Grain du Coteau :...
Follow
Find
59.2K views | +18 today
Grain du Coteau : News ( corn maize ethanol DDG soybean soymeal wheat livestock beef pigs canadian dollar)
Your new post is loading...
Your new post is loading...
Scooped by Stéphane Bisaillon
Scoop.it!

Expect More Than Standard Antitrust Scrutiny For ChemChina/Syngenta Deal

Expect More Than Standard Antitrust Scrutiny For ChemChina/Syngenta Deal | Grain du Coteau : News ( corn maize ethanol DDG soybean soymeal wheat livestock beef pigs canadian dollar) | Scoop.it

State-owned ChemChina has officially made an aggressive $43 billion bid for Swiss seeds and pesticides company Syngenta AG (ADR) SYT 2.07%.

Following confirmation of the deal, Benzinga had the chance to speak with Chris Pultz of the Kellner Merger Fund regarding the possibility that the deal could face regulatory threats or delays and where a completed deal leaves Monsanto Company MON 0.77%.

Speaking With Chris Pultz

When Benzinga asked about potential regulatory hurdles, Pultz said the deal could face some political pushback, but not from an antitrust perspective.

“This deal needs to be reviewed by the Committee on Foreign Investments in the United States,” Pultz explained. “You have a Chinese state-owned company that is buying something that, even though it’s not intellectual property, it is important to the food chain. So the debate over whether it will be construed as being a ‘national interest’ here could create some political backlash.”

Related Link: ChemChina Makes $43 Billion Offer For Syngenta

He added that the current election cycle would add to public pushback and pressure on regulators to block the deal in its current form, but Pultz believes that the deal will likely eventually go through.

Pultz concluded by noting that, with no sizable buyout targets remaining in the market, Monsanto has likely missed its major acquisition window if the Syngenta/ChemChina deal closes.

Benzinga broke the news of a potential ChemChina bid for Syngenta back on December 9, 2015.



Read more: http://www.benzinga.com/trading-ideas/long-ideas/16/02/6208480/expect-more-than-standard-antitrust-scrutiny-for-chemchinasyn#ixzz3z8OvYxWL
more...
No comment yet.
Scooped by Stéphane Bisaillon
Scoop.it!

Monsanto wins Chinese import approval for genetically modified soybeans

Monsanto wins Chinese import approval for genetically modified soybeans | Grain du Coteau : News ( corn maize ethanol DDG soybean soymeal wheat livestock beef pigs canadian dollar) | Scoop.it

Monsanto Co. said on Wednesday it received import approval from China for its new genetically modified Roundup Ready 2 Xtend soybeans and that it will begin selling the seeds in the United States and Canada.

China, the world's biggest soybean importer, does not allow imports of new genetically modified crops until they are approved by government regulators.

The Creve Coeur company's next-generation soybean variety is engineered to tolerate applications of glyphosate and dicamba herbicides amid a growing problem of glyphosate-resistant weeds in North America.

Dicamba use is allowed in Canada, but not yet approved in the United States, where the Environmental Protection Agency is still reviewing the chemical, Monsanto said.


Monsanto said it is offering discounts to U.S. farmers buying Roundup Ready 2 Xtend seeds in case the regulatory approval does not arrive in time for the 2016 growing season.

The company is aiming for 3 million acres planted in the upcoming season and expects the genetic technology to be planted to two-thirds of U.S. soybean acres by 2019. The company also licenses its GMO properties to other seed companies.

Monsanto shares were up 1 percent at $88.19 in early afternoon.

more...
No comment yet.
Scooped by Stéphane Bisaillon
Scoop.it!

ChemChina’s Bid for Syngenta Leaves Monsanto in the Cold

ChemChina’s Bid for Syngenta Leaves Monsanto in the Cold | Grain du Coteau : News ( corn maize ethanol DDG soybean soymeal wheat livestock beef pigs canadian dollar) | Scoop.it

The advance of the China National Chemical Corporation, a state-owned company, on Syngenta leaves Monsanto in a thorny spot.

The Chinese company, known as ChemChina, is nearing a deal for Syngenta, the Swiss seeds and pesticides maker. Its friendly nature and the cash involved probably make it better than a similarly valued offer last year from the American rival Monsanto, whose merger options are getting tougher.

Having kicked off the industry’s mating season, Monsanto is for now on its own. It made repeated overtures to Syngenta to combine the world’s leading players in seed production and crop protection. Its most recent offer was 470 Swiss francs in cash and stock per share in August 2015.

Syngenta argued that Monsanto was trying to buy it on the cheap at a low point in the agrochemical cycle, but it now looks ready to accept a similar price from ChemChina. By offering all cash, the Chinese company could wind up being less intrusive for both employees and senior management.

Monsanto can try to argue that ChemChina’s bid is problematic anyway. Competition concerns seem unlikely, but there’s a risk that the Committee on Foreign Investment in the United States will fret over Chinese ownership. That Syngenta’s stock price is still 16 percent below the expected sale price suggests that investors do harbor some doubts.



Even so, Monsanto would probably need to sweeten its offer to overpower ChemChina’s. Its last one is now worth about 426 Swiss francs for each Syngenta share. Matching ChemChina’s figure, even with just 75 percent cash, would increase Monsanto’s debt to more than four times earnings before interest, taxes, depreciation and amortization, analysts at Bernstein say, a risky level given the weak commodity cycle.

Alternatively, Monsanto could look elsewhere. The merger of Dow Chemical and DuPont puts additional pressure on it to find a deal partner. BASF’s crop protection business is the third-largest in the sector and would make a sensible target. But BASF, a German conglomerate, has no need to sell low when the business is in a slump. There may be other joint ventures available to Monsanto, but the M.&A. seeds are looking harder to sow.

more...
No comment yet.
Scooped by Stéphane Bisaillon
Scoop.it!

ChemChina said to close to striking deal for Syngenta

ChemChina said to close to striking deal for Syngenta | Grain du Coteau : News ( corn maize ethanol DDG soybean soymeal wheat livestock beef pigs canadian dollar) | Scoop.it

Hong Kong: China’s state-owned ChemChina is nearing a deal to buy Swiss seeds and pesticides group Syngenta for around 43 billion Swiss francs ($42.2 billion), two people familiar with the matter said on Tuesday.

The deal, for roughly 470 Swiss francs per share, would be the biggest cross-border deal involving a Chinese buyer and mark an acceleration of a shakeup in the global agrochemicals industry.

It will likely be announced on Wednesday, when Syngenta is scheduled to release its 2015 results, the people said.

One source said minor adjustments to the price were still being discussed.

Syngenta’s shares jumped as much 8.4% and were 5.7% higher at 400 francs at 1352 GMT in Zurich.

ChemChina’s offer would be at a premium of about 24% to Syngenta’s Monday close of 378.40 francs.

Syngenta declined to comment. ChemChina was not immediately available for comment outside regular business hours.

Bloomberg had reported earlier on Tuesday that the deal worth 43.7 billion Swiss francs was near.

Syngenta last year spurned takeover approaches from US seeds giant Monsanto, arguing it can create value on its own.

But as agricultural markets deteriorated and major rivals DuPont and Dow Chemical Co. agreed to combine their seeds and pesticides businesses, Syngenta chairman Michel Demare recently conceded that “going it alone is hardly possible”, given what shareholders were expecting.

The likely takeover price would nominally match Monsanto’s revised cash-and-stock bid made last August but the value of that offer would have fallen along with Monsanto’s share price.

ChemChina’s move marks another instance of the country’s quest for Western technology and distribution networks.

Similar transactions include last year’s buyout of Italian tyre maker Pirelli by ChemChina. In January, ChemChina announced the acquisition of German industrial machinery maker KraussMaffei Group for about $1 billion.

The Chinese government is keen to boost farming productivity as it seeks to cut reliance on food imports amid limited farm land, a growing population and higher meat consumption.

A group of Syngenta shareholders said last month it opposed selling the company to ChemChina and called for the ousting of the Swiss group’s leadership. Reuters

more...
No comment yet.
Scooped by Stéphane Bisaillon
Scoop.it!

ChemChina Nearing Deal to Buy Syngenta for Record $43 Billion

ChemChina Nearing Deal to Buy Syngenta for Record $43 Billion | Grain du Coteau : News ( corn maize ethanol DDG soybean soymeal wheat livestock beef pigs canadian dollar) | Scoop.it

China National Chemical Corp. is nearing an agreement to buy Swiss pesticide-and-seeds-maker Syngenta AG for about 43.7 billion francs ($42.8 billion) as the state-backed company extends its buying spree with what would be the biggest-ever acquisition by a Chinese firm, said people familiar with the matter.

ChemChina, as the state-owned company is known, offered about 470 francs a share in cash and a deal could be announced as early as Wednesday when the Swiss company reports earnings, the people said, asking not to be named as the details aren’t public. That’s 24 percent higher than Syngenta’s last close of 378.40 francs on Feb. 1. Its shares rose 3.9 percent to 393.2 francs as of 4:36 p.m. in Zurich.

The deal would help Chairman Ren Jianxin transform ChemChina into the world’s biggest supplier of pesticides and agrochemicals, while snatching an asset coveted by St. Louis-based Monsanto Co. It also underscores the importance China attaches to owning seed and cropcare technology that can boost agricultural output and help feed the world’s biggest population.

A spokesman for ChemChina declined to comment, as did officials at Syngenta. Final talks are ongoing and could still fall apart or be delayed, the people said.

At $43 billion, a successful purchase would be the largest acquisition by a Chinese firm, surpassing China Unicom Hong Kong Ltd.’s $29 billion purchase of China Netcom Group Corp. in 2008, according to data compiled by Bloomberg.

ChemChina has lined up bridge financing of about $25 billion for the offer from
banks, two people familiar with the matter said.

Chinese Dealmaker

Analysts expect Syngenta to report an 11 percent decline in annual sales to $13.5 billion tomorrow. The company in 2014 generated 75 percent of its revenue from crop protection such as pesticides, followed by its seed business, markets that would help ChemChina reduce its reliance on petrochemical and petroleum products, which accounted for almost half of its 256.4 billion yuan ($39 billion) in 2014 revenue.

Behind the Chinese company’s pursuit are national interests. Chinese President Xi Jinping is trying to boost agricultural output to maintain self-sufficiency as a growing middle class consumes more grain-intensive meat and farmland is converted to housing and golf courses. The World Bank estimates that China’s arable land declined 6 percent in the last decade as economic growth boomed.

As well as domination of the Chinese market, Syngenta will provide global access to farmers, from Brazil to the U.K. Helping execute that vision is Ren, a 58-year-old executive who started China’s first professional cleaning company with a 10,000 yuan loan and is now emerging as one of the country’s most active dealmakers.

Deal Appetite Surging

Syngenta would trump all past deals in a country whose appetite for foreign assets is surging. ChemChina’s latest purchase follows other Chinese outbound deals this year including Haier Group Corp.’s $5.4 billion purchase of General Electric Co.’s home-appliance business to Dalian Wanda Group Co.’s deal to buy control of Legendary Entertainment. This year’s tally is on pace to exceed 2015’s record $123.9 billion, according to data compiled by Bloomberg.

In 2016 alone, ChemChina, whose holdings include tiremaker Pirelli & C. SpA, led a group that agreed to buy German machinery maker KraussMaffei Group for 925 million euros ($1 billion) and it acquired 12 percent of Swiss commodity trader Mercuria Energy Group Ltd. Prior to that, purchases have included Adisseo Group in France to Australia’s Qenos Holdings Pty and Norway’s Elkem AS. The company has announced more than $15 billion of deals in the past decade, excluding Syngenta, according to Bloomberg data.

Monsanto Rebuff

For Syngenta, led by interim Chief Executive Officer John Ramsay, the agreement caps months of discussions and wider speculation surrounding its future. ChemChina was said to have previously offered about 449 francs a share and Syngenta last year rejected a 470-franc-a-share offer from Monsanto. Strategically, the Swiss company will get improved access to emerging markets at a time when the planned combination of Dow Chemical Co. and DuPont Co. threatens to create a new powerhouse in agricultural products.

Pressure is also building on Monsanto. Its market-leading position in genetically-modified seeds is threatened by the creation of a Dow-DuPont giant when the merger closes in the second half of this year. As recently as November, Monsanto said it was discussing internally the merits of a new offer for the Swiss company as well as opportunities to acquire crop-chemical assets from other companies.


A ChemChina deal would be the easiest transaction to get by antitrust regulators as the combination with the Chinese company’s existing agrochemical business, Adama, would still only result in 19 percent market share, Andrew Benson, an analyst at Citigroup, said in a note yesterday. Some disposals of fungicides and herbicides may be required.

Andrew Liveris, chief executive of Dow, said Tuesday he’s not surprised by the ChemChina deal given the Asian nation views genetically modified crops as a strategic area and the Chinese company previously expressed an interest in Dow’s agricultural unit.

The takeover would likely need to win clearance from U.S. national security officials who review acquisitions of American businesses by foreign buyers. Even though Syngenta isn’t based in the U.S it does have American operations, which would probably draw scrutiny from the Committee on Foreign Investment in the U.S. The committee, which is led by the Treasury Department, is tasked with guarding against national security risks from overseas buyers.

CFIUS pays particular attention to acquisitions by Chinese investors, especially deals involving U.S. technology. But all industries are subject to scrutiny, including agriculture. 
Syngenta has two business units in the U.S., seeds and crop protection. The North American business generated $3.6 billion in sales last year, according to the company’s website.

Sensitive Sites

CFIUS, in addition to considering whether control over food supply raises any national security issues, will review whether the buyer is acquiring facilities near U.S. military operations and other sensitive sites, as it did before allowing China’s Shuanghui International Holdings Ltd.to buy Smithfield Foods Inc., the world’s largest hog and pork producer, in 2013.

Other deals have required modifications. In 2013, CFIUS approved the acquisition of U.S. assets of Canadian energy company Nexen Inc. by Cnooc Ltd., China’s biggest offshore oil and natural gas producer. Although the companies never announced terms of the agreement with CFIUS, Cnooc was barred from operating oilfields in the Gulf of Mexico under the accord due to proximity to a naval base, people familiar with the matter told Bloomberg at the time.

Syngenta operates 41 research and development sites and 36 production and supply sites in the U.S., according to the company’s website.

Last month, Dutch company Royal Philips NV said it was canceling the sale of its lighting-components business to a Chinese-led consortium due to opposition from CFIUS. The committee had jurisdiction over the deal because of a Philips subsidiary in California.

more...
No comment yet.
Scooped by Stéphane Bisaillon
Scoop.it!

Man admits conspiring to steal trade secrets from Monsanto and DuPont Pioneer : Business

Man admits conspiring to steal trade secrets from Monsanto and DuPont Pioneer : Business | Grain du Coteau : News ( corn maize ethanol DDG soybean soymeal wheat livestock beef pigs canadian dollar) | Scoop.it

DES MOINES, Iowa • A naturalized U.S. citizen from China entered a plea agreement with federal prosecutors Wednesday, admitting he participated in a conspiracy to steal seed corn from U.S. companies.

Mo Hailong, a lawful and permanent resident of the United States, was living in Florida when he was arrested in December 2013.

He is accused of traveling to the Midwest to work with other employees of Kings Nower Seed, a subsidiary of Beijing-based DBN Group to take corn seed out of fields in Iowa with the intent of shipping it to China so scientists could attempt to reproduce its genetic traits.

In the plea agreement, Mo admits that he conspired to steal trade secrets from DuPont Pioneer and Monsanto.

He is the only one who has been prosecuted for conspiracy. Five other Chinese nationals working with Mo fled the country. Charges were dropped last year against his sister, who is married to DBN's billionaire CEO, and she was allowed to return to China.

Mo, 46, who goes by the name Robert Mo, will be sentenced later in Des Moines. He had faced 10 years in prison on the charges but the government agreed to seek no more than five years.

His attorney Mark Weinhardt said Mo recently completed treatment for a rare and aggressive cancer "and his health is his paramount concern. Robert and his family are relieved that they can avoid the strain of a long and complex trial."

Mo "looks forward to getting this matter behind him and moving forward in life with his wife and children," Weinhardt said.

He has lived in the U.S. for nearly 20 years, and his wife and children are U.S. citizens.

The plea agreement indicates Mo will give the government farms near Monee, Illinois, and Redfield, Iowa, used in the operation of the conspiracy. It also said that he also acknowledges he may be immediately deported from the U.S. after he serves his prison sentence.

The investigation began two years ago when DuPont Pioneer security staff in Iowa detected suspicious activity including Chinese men crawling around in cornfields. They alerted the FBI, which began an investigation that included planting GPS monitors on rental cars and tapping cellphones of some of the men.

more...
No comment yet.
Scooped by Stéphane Bisaillon
Scoop.it!

United States Drought Monitor January 26, 2016

United States Drought Monitor January 26, 2016 | Grain du Coteau : News ( corn maize ethanol DDG soybean soymeal wheat livestock beef pigs canadian dollar) | Scoop.it

The big story last week and this is Winter Storm Jonas as the resultant recovery continues across a good portion of the Atlantic Seaboard. Another round of good precipitation fell across the west coast as well, keeping the El Niño moisture train rolling from northern California up to Washington. Resultant improvements are noted along both coasts on this week’s map. Once again, conditions continue to worsen across most of Hawaii this week, noted by the expansion of both D0 and D1 on several islands.

more...
No comment yet.
Scooped by Stéphane Bisaillon
Scoop.it!

Chinese man stole protected seeds major U.S. firms

Chinese man stole protected seeds major U.S. firms | Grain du Coteau : News ( corn maize ethanol DDG soybean soymeal wheat livestock beef pigs canadian dollar) | Scoop.it

WASHINGTON – A Chinese man pleaded guilty in a U.S. court Wednesday to stealing patent-protected corn seed from agribusiness giants Monsanto and DuPont to take back to China for commercial use.

Robert Mo Hailong, 46, participated in a plot to steal inbred corn seeds from the two U.S. companies so that his then-employer, Beijing Dabeinong Technology Group, could use them in its own seed business, the U.S. Department of Justice said.

Hailong “admitted to participating in the theft of inbred — or parent — corn seeds from fields in the Southern District of Iowa for the purpose of transporting those seeds to China,” the department said in a statement.

“The stolen inbred seeds constitute the valuable intellectual property of DuPont Pioneer and Monsanto.”

Hailong faces up to 10 years in prison and a fine of up to $250,000.

The guilty plea came a week after five people were charged in a scheme to steal trade secrets for Chinese-controlled firms from U.S. chemical giant DuPont.

A grand jury indictment unsealed in San Francisco said the group, including three China natives, sought DuPont trade secrets on producing chloride-route titanium dioxide, or TiO2, a valuable white pigment used in paint, plastics and paper.

The Justice Department said the theft was on behalf of “companies controlled by the government of the People’s Republic of China.”

more...
No comment yet.
Scooped by Stéphane Bisaillon
Scoop.it!

Midwest Fertilizer signs agreement to build fertilizer facility

Midwest Fertilizer signs agreement to build fertilizer facility | Grain du Coteau : News ( corn maize ethanol DDG soybean soymeal wheat livestock beef pigs canadian dollar) | Scoop.it

Midwest Fertilizer Company LLC has entered into an agreement with thyssenkrupp Industrial Solutions (USA), Inc. to design and build a state-of-the-art nitrogen fertilizer manufacturing facility in Posey County, Ind., at an agreed aggregate price in excess of $2 billion, with financial close expected in mid-2016. The contract awarded to thyssenkrupp Industrial Solutions (USA), Inc. covers Engineering, Procurement, Construction (EPC) and related services. Construction will start after the financial close. The facility is expected to be fully operational in 2020.

“thyssenkrupp is a world leader in fertilizer plant technology,” said Mike Chorlton, president and CEO, Midwest Fertilizer Company. “This partnership allows us to move forward with the next phases of this world-class project in southwest Indiana.”

Midwest Fertilizer Company’s facility will produce Ammonia, Urea, Urea Ammonium Nitrate (UAN) and Diesel Exhaust Fluid. UAN is the preeminent liquid fertilizer used in the Midwest.

“Thanks to Posey County’s business friendly environment, we are on the path to provide farmers in Indiana and the Midwest a reliable local source of high-quality nitrogen fertilizer,” said Chorlton.

The fertilizer plant is expected to generate more than 2,500 construction jobs over a three to four year period and approximately 200 permanent employment opportunities. Once completed, the fertilizer plant will provide local production for the farmers in the Eastern Corn Belt.

The principal sponsor and developer of the project is Fatima Fertilizer Company, a part of Fatima Group. Fatima Group is one of the leaders in the fertilizer industry and has diverse manufacturing businesses in fertilizer, textiles, sugar and energy. Since selecting thyssenkrupp to supply a fertilizer production plant in 1973, Fatima’s fertilizer business and thyssenkrupp continue to work as partners.

The project will be partially funded by an already secured $1.259 billion of tax-exempt debt borrowed by Midwest Fertilizer and facilitated by Posey County, Indiana under the Heartland Disaster Tax Relief Act of 2008. The remaining funds will be comprised of equity, tax increment-financing bonds, and some term debt.

Fawad A Mukhtar, chairman of Fatima Group, expressed great satisfaction with this next level of partnership with thyssenkrupp and stated “we are confident that Midwest Fertilizer Company’s success will open up avenues for further progress and development in southern Indiana.”

The thyssenkrupp Industrial Solutions business area has been in the business of engineering and construction of nitrogenous fertilizers plants for over 80 years. In the past 20 years, the company has built 19 ammonia plants and 21 urea plants as well as completed 9 ammonia and 6 urea expansion projects. Three of the world’s largest ammonia projects use the company's technology. thyssenkrupp is also a leading supplier in the field of nitrates with more than 200 nitric acid plants using its technologies worldwide. Overall, the company has successfully realized more than 2,000 chemical plants.

more...
No comment yet.
Scooped by Stéphane Bisaillon
Scoop.it!

Inquiry in China Adds to Doubt Over Reliability of Its Economic Data

Inquiry in China Adds to Doubt Over Reliability of Its Economic Data | Grain du Coteau : News ( corn maize ethanol DDG soybean soymeal wheat livestock beef pigs canadian dollar) | Scoop.it

HONG KONG — The veracity of China’s economic data has been increasingly questioned as the slowing pace of the country’s growth has startled the world. And a new investigation into the official who oversees the numbers is unlikely to inspire confidence.

The Communist Party’s anticorruption commission announced late Tuesday that it was looking into the head of the country’s statistics agency over what it called “serious violations.”

It is unclear whether the investigation into the agency’s head, Wang Baoan, who became the director of the National Bureau of Statistics of China last April, is related to his current role or to his previous one as vice minister of finance. The commission did not release any further details about the inquiry.


s the country’s shrinking manufacturing sector and falling stock market have unnerved global investors. Any further doubt about its economic figures could paint an even darker picture of the health of the economy, adding to the pain in the markets. Stocks in Shanghai, which closed before the announcement, were off 6.4 percent on Tuesday.


more...
No comment yet.
Scooped by Stéphane Bisaillon
Scoop.it!

Deere's CEO Takes Pay Cut

Deere's CEO Takes Pay Cut | Grain du Coteau : News ( corn maize ethanol DDG soybean soymeal wheat livestock beef pigs canadian dollar) | Scoop.it

John Deere CEO Samuel Allen took a pay cut amid the company's down financial cycle, Crain's Chicago Business reported. 

Allen's compensation package was reduced by 7.8% to $18.7 million, according to a proxy statement from the company. 

The reduction comes as the firm tries to keep sales up while corn and soybean prices fall, cutting into farmers' income and reducing their ability to invest in new equipment. 

Deere also is exposed to the slowing economy in China as well as in Brazil, which is in a recession. 

Sales at Deere fell to $28.86 billion during its last fiscal year, which ended in October. 

That was down 20% from the prior year. Net income dropped 39% to $1.94 billion. 

Allen's pay dropped in part because the company awarded him $5.6 million in stock during its last fiscal year, from $6.6 million during the previous period. His base pay of $1.5 million remained unchanged. 

Allen's compensation would have been bigger, but the proxy statement shows he asked Deere's board to reduce his non-equity payout for the fiscal year by 25%, to $5.5 million.

more...
No comment yet.
Scooped by Stéphane Bisaillon
Scoop.it!

DuPont warns of slower growth

DuPont warns of slower growth | Grain du Coteau : News ( corn maize ethanol DDG soybean soymeal wheat livestock beef pigs canadian dollar) | Scoop.it

Operating earnings of $239M, or $0.27 a share vs. $519M, or $0.57 per share in the same quarter a year ago.

Net sales fell 9.4% to $5.3B, as the company battled the effects of a strong dollar and weak demand for its agriculture products.

Completed a $2B accelerated share repurchase program; announced a first quarter dividend of $0.38 per share.

"Difficult global economic conditions in agriculture and slower growth in emerging markets are expected to continue, challenging the company's sales growth in 2016."

As a result, operating earnings per share for the current year is expected to be between $2.95 and $3.10.

Q4 results

more...
No comment yet.
Scooped by Stéphane Bisaillon
Scoop.it!

ChemChina's bid for Syngenta more likely to succeed than Monsanto marriage

ChemChina's bid for Syngenta more likely to succeed than Monsanto marriage | Grain du Coteau : News ( corn maize ethanol DDG soybean soymeal wheat livestock beef pigs canadian dollar) | Scoop.it

CTFN Contributor Valeria Camerino reports that market observers believe ChemChina's CHF470 (US$462) per share bid ($44B) for 70% of Syngenta (NYSE:SYT) is more likely to pass antitrust scrutiny than a potential merger with Monsanto (NYSE:MON) because there is less overlap. A deal could be reached as soon as next month.

In December, Syngenta's board turned down Monsanto's $47B offer stating that it significantly undervalued the firm.

ChemChina is a major player in generic pesticides, but has no appreciable footprint in high-tech herbicides, insecticides, fungicides or seeds. Also Chinese ownership would enhance penetration in key emerging markets. A bump in the road, however, could be the purchase of Syngenta's U.S.-based assets by a Chinese acquirer.

Syngenta is an attractive target on the basis of its seeds business and first rate crop protection chemicals portfolio. It is the only pure play in Europe in these areas.

As far as Monsanto is concerned, one observer believes it makes more strategic sense for Syngenta to acquire Monsanto and dispose of the crop protection chemicals business and any required seeds assets, along with the related salesforce and technical support. He feels that Monsanto would be better served by merging with BASF's (OTCQX:BASFY) crop chemical business.

Previously: Bloomberg: ChemChina moves closer to potential Syngenta deal (Jan. 15)

Previously: Syngenta talking with Monsanto, ChemChina and others, chairman says (Dec. 22, 2015)

more...
No comment yet.
Scooped by Stéphane Bisaillon
Scoop.it!

Ted Cruz's Iowa victory could be a major blow to 'Big Corn'

Ted Cruz's Iowa victory could be a major blow to 'Big Corn' | Grain du Coteau : News ( corn maize ethanol DDG soybean soymeal wheat livestock beef pigs canadian dollar) | Scoop.it
The US' controversial biofuels program has a waning influence over politicians even in the U.S. farm heartland.
more...
No comment yet.
Scooped by Stéphane Bisaillon
Scoop.it!

Monsanto Launches RR2Xtend Soybeans After China Approval

Monsanto Launches RR2Xtend Soybeans After China Approval | Grain du Coteau : News ( corn maize ethanol DDG soybean soymeal wheat livestock beef pigs canadian dollar) | Scoop.it
Monsanto Co. has received Chinese import approval for Roundup Ready 2 Xtend soybeans and has announced plans to commercially launch the trait in 2016. The genetically engineered (GE) trait technology allows soybeans to tolerate applications of dicamba and glyphosate herbicide. Last fall Monsanto and DuPont Pioneer announced they would allow preorders for new Roundup Ready [...]
more...
No comment yet.
Scooped by Stéphane Bisaillon
Scoop.it!

Baltic Dry Index Hits All-Time Low of 310; Rail Traffic Continues Decline

Baltic Dry Index Hits All-Time Low of 310; Rail Traffic Continues Decline | Grain du Coteau : News ( corn maize ethanol DDG soybean soymeal wheat livestock beef pigs canadian dollar) | Scoop.it

News released Tuesday reveals that the Baltic Dry Index has reached a record low of 310.

The Baltic Dry Index is compiled by the London-based Baltic Exchange and covers prices for transported cargo such as coal, grain and iron ore. The index is based on a daily survey of agents all over the world. Baltic Dry hit a temporary peak on May 20, 2008, when the index hit 11,793.

The Baltic Exchange’s main sea freight index, which tracks rates for ships carrying industrial commodities, slipped to another all-time low on Tuesday on worries about vessel oversupply and slowing global demand.

The index has yet to register a single session of gains this year, tumbling around 35 percent and touching fresh lows in 20 of the 22 sessions.

A slowdown in the Chinese economy, which grew at its slowest pace in a quarter of a century in 2015, and a huge over-capacity in vessels has hit the index hard.

The Baltic Dry Index is an economic indicator issued daily by the London-based Baltic Exchange. Not restricted to Baltic Sea countries, the index provides “an assessment of the price of moving the major raw materials by sea. Taking in 23 shipping routes measured on a timecharter basis, the index covers Handysize,SupramaxPanamax, and Capesizedry bulk carriers carrying a range of commodities including coaliron ore and grain.


US RAIL TRAFFIC DECLINES


US rail industry monitor PowerSource outlines a continued decline in train traffic:

The nation’s rails have been carrying fewer loads recently, led by sharp declines in trains hauling coal, crude oil and other energy products, due to an unusually warm winter season and persistently low oil and gas prices.

Over the last year, shipments of coal and petroleum products on the U.S. freight railroad system are down 36 percent and 19 percent, respectively, according to traffic data collected by Association of American Railroads for the week ending Jan. 23.

Depressing traffic further, shipments of metallic ores and metals — which include coke for steelmaking and materials for pipelines — were down 16 percent from one year ago. Nonmetallic minerals, which include industrial sand used in natural gas drilling, were down 14 percent.


ANALYSIS


These two factors, shipping and rail decline, point toward a trend of decreased supply in retail inventory.  Recent store closings by larger retailers reveals plans for a shrinking market:

  • -Wal-Mart is closing 269 stores, including 154 inside the United States.
  • -K-Mart is closing down more than two dozen stores over the next several months.
  • -J.C. Penney will be permanently shutting down 47 more stores after closing a total of 40 stores in 2015.
  • -Macy’s has decided that it needs to shutter 36 stores and lay off approximately 2,500 employees.
  • -The Gap is in the process of closing 175 stores in North America.
  • -Aeropostale is in the process of closing 84 stores all across America.
  • -Finish Line has announced that 150 stores will be shutting down over the next few years.
  • -Sears has shut down about 600 stores over the past year or so, but sales at the stores that remain open continue to fall.

Will this mean shortages as we move through the Spring and Summer of 2016?


Read more at https://www.trunews.com/baltic-dry-index-hits-all-time-low-of-310-rail-traffic-continues-decline/#XWLeZSfZcvTOxVq3.99
more...
No comment yet.
Scooped by Stéphane Bisaillon
Scoop.it!

Syngenta Cultivates a Better Bid

Syngenta Cultivates a Better Bid | Grain du Coteau : News ( corn maize ethanol DDG soybean soymeal wheat livestock beef pigs canadian dollar) | Scoop.it

Syngenta actually did pretty well for its investors by holding out.



The world's largest pesticide maker is close to announcing an agreement to sell itself to ChemChina for about 470 Swiss francs a share, people familiar with the matter told Bloomberg News. That's the same price that Syngenta had rejected as too low back in August when U.S. seed company Monsanto was the one doing the bidding -- with one big difference: ChemChina is offering all cash, while Monsanto's proposal included cash and a portion in its own shares.

Syngenta took a lot of heat from its investors for not engaging with Monsanto about a possible deal. But it looks like the strategy paid off in this case. The company cited the global market rout as one of its reasons for rejecting Monsanto's stock-and-cash offer (that said, it may be giving Syngenta too much credit to say it was completely prescient about how bad things would get). Sure enough, Monsanto shares have slumped about 13 percent since the beginning of August amid a slump in commodities prices. What was worth 470 francs a few months ago isn't worth that today.

ChemChina's bid, meantime, is guaranteeing Syngenta investors a higher price than the stock had ever reached on its own -- or was likely to any time soon.  This is the definition of selling high.

more...
No comment yet.
Scooped by Stéphane Bisaillon
Scoop.it!

El Niño provoque un autre redoux au Québec | Actualités

El Niño provoque un autre redoux au Québec | Actualités | Grain du Coteau : News ( corn maize ethanol DDG soybean soymeal wheat livestock beef pigs canadian dollar) | Scoop.it

Les régions du sud-ouest et du centre du Québec vivront un autre redoux dimanche et lundi.

À Montréal, les températures devraient dépasser les 6 degrés Celsius, les deux jours, et à Québec, les activités du Carnaval devraient également se dérouler par un mercure bien au-dessus du point de congélation.

Ces épisodes de temps doux ont été nombreux au cours des dernières semaines, et ils sont principalement imputables au phénomène El Niño.

Le météorologue André Cantin, d'Environnement Canada, souligne qu'El Niño est très intense depuis plusieurs semaines dans l'océan Pacifique, ce qui modifie grandement la circulation des systèmes météorologiques.

Au Québec, en janvier, les températures ont été d'environ 4 degrés au-dessus des normales de saison. M. Cantin s'attend à ce que la tendance se poursuive en février. Il croit même que le printemps pourrait être plus hâtif cette année, ce qui n'est toutefois pas une certitude.

more...
No comment yet.
Scooped by Stéphane Bisaillon
Scoop.it!

6 derailed train cars carrying soybean oil land in Mississippi River: CP

6 derailed train cars carrying soybean oil land in Mississippi River: CP | Grain du Coteau : News ( corn maize ethanol DDG soybean soymeal wheat livestock beef pigs canadian dollar) | Scoop.it

BROWNSVILLE, Minn. – Canadian Pacific Railway says six train cars loaded with soybean oil ended up in the Mississippi River after a freight train derailed in southeastern Minnesota.

The railroad says about 15 cars derailed around 10 p.m. Tuesday on tracks about three miles south of Brownsville. CP was able to get five cars back on the tracks Wednesday, but says the six cars in the river need to be unloaded so they can be moved without fear of leaking.

CP plans to reinstall the tracks so empty cars can be brought in to unload the cars in the river.

A sheen has been found downstream, which would indicate the presence of soybean oil. CP says soybean oil is not dangerous but a boom has been deployed to contain any release.

more...
No comment yet.
Scooped by Stéphane Bisaillon
Scoop.it!

Glencore Said to Store Oil in Ships Off Singapore Amid Contango

Glencore Said to Store Oil in Ships Off Singapore Amid Contango | Grain du Coteau : News ( corn maize ethanol DDG soybean soymeal wheat livestock beef pigs canadian dollar) | Scoop.it

Glencore Plc is said to be storing oil on ships off the coast of Singapore and Malaysia as a market structure known as contango allows traders to benefit from holding on to supplies for sale later.

The commodities trader has at least 4 very large crude carriers, each of which can hold about 2 million barrels, floating at sea off the nations’ coast in Southeast Asia, people with knowledge of the matter said, asking not to be identified because the information is confidential. When a market is in contango, prices for supplies today are lower than those in future months, allowing traders with access to stored crude to potentially lock in a profit.


While the oil market has been in contango since 2014, the premium fetched by future cargoes increased to the highest since February last month. The price difference between a Brent oil contract for immediate delivery and a year forward was at about minus $7 a barrel on Thursday, twice the level in mid-July.

To benefit from the contango, profits from selling a stored cargo must exceed the cost of chartering ships to hold the supply. Euronav NV, Europe’s largest owner of supertankers, would charge about 75 cents per barrel each month for storing, its chief executive officer said on Thursday. Brent crude for April costs about 80 cents more than for March, data from ICE Futures Europe show. Traders incur additional expenses over and above freight.

Storing crude on ships is close to being viable, Fearnleys A/S analyst Jonathan Staubo said by phone on Thursday. The 3-month contango needs to be about $2.70 to cover the cost of hiring ships and other expenses associated with storing barrels at sea profitably, he said. That spread is currently at about $2.50 for Brent.

Floating storage increases Glencore’s ability to supply cargoes on short notice or load oil on smaller vessels for sale to Chinese refineries and other Asian buyers who don’t have access to ports that can accommodate larger ships, the people said.

more...
No comment yet.
Scooped by Stéphane Bisaillon
Scoop.it!

Ag price pullback will prove only temporary, Jim Rogers says

Ag price pullback will prove only temporary, Jim Rogers says | Grain du Coteau : News ( corn maize ethanol DDG soybean soymeal wheat livestock beef pigs canadian dollar) | Scoop.it

Don't give up on ags. They are a "wonderful place" for investors.

At least, so says Jim Rogers, one of the biggest names in commodities, who in the first decade of the century played a big role in bringing the asset class to the fore, and popularised the idea of the "supercycle".

The pullback in shares may be justified, said Mr Rogers, who started off as a Wall Street stockbroker before starting the Quantum Fund with George Soros.

"I am pessimistic about stocks for the next couple of years," he tells Agrimoney.com.

"The Dow Jones industrial average [share index] is not that far from its all-time high," making share investment appear, given the abounding uncertainty and economic disappointments, poor value.

But for Mr Rogers, agriculture is "wonderful place to be".

While it "may take a whole get to a raging bull market" agricultural commodity prices "are far, far down, and fundamentals continue to improve", he says.


'Curing the problem'

Sure, there are some short-term issues to deal with, in terms of the clearing up the large stocks that have built for some crops, and taken values markedly lower.

Mr Rogers quotes the market maxim that the "cure for low prices is low prices.

"It cuts back supply and increases demand. Low prices are curing the problem."


Ageing agriculturalists

But that does not mean that the bull run in agricultural commodities is over, with the market facing some longer-term structural issues for the market to deal with.

One is the demographics of the farmer population.

"The average age of farmers is older and older. In Japan it's 66. The highest rate of suicide in the UK is in the agriculture sector."

While the farm mergers, and greater economies of scale, that such dynamics "might be part of the solution" to boosting food production efficiency, the sector still needs to attract fresh talent.

"You still need someone who is going to be the driving force."


'Have you eaten today'

And then there is the growth in demand being encouraged by an increasing, and increasingly wealthy, global population.

Baltimore-born Mr Rogers, who nine years ago moved to Singapore for a better view of the Asia boom, tells of the popular greeting in China when he first visited the country in 1984.

"It translates as 'have you eaten today'.

"Now expectations are very different to what they were 32 years ago, when Chinese people might have had chicken once a year."

Investment opportunities?

Indeed, China's farm sector represents, in theory, a particularly promising place to invest.

"Mao Tse Tung ruined Chinese agriculture," through measures which included, for example, forcing farmers to swap subsoil for topsoil, in the belief the switch would improve yields.

"People now are getting all sorts of incentives in China to improve agriculture," Mr Rogers says, although admitting that for a Western investor to exploit this spree.

"It is difficult for us to really challenge company accounts, to get to grips with what is happening."

When asked to name a promising, and satisfactory, investment, he says that "when you insert the word satisfactory, probably not".


'Ending in a bubble'

So what might be a better investment?

He foresees a rally in gold "ending in a bubble maybe three or four years from now".

And oil prices around $30 a barrel are unsustainable.

"People cannot explore, drill at $30 a barrel" and expect a satisfactory return on their investment.

And with old wells being pulled offline, "there is not going to be any oil" unless higher values make new sources viable.

He compares current weakness in commodity prices to that in shares during their late-20th century bull run.

"In the 1980s and 1990s, stocks went down 40-80%, and people said 'that's the end of that'.

"But it was not the end. We have seen before in other asset classes" the reversal in commodities he believes will prove short-term.


'Don't ask me…'

And it is agriculture which Mr Rogers says he prefers "to any other sector where you can easily invest" thanks to its supply and demand dynamics.

He highlights sugar, where prices are less than half levels reached earlier in the decade, raising a question mark over the viability of production in many areas.

"You cannot have prices stay that far down, or you will end up not having any sugar at any price."

So is sugar the best bet among ags?

When asked what agricultural commodities he prefers, Mr Rogers says: "Don't ask me, ask Agrimoney.

"You can quote me on that."

We will.

more...
No comment yet.
Scooped by Stéphane Bisaillon
Scoop.it!

DuPont steps up cost cut plans ahead of Dow Chemical merger

DuPont steps up cost cut plans ahead of Dow Chemical merger | Grain du Coteau : News ( corn maize ethanol DDG soybean soymeal wheat livestock beef pigs canadian dollar) | Scoop.it

DuPont (DD+0.8%) says it now plans to cut $730M in expenses this year, up from its December projection of $700M in cost reductions amid a broad restructuring plan to eliminate ~5K jobs in an effort to improve profits and hasten integration with Dow Chemical (DOW+0.7%), company execs said in today'searnings conference call.

"The big takeaway today is the pace of change that's happening at this company," says Edward Jones analyst Matt Arnold, who expects the cost cuts to continueand considers the current reductions just a starting point.

CEO Edward Breen says there is "very little" to concern regulators about the company's pending merger with Dow and that it is unlikely to need to make significant asset sales, despite analyst speculation that the deal will face intense regulatory scrutiny.

"We feel there is very little overlap, despite the size of the companies," Breen reiterates in a telephone interview with Reuters.

more...
No comment yet.
Scooped by Stéphane Bisaillon
Scoop.it!

How the Oil Bust Wiped Out One North Dakota Oil Refiner's Profit

How the Oil Bust Wiped Out One North Dakota Oil Refiner's Profit | Grain du Coteau : News ( corn maize ethanol DDG soybean soymeal wheat livestock beef pigs canadian dollar) | Scoop.it
For the first new refinery in the U.S. in seven years, the idea was simple: Buy cheap oil from shale producers, then score a quick profit by selling it right back to them as more expensive diesel needed to power their trucks and drilling rigs.
more...
No comment yet.
Scooped by Stéphane Bisaillon
Scoop.it!

Ag land values to continue gradual decline in 2016

Ag land values to continue gradual decline in 2016 | Grain du Coteau : News ( corn maize ethanol DDG soybean soymeal wheat livestock beef pigs canadian dollar) | Scoop.it
OMAHA, Neb. — A softer agricultural land market will continue in 2016, with values for high-quality land holding steadier, while lower quality land values decline.
more...
No comment yet.
Scooped by Stéphane Bisaillon
Scoop.it!

DuPont sees corn sowings to rise in Brazil and US

DuPont sees corn sowings to rise in Brazil and US | Grain du Coteau : News ( corn maize ethanol DDG soybean soymeal wheat livestock beef pigs canadian dollar) | Scoop.it

Corn sowings are set to rise, at the expense of soybeans, the chemical and agricultural company DuPont said.

"As farmers look to relative economics between crop alternatives, we expect a slight year-over-year uptick in Brazil safrinha and North America corn area, provided weather cooperates during planting," said DuPont.

The safrinha is the Brazilian second crop corn harvest, which is planted from Febrary.

"Our order book in North America suggests a modest improvement in corn demand at the expense of soybeans in a highly competitive seed market," DuPont added.

DuPont said that "markets remain challenging," and said that action was being take to "streamline" its cost structure.

more...
No comment yet.