Invesco DB Agriculture Fund
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FOMC on the Economic Situation: A Strong US Economy
In the March meeting minutes, the FOMC staff review of the economy was stronger than the review presented at the January meeting.
What’s Driving the Rally in Commodities?
The US Federal Reserve recently raised the benchmark lending rate by 25 basis points—the sixth hike since December 2015.
What Rising Services Activity Means for the US Economy
After reaching a lifetime high in October 2017, the ISM (Institute of Supply Management) non-manufacturing index fell 2.7 percentage points to 57.4%.
Can Green Bonds Provide a Potential Hedge against Climate Risk?
In this environment, green bonds could offer investors an option to hedge their portfolios against climate-related risk and enjoy a good risk-return profile.
Deere’s Financial Unit Continues to Bleed from Used Equipment
Deere (DE) Financial Services represented 11.5% of the company’s revenues in 4Q16, which is higher than 9.7% in 4Q15.
Producer Pessimism on 2017 Agriculture Prospects Rose in October
Purdue University’s agriculture economy barometer measures producer sentiment and the health of the agriculture economy based on a monthly survey of 400 US producers.
What Does the Market Expect from Deere’s Fiscal 4Q16 Earnings?
Deere & Company, the world’s largest manufacturer of tractors and harvesting combines, is scheduled to declare its earnings for fiscal 4Q16 on November 23, 2016.
Leases Drive Up Credit Losses in Deere’s Financial Unit
Deere & Company’s (DE) financial services (IYF) unit represented 10.2% of revenues in 3Q16, which is comparable to levels of 10.4% in 3Q15.
What Broad Trends Are Affecting Demand for Deere Equipment?
Deere & Company (DE) expects demand for the farm (MOO) equipment machinery in the US and Canada region to be subdued in the rest of the year.
What Do Wall Street Analysts Think about Deere?
The consensus rating among Bloomberg-listed analysts covering Deere & Company has leaned more towards a “neutral” rating since the beginning of 2016.
Why Did AGCO Increase Its Fiscal 2016 Sales Guidance?
AGCO’s (AGCO) year-to-date free cash flows have been negative—the company’s working capital requirements are greater in the first half of the year.
AGCO Acquires Cimbria, Expands in Seed and Grain Handling
On June 29, AGCO (AGCO) announced that it acquired Cimbria Holdings from Silverfleet Capital for 310 million euros ($340 million).
El Niño’s Effect on Grains, Soya Crops May Cause Price Cushioning
The recent surge in soybean prices can coincide with the expectation of a strong El Niño effect, damaging the soya crops. In 1998 and 2010, the El Niño effect led to a surge in soybean (SOYB) prices.
Who Has Been Outperforming Whom in the Commodity Space?
Between 1996 and 2005, the energy index (XLE) (XOP) rallied the most within the broader commodity index (DBC).
Diversification Strategy Was Key in CTA Index: Currency Lagged
The Barclay CTA Index returned 1.6% in June 2016. But how did its subindexes perform that month?
CTA Index Flat, Currency Leads, and Agricultural Funds Lag
In April 2016, the Barclay CTA (commodity trading advisors) Index remained flat. It returned -0.08% in April 2016.
The Worst Isn’t Over: Inside Deere’s Outlook Downgrades for Fiscal 2016
Deere downgraded its fiscal 2016 guidance again after cutting it in fiscal 1Q16, citing competitive pressures in construction and forestry equipment.
Behind the Broad Trends in Deere’s Equipment Demand in Major Markets Outside the US
Deere expects demand for farm equipment machinery in Europe to be subdued in 2016 as farm incomes continue to linger at levels below the long-term average.
Understanding the Key Economic Indicators in Construction and Energy
Deere (DE) now expects its Construction & Forestry segmental sales to drop 13% in fiscal 2016, as compared to its previous forecast of an 11% decline.
How Did Deere & Company Become the Brand It Is Today?
John Deere, who began his career as a blacksmith, founded the eponymous Deere & Company (DE) in 1837.
Why Deere & Company’s Dealer Network Is Crucial for Its Business
Deere & Company (DE) markets its products mostly through independent retailers spread across North America.
What Trends Are Driving Deere & Company’s Industry?
Agribusinesses including Deere & Company and AGCO are now offering technology-based solutions to drive the next generation of farming productivity gains.
What Are the Advantages of DE’s Captive Financing Entity?
Unlike major banks, which have access to low-cost bank deposits, Deere & Company’s (DE) funding costs are higher.
How Deere’s Margins Differ across Key Geographical Markets
The US and Canada regions were responsible for 63.9%, 63%, and 66.1% of Deere & Company’s (DE) total revenues in 2013, 2014, and 2015, respectively.
Deere: The World’s Largest Agriculture Machinery Company
Deere & Company (DE) has a market capitalization of ~$25 billion. It’s the world’s largest maker of farm equipment.
Inside Deere’s Flagging Farm Machinery Sales
The monthly retail figures for equipment sales released by Deere and Caterpillar show a continued dip, despite the upturn in construction in 2016.
Corn Prices Shift to Upward Price Movement
March corn futures prices were trading above the crucial support of $3.60 on March 10, 2016. Corn prices rose for the fifth consecutive trading day by ~1%.
Corn Traded below Crucial Moving Averages for 12th Straight Day
Corn futures prices rose by 1.3% during the four straight days of increasing price movement.
Why Did Corn Prices Trade near the Crucial Resistance of $3.6?
Corn futures prices rose for the third consecutive trading day on March 8, 2016. It was trading near the resistance level of $3.60 per bushel on the day.
Corn Prices Rose despite Weaker European Import Cues
Corn futures on the CBOT, for March delivery, rose and settled at $3.58 per bushel on March 8. Corn prices rose despite weaker European corn import prospects.
Why Corn Prices Might Rise above the $3.55 Support Level
March corn prices were trading near the crucial support of $3.55 per bushel for the seventh consecutive trading day on March 4.
Corn Prices Could Continue to Test Crucial Support
March 2016 corn futures prices were trading near the support level of 355 cents per bushel on March 3, 2016. Prices declined after two days of rising by 0.28%.
Strong South American Harvests Hurt Corn Prices
Corn futures on CBOT for March delivery decreased 0.21% and closed at $3.53 per bushel on March 4. Corn declined due to a stronger pace of the South American harvest from favorable weather.
What Are Analyst Expectations for Corn Prices?
Corn prices for March 2016 expiry traded near the crucial support of 355 cents per bushel on March 2, 2016.
Lower-Than-Anticipated Ethanol Inventory Supported Corn Prices
Corn futures prices on the Chicago Board of Trade for March expiry rose by 0.21% and settled at $3.54 per bushel on March 2, 2016.
Weak Grain Crushing Report Influenced Corn Prices
Corn futures on CBOT (Chicago Board of Trade) for March delivery rose by 0.07% and settled at $3.53 per bushel on March 1, 2016.
The Impact of Innovation and Customer Focus Costs on Specialty Chemicals
In 2015, R&D and SG&A expenses were twice as large for specialty chemicals than they were for commodity chemicals for companies domiciled in the US.
Corn Breached the Crucial Support Level: What Does It Mean?
Corn prices for March 2016 expiry were trading near the support of $3.55 per bushel on February 25, 2016. The prices fell for the third trading day by 3.3%.
What Caused Corn Prices to Fall for the Second Consecutive Day?
Corn futures prices for March contracts were trading near the support level of $3.60 per bushel on February 24. Corn prices fell for the second trading day.
Why Did Corn Prices Fall to the Projected Price Range?
March corn contracts were near the key support of $3.60 per bushel on February 23. The fall in corn prices should keep it in the projected development range.
Unfavorable South American Weather Supported Corn Prices
Corn futures trading on the CBOT, for March delivery, rose on February 22, 2016. Corn prices rose due to unfavorable weather conditions in South America.
Corn Prices Fell on USDA’s Weak Export Inspections
March corn futures were trading near the crucial support level of 360 cents per bushel on February 8, 2016.
Weak Weekly Export Inspection Report Hurt Corn
Corn futures prices on the Chicago Board of Trade (or CBOT) for March expiry fell by 0.96% and settled at $3.62 per bushel on February 8, 2016.
Corn Prices Traded below Critical Moving Averages
Corn futures contracts for March 2016 expiry were trading near the crucial support of $3.70 per bushel on February 4, 2016.
Higher Fuel Ethanol Stocks Dragged Corn Prices Down
Ethanol stocks for the week ending on January 29, 2016, were at 22,362,000 barrels. They rose by 926,000 barrels from the previous week.
Why Did the Short-Covering Rally Drive Corn Prices?
Corn futures on the CBOT, for March delivery, rose by 0.34% on February 2, 2016. Corn prices rose due to the technical short-covering rally.
Corn on the Rise? Monitoring Corn’s Mid-January Upward Price Movement
Corn futures prices for March 2016 delivery were trading near the crucial resistance level of $3.70 per bushel on January 20.
Corn’s Future: Strong Domestic Demand Supports Futures Prices on January 20
On January 20, corn futures on the CBOT for March delivery increased by 0.27%, settling at $3.68 per bushel in the wake high domestic corn demand.
Corn Prices Trade below the Key Moving Averages
Corn futures contracts, for March expiry, were trading above the key support level of $3.55 per bushel on January 14, 2016.
EIA’s Strong Weekly Ethanol Production Supports Corn Prices
Corn futures on the CBOT (Chicago Board of Trade), for March delivery, rose slightly by 0.35% and settled at $3.58 per bushel on January 13, 2016.
Corn Volumes Could Rise Before Key Data Release
On January 7, 2016, March corn prices were trading near the key support level of 350 cents per bushel for the third consecutive trading day.
Corn Prices Played above Crucial Support Levels on January 5
Corn futures prices for March expiry were trading near their crucial support level of 355 cents per bushel on January 5, 2016. Corn prices recovered from the sharp downward movement on January 5.
Corn Prices Shift to Downward Trend
Corn futures prices for March delivery were trading below the crucial support level of 350 cents per bushel on January 4, 2016.
After 5 Straight Days of Falling, Corn Prices Rise
Corn future contracts for March expiration were trading near the key support level of 360 cents per bushel on the consecutive second trading day. Prices breached this critical support level on December 29.
Corn Prices Could Test Critical Support Levels
Corn prices could test the crucial support level of 360 cents per bushel in the near term and could remain in the range of 355–365 cents.
Corn Prices Breach the Critical Support Level
Despite the rise in corn’s Weekly Export Sales Report, corn failed to keep the pace with the USDA’s export targets for the marketing year 2015–2016.
Unfavorable Weather Conditions in South American Region Drive Corn Prices
Brazil and Argentina are key corn producing countries, ranking third and sixth, respectively, in the world, according to the US Department of Agriculture.
Could Support Level of $3.65 Hold Corn’s Downward Price Movement?
March corn futures prices were near the key support of $3.65 per bushel on December 23, 2015. Corn prices fell for the third consecutive trading day.
Corn Prices Fell despite Lower Ethanol Production
March corn futures contracts fell by 0.20% and settled at $3.65 per bushel on December 23. The prices fell despite lower ethanol production supporting corn buying.
Corn Prices Are Trading close to Support Level
Corn futures contracts for March delivery were trading below the crucial support level of 375 for the second consecutive day on December 18, 2015.
Corn Prices Continue to Fall
Corn could progress more. Corn prices traded slightly above the 20-day moving average of $3.73 per bushel on December 17, 2015.
Corn Prices Are below Key Moving Averages
March corn futures prices were trading below the key support level of 370 cents per bushel on December 16, 2015.
Higher-Than-Projected Ethanol Inventories Kept Corn Prices Down
March corn futures contracts traded on the Chicago Board of Trade (or CBOT) fell by 2.0% and settled at $3.69 per bushel on December 16, 2015.
Corn Prices Trade in a Symmetrical Triangle Pattern
The corn futures contracts for March expiry traded above $3.75 per bushel on December 15, 2015. Corn prices were in a symmetrical triangular pattern.
Corn Prices Breached the Key Resistance Level
On the expiration day, corn futures contracts for December delivery were trading above the key support level at $3.80 per bushel on December 14, 2015.
Why Corn Prices Might Test the 100-Day Moving Average
December corn futures prices were trading near the crucial support level of 370 cents on December 8, 2015.
Upward Corn Price Movement Steepened
December corn futures were trading above the support level of $3.70 per bushel on December 3, 2015. The increasing price movement steepened on the day.
Corn Prices Are Trading Near Key Resistance Levels
Corn futures prices for December contracts were trading near the resistance level of 368 cents per bushel on December 1, 2015.
Could a Decrease in Ethanol Production Push Corn Prices Down?
December futures contracts for corn traded on the Chicago Board of Trade (or CBOT) fell slightly by 0.27% to settle at $3.63 per bushel on November 20, 2015.
Could Domestic Demand Help Corn Prices Rise?
December corn futures contracts trading on the CBOT (Chicago Board of Trade) fell slightly by 0.07% and settled at $3.61 per bushel on November 18.
Will Weekly Export Sales Push Corn Prices Down?
Technical buying, speculative trades, and weak anticipation from the weekly ethanol production report supported corn prices on November 11, 2015.
Could Producers See Corn Prices above USDA’s Cost Standard?
Corn futures prices for December 2015 expiry were trading below the support level of 360 cents per bushel at the end of the day on November 10, 2015.
Would Buyer’s Leave the Price Chase to Corn Producers?
The price of corn futures contracts for December delivery, trading on the CBOT, was near the key support of $3.80 per bushel on November 3, 2015.
Would an Early Harvest Impact the Volatility in Corn Prices?
For corn futures prices, the pulling and pushing factors are strong. Therefore, the anticipated volatility in corn futures prices might increase.
How Can Corn Prices Rally Above $4 Per Bushel?
December contracts for corn futures trading on the Chicago Board of Trade (or CBOT) rose on October 26, 2015, and progressed on the upward price pattern.
Could Corn Price Gain Support in Speculation of Supply?
Corn futures contracts for December trading on the CBOT (Chicago Board of Trade) rose by 1.06% and settled at $3.8 per bushel on October 21, 2015.
Could Corn Prices Continue on the Downward Trend?
Corn futures prices fell 4.4% consecutively in the last four trading days, reversed by a less-than-expected harvest progress report. Prices closed very near the previous day’s prices.
The October 9 WASDE Report and Its Impact on Corn Prices
Producers’ expectations—that the price of corn will rise after the October supply report—might come to fruition, confirming consensus market sentiments.
The Early October 2015 Corn Harvest: a Five-Year High?
The US Department of Agriculture’s Weekly Export Sales Report, which released on October 8, 2015, showed a 31% decline in net corn export sales.
What Are Corn Speculators Thinking ahead of WASDE Report?
CBOT (Chicago Board of Trade) December delivery of corn futures contracts remained range-bound and fell on October 7, 2015, after a two-day price rally.
Will Corn Prices Be Range-Bound before WASDE Report Release?
On October 6, 2015, CBOT (Chicago Board of Trade) December expiry of corn futures contracts rose, breaking the resistance level.
Corn Prices Rally in Week Ended October 4: Will It Continue?
December CBOT corn futures prices rose 1.09% and settled at $3.93 per bushel on October 5, 2015. Prices rose due to lower-than-anticipated harvest progress in the USDA’s crop progress report.
Will Quality US Wheat Be Competitive in International Trade?
December wheat futures contracts traded on the Chicago Board of Trade increased by 2.05% and settled at $4.96 per bushel on September 21, 2015.
Will a ~100% rise in RIN prices help fertilizer stocks like MOS?
If RIN prices rise, investors could expect higher demand for corn and prices, which is one factor that might drive fertilizer stocks.
Corn prices rebound after a record harvest sent prices 50% lower
After a record harvest in 2013, driven by high plantation acreage, favorable weather, and fertilizer application, crop prices have pulled back from the highs of 2012.
Why are crop prices so important to potash and phosphate stocks?
Crop price is one of the key drivers of fertilizer demand and prices. Globally, potash and phosphate are used for several types of crops.
The DBA ETF strongly relates to POT and MOS historical performance
So unless we see crop prices start to run, we shouldn’t expect a strong recovery or rally among potash stocks and the VanEck Vectors Agriculture ETF (MOO).
Opportunity: Global water irrigation’s long-term growth
Drought conditions in 2012 led to an increase in commodity prices, showing the importance of efficient mechanical irrigation and equipment.