Thu, 23 Feb 2012 04:10:00 +0400
Stock exchange news, corn. February forecast of US Ministry of Agriculture on world corn production during the season 2011/12 has dropped by 3.95 mln. tons to 864.11 mln. tons, which still remains a record high figure. Till next crop global stocks of corn in Northern hemisphere will be lower than expected, as dry weather has destroyed a part of crop in South America.
The largest production growth is observed in the EU (by 210 ths. tons up to 64.52 mln. tons). At the same time Argentine’s production has dropped by 4 mln. tons to 22 mln. tons, whereas in China the figure remained at the point mentioned in January forecast – 191.75 mln. tons. Despite the fears of experts, corn crop is Brazil is expected to be at the point of previous month – 61 mln. tons, which considerably exceeds last year’s result (57.5 mln. tons).
During the season of 2011/12 global corn export is expected to amount to 94.93 mln. tons, just as predicted in January. However, in this reference, US export may rise by 1.27 mln. tons up to 43.18 mln., and in Ukraine it may rise by 2 mln. tons up to 14 mln. tons. However, Argentine’s export will drop by 4.5 mln. tons up to 14 mln. tons.
The forecast on global ending stocks of corn has dropped by 2.79 mln. tons to 125.35 mln. tons. This is the lowest point since the season of 2006/07 when ending stocks amounted to 110.217 mln. tons. The shortage of stocks will mostly happen due to the USA (by 1.14 mln. tons to 20.35 mln. tons). EU countries will experience considerable rise of ending stocks (by 0.71 mln. tons up to 5.91 mln. tons).
Experts have already called this February forecast on corn as neutral, for global and US ending stocks have approved higher than expected by experts and traders.
Last week corn and wheat have dropped in price after USDA report, which predicted sufficient world stocks of grain despite non-favourable weather conditions in South America and Black Sea region.
According to the analysts of the Department of Derivatives Trading within Masterforex-V Academy, farmers may lose an opportunity to sell corn by the price that is higher than historic norms. Strongly set dollar favours price drop.
You are free to discuss this article here: forum for traders and investors
The other day, oil prices exceeded the $50/b level for the first time in 6 months. Despite the rally from under $30/b all the way up to $50/b, some experts are still questioning the potential of the current bull market of crude oil. While some representatives of the international expert community see the current market bias as a stable long-term tendency, others do not share their optimism, saying that this is a temporary recovery backed by some seasonal factor and some secondary factors dominating the market at this point. In a broader scale, the market bias is still bearish and there are no fundamentals to reverse the longer-term tendency today.
Because of ultra-low oil prices, such OPEC nations as Angola, Nigeria, Iraq, and Venezuela found themselves neck-deep in debt. The thing is that these oil nations accumulated pretty considerable debt during the bullish cycle in the oil market when oil prices used to be much higher than they are these days. While these the debt was borrowed to improve the economic well being and oil prices allowed these nations to service it much easier, the oil market crash lead to a situation when oil exports started brining less considerable income, thereby making servicing the debt a real challenge. These days, in order to service their debts, the poorer OPEC nations has to provide their lenders with 3 times as much crude oil as they used to do.
The international expert community keeps on pondering on the question of what is the fair oil price to date. In Qatar, the local government and numerous experts assume that this is $65 per barrel or higher. They say that only at this level the international industry will be able to sustain itself over the long term through further oil production and development of new oil fields, which requires considerable investments in the near future.
Some representatives of Kuwait’s oil industry see no fundamentals for much higher oil prices above $50/b in the near future. At the same time, they rate OPEC’s strategy aimed at preserving the cartel’s market share as successful. The Kuwait Minister of Oil says that until the end of this year, the global market of crude oil may have got its balance restored to see the prices settle around $50/b, Masterforex-V Academy reports.
Bloomberg experts have named new oil prices appropriate for the world’s major oil exporters to avoid losses and make at least tiny profits. They rely their projections on the recent research made by Wood Mackenzie, a consulting company saying that at $53/b and above, the world’s 50 major oil companies will stop suffering losses and start capitalizing on their oil exports to some extent.
The opening of iPhone 7 is not going to be held not very soon, but various rumors about the specialty are appearing on an incredibly regular basis. The seventh model has been expected to be a minor update of “apple” gadget, but, judging by information from Chinese insiders, this is not exactly so. Apple has been reported to have finished the latest testing of iPhone model 7, which has been followed by some unofficial details about characteristics of the device.