Tue, May 24, 5:04 AM
- The strongest El Nino in nearly 20 years has ended, according to the Australian Bureau of Meteorology, as sea surface temperatures across the Pacific Ocean cool to their neutral levels.
- The dreaded El Nino led to damaged crop production (such as wheat, palm oil and rice) due to scorching weather across Asia and east Africa, and heavy rains and floods in South America.
- ETFs: DBA, CORN, JO, JJG, WEAT, RJA, SOYB, SGG, COW, NIB, CAFE, BAL, CHOC, DAG, CANE, JJA, GRU, AGA, SGAR, USAG, AGF, WEET, FUD, TAGS, CTNN, UAG, DIRT, UBC, ADZ, JJS, LSTK, GRWN
Thu, Apr. 14, 9:12 AM
- Bottled water consumption in the U.S. will outpace soda drinks on a per capita basis for the first time ever this year, according to data from Euromonitor.
- The gap is expected to widen between now and 2020 as the shift towards healthier consumer habits continues.
- Beverage companies have made up for the shortfall in soda demand through innovation in energy drinks, premium milk, and juices.
- Euromonitor chart on U.S. consumption of bottled water vs. soda drinks (via Bloomberg)
- Related stocks: DPS, KO, PEP, COT, MNST, SODA, OTCPK:NSRGY, OTCPK:NSRGF.
- Related ETF: SGG
- Now read Unfit For This Millennial's Portfolio: The Fizzling Of The Coca-Cola Empire
Wed, Feb. 24, 4:56 AM
- Sugar futures on the Intercontinental Exchange staged their biggest daily gain in nearly 23 years, soaring 8.9% to settle at $0.139 a pound, after forecasts suggested weather-disrupted supply may fall short of demand.
- This year's supply loss will be the first deficit in five years as harvests are hit by the El Nino weather phenomenon and heavy rain in Brazil, the world's largest producer.
- ETFs: SGG, CANE, SGAR
Apr. 29, 2014, 7:15 PM
- U.S. government forecasters predict a more than 65% chance for an El Niño weather phenomenon by the end of the year, a development that threatens to drive up prices for food and other staples.
- El Niño has a reputation for triggering sharp run-ups for prices in markets as diverse as nickel, coffee and soybeans, and commodities investors, traders and analysts are bracing for impact at a time when global supplies of many raw materials already are stretched.
- Global food prices - which at the start of 2014 were expected to be largely flat this year - could easily climb 15% to record highs in as a little as three months after an El Niño occurs, says World Bank economist James Baffes.
- But Société Générale analysts say it is miners, not farmers, who have the most to worry about; since 1991, nickel prices rose the most (13.9%) during El Niño years among commodities the bank tracks.
- ETFs: DBA, CORN, DBC, JO, JJC, RJA, JJG, WEAT, SOYB, DJP, SGG, DBB, COW, NIB, GSG, RJI, CAFE, BAL, GCC, DAG, USCI, JJA, GRU, CHOC, CANE, JJN, RGRA, AGA, JJT, RGRC, CPER, AGF, GSP, BOM, RJZ, JJU, GSC, LSC, FUD, DJCI, USAG, BOS, SGAR, JJM, DEE, BDD, UCI, LD, WEET, UAG, DYY, DIRT, BCM, CMD, DDP, NINI, JJS, CTNN, TAGS, UBC, CUPM, FOIL, UCD, ADZ, RGRI, LEDD, UBM, CMDT, BDG, SBV, USMI, DPU, LSTK, CSCB, GRWN, HEVY, CSCR
Mar. 13, 2013, 7:35 AM
The TBTF banks lie in bed at night dreaming they had the kind of government backstop afforded to the sugar industry. The USDA may buy 400K tons of sugar to prop up sugar processors which borrowed $862M under a government price-support scheme. Roll that one around for a few seconds. The higher prices pay for processors' vacation pads, but hit companies like HSY and NSRGY.PK, along with their customers.| Mar. 13, 2013, 7:35 AM | 2 Comments
Jan. 1, 2013, 12:40 PM
Dec. 10, 2012, 6:24 PM
Benchmark futures for sugar (SGG) and arabica coffee (JO) plunged to two-and-a-half year lows today, thanks to big crops from Brazil, the world’s biggest producer of both. Sugar mills have been running heavy to make up for time lost to unseasonable early rains, while coffee growers are sitting on a lot of beans hoping for higher prices - a "time bomb for the market” next year.| Dec. 10, 2012, 6:24 PM
Feb. 9, 2012, 6:49 AM
World food prices rose 1.9% in January to record their largest gain in 11 months, according to the United Nation's Food and Agriculture Organization main gauge. Prices of all the commodity groups that make up the FAO's index registered gains, with oils, cereals, and sugar making the largest jump.| Feb. 9, 2012, 6:49 AM
Jan. 3, 2012, 3:59 PMLooking at the sharp fall in names like MCD, BWLD, DPZ, and PNRA in a bright green tape, Ivan Hoff suggests a repeat of early 2011's reflation trade - long commodities, short restaurants - might be in order. Higher costs put a double hit on restaurants, cutting margins at the same time squeezed consumers are forced to spend less on meals. | Jan. 3, 2012, 3:59 PM | 2 Comments
Sep. 29, 2011, 1:23 PM
Commodities (GSG) jump up 1.9% following solid economic reports, paced by a 7.3% run in the price of sugar (SGG) over supply worries. No longer a real player in the sugar industry, Cuba marked the end of an era by closing down its Communist-era relic - the Ministry of Sugar - in an effort to improve its absymal harvest yields.| Sep. 29, 2011, 1:23 PM
Aug. 19, 2011, 11:57 AM
Jul. 22, 2011, 10:14 AM
Traders fear Brazil's sugar cane crop could fall below estimates, helping send sugar prices +3.4% higher. The output estimate has been slashed by Brazil's sugarcane industry association to 32.4M tonnes from 34.6M tonnes, although some traders see it falling as low as 31M tonnes.| Jul. 22, 2011, 10:14 AM | 1 Comment
Jul. 12, 2011, 11:50 AM
Mar. 4, 2011, 8:59 AM
Elevated food prices may be part of the new reality, says the IMF, as it will take years for farmers to meaningfully expand production. Rising demand reflects "structural changes in the global economy that will not be reversed." Putting corn into gas tanks isn't helping matters.| Mar. 4, 2011, 8:59 AM | 5 Comments
Mar. 1, 2011, 11:06 AM
Australia's agriculture bureau sounds a contrary signal, saying food costs could tumble in 2011 as high prices draw out more supply. Adverse weather and government policies are the issue, not the ability to produce more food says the bureau's chief analyst. JJA -0.4%. JJG -0.3%. SGG -2.4%.| Mar. 1, 2011, 11:06 AM | 6 Comments
Feb. 17, 2011, 12:47 PM