Connect with us

Business

U.S. shutdown sends grain traders, farmers hunting for data

Editor

Published

on

[ad_1]

CHICAGO (Reuters) – When the U.S. Department of Agriculture announced last week that a slew of key farm reports would not be released on Friday due to the partial government shutdown, the phones at crop forecaster Gro Intelligence blew up.

FILE PHOTO: The U.S. Department of Agriculture is seen in Washington, DC, U.S., March 18, 2012. REUTERS/Gary Cameron/File Photo

The USDA was set to release its views on the projected size of U.S. soybean stockpiles, among other data, following a record-large domestic harvest and a trade war with China that has slowed U.S. exports.

Commodity traders, economists, grain merchants and farmers are anxious for crop updates as they work to project their financial balance sheets and make spring planting decisions.

“It’s been crazy busy,” said Sara Menker, chief executive of New York-based Gro Intelligence.

The shutdown, now in its third week, has rippled across the already struggling U.S. farm economy ahead of President Donald Trump’s planned address at the American Farm Bureau conference in Louisiana on Monday. Federal loan and farm aid applications have also been delayed.

To fill the void on data, traders and farmers are relying on private crop forecasters, satellite imagery firms and brokerages offering analyses on trade and supplies. Some have been scouring Twitter for tidbits on shifting weather patterns and rumors of grain exports, but say it is difficult to replace the USDA.

“We’re just doing the best we can, looking for as much information as is available,” said Brian Basting, economist for Illinois-based broker Advance Trading, which provides customers its own harvest and crop supply estimates.

Dan Henebry, an Illinois corn and soy farmer, said the absence of USDA data was difficult.

“You delay all these reports and the market has no idea where to go, other than trade guesses,” Henebry said.

HUNT FOR NUMBERS

Gro Intelligence has been offering free access to its data platform since Dec. 27, and released worldwide supply-demand crop forecasts on Friday.

The company’s estimates for the U.S. 2018-2019 corn crop yield were 177.4 bushels per acre, below both USDA’s last forecast and lower than the average of estimates in a Reuters survey. Gro pegged the U.S. 2018-2019 soybean yield at 50.6 bushels per acre, also below USDA and below the range of Reuters’ survey.

The company will keep its platform open for the duration of the shutdown, Menker said.

So far, Menker said, the site has signed up executives from the top 10 global agribusiness companies and financial institutions with credit exposure to U.S. agriculture.

Data firm Mercaris has gained new subscribers too, as it has become the only source for organic commodity prices since the halt in USDA reports, sales director Alex Heilman said. The Maryland-based company is making an additional pricing report available to users for free until the federal agency reopens.

“Everybody still needs this information for creating contracts, new product lines, planting acres,” Heilman said.

Farmers Business Network (FBN), which collects harvest data from 7,000 U.S. farmers, was set to release crop yield estimates on Friday to members. The data is not as comprehensive as the USDA’s report would have been, though, said Kevin McNew, FBN’s chief economist.

“At the end of the day, we still need a benchmark,” McNew said. “For better or worse, USDA is the best benchmark we have.”

Trading volume in Chicago Board of Trade grain futures typically jumps on the day in mid-January when the USDA releases its major reports. But without the reports on Friday, volume fell in the most actively traded corn and soy contracts, and rose less in wheat futures than it typically does when USDA issues its data, according to preliminary data from CBOT owner CME Group Inc.

While crops are not growing in North America during the winter season, traders are still looking for updated information from South America and other parts of the world where soy and other crops are growing.

An increase in private companies using government-collected satellite images to track farmed fields in recent years helps shine a light on global crop conditions even while government agencies are dark. The government’s Landsat satellites continue to collect images of the earth and other data.

Slideshow (2 Images)

Private companies such as New Mexico-based crop forecaster Descartes Labs can still access the open-sourced data and analyze it. The public can normally see those images on the U.S. Geological Survey’s website, but it is not being updated during the shutdown, according to a notice on the site.

And all technology can be problematic, said Steve Truitt, government program manager for Descartes.

Data occasionally has shown up late during the shutdown, or not arrived, Truitt said. The USDA and Interior Department staffers who Descartes usually calls either cannot be reached or are working without pay, he said, leading to awkward conversations.

Reporting by P.J. Huffstutter and Tom Polansek in Chicago; Additional reporting by Julie Ingwersen and Mark Weinraub in Chicago; Editing by Caroline Stauffer and Matthew Lewis

[ad_2]

Source link

قالب وردپرس

Business

S&P 500 posts highest close since November 8 on trade optimism

Editor

Published

on

By

[ad_1]

NEW YORK (Reuters) – The S&P 500 posted its highest closing level since Nov. 8 on Friday as investors clung to signs of progress in the ongoing trade talks between the United States and China.

Investors assessed a slew of headlines on the talks, with top trade negotiators from the two countries meeting to wrap up a week of discussions on some of the thorniest issues in their trade war.

If the two sides fail to reach a deal by midnight on March 1, then their seven-month trade war could escalate.

“People are expecting some sort of positive news on trade and tariffs with China fairly soon,” said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia.

“But we won’t know until the end of next week,” he said, and, “there has been a lack of specifics.”

Optimism on the trade front and dovish signals from the U.S. Federal Reserve have driven the recent gains and left indexes well above their lows of December, when the market swooned on fears of an economic slowdown. The S&P 500 is now up about 19 percent since its late-December low.

The S&P 500 technology index was up 1.3 percent, leading gains among the 11 major S&P sectors, while the trade-exposed industrials index climbed 0.6 percent.

The Dow Jones Industrial Average rose 181.18 points, or 0.7 percent, to 26,031.81, the S&P 500 gained 17.79 points, or 0.64 percent, to 2,792.67 and the Nasdaq Composite added 67.84 points, or 0.91 percent, to 7,527.55.

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., February 22, 2019. REUTERS/Brendan McDermid

All three indexes registered gains for the week, with both the Dow and Nasdaq posting a ninth week of increases.

The number of New York Stock Exchange and Nasdaq stocks hitting 52-week highs hit 367, the most since mid-September and outnumbered those hitting year lows by the widest margin in six months.

Stocks briefly pared gains after U.S. officials briefed on the negotiations said more time is likely needed in the talks given China’s resistance this week to American demands for specific steps by Beijing to end forced transfers of U.S. technology and certain other policies.

Afterward, President Donald Trump said there was a very good chance the United States would strike a deal with China to end the trade war, and that he was inclined to extend his March 1 deadline to reach an agreement.

“Right now the downside risk has been not as steep, but there’s always a concern that something happens last-minute,” said Quincy Krosby, chief market strategist at Prudential Financial in Newark, New Jersey.

“Having a Chinese economy that stabilizes is constructive for global markets,” she said. “That’s what is key in terms of the market looking at the results.”

Kraft Heinz Co tumbled 27.5 percent, and was the biggest drag on the S&P along with a 1.7 percent fall in Class B shares of the company’s controlling stakeholder, Berkshire Hathaway Inc.

The packaged food company posted a quarterly loss, disclosed a Securities and Exchange Commission probe and wrote down the value of its iconic Kraft and Oscar Mayer brands.

Slideshow (2 Images)

Advancing issues outnumbered declining ones on the NYSE by a 2.99-to-1 ratio; on Nasdaq, a 2.45-to-1 ratio favored advancers.

The S&P 500 posted 64 new 52-week highs and three new lows; the Nasdaq Composite recorded 112 new highs and 21 new lows.

About 6.9 billion shares changed hands on U.S. exchanges. That compares with the 7.3 billion-share daily average for the past 20 trading days.

Additional reporting by Shreyashi Sanyal and Sruthi Shankar in Bengaluru; Editing by Chizu Nomiyama and Jonathan Oatis

[ad_2]

Source link

قالب وردپرس

Continue Reading

Business

FCA sets $14 million annual target compensation for CEO Manley: filing

Editor

Published

on

By

[ad_1]

FILE PHOTO: Fiat Chrysler Automobiles (FCA) CEO Mike Manley arrives at the memorial service held in honor of former CEO Sergio Marchionne in Turin, Italy, September 14, 2018. REUTERS/Massimo Pinca/File Photo

DETROIT (Reuters) – Fiat Chrysler Automobiles NV (FCA) has set an annual compensation target for Chief Executive Officer Mike Manley consisting of pay, cash and equity bonuses of $14 million, the automaker said in a regulatory filing on Friday.

Manley took over as the head of FCA last July after the abrupt departure of his predecessor Sergio Marchionne. The company paid its new CEO 600,442 euros ($680,240) for 2018 and he will receive a bonus for 2018 of $367,000 to be paid this year.

Manley also was granted FCA 180,364 shares for his work in 2018, which will vest in 2019 if the company meets certain targets. The fair value per share on the date those were granted was $16.61, FCA said.

His target annual compensation consists of a base salary of $1.6 million, and a bonus of $2.4 million and an equity award valued at $10 million, both linked to the company hitting certain performance targets.

Former CEO Marchionne received 6.6 million euros in compensation for 2018, which consisted of nearly 2 million euros in base pay and an annual bonus for 2017 of just over 4.6 million euros.

For the 2014 to 2017 time period, Marchionne also received 2.8 million FCA shares. The fair value per share was $14.84, FCA said.

FCA chairman John Elkann received a base salary of 1.7 million euros and no annual bonus.

Reporting by Nick Carey; Editing by Sonya Hepinstall

[ad_2]

Source link

قالب وردپرس

Continue Reading

Business

Flattening U.S. yield curve in late 2018 ‘flashing red’ on economy: Fed’s Williams

Editor

Published

on

By

[ad_1]

President and Chief Executive Officer of the U.S. Federal Reserve Bank of San Francisco, John Williams, addresses a news conference in Zurich, Switzerland September 22, 2017. REUTERS/Arnd Wiegmann/File Photo

NEW YORK (Reuters) – A flattening U.S. yield curve in December, which was close to being inverted, was “flashing red” about a deceleration in U.S. economic growth heading into 2019, despite some solid data at the time, New York Federal Reserve President John Williams said on Friday.

The yield curve flattens as the gap between short and long-dated yields narrow, suggesting investors’ worries about a slowing economy.

The yield curve inverts when shorter-dated yields rise above longer-dated ones. An inverted yield curve has preceded all U.S. recessions in the past 50 years.

Williams was giving closing remarks at a conference about quantitative tools, jointly sponsored by the New York Fed and the Atlanta Federal Reserve.

Reporting by Richard Leong; editing by Diane Craft

[ad_2]

Source link

قالب وردپرس

Continue Reading

Chat

Trending