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Bunge Limited (BG, quote) recently announced that it would sell its operations in Brazil to Yara International for $750 million. The sale represents a significant change in plans for the White Plains, New York company that had previously announced large-scale investments in South America’s largest economy.
According to the Financial Times, “a mysterious white substance is being smuggled over the border from Vietnam to China in growing quantities.” Of course this substance is a staple of modern Western society and something increasingly in demand in China and other emerging markets.
A recent report by U.K.-based think tank Chatham House suggests the world is mere steps away from a food crisis. Spurred on in part by emerging market growth, a potentially horrible situation for the world could be a profitable opportunity for investors.
Cities in emerging markets are poised for an economic boom. A report just released by McKinsey Global Institute projects that the 600 largest urban areas will produce about two-thirds of global economic growth by 2025.
Bunge Limited (BG, quote), one of the world’s largest and most geographically-diversified agribusiness companies, missed first quarter expectations by more than 40%.
Talking about shifting planting patterns and China’s hunger for corn is all well and good, but in an environment where the U.S. dollar is riding high, just about all major commodity markets are feeling the pressure. Food is not immune.
Pacific Investment Management (PIMCO) released an informative strategy paper recently outlining the environment for credit products and a diversified income strategy.
The corn chart looks eager for a short-term bounce, but the longer trend looks bearish as U.S. farmers dedicate more acreage to the crop than ever, creating a glut that neither ethanol production nor an Argentine drought can overcome.
