Duxton’s Agri Bits and Pieces Vol. 128

QUOTE OF THE WEEK

“I’m going to assume 75 percent of my wheat froze. It looks like someone sprayed a defoliant on it.”

Gary Millershaski, President of Kansas Area Wheat Growers, an industry group, on the impact of  temperatures dropping as low as 13 degrees Fahrenheit (minus 11 Celsius) on April 10.

The coldest start ever to the wheat-growing season in Kansas and freezing weather across the southern Great Plains are compounding damage to U.S. crops already hurt by the worst drought since the 1930s.

Farmers in the U.S., the world’s biggest exporter, probably will abandon 25 percent of their hard, red winter wheat, the most common variety grown, according to the average of 11 analyst estimates compiled by Bloomberg.

http://goo.gl/nfKrB

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VIDEO: AGRI-TECHNOLOGY THROUGH A POTATO CHIP

The Potato chip which today takes 10 times less labour for production than five decades ago shows the potential efficiency gains agri-technology can bring to food production.

If a bag of potatoes chips were to be manufactured today by the process used 50yrs ago it would cost roughly $25 and take 10x the labour. This video which tells the…

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Duxton’s Agri Bits and Pieces Vol. 127

QUOTE OF THE WEEK

“If we get good weather, the world may get a breather on prices,”

Alberto Weisser, CEO, Bunge speaking today the Financial Times Global Commodities Summit in Lausanne, Switzerland. Grain traders Bunge and Glencore expect lower prices for agricultural commodities in the coming season after the most severe drought in the U.S. since the 1930s drove corn and soybeans to records last year.

http://bloom.bg/11dwXZW

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DUXTON COMMODITY INSIGHT: SUGAR COULD GET A LITTLE BIT SWEETER THIS YEAR

New York raw sugar futures have pushed new lows of 17.5USc/lb since Q32010. Prices worldwide are being suppressed by ideas of sizeable global production surpluses for the 12/13 marketing year largely from Brazil, where bullish economics have incentivised production to double over the last decade. We take the view that current economics of sugar production are unsustainable & prices have reached a floor set by compelling ethanol prices. Furthermore, we see upside to prices on demand for Brazilian ethanol exports to the US growing in-line with our bullish view on corn; as well as deteriorating margins of sugar millers in the Indian state of…

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Duxton’s Agri Bits and Pieces Vol. 126

QUOTE OF THE WEEK: THE MOST IMPORTANT THING

“I’ve been walking crops yesterday on the farm in Bedfordshire and they look pretty thin. We would normally say you should hide a hare in a crop of wheat in March. You’d struggle to cover a mouse in some of mine.”

– Peter Kendall, President, National Farmers Union, Great Britain to the BBC. Britain will become a net importer of wheat for the first time in a decade this year because of bad weather.

Farmers are facing a shortage of seeds as planting of spring crops is set to surge, after record rainfall last year in England muddied fields and left less land available to be sown with winter crops.

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SAUDI ARABIA: THE MOST RECENT PROPONENT OF GLOBAL TREND IN FOREIGN AGRICULTURE ACQUISITION

Institutional investors across the world have stepped up efforts to buy and lease farmland in developing nations to secure food supplies since 2008, when prices rose to record levels.

A consortium of Saudi groups has agreed to purchase Continental Farmers Group, a diversified agricultural producer that owns and leases agricultural land in Poland and…

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