![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/images/quotes_7a.gif)
Agriculture • Australian dryness
Elders joins ag groups hurt by Australian dryness
Elders revealed that the agriculture operations it has put up for sale, attracting "a high level of interest", have joined the agribusinesses hurt by dry weather in Australia, and dragged the group back into the red.
The veteran feedlot-to-wool trading group said that its rural services operations had been hurt by "weak industry-wide conditions" in Australia, blamed on a dearth of rainfall which is beginning to raise concerns over prospects for the wheat crop for which sowings are due to start next month.
"Dry and hot weather conditions over the summer have led to a reduction in demand for agricultural chemicals across the cropping and livestock sectors," Malcolm Jackman, the Elders chief executive, said, revealing a 10% drop in sales of farm supplies.
"Similarly dry conditions have led to reduced pasture and lower restock demand in the livestock agency business, which sees commissions down 28% compared with the same time last year."
The group, which has previously shied away from guiding on earnings for this year, said it now expected a "small underlying operating loss", before mark-to-market adjustments for changes in prices of assets such as livestock at its feedlot operations.
In the October-to-March period of its last financial year achieved an operating profit of Aus$14.8m.
Difficult times for agribusiness
The caution adds Elders to the list of agriculture groups which have warned over the impact of Australia’s hot summer, which brought record temperatures to southern areas.
While some eastern parts received heavy rains in January, precipitation was "relatively isolated with large areas still experiencing below average rainfall", US Department of Agriculture farm officials said earlier this week, trimming expectations for growth in the Australian cattle herd because of deteriorated pasture conditions.
Indeed, other Australia farm groups to warn on profits include Australian Agriculture Company, or AAco, which warned two weeks ago that dry weather had hurt sales of cattle last month, as producers rein in restocking plans.
Ironically, the drop in cattle prices comes at a time of elevated beef prices, dynamics expected to fuel a rise in Australian beef exports to a record high this year, potentially usurping Brazil as the second-ranked shipper.
Elders said that its own feedlot operations, fattening cattle for the beef market, "continue to perform strongly".
Deal activity
Elders’ comments come amid longstanding talks over the sale of its rural services division, which it said had received a "high level of interest", with a "number of parties" potentially interested in the business.
"No one interested part has been granted preferential status by Elders," the company added.
The group has also received interest in a takeover by rival RuralCo, its biggest shareholder, prompting Australian competition authorities this week to launch an informal review of a potential tie-up.
Elders said on Wednesday that "no formal takeover offer" has been received from RuralCo.
‘Mounting anxiety’
The dry weather in Australia has brought some benefits to farmers, in speeding the sorghum harvest.
Sydney sorghum futures for May have retreated some Aus$18 a tonne from an early-month high, closing on Wednesday at Aus$263.00 a tonne.
However, it is beginning to raise alarm bells over prospects for the important winter grains crops for which sowings start next month.
Luke Mathews, at Commonwealth Bank of Australia, cautioned last week that "attention will soon focus on the upcoming 2013 winter crop seeding program.
"The current record-long heatwave in Victoria, South Australia and southern New South Wales has ensured the region has minimal soil moisture reserves.
"These low soil moisture reserves will result in mounting anxiety leading into the autumn planting season."
Australia’s dry spell also coincides with a drought in nearby New Zealand, billed as the most widespread in 30 years, which has sent dairy prices soaring, lifting whole milk powder values to the highest since at least the 1990s.
http://www.agrimoney.com/news/elders-jo … -5641.html
Statistics: Posted by yoda — Wed Mar 20, 2013 10:37 am
View full post on opinions.caduceusx.com
Agriculture • Australian dryness
Elders joins ag groups hurt by Australian dryness
Elders revealed that the agriculture operations it has put up for sale, attracting "a high level of interest", have joined the agribusinesses hurt by dry weather in Australia, and dragged the group back into the red.
The veteran feedlot-to-wool trading group said that its rural services operations had been hurt by "weak industry-wide conditions" in Australia, blamed on a dearth of rainfall which is beginning to raise concerns over prospects for the wheat crop for which sowings are due to start next month.
"Dry and hot weather conditions over the summer have led to a reduction in demand for agricultural chemicals across the cropping and livestock sectors," Malcolm Jackman, the Elders chief executive, said, revealing a 10% drop in sales of farm supplies.
"Similarly dry conditions have led to reduced pasture and lower restock demand in the livestock agency business, which sees commissions down 28% compared with the same time last year."
The group, which has previously shied away from guiding on earnings for this year, said it now expected a "small underlying operating loss", before mark-to-market adjustments for changes in prices of assets such as livestock at its feedlot operations.
In the October-to-March period of its last financial year achieved an operating profit of Aus$14.8m.
Difficult times for agribusiness
The caution adds Elders to the list of agriculture groups which have warned over the impact of Australia’s hot summer, which brought record temperatures to southern areas.
While some eastern parts received heavy rains in January, precipitation was "relatively isolated with large areas still experiencing below average rainfall", US Department of Agriculture farm officials said earlier this week, trimming expectations for growth in the Australian cattle herd because of deteriorated pasture conditions.
Indeed, other Australia farm groups to warn on profits include Australian Agriculture Company, or AAco, which warned two weeks ago that dry weather had hurt sales of cattle last month, as producers rein in restocking plans.
Ironically, the drop in cattle prices comes at a time of elevated beef prices, dynamics expected to fuel a rise in Australian beef exports to a record high this year, potentially usurping Brazil as the second-ranked shipper.
Elders said that its own feedlot operations, fattening cattle for the beef market, "continue to perform strongly".
Deal activity
Elders’ comments come amid longstanding talks over the sale of its rural services division, which it said had received a "high level of interest", with a "number of parties" potentially interested in the business.
"No one interested part has been granted preferential status by Elders," the company added.
The group has also received interest in a takeover by rival RuralCo, its biggest shareholder, prompting Australian competition authorities this week to launch an informal review of a potential tie-up.
Elders said on Wednesday that "no formal takeover offer" has been received from RuralCo.
‘Mounting anxiety’
The dry weather in Australia has brought some benefits to farmers, in speeding the sorghum harvest.
Sydney sorghum futures for May have retreated some Aus$18 a tonne from an early-month high, closing on Wednesday at Aus$263.00 a tonne.
However, it is beginning to raise alarm bells over prospects for the important winter grains crops for which sowings start next month.
Luke Mathews, at Commonwealth Bank of Australia, cautioned last week that "attention will soon focus on the upcoming 2013 winter crop seeding program.
"The current record-long heatwave in Victoria, South Australia and southern New South Wales has ensured the region has minimal soil moisture reserves.
"These low soil moisture reserves will result in mounting anxiety leading into the autumn planting season."
Australia’s dry spell also coincides with a drought in nearby New Zealand, billed as the most widespread in 30 years, which has sent dairy prices soaring, lifting whole milk powder values to the highest since at least the 1990s.
http://www.agrimoney.com/news/elders-jo … -5641.html
Statistics: Posted by yoda — Wed Mar 20, 2013 10:37 am
View full post on opinions.caduceusx.com
Agriculture • US dryness fears shift south as wheat sowings near
US dryness fears shift south as wheat sowings near
The southern Plains, the seat of drought in the US last year, revived as a centre for this year too, seeing its crops continue to deteriorate even as those in much of the Midwest improved – and ahead of the important wheat sowing period.
The US Department of Agriculture, for a third week, rated domestic corn as 23% in "good" or "excellent" health, showing no further deterioration towards the levels of 1988, the last year drought caused such devastation to US crops.
Soybeans were rated at 31% in good or excellent health as of Sunday, an increase of 1 point on the week, if still the worst figure since 1988, and an improvement at the bottom end of market expectations.
Reports of poor yields, below even USDA expectations, were revealed on Monday on the first day of the ProFarmer tour of major US row crop areas.
‘Continued to deteriorate’
However, the overall USDA crop condition data concealed a difference in experience between states – crops in parts of the southern Plains continued to deteriorate, even as those in much of the Midwest improved.
While some of the Plains state of Oklahoma received rainfall last week, more than half did not and overall the rains "provided no significant improvements to conditions", USDA officials said.
"Concerns about aflatoxin in corn were reported," they added, a reference to a fungal residue commonly found in crops stressed by drought.
In Kansas, "row crop conditions continued to deteriorate last week as the state received only scattered rainfall", they said, cutting their good or excellent ratings of Kansas soybeans by two points to 3%, and of corn by three points to 5%,
"While average temperatures dropped last week, continued lack of precipitation still plagues farmers," the USDA staff said.
‘Greened up considerably’
The comments contrasted with those from Midwest states such as Indiana, where rains allowed soybeans to recover by four points to 20% rated good or excellent.
"Rain showers helped to improve drought conditions with less than half the state still in extreme-to-exceptional drought conditions compared with nearly 70% on July 31," the USDA said.
"Pastures and hay fields have greened up considerably in the last two weeks.
"Later-planted soybeans are benefitting from the recent rainfall with additional growth and pod fill," besides lower spider mite activity and reduced aflatoxin risk in corn.
‘Tight grip of drought’
The concerns over the southern Plains are particularly important since the region is a major winter wheat growing area – Kansas is the top wheat-growing state – and with farmers preparing for sowings, potentially into dry ground.
The USDA warned last week that "prospects in most of the winter wheat area are not good especially in the western winter wheat area of the southern Plains".
At broker RJ O ‘Brien, Richard Feltes highlighted data showing the condition of the US sorghum crop continuing to decline, by two points to 23% good or excellent, "underscoring the tight grip of drought in the southern Plains".
http://www.agrimoney.com/news/us-drynes … -4896.html
Statistics: Posted by yoda — Tue Aug 21, 2012 6:44 am
View full post on opinions.caduceusx.com
Agriculture • Fears for US dryness spread to livestock industry
Fears for US dryness spread to livestock industry
Concerns about the impact of US dryness on crops have spread to livestock, with a warning that, with pasture conditions deteriorating, there is "plenty of room for worry" among cattle ranchers.
One of the major drivers in Chicago feeder cattle futures to record a high, on a spot lot basis, close to 160 cents a pound has been the switch to buying by southern US ranchers, who last year sold-down herds as a long-running drought dried up paddocks.
The proportion of Texas pasture rated "good" or "excellent" by the US Department of Agriculture stood at 27% as of Sunday, up from 9% in early June last year, and in Oklahoma at 50%, compared with 29% a year before.
Ranchers’ increasing willingness to rebuild herds is also evident in a reduced slaughter rate, which fell 16.5% last month, with a particular drop in beef cow liquidation in the south, a sign of producers keeping hold of breeding stock.
Nationwide decline
However, the improvement in southern grass condition, even to relatively weak levels in Texas, has not been mirrored elsewhere, with pastures nationwide rated 47% in good or excellent health, down from 53% a year before.
Missouri now shows as one of the states with the worst pasture condition, of 28%, compared with 64% a year ago.
"Pasture conditions are worse than a year ago and the 10-year average despite a significant improvement in the situation in Texas and Oklahoma," a report by Paragon Economics and Steiner Consulting said.
"The dividends of a warm winter and improved moisture conditions have largely been had," the briefing said, adding that the question now was whether dryness would force a revival in cow slaughter rates.
"Some early indications show that despite improvements in areas hit by drought last year, there is plenty of room for worry."
Drought conditions
The comments come amid broader concerns over dryness in the Midwest which have led many analysts to question US Department of Agriculture forecasts for a record corn yield, of 166 bushels per acre, although USDA chief economist Joseph Glauber on Thursday urged caution over reduced estimates.
Official data on Tuesday rated more than half the Midwest as suffering abormally dry or drought conditions, compared with 1.2% a year before, besides 71% of the High Plains, up from 21%.
"A number of areas in the Midwest have experienced below-normal precipitation in the last month, negatively affecting pastures," Paragon and Steiner said.
In the South 85% was still unusually dry, although the severity of the moisture shortages were generally lower than a year before.
"If current conditions continue, then we will likely see more pressure around the country. Herd rebuilding will have to wait for another year."
http://www.agrimoney.com/news/fears-for … -4615.html
Statistics: Posted by yoda — Mon Jun 11, 2012 5:39 am
View full post on opinions.caduceusx.com
Agriculture • Dryness raises alarm over Western Australia crops
Dryness raises alarm over Western Australia crops
Western Australia joined the list of major grain-producing areas where crops are under threat of dry weather, which has already killed some canola crops, even as rains refreshed many eastern areas of Australia.
Many growers in Western Australia, Australia’s top arable state, have stopped their autumn sowing campaign because of the persistence of dry conditions which farm officials warned of three weeks ago, noting then that many areas had "very low levels of plant available water leading into winter".
The conditions, which Commonwealth Bank of Australia on Monday termed "unfavourably dry", have prevented seeds germinating in many areas, and in some others withered many crops which have sprouted.
"It is not really that good at all," Australia & New Zealand Bank analyst Paul Deane said.
"Emergence is pretty patchy. Crops are certainly not off to a good start."
Rapeseed setbacks
The problems are seen besetting in particular canola and malting barley varieties, which are earlier sown that wheat, and for which planting windows are ending.
"Wheat has still got plenty of time," Mr Deane told Agrimoney.com.
With Western Australia the country’s top canola-producing state – expected by industry experts to produce a 1.20m-tonne crop this year, 40% of the national harvest – the dryness represents the latest of a series of threats to world canola crops.
Prospects for rapeseed crops in the European Union, the world’s biggest producer, have been hurt by frost, with cold weather raising questions over output in second-ranked Canada too.
Meteorologists at groups such as World Weather have suggested that frosts in the northern US plains and the Canadian Prairies late last week may have hurt newly-emerged seedlings.
Meanwhile, dryness is seen as a threat to, mainly grain, crops in parts of Russia, Ukraine and the southern US Plains.
Back to 2010?
However, Western Australian farmers may have only limited opportunity even to reseed lost canola area with wheat, given that some herbicide-resistant varieties of the oilseed are planted into soil treated with weedkillers such as atrazine.
"Wheat crops would be susceptible to this," Aaron Edmonds, who farms at Calingiri in Western Australia’s central wheat belt, told Agrimoney.com.
"Some legumes would be OK, but it is getting late to be sowing legumes too."
The conditions were reminding growers of 2010, when dryness cut Western Australian canola output by 31% to 711,000 tonnes, according to official data.
"Two years ago is what is in the back of everyone’s minds, rather than the bumper result last year," Mr Edmonds said, reporting that some canola crops in the region were already lost.
"The 2010 season was more painful than the pleasure in last year’s crop."
Rain on its way?
Many growers were putting faith in rains due on Thursday to boost their fortunes although, at 1mm-5mm, it was not expected to be "particularly generous".
"We are hoping they will end up higher than that, although even a small amount is better than just having temperatures of 25 degrees [Celsius]," Mr Edmonds said.
The comments came as farmers in eastern areas were celebrating rain which had boosted their crops, after spell up until now in May during which New South Wales and Queensland had received less than 20% of average rainfall.
Over the weekend, "the best rain, 25mm-50mm, fell from central northern New South Wales into Queensland, yet most regions received more than 10mm", Luke Mathews at Commonwealth Bank of Australia said.
http://www.agrimoney.com/news/dryness-r … -4575.html
Statistics: Posted by yoda — Mon May 28, 2012 9:55 am
View full post on opinions.caduceusx.com
Agriculture • Dryness concerns send wheat price soaring 6%
Dryness concerns send wheat price soaring 6%
Wheat prices soared 6% in Chicago to their highest since September, and in Paris to its highest for nearly a year, amid continued concerns over the dry weather threatening a range of producing countries.
Chicago’s July wheat contract came within 3 cents of regaining $7 a bushel before easing to end at $6.95 ¼, up 5.7% on the day and 17% for the week, its strongest weekly gain since the 1990s.
Kansas hard red winter wheat soared 4.8%, while Minneapolis spring wheat closed up 3.2%.
In Paris, the benchmark November contact closed 4.0% higher at E215.25 a tonne, the contract’s highest close since June, while London wheat gained 3.3% to £158.80 a tonne.
‘Mildly concerned’
The rises came amid continued concerns for crops in major producing countries facing a lack of rain.
Wheat prices of close on Friday
Chicago: $6.95 ¼ a bushel, +5.7%
Kansas: $7.05 a bushel, +4.9%
Paris: E215.25 a tonne, +4.0%
Minneapolis: $7.92 a bushel, +3.2%
London: £158.80 +3.3%
Prices for July contract on US exchanges, and November lot in Europe
US Commodities, saying it was "mildly concerned", clocked fears dryness in the US southern Plains, Europe, Russia, and northern China, along with parts of the north west US Corn Belt and Canadian Prairies".
The broker added: "Remember it was the hot and dry weather in 2010 that eventually caused the worst drought in 100 years in Russia and the start of the two-year bull market [in grains].
In Russia, Alexander Tkachev, regional governor for the southern Russian region of Krasnodar, has estimated that the dryness may cut dryness by 27%.
‘Little opportunity for relief’
In the US, while major winter wheat production losses to dry weather look unlikely so late in the season, with harvest already under way in southern areas, the dryness has scotched hopes of near-record yields.
In Oklahoma , Jeff Edwards wheat specialist at Oklahoma State University Extension, estimated the state’s average yield coming in at 36 bushels an acre, compared with a figure above 40 bushels an acre it would have achieved with more benign late conditions.
And forecasts show that crops yet to be harvested look unlikely to receive rain refreshment
"Little opportunity for relief is offered to the southern Plains and southern portions of the Midwest for the next week to 10 days," Benson Quinn Commodities said.
"Rain events are expected to be confined to northern regions of the US."
http://www.agrimoney.com/news/dryness-c … -4540.html
Statistics: Posted by yoda — Fri May 18, 2012 9:05 pm
View full post on opinions.caduceusx.com
Agriculture • Dryness threatens upbeat hopes for Aussie canola
Dryness threatens upbeat hopes for Aussie canola
Dry weather may mean Australia’s canola harvest falls well short of estimates of up to a record 4m tonnes, dealing a further blow to hopes for world supplies of the oilseed.
The Australian Oilseeds Federation, while concurring with forecasts from other analysts of a rise in Australian sowings of the rapeseed variant this year, warned that "dry conditions experienced in much of the eastern states" was "threatening the establishment of crops".
The decline in rainfall, which follows a warning of the impact of dryness on Western Australia, meant the harvest would come in at 2.97m tonnes, the federation said, in its first estimate for the crop.
Besides implying a 6.9% decline year on year, the forecast is significantly more gloomy than estimates from other analysts.
‘Yield volatility is high’
The US Department of Agriculture on Friday forecast Australia’s canola output in 2012-13 at a record 3.25m tonnes, while Commonwealth Bank of Australia has pegged the harvest at 3.2m tonnes.
Earlier this week, Rabobank, taking a more sanguine view of the weather, said that "at the high end of expectations, Australia could reach a 4m-tonne crop, double the size of the harvest only three years ago".
"Yield volatility is high in Australia due to weather," the bank said.
"Yet given the strong profit incentives and benign weather to date, we do not see significant downside risk to production."
‘Patchy emergence’
The Australian Oilseeds Federation said its more downbeat view was based on observations of "deficient rainfall" in New South Wales, the second-biggest canola growing state, where the upper soil profile has been left dry.
"Crops planted into drying soil have led to patchy emergence."
"The situation in Victoria is similar to that of New South Wales," the group said, adding that in parts of South Australia, crops are "in need of rain to either trigger germination or ensure effective establishment."
Conditions in Western Australia were "more typical" of average, thanks to rains in the Esperance area in March, the federation said, contrasting with comments from state farm officials earlier this month.
EU needs
The prospect for Australia’s harvest is viewed has having a significant influence on the world market, given the prospect of another disappointing harvest in the European Union, the top rapeseed producer and consumer, boosting its reliance on imports.
Oil World on Tuesday trimmed its estimate for the EU rapeseed harvest by 100,000 tonnes to 18.10m tonnes, citing dry autumn sowing weather and damage from a February frost.
The weak harvest "will raise EU import requirements of rapeseed and canola", the German-based consultancy said.
However, Ukraine, which has historically met much of the EU’s import needs, is itself expecting a weak rapeseed crop, which Oil World forecast falling by one-third to 950,000 tonnes.
"Ukrainian exports will decline sharply owing to the very small crop next season," the group said.
"This will raise the global dependence on Canadian and Australian rapeseed and canola export supplies, and will keep prices of rapeseed and canola well supported."
http://www.agrimoney.com/news/dryness-t … -4526.html
Statistics: Posted by yoda — Wed May 16, 2012 11:51 am
View full post on opinions.caduceusx.com