why is this news? Russia and Canada vie with the U.S. as the second largest world wheat exporter.

Continue reading Wheat Moves Sharply Higher on Rumors of Drought in Russia

Wheat Moves Sharply Higher on Rumors of Drought in Russia originally appeared on BloggingStocks on Tue, 06 Jul 2010 14:20:00 EST. Please see our terms for use of feeds.

Commodities often move counter to the U.S. dollar. The dollar is selling down, mainly because of the European Union agreement to support Greece.

Grain traders, seeing the weaker dollar moved in on the buy side of wheat and soybeans. Here are prices as of 9:30 EDT:

Continue reading Weaker Dollar Triggers Higher Wheat and Soybean Prices

Weaker Dollar Triggers Higher Wheat and Soybean Prices originally appeared on BloggingStocks on Mon, 12 Apr 2010 11:50:00 EST. Please see our terms for use of feeds.

We've had wet weather in the Midwest during the harvest season, resulting in higher grain prices.

The U.S. Department of Agriculture (USDA) issued a report on wholesale crop prices paid to farmers. Let's look at some prices:

• Corn rose 29 cents per bushel to $3.54
• Wheat jumped 8 cents per bushel to $4.56
• Soybeans dropped 1 cent per bushel to $9.74
• Wholesale milk prices jumped 7.1% in October to $1.19 per gallon. Milk prices, however are down 22% from last year.

Continue reading Wet harvest causes grain prices to rise 7.7%. Should we buy our Wheaties now?

Wet harvest causes grain prices to rise 7.7%. Should we buy our Wheaties now? originally appeared on BloggingStocks on Mon, 02 Nov 2009 18:00:00 EST. Please see our terms for use of feeds.

Rising commodities prices led both Smithfield Foods Inc. (NYSE: SFD), the nation's largest pork producer and processor, and poultry producer Sanderson Farms Inc. (NASDAQ: SAFM) to report quarterly losses on Tuesday.

Smithfield Foods said it lost $12.6 million, or 9 cents per share, in its fiscal first quarter due in part to a $20.1 million write-down in the value of commodity contracts. The Smithfield, Va.-based company had reported a profit of $54.6 million, or 41 cents per share, a year ago.

Revenues rose 20% to $3.14 billion in the quarter. Analysts surveyed by Thomson Reuters had forecast a loss of 4 cents per share on $2.87 billion in sales.

In addition to hurting from high costs for such ingredients as grain and fuel, Smithfield also faces an oversupply of meat on the market, which is keeping prices for pork lower. To help push prices up, meat producers such as Smithfield have announced intentions to cut supply.

Shares of Smithfield fell 88 cents, or 3.7%, to $22.71 in morning trading. That's up from a 52-week low of $16.61 in early July, but shares have fallen about 21% since the beginning of the year.

Continue reading Feed prices put the squeeze on meat producers

Feed prices put the squeeze on meat producers originally appeared on BloggingStocks on Tue, 26 Aug 2008 14:55:00 EST. Please see our terms for use of feeds.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Adobe Systems Inc. (NASDAQ: ADBE) first-quarter profit soared and it offered an encouraging outlook.
• AgFeed Industries Inc. (NASDAQ: FEED) full-year results were in line with expectations.
• Credit Suisse Group (NYSE: CS) warned that it expects a first-quarter loss due to write-downs.
• Discover Financial Services (NYSE: DFS) first-quarter profit plunged on the unloading of Goldfish
• FedEx Corp. (NYSE: FDX) posted lower-that-expected third-quarter earnings on rising fuel prices.
• 4Kids Entertainment Inc. (NYSE: KDE) posted dismal fourth-quarter and full-year results.
• GameStop Corp. (NYSE: GME) posted strong fourth-quarter earnings on Guitar Hero and other games.
• General Mills Inc. (NYSE: GIS) third-quarter profit surged on increased demand for Cheerios, yogurt, etc.
• Goldman Sachs Group Inc. (NYSE: GS) posted better-than-expected first-quarter earnings.
• Lehman Brothers Holdings Inc. (NYSE: LEH) posted better-than-expected first-quarter earnings.
• Lumber Liquidators Inc. (NYSE: LL) beat estimates on infrastructure investments and merchandise variety.
• Morgan Stanley (NYSE: MS) posted better-than-expected first-quarter earnings.
• Nike Inc. (NYSE: NKE) third-quarter profits soared on strong international demand.
• Shuffle Master Inc. (NASDAQ: SHFL) missed expectations for the first quarter.
• Siemens AG (NYSE: SI) lowered its earnings outlook on delays and order cancellations.

Also, Google Inc. (NASDAQ: GOOG) is recession proof? Ted Allrich wonders if there are any safe stocks. Jim Cramer doesn't expect much from tech stocks. And Aaron Katzman looks at the effect of rising grain prices.

Upcoming results to watch for include Walgreen Co. (NYSE: WAG), Tiffany & Co. (NYSE: TIF), Oracle Corp. (NASDAQ: ORCL), ConAgra (NYSE: CAG), and KB Home (NYSE: KBH).

Visit AOL Money & Finance for more earnings coverage.

Earnings highlights: Goldman Sachs, Lehman Bros., Morgan Stanley, Credit Suisse and others originally appeared on BloggingStocks on Sun, 23 Mar 2008 11:10:00 EST. Please see our terms for use of feeds.

As grain prices continue to rise, fueled in part by increasing demand worldwide, as well as farmers turning over their fields to grow corn for ethanol, earnings out from General Mills, Inc. (NYSE: GIS), while good, were weighed down by those soaring grain prices.

According to an AP report: "The cost of grain has affected a number of companies, especially those that make cereals. Grain prices have skyrocketed largely due to demand for corn used to make the alternative fuel ethanol."

So now my Cheerios and Wheaties cost substantially more, partly in order to produce ethanol, which is a suspect alternative fuel that's being used to fight a suspect phenomenon, global warming. Legislators, together with environmentalists, have created global inflation, to fight a problem that some scientists don't think exists. Does that make sense?

Grain costs not withstanding, General Mills had a very strong quarter. Sales were up across the board and international sales grew by more than 20%. Could it be that the weak dollar, is starting to help the bottom line of U.S. multinationals?

Look for other consumer staples companies to potentially post strong earnings in upcoming quarters as they profit from the sagging greenback.

Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. DISCLOSURE: Writer's fund has no position in any stock mentioned, as of 3/19/08.

Ethanol's latest victim: Cheerios originally appeared on BloggingStocks on Wed, 19 Mar 2008 17:48:00 EST. Please see our terms for use of feeds.

Minneapolis-based food maker General Mills Inc. (NYSE: GIS) announced today that it is raising its fiscal 2008 earnings guidance on higher-than-expected sales growth and cost cutting. For fiscal 2008, ending in May, General Mills expects earnings per share of $3.45 to $3.47. The previous range had been $3.39 to $3.43 per share, and analysts surveyed by Thomson Financial had expected $3.45 per share.

Despite raising grain prices, General Mills has seen strong results from such products as Oat Cluster Crunch cereal, Progresso soups, and Fiber One bars.

Continue reading General Mills raises 2008, 2010 forecasts

General Mills raises 2008, 2010 forecasts originally appeared on BloggingStocks on Tue, 19 Feb 2008 14:34:00 EST. Please see our terms for use of feeds.

Here are a few highlights of this past week's earnings coverage from BloggingStocks:

• Abercrombie & Fitch Co. (NYSE: ANF) beat estimates on strong sales and higher profit margins.
• Baidu.com Inc. (NASDAQ: BIDU) profit soared on strong revenue from online marketing.
• Coca-Cola Co. (NYSE: KO) earnings and revenue surged in the fourth quarer.
• Dean Foods Co. (NYSE: DF) missed expectations on rising commodity costs and lower profit margins.
• Deere & Co. (NYSE: DE) posted better-than-expected profits as rising grain prices spurred demand.
• Goodyear Tire & Rubber Co. (NYSE: GT) posted solid results on cost savings and debt reduction.
• Insight Enterprises Inc. (NASDAQ: NSIT) beat expectations and raised its guidance.
• LECG (NASDAQ: XPRT) posted a net loss despite a slight increase in revenue in the fourth quarter.
• Loews Corp. (NYSE: LTR) missed estimates due to profit decline in its CNA Financial (NYSE: CNA) affiliate.
• Marsh & McLennan Inc. (NYSE: MMC) missed estimates on weakness in its insurance services business.
• Playboy Enterprises Inc. (NYSE: PLA) posted disappointing results on weakness in publishing and TV.
• Qwest Communications International Inc. (NYSE: Q) fourth-quarter and full-year results met estimates.
• Sierra Wireless Inc. (NASDAQ: SWIR) beat esimates on the launch of new product s.
• Taser International Inc. (NASDAQ: TASR) profits doubled, which was in line with expectations.
• Visteon Corp. (NYSE: VC) posted a fourth-quarter loss on restructuring costs and write-downs.
• Waste Management Inc. (NYSE: WMI) beat espectations and offered 2008 guidance.
• Wyndham Worldwide Corp. (NYSE: WYN) earnings met expectations and were buoyed by lodging revenue.
• Zoltek Companies Inc. (NASDAQ: ZOLT) missed earnings estimates due to inventory buildup.

Upcoming results to watch for include Wal-Mart (NYSE: WMT), Hewlett-Packard (NYSE: HPQ), OfficeMax (NYSE: OMX), Whole Foods (NASDAQ: WFMI), MGM Mirage (NYSE: MGM), JCPenney (NYSE: JCP), and Safeway (NYSE: SWY).

Visit AOL Money & Finance for more earnings coverage.

Earnings highlights: Coca-Cola, Deere, Abercrombie, Baidu, Playboy, Taser and others originally appeared on BloggingStocks on Sat, 16 Feb 2008 15:40:00 EST. Please see our terms for use of feeds.