So far in 2017, International Flavors & Fragrances (IFF) has risen 15.90% and outperformed the broader-based SPDR S&P 500 ETF (SPY).
According to Reuters, 55% of Wall Street analysts recommend a “hold” on Vale (VALE), while 36% of the analysts rate it as a “buy.”
Vale (VALE) is trading at a forward EV-to-EBITDA multiple of 4.1x, which is 42% lower than its last-five-year average multiple.
While Vale (VALE) has done a commendable job increasing its production and at the same time reducing its unit costs, the high debt still remains one of the major investor concerns for the stock.
Vale’s (VALE) base metals production was also lower sequentially, mainly due to seasonal factors and planned maintenance shutdowns.
After falling 26% quarter-over-quarter, Vale’s (VALE) coal production for 1Q17 rose 53.7% sequentially and 170.4% year-over-year.
In 1Q17, Vale’s (VALE) ferrous division accounted for ~89.0% of its adjusted EBITDA (earnings before interest, tax, depreciation, and amortization).
In 1Q17, Vale (VALE) significantly outperformed its major peers with a rise of ~25%.
Wheat prices traded at an average of $4.4 per bushel in 2016, lower than their average of $5.1 per bushel in 2015.
For most of 2016, corn prices were relatively low compared to the trailing-five-year period. Let’s look at how corn prices have fared so far in 2017.
The USDA (U.S. Department of Agriculture) issued its monthly World Agricultural Supply and Demand Estimates Report for agricultural commodities on June 9, 2017.
On June 14, crude oil broke the three-day gaining streak and fell to the lowest levels since mid-November 2016. On June 15, crude oil opened lower.
The US Dollar Index started the week on a weaker note and fell for three consecutive trading days. It regained strength later on June 14.
Most analysts and copper producers are bullish on copper’s outlook, projecting a deficit by the end of the decade.
Several analysts and producers including Freeport-McMoRan and Southern Copper see a supply shortfall in copper markets coming soon.
China’s vehicle sales fell 0.1% YoY (year-over-year) in May as well as in April.
Fluctuations in copper inventories have been key drivers of copper prices in 2017.
Copper’s story has essentially been a supply-side-driven deficit. We’ve seen significant supply disruptions this year.
China is the world’s biggest copper consumer, accounting for more than 45% of global copper demand.
Copper is famous for its unpredictable supply, and analysts covering copper build a “disruption allowance” into their estimates.