According to a new market research report, the overall global precision farming market will be worth $3.7 billion by 2018, with a compound annual growth rate of more than 13 percent.
Published by Markets and Markets, the research concluded precision farming offers increasing yields, while at the same time reducing waste and environmental degradation.
The major drivers of the global precision farming market are profitability and enhancement in yields, government assistance, energy and cost saving, and the growing ag industry. The only restraints are the high initial investments, and lack of technical know-how.
According to an amended civil complaint, former MG Global CEO Jon Corzine and other executives acted “recklessly and with “gross negligence.”
In a filing with the U.S. Bankruptcy Court, a litigation trustee said Corzine’s action to buy billions of dollars in European sovereign debt with borrowed money, while artificially inflating MF Global’s revenue, drove the company into Chapter 11.
Corn closed the week $.03 higher. Last week, private exporters reported a sale of 180,000 metric tons of corn to Columbia and 197,200 mt to Mexico.
In the weekly export sales report, corn sales tallied of 25.2 million bushels for 2013/14. This is above the 14.1 mb needed to stay on pace with the USDA’s projected demand of 1.225 billion bushels.
The weekly crop progress and conditions report said U.S. corn conditions increased 2 percent to 55 percent good-to-excellent versuss 24 percent last year with 7 percent of crop harvested (16 percent is normal).
This was the first improvement in corn ratings in 11 weeks with 40 percent is mature versus 55 percent normal. This underscores the need for more frost-free growing weather.
With the USDA confirming larger yield potential compared to August and producers uncovering surprisingly strong yields in early harvesting, the corn market looks to find hedge pressure during the remaining weeks of September and into October.
Reasonable downside targets look to be $4.07 and long term support of $3.87.
Strategy and outlook: Producers are 50 percent sold of 2013/14 crop and own the December 560 strike puts on 50 percent of production.
Producers are 10 percent sold of the 2014/15 crop.
Soybeans closed the week $.04 1/2 higher from last week. Last week private exporters reported a sale of 140,000 mt of U.S. soybeans to an unknown destination.
In the weekly export sales report, soybean sales totaled 103.8 mb. This is well above the 10.6 mb needed to reach the USDA demand projection of 1.385 bb.
The crop progress and conditions report showed soybean rating unchanged at 50 percent g/e versus 35 percent last year.
Soybean leaf drop is at 47 percent versus 56 percent normal.
Harvest is just beginning and was estimated at 3 percent complete compared to a normal pace of 7 percent.
This suggests that mid-September rains will still be of some benefit to final soy yield.
States in the southern U.S. are reporting strong yields, but this is where rain has fallen in the summer months. In the main soybean belt, where its been dry, yields should be well under average.
Producers must recognize the 70-cent carry that January carries over July and decide not to store soybeans this year. Look for $12.56 as the 62 percent retracement for November soybeans.
Strategy and outlook: Producers are 60 percent sold of the 2013/14 crop and own the November 1260 put options on 50 percent of production.
Sell 20 percent of 2013/14 production at $13.95 against January. Producers are 10 percent sold of 2014/15 production.
This material has been prepared by a sales or trading employee or agent of Midwest Market Solutions and is, or is in the nature of, a solicitation. This material is not a research report prepared by Midwest Market Solution’s Research Department. The risk of loss in trading futures and/or options is substantial and each investor and/or trader must consider whether this is a suitable investment. Past performance, whether actual or indicated by simulated historical tests of strategies, is not indicative of future results. Trading advice is based on information taken from trades and statistical services and other sources that Midwest Market Solutions believes are reliable. Brian Hoops can be reached at (605) 660-1155.
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