Commodities lose diversification edge with crisis

“There is nowhere to hide.” – BRIAN HICKS Using commodities to hedge potential losses in stock markets has not worked lately, and the tighter link among assets these days means diversification benefits may not be as great as before. Hedge funds, pension funds, mutual funds and wealthy individuals who invested in commodities on the theory

Cattle, corn and the credit crunch

NDSU EXTENSION SERVICE Since midsummer, new-crop December corn futures prices have declined more than US$4 per bushel from the $7.88-per-bushel high. During the same time, November feeder cattle futures prices declined more than US$20 per hundredweight (cwt) from highs of more than $119. My previous columns have emphasized the usual opposite relationship between feeder cattle


Crisis remakes the commodity business

Only the brave or the foolish would make predictions about the future amid the biggest market upheaval in three generations. But it is already clear the crisis is profoundly reshaping the commodity trading industry. The mix of intermediaries, customers and financial resources are all being substantially redrawn. So here are some tentative thoughts on how

Markets still controlled by “outside” forces

For three-times-daily market reports from Don Bousquet and RNI, visit “ICE Futures Canada updates” at www.manitobacooperator.ca Grain and oilseed futures at ICE Futures Canada in WinnipegWinnipeg closed the week ended Nov. 14 moderately lower as weakness in Chicago soybean and soyoil markets weighed on prices. The continued global financial instability also undermined the markets. Farmer


Agrium profit surges, widens outlook

Agrium Inc. reported a higher third-quarter profit that topped analyst expectations and the company widened its outlook for the second half of the year amid turmoil in the global economic and commodity markets. Agrium, the world’s third-largest nitrogen producer and the top U. S. retailer of crop supplies, earned $367 million or $2.31 a share

Grains outlook muted by bearish economy

DON BOUSQUET It’s Your Business For three-times-daily market reports from Don Bousquet and RNI, visit “ICE Futures Canada updates” at www.manitobacooperator.ca Grain and oilseed futures at ICE Futures Canada in Winnipeg closed the week ended Oct. 17 lower, as steep declines in Chicago futures markets and the continued instability in financial markets pressured prices down.


How low can U. S. grains go?

“We are seeing a lot of wealth destruction and demand destruction. I don’t think that is going to heal itself overnight.” – U. S. Grains Analyst Jim Bower The sell-off in grains as part of a broader flight of investment money from commodities could continue through year’s end due to the expanding credit crisis, with