Deere Lowered Guidance as Agricultural Cycle Turns Lower

Iconic farming, forestry and construction equipment maker Deere reported earnings Thursday after the close. Deere reported better-than-expected fiscal first-quarter earnings however lowered guidance sending the stock price sharply lower. DE saw its stock fall over 7% after it warned of lower income ahead as sales volumes “return to mid-cycle levels.” The stock did recover to be down 5.2% at the close. Deere announced earnings per share of $6.23 from sales of $10.4 billion. beating analysts’ forecasts of earnings per share … Continue reading “Deere Lowered Guidance as Agricultural Cycle Turns Lower”

FAO World Food Price Index Fell in January 2024 to lowest level since February 2021

World food prices as measured by the FAO Food Price Index continued to fall, down for a sixth month to 118 index points in January 2024, the lowest level since February 2021. The index is 13.7 points (10.4%) lower from a year ago, well off the record hit in March 2022 after Russia invaded Ukraine. Cereals prices were down 2.2% to December 2020-lows as global wheat export prices declined amid strong competition among exporters and arrival of recently harvested supplies … Continue reading “FAO World Food Price Index Fell in January 2024 to lowest level since February 2021”

Iron Ore Prices Retrace 12% from Two Year Highs, Dragging Aussie Dollar Down

Iron ore prices have fallen over 12% from a two year high earlier this month over $US145 a tonne to $US127.5 on Tuesday. Prices had risen on expectations of healthy iron ore demand for winter restocking amongst growing optimism that Beijing’s latest round of stimulus to revive China’s troubled property market. China has continued to struggle; shipping has been impacted by the Red Sea attacks as a result commodity prices including iron ore have sold off. Commodity price sensitivity is … Continue reading “Iron Ore Prices Retrace 12% from Two Year Highs, Dragging Aussie Dollar Down”

Shipping Chaos Continues with Red Sea Attacks and Panama Canal Chokepoint – TC Shipping Monitor

The last month has been chaos for shipping reflected in the different shipping routes since Houthi attacks on merchant ships have caused widespread merchant ships to avoid the southern Red Sea moving manufactured goods and grains to oil and gas. Tanker traffic has dropped sharply through the key Bab al-Mandab Strait. Detours on shipping lines are expected through February, March the world’s second-largest container line A.P. Moller-Maersk A/S said. Diversions come amid ongoing chokepoint at Panama Canal. Shipping lines are … Continue reading “Shipping Chaos Continues with Red Sea Attacks and Panama Canal Chokepoint – TC Shipping Monitor”

Baltic Index Falls Third Straight Week as Red Sea Attacks Impacts – TC Shipping Monitor

The Baltic Exchange’s dry bulk sea freight index fell for the third straight week as rates declined across all vessel segments. The BDI fell about 10.8% on the week, hitting its lowest since Nov. 23 on Thursday. Shipping is facing chaos since Houthi attacks on merchant ships have caused widespread merchant ships to avoid the southern Red Sea moving manufactured goods and grains to oil and gas. Tanker traffic has dropped sharply through the key Bab al-Mandab Strait. Detours on … Continue reading “Baltic Index Falls Third Straight Week as Red Sea Attacks Impacts – TC Shipping Monitor”

Iron Ore at Eighteen Month Highs as China Walks a Tightrope Trying to Save Property Market

Iron ore prices climbed to eighteen-month highs on expectations of healthy iron ore demand for winter restocking amongst growing optimism that Beijing’s latest round of stimulus will revive China’s troubled property market. December futures prices for iron ore cargoes with a 63.5% iron ore content for delivery in Tianjin rose to $139 per tonne the highest since June 2022. The benchmark January iron ore on the Singapore Exchange rose 1.4% to $US137.55 a tonne, up 2.7% for the week. The … Continue reading “Iron Ore at Eighteen Month Highs as China Walks a Tightrope Trying to Save Property Market”

Baltic Freight Index Falls Again as Iron Ore Pulls Back – TC Shipping Monitor

The Baltic Exchange’s dry bulk sea freight index fell for the second straight week as rates declined across all vessel segments. The BDI fell about 5.4% for the week, which followed the prior week’s 22% fall with the impact of cargoes such as iron ore and coal pulling back from recent highs. The BDI had more than doubled in November to hit a one-and-a-half-year peak. The capesize index was down by 3.4% for the week after it fell 33% the … Continue reading “Baltic Freight Index Falls Again as Iron Ore Pulls Back – TC Shipping Monitor”

Baltic Freight Index Snaps Four Week Rally, falls 22% as Vessel Rates Exceeded Equilibrium- TC Shipping Monitor

The Baltic Capesize Index was down 12 points, or 0.5%, at 2,483 on Friday. It declined 22% for the week after it had surged 52% the prior week with the impact of cargoes such as iron ore and coal pushing bids higher. Iron ore futures were again higher, but vessel rates had exceeded equilibrium and came back as a result. The BDI had more than doubled in November to hit a one-and-a-half-year peak. The capesize index fell 33% for the … Continue reading “Baltic Freight Index Snaps Four Week Rally, falls 22% as Vessel Rates Exceeded Equilibrium- TC Shipping Monitor”

Gold New All Time High Against the U.S. Dollar as Yields Pressure Greenback

Gold, like many assets in the past year has defied traditional valuation. Gold used be known as an inflation hedge, however as yields have fallen as disinflation has featured with CPI and PPI falling globally gold has rallied. This Friday the price of gold hit a record high in US dollars, it has already hit new all times highs in other currencies. For example, it hit a record high in Australian dollars last month. The bet here isa currency bet, … Continue reading “Gold New All Time High Against the U.S. Dollar as Yields Pressure Greenback”

Baltic Freight Index Rally Continued for Fourth Straight Week, Surging 52% – TC Shipping Monitor

The Baltic Capesize Index on Friday jumped or 8.7%, to3,192 on Friday. It surged 52% for the week after it ignited the previous Friday when it soared the most in over two years with the impact of cargoes such as iron ore and coal pushing bids higher. The BDI has more than doubled in November to hit a one-and-a-half-year peak. The capesize index jumped about 84% in its best week since March. The panamax index gained 13% this week to … Continue reading “Baltic Freight Index Rally Continued for Fourth Straight Week, Surging 52% – TC Shipping Monitor”