Ag Trends and Outlook

  • Climate’s Threat to Wheat is Rising by Degrees

    Scientific findings published in the journal Nature Climate Change are proving that wheat is particularly susceptible to being negatively affected by rising temperatures. Global field tests conducted by an international consortium of scientists found that an increase in temperature of as little as one degree can cut global wheat yields by 6%,

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  • Dairy Industry Braces for a Milk Bust Following 2014 Boom

    The global dairy industry has seen significant volatility over the past year. After milk sales reached record highs in 2014 with prices climbing to $25 per hundredweight, some milk co-ops are now requesting that their farmers dump a portion of their milk or pay a premium for additional transportation fees and low prices amid a global glut that

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  • New Maps Offer a Clearer View of Global Agriculture

    Having the latest up-to-date information on the location and scale of global agriculture is critical for not only food security planning but future capital allocation as well. Two new maps released in the journal Global Change Biology, combine information sourced from multiple data sources that has been reconciled using crowd-sourced accuracy

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  • Slide in Crop Values to Halt Brazil Land Price Rally

    Low commodity prices, particularly for soybeans, which have attributed to the flat-lining or decline of farmland values in other Western countries, will also have a negative effect upon farmland prices in Brazil according to Sao Paulo-based bank, Itau BBA, which has cut its share rating for Brazilian farming company SLC Agricola. Over the past

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  • USDA Sees China Overtaking EU as Top US Seafood Export Destination

    During the 2014 fiscal year, the value of U.S. fish and seafood exports to China climbed 4% year on year to $5.3 billion. A decade ago the country accounted for 7% of total U.S. fish and seafood exports, however currently, China, which is the biggest seafood consumer in the world, accounts for 22% of total U.S. fish and seafood exports, compar

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  • U.S. Winter Wheat Area Dip Could be Bigger Deal for Corn and Soy

    U.S. winter wheat planting will be unexpectedly lower than even the more pessimistic expectations, falling 2 million acres year on year to 40.45 million acres according to the U.S. Department of Agriculture (USDA), and marking the smallest sown area since before the 2010 harvest. This dip however might not have drastic effects upon output as i

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  • GAI Insight: Dairy Allure Persists Despite Near-Term Pressure

    By Gerelyn Terzo   The investment opportunity for the global dairy industry has taken the spotlight of late amid an imbalance in the supply and demand dynamic that has shifted away from producers and investors. Nonetheless, yield-hungry institutional investors have not abandoned dairy, evidenced by the billions of dollars being comm

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  • Investing in India’s Emerging Wine Industry

    Within the next five years 100 million Indian consumers will reach the country’s legal drinking age of 25, and by 2017, wine consumption in the country is expected to increase to 2.1 million cases per year – a 73% increase over the 2013 consumption rate of 1.21 million cases. Although only a small percentage of the country’s population f

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  • Olam Bales Out of Wool Industry

    Olam International has exited the wool sector with the sale of Western Wool Marketing to Quality Wool for an undisclosed amount. The shift out of the industry comes as prices continue to fall, allowing Olam to focus on opportunities for growth in other divisions. Olam is one of Australia’s largest cotton processors, and the company is indica

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  • Malaysian Cocoa Processing at Ten Year Low on Scarce Bean Supply

    Cocoa processing in Malaysia has dropped by 19% over the past four year as Indonesian processing has grown by 60% according to KnowledgeCharts, a unit of Commodity Risk Analysis. Cargill and Olam have expanded their presence in Indonesia’s cocoa industry, establishing new plants in the country that use the majority of the country’s cocoa b

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