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FOOD

This is the most unrated SPACFirst off let's start off with the inevitable part, the world population is only increasing and as the world becomes modern it will only put more stress on and already broken supply chain. It's no secret that the pandemic put how unstable the global supply chain is on display. With all this demand we need a new way of growing food to support it, that is where Aerofarms steps in. Aerofarms is creating a ground breaking way to feed our constantly modernizing population and the best thing is these are not just ideas or dreams trying to sold in another SPAC deal. This is a real company with real revenue, about $4 million projected for 2021. Now I know that nothing crazy but with a TAM of 1.9 trillion and a substantial lead ahead of any competitors in the vertical farming field with patents, trade secrets, and partnerships. They have increased their presence in 200 stores by over 500% in Whole Foods, ShopRite, Baldor, amazonfresh, and freshdirect. Aerofarms meets the challenges of its sector head on with 59% more efficient lighting, automation integration, data science, product diversification, capital access. They are moving into berries and other crops with a seed library with over 500 entries along with their data science fueling their algos put in action by the bots. Their merger with Spring Valley (SV) will give them $347,000,000 which they will use to super charge their growth and cement their position as a leader in the industry. I have several sets of PTs 3 month, 6 month, 1 year, 3 year Month: Bullish Neutral Bearish Yolo 3 Month 15-18 15 13 20 6 month 18-19 16 15 25 1 year 20-23 18 16 28 3 year 25-27 20 17 35
SLong
by TradeBroInc
Archer Daniels (ADM) consolidation to breakoutADM has been going through strong bull runs, consolidations and then continuation from the consolidation back up. This looks like another set up for a continuation up. The market has run up, in part perhaps due to the commodity price increases and is now consolidating, perhaps as commodities cool off or maybe just old fashioned profit taking at a new high. Typically these consolidations should continue up, however with commodities taking a breath there are forces at play beyond the stock itself so I'd wait for a breakout rather than jump in during the consolidation in case the move breaks down. Then consider the exit of the flag and distance to the ATH (orange line) and potential resistance in between when choosing an entry.
NYSE:ADMLong
by JBlack99
Think differently about inflation to recognize opportunitiesCredit to Lyn Alden on Twitter for the idea for this chart. As she quipped when she posted a similar chart, inflation is low... as long as you don't buy food, or a house, or commodities. CPI inflation has been unusually low for the last decade From 2010 to 2019, CPI (the Consumer Price Index, a popular measure of inflation) averaged 1.73%. That's a historically low inflation rate. Since 1913, CPI inflation has averaged about 3.1% per year. The Federal Reserve's target inflation rate is about 2% per year. The last decade's low CPI inflation rate puzzled economists and gave rise to a new economic theory called "Modern Monetary Theory," which argued that the US government needed to increase its deficit spending in order to hit its 2% inflation target. According to MMT, the limit on government spending is inflation, not revenue. In times of crisis, CPI inflation can get much higher During certain historical periods-- usually periods of crisis, such as wartime-- CPI inflation got much higher. In the WWI / Spanish Flu decade it averaged nearly 10%, and in the WWII decade it averaged nearly 5%. In the Vietnam War decade the average exceeded 7%. High inflation during times of national crisis seems to result from "loose" monetary policy and enormous deficit spending. When inflation gets this high, the Central Bank typically has to "tighten" monetary policy in order to control it. That means raising taxes, raising interest rates, and reducing deficit spending. "Tight" monetary policy can cause prolonged recessions. It took over a decade of high interest rates to get Vietnam War-era inflation under control. Could the massive deficit spending and loose monetary policy of the Covid-19 crisis usher in a new era of high CPI? Presently, economists don't expect it. The Federal Reserve forecasts about 2.5% inflation this year, to fall to 2% in 2022. But the Fed also doesn't have good models of inflation, so to some extent these projections are a shot in the dark. Is CPI a broken measure? CPI includes several components, including food, energy, apparel, and rent. Several factors have conspired to keep CPI low. Thanks to technological changes such as automation and renewables, apparel and energy costs have trended downward over the last couple decades. And rents are kept artificially low in many areas of the country by rent controls that limit how much landlords can increase rent. Purchase prices for single-family homes are not included in CPI, and purchase prices have grown much faster than rents: imageproxy.themaven.net Obviously CPI also doesn't include stocks, bonds, and other investment assets, which have inflated to pretty astronomical levels. It also doesn't include the cost of healthcare, which grew about 3.7% per year over the last decade and are projected to grow nearly 5% per year over the next decade. So there's a case to be made that "real" inflation in the economy may actually be higher than the CPI numbers suggest. Ben Bernanke once said that "inflation is always a monetary phenomenon." If so, then CPI isn't a very good measure of inflation, because CPI is influenced by all sorts of non-monetary phenomena like supply and demand shocks, technological changes, price manipulation, and government regulations. CPI is a crude approximation at best, and at worst a broken metric. What if there's not just one inflation rate? The reality is that different categories of prices "inflate" at different rates. For instance, large increases in the money supply often cause inflation in asset prices, but not in consumer prices. It's partly a function of how the newly created money is distributed. If it goes into the pockets of the wealthy, they will use it to speculate on stocks and real estate. You will see asset price inflation, but not consumer price inflation. But if you put it into the pockets of regular people, then you may see consumer prices start to rise. And even within the broad categories of "consumer goods" and "assets," there are loads of subcategories. During a pandemic, socially distanced assets (like suburban housing and food at home) will be in high demand, while non-socially distanced assets (like urban housing or commercial real estate or restaurant food) will not. Thus, urban home prices might deflate even as suburban home prices inflate. Once you start to see inflation as lots of different numbers rather than as a single number, you will start to recognize new investment opportunities. You want to own asset categories where inflation will run hotter than CPI, not asset categories where it will run cooler than CPI. It's extremely valuable to understand the forces that influence some categories to inflate faster than others, and to be able to recognize turning points where a category's inflation rate will change. That's how fortunes are made.
Editors' picks
E
by ChristopherCarrollSmith
51
ADMI like this company. They seem to have their hand in a little bit of everything. 1. We transform natural products into a complete portfolio of ingredients and flavors for foods and beverages, supplements, nutrition for pets and livestock and more. And with an array of unparalleled capabilities across every part of the global food chain, we give our customers an edge in solving global challenges of today and tomorrow. 2. We don’t own farms, but we work with growers, supporting them with personalized services and innovative technologies; partnering with them to develop and enhance sustainable practices; and transforming their bounty into products for consumers around the globe. 3. We do the same with animal nutrition products. Today, more people want to feed their pets the same kind of clean, healthy products they eat themselves and consumers expect livestock and poultry to be fed and raised humanely and sustainably. 4. has declared a cash dividend of 37.0 cents per share on the company’s common stock, an approximately 2.78% increase from last quarter’s dividend of 36.0 cents per share. The dividend is payable on March 2, 2021, to shareholders of record on Feb. 9, 2021. This is ADM’s 357th consecutive quarterly payment, a record of 89 years of uninterrupted dividends. As of Dec. 31, 2020, there were 556,104,261 shares of ADM common stock outstanding. 5. Before joining ADM, CEO Luciano had a successful 25-year tenure at The Dow Chemical Company, where he last served as executive vice president and president of the Performance division. 6. CFO Young joined ADM in 2010 following a 24-year tenure with General Motors Co., during which he held executive leadership positions in finance, general management, planning and operations on four continents. Young served in Shanghai as vice president of GM International Operations, and in 2008 and 2009, he was CFO of General Motors. Between 2004 and 2007, he was the president and managing director of GM do Brasil and Mercosur Operations, based in São Paulo. Young graduated in 1984 from The Ivey School of Business, Western University, in London, Canada, with a bachelor’s degree in business administration. He holds an MBA from the University of Chicago. Details in Photo!
NYSE:ADMLong
by Redimere_91
KO Good long term company. Coca-Cola is a great company for anyone who want something defensive and long term. With a wide range of products, coca-cola is always expanding and innovating it's product line. This is a great long term hold an a great way to add some safety to your portfolio. Don"t except crazy gains but you can expect consistency from this massive company. The pandemic has demonstrated the need for commodity stocks in any portfolio to safeguard it in a market crash and coca-cola is a great option. Although, not necessarily bullish in my opinion, if it can get back into the ascending triangle, we can see maybe see $55-$60. Once again great long term pick. This idea is based of another trading view user: Profit_Center. I am just offering extra opinion on this stock. I agree with profit_Center that an entry can be in the near future, i will be watching for it to resume into the ascending triangle.
NYSE:KOLong
by AngD1899
MTY GambleProbably on the companies that got hit hardest by Covid and the pandemic. Still trying to find its way back to pre covid levels. This can be a great long term buy. I was in this at 28 and sold at 50. Will look to get in again if we see sub 45. Their focus is food court restaurants which are still recovering from lockdowns. Some of their franchises include Thai Express and Valentine. Could be worth a shot. Resistance is 55 right now but we could see $60 and even $70 in the next few months of things get back ok track. More of a opinion based on fundamentals then technicals. I believe they are a very good company.
TSX:MTY
by AngD1899
$FOOD next target up if breaks outRelatively new company delivering meals and leading the industry, covering all the P's to the T. Doing very well since Covid19. Assuming is can breakout from here and continue this run, next target would be in the 13$ range for the retracement down to be logical. If lockdowns persist, this can go higher. Winter and holidays are most definitely increasing sales and should have a good Q4 & Q1. If the meal delivery culture we've been seeing can be sustained into post pandemic society, then $Food will lead the charge.
TSX:FOODLong
by IIICENSOREDIII
Agricultural Commodities Ripping! Food Prices to Rise in 2021!Ending my posts of major themes to look for in 2021, I want to end with the agricultural commodities. Particularly Corn, Wheat and Soybeans. The agricultural commodities are some of my favorite assets to trade, and I do not think many people pay too much attention to them. I focus on the three mentioned above, but you can also trade sugar, coffee, cocoa, orange juice (yes seriously), cattle, hogs, and pork bellies to name a few more. Let me give you a quick run down on the ag commodities. Corn is the most traded agricultural commodity, and is an important food source for both humans and animals. What makes Corn important is that it can be grown in a variety of climates and conditions, unlike the other agricultural commodities. Other uses include starches, corn oil and fuel ethanol. According to my handy dandy commodity handbook, approximately 35 million hectares are used exclusively for corn production world wide. Just as Oil has different qualities (Brent, West Texas, Canadian West etc), Corn does as well. There are different grades but the most important are high grade number 2 corn and number 3 yellow corn. The futures ticker for corn contracts is ZC. The top 5 producers of Corn in the world are: The United States, China, Brazil, Mexico and India (Canada makes it in 9th place). Corn has had an amazing run since June. We will get to the why when at the end of this post, but pay attention to the commodity charts. These are all going to be LONG term weekly charts. You can see that Corn is breaking out, and in fact, will confirm a breakout with this weeks close, which occurs today. Lot of room higher to go in 2021. The breakout zone will be our support, and as long as we remain above, Corn moves higher. Wheat is the second most produced agricultural commodity. Rice comes in at third for those that are interested. No country necessarily dominates wheat production a la Saudi Arabia with Oil and Kazakhstan with Uranium. China, India, Russia, the United States, and France produce the most wheat in the millions of tons. Canada, Australia, Germany, Pakistan, and Ukraine also boast significant production. The future contract ticker for Wheat is ZW. Wheat on the weekly is setting up to breakout. Just like Corn, we would confirm a breakout on the weekly chart by the end of today. Finally, Soybeans. Perhaps the more ‘mainstream’ financial media agricultural commodity that has seen plenty of coverage due to the US-China trade deal. Part of the phase 1 deal was for China to increase their purchases of US Soybeans. I am focusing on the the whole soybean, but most soybeans are used for soybean oil and soybean meal. The United States dominates the Soybean market, composing 50% of the total global production. Brazil comes in second at around 20%. Many analysts predicted Brazil to be the big winner in a US-China trade war spat, as China could look to Brazil for more Soybean exports. The futures contract for Soybeans is ZS. Let’s take a look at the other traded forms of soybeans which have their own futures ticker. Soybean Oil is a vegetable oil and is one of the most used culinary oil in the world. Soybean Oil is also popular as a biodiesel. Believe it or not, but there are cars that have engines which can convert from regular diesel to Soybean Oil during production. They are known as ‘frybrids’. The futures ticker for Soybean Oil is ZL. Soybean Meal is a quick one. Whatever is left from the extraction of Soybeans into Soybean Oil can be converted into Soybean Meal. This is used for high-protein, high-energy food for feedstock for cattle, hogs, and poultry. The futures contract for Soybean Meal is ZM. Soybeans have been ripping in 2020. Again, China demand and the US-China Trade war headlines play a large part, but there was some other factors which we will discuss soon. Just like Corn and Wheat, Soybeans is set to confirm yet another breakout with a weekly candle close today. The agricultural commodities do not get the attention they deserve, and as you can see, they have made huge moves. For traders, they present a great trade opportunity due to the volatility, but also add on some more risk. Consider at least watching them if you do not want to trade them. M readers know I am extremely bullish on the agricultural commodities and agriculture in general. Jim Rogers is the one who got me excited about this sector. His argument is that most young people do not want to become farmers anymore, and that the average age of farmers is well above 60. Governments may need to create larger incentives to get young people to take up farming. I see some issues and challenges for agriculture, but will be rectified by human ingenuity. The first issue is soil. A lot of soil sucks due to the pesticides and other chemicals we use. If the soil is not great, the crop will not have the full dose of nutrients and could lead to health issues down the road. As many of you are aware, the organic food movement is a huge trend, and will grow year by year. Soil replenishment will be big. I have head some things in the past about zinc being used to replenish soil, particularly in California. Phosphorus and Potash also come in mind. In fact, some foresee a phosphorus faming crisis. A big issue for farming has been climate change. Obviously farming is cyclical. Winter has been lingering longer, especially on the East Coast. Farmers tend to await for certain birds to return to let them know Spring is here and it is time to plant crops. But Spring has been coming later while Winter lingers longer. Climate change will continue to disrupt agriculture and this could lead to a shortage of crops. In fact, this is the primary reason for the spike in Corn and Soybeans this year. Iowa is where the majority of these crops are grown in the US. Millions of acres were destroyed due to the storm in Iowa in August. This has led to spikes in agricultural commodities, and some say, points to a food crisis in 2021. Finally, something not many people consider are the ramifications of green energy. This info I learned from Peter Zeihan’s book, “Disunited Nations“. Highly recommended for anyone with an interest in geopolitics and where the world is going in the future. Green energy is coming. We all know it. Governments will be spending a lot for green infrastructure. Due to the fiscal policy required to combat covid, taxes need to go up. The best way is through green taxes because they know the people will not complain. Government will say these taxes are going to be used for green infrastructure which will aid in an economic recovery and creating jobs. The issue, as Mr. Zeihan states, is that solar panels and wind turbines need to be put in areas that are very sunny and/or windy. These areas tend to be where the best agricultural land is situated. So nations would have to sacrifice agriculture for energy. In his book, Zeihan states that there only a few nations which can come out as winners in this predicament. China is not one of them. Do not panic, a lot of these issues can be remedied. In house and Greenhouse farming can be a way to cope with the effects of climate change and unpredictable weather patterns. Vertical integrated farming can be a solution to allow for green energy infrastructure to be built in the best agriculture lands, and can also be a solution for nations that do not have much agricultural lands. So yes there will be issues, but human ingenuity will get us through it. The question is how long will it take? I want to end of with Covid. It seems we are setting up for a food crisis next year. Tons of articles about supply chain disruptions due to covid and worsening food insecurity for many nations. If this winter turns out to be a dark winter due to covid cases, the likelihood of empty shelves increases. A lot of this could also have an impact on the prices of agricultural commodities. Canada is already preparing for this. In Canada’s Food Price Report 2021, bread, meat and vegetable prices are set to rise between 3-5% in 2021. The average Canadian family will pay up to $700 more for food in 2021. The agricultural charts are pointing to higher food prices. Covid and Climate will have impacts, and hence why I am bullish on this sector going forward.
OANDA:CORNUSDLong
by Uncharted-FX