Dividend payouts from S&P 500 companies for the past 12 months amounted to almost 38% of net income, according to FactSet, the most since February 2009. In the second quarter, the dividend payout of 44 companies exceeded their net income, the most in a decade.
I have never discussed corn and wheat before, but the U.S. is likely to post the longest stretch of falling food prices in 50 years. Milk prices are down 11% from a year ago, while the price of a dozen eggs has fallen 40%.
Soybean oil and soybean meal may be cousins, but they're certainly not identical twins. The two main products of the soybean serve completely different functions--vegetable oil and animal protein feed, respectively.
U.S. crude oil refinery inputs averaged over 16.6 million barrels per day during the week ending August 26, 2016, 64,000 barrels per day less than the previous week's average. Refineries operated at 92.8% of their operable capacity last week.
We live in an age of endless information. This presents a huge and still growing problem for fundamental traders who base their market decisions upon the calculated variables involved in the markets they trade.
Economic growth in the second half is set to maintain its estimated 2½%-3% third-quarter rate through late August from dismal, sub-1% first-half growth, paced by consumer spending and housing, with added support from a mild recovery in trade-sensitive manufacturing, and less “drag” from stabilizing investment spending.
The Conference Board Consumer Confidence Index®, which had decreased slightly in July, increased in August. The Index now stands at 101.1 (1985=100), compared to 96.7 in July. The Present Situation Index rose from 118.8 to 123.0, while the Expectations Index improved from 82.0 last month to 86.4.
With the most recent quarterly wave of retail-sector earnings reports now in the rearview, I decided to do some research into a nagging question that has, for a while, been lingering at the back of my mind. For years now, sector peers (and rivals) Home Depot (HD) and Lowe's Companies (LOW) have reported their quarterly results just one day apart.
Producers of beef and pork have generally been discouraged about recent low prices as cash prices have dropped sharply this year. Spring finished cattle price highs were near $138 per live hundredweight, but last week had fallen to $115, a $23 plunge.
I just have to start this letter off by sharing a bit of market analysis I heard on the radio. Follow me closely here because what I am about to share with you might be the key to understanding just how desperate Wall Street is to dismiss the nearly 20% rally in stock prices over the last six months.
USDA says there were 469 million pounds of beef in cold storage at the end of July. That is up 2.8% from the month before and up 2.0% from the same date last year. This is the most beef in storage for any month since February and the most for any July since 2006.
The Canadian swine herd was up 1.9% at midyear. Compared to July 1, 2015 their breeding herd was up 0.7% and their market hog inventory was up 2.0%. These percent changes are well in line with the U.S. swine herd on June 1.
This is the first time in a long time that we have so many Ag markets with no legs beneath them. The biggest factors in this are undoubtedly the funds being on the short side of the market and the failure to find any specs who are willing to take the long side of any markets.
Personal income increased $71.6 billion (0.4 percent) in July according to estimates released today by the Bureau of Economic Analysis. Disposable personal income (DPI) increased $60.1 billion (0.4 percent) and personal consumption expenditures (PCE) increased $42.0 billion (0.3 percent).
If commodities per se are going to reflate several fundamentals must surface. The most important fundamental is for the U.S. dollar to begin moving lower which down thru history has always been a stiff tail wind for hard assets to move higher.
Real gross domestic product increased at an annual rate of 1.1 percent in the second quarter of 2016, according to the "second" estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP increased 0.8 percent.
Chicago Board of Trade (CBOT) Wheat is under pressure from expectations for Canada's second-largest wheat crop in 25 years, and a raised estimate for Ukrainian production. We've got unbelievable amounts of grain in the world," Gary said.
Cotton prices sold off and are currently trading on a key support level which comes in around the $67 level basis the December contract. This market was quick to take out most of their support levels coming down off the last high with ease.
Soybeans have remained basically flat over the last couple of weeks, but prices are beginning to move down into the lower end of this sideways range this week. The lower end of this trading range comes in around the $9.96 level basis the November contract and prices are testing this level at this time.