EYE ON AGRICULTURE - CORN

RISK REMAINS! Corn plant roots are shallow due to flood conditions earlier in the year and are currently more vulnerable to dry weather conditions. This year's crop is pollinating later than normal which puts it in harm’s way for hotter/dryer August conditions. The lateness of the growth could potentially expose the roots to frost. The same situation holds true for Soy.
  • Texas: EPA Administrator Stephen Johnson and Texas Governor Rick Perry agreed to delay the renewable fuels waiver decision - if prices continue to drop during the delay period it becomes more likely that the EPA will deny the waiver (7/24 was original deadline.) Cattle lobbyists maintain that current RFS mandate, coupled with any unforeseen weather issues, could drive corn to $8 for 2009 season when mandatory blending goes into effect. To put it in context: There are 162 operating ethanol plants with 41 under construction or expansion In the US, with almost all running at significantly less than total capacity. Total US ethanol capacity is estimated at 9.4B gallons currently.
  • Canada: C.D. Howe Institute (economic think tank) sponsored study by University of Guelph (top agricultural sciences school in Canada) has stirred protest from bio-fuels industry groups. Study contends that there are no demonstrable environmental benefits of current bio-fuel process. Canadian media have linked study to World Bank report earlier this year which contended that bio-fuels were responsible for 75% of global food inflation.
  • South Korea: Increasing use of black sea barley for stock feed -Ukraine/Russia harvest expected to be good. This potentially has a negative pressure on Barley buyers in NA as Canadian farmers were more focused on Corn & Wheat due to pricing.
This chart shows pricing levels for the most recent closing price next to the prior closing price for CBOT corn futures contracts maturing between September 08 and December 10.
This chart shows pricing levels for the most recent closing price next to the prior closing price for CBOT wheat futures contracts maturing between September 08 and December 10.

Cartoon of the Day: Acrophobia

"Most people who are making a ton of money right now are focused on growth companies seeing accelerations," Hedgeye CEO Keith McCullough wrote in today's Early Look. "That’s what happens in Quad 1."

read more

People's Bank of China Spins China’s Bad-Loan Data

PBoC Deputy Governor Yi says China's non-performing loan problem has “pretty much stabilized." "Yi is spinning. China’s bad-debt problem remains serious," write Benn Steil and Emma Smith, Council on Foreign Relations.

read more

UnderArmour: 'I Am Much More Bearish Than I Was 3 Hours Ago'

“The consumer has a short memory.” Yes, Plank actually said this," writes Hedgeye Retail analyst Brian McGough. "Last time I heard such arrogance was Ron Johnson."

read more

Buffalo Wild Wings: Complacency & Lack of Leadership (by Howard Penney)

"Buffalo Wild Wings has been plagued by complacency and a continued lack of adequate leadership," writes Hedgeye Restaurants analyst Howard Penney.

read more

Todd Jordan on Las Vegas Sands Earnings

"The quarter actually beat lowered expectations. Overall, the mass segment performed well although base mass lagging is a concern," writes Hedgeye Gaming, Lodging & Leisure analyst Todd Jordan on Las Vegas Sands.

read more

An Update on Defense Spending by Lt. Gen Emo Gardner

"Congress' FY17 omnibus appropriation will fully fund the Pentagon's original budget request plus $15B of its $30B supplemental request," writes Hedgeye Potomac Defense Policy analyst Lt. Gen Emerson "Emo" Gardner USMC Ret.

read more

Got Process? Zero Hedge Sells Fear, Not Truth

Fear sells. Always has. Look no further than Zero Hedge.

read more

REPLAY: Review of $EXAS Earnings Call (A Hedgeye Best Idea Long)

Our Healthcare Team made a monster call to be long EXAS - hear their updated thoughts.

read more

Capital Brief: 5 Things to Watch Right Now In Washington

Here's a quick look at some key issues investors should keep an eye on from Hedgeye's JT Taylor and our team of Washington Policy analysts in D.C.

read more

Premium insight

[UNLOCKED] Today's Daily Trading Ranges

“If I could only have one thing of the many things we have it would be my daily ranges." Hedgeye CEO Keith McCullough said recently.

read more

We'll Say It Again: Leave Your Politics Out of Your Portfolio

If your politics dictates your portfolio positioning, the Democrats and #NeverTrump crowd out there have had a hell of a week.

read more

Cartoon of the Day: 'Biggest Tax Cut Ever'

President Donald Trump's economic team unveiled what he called last week, "the biggest tax cut we’ve ever had.” Before you get too excited about that hang on a sec. "Trump Tax Reform ain’t gettin’ done anytime soon," Hedgeye CEO Keith McCullough wrote in today's Early Look.

read more