As we head into the holidays, liquidity is drying up in the markets. Low quantity however strikes are occurring. US Stock markets are popping. The S&P 500 at time of writing is establishing for an all time file shut. Maybe by the time you might be studying this, the S&P is making new file all time highs earlier than Christmas. The Santa Claus rally is lastly right here. As markets take off, bigger cap agriculture firms are transferring in tandem. We’ll check out three firms Yahoo Finance picked as massive winners for 2022 (CF Industries, Nutrien, and the Andersons). With the decrease liquidity additionally comes main strikes in the Agricultural commodities. Just a few of them are catching my consideration, and making unbelievable strikes.
Before we delve into charts and firm information, right here’s one of the coolest information I’ve seen. Have you heard of the time period ‘Farmscraper?’. Think farming and skyscrapers mixed.
It seems to be like one thing you’ll see on a plant in Star Wars, however the world would possibly see its first farmscraper in the close to future. Not in North America, however in Asia. They are taking vertical indoor farming to new heights. Literally.
The illustrations you see above are Carlo Ratti’s newly unveiled Jian Mu Tower in Shenzhen, China. The 218-meter excessive constructing incorporates a large-scale vertical hydroponic farm throughout its complete facade, producing vegetation that may feed as much as 40,000 folks per yr. The 51-storey tower can even embrace housing workplaces, a grocery store, and a meals courtroom with internal gardens for recreation and social gatherings. Included in these farmscrapers is an AI-supported “virtual agronomist” system which handles the farm’s day-to-day operations, irrigation, and dietary situations, to optimize the vegetation manufacturing course of.
The Jian Mu Tower was a global competitors entry organized by Chinese grocery store chain Wumart, occupying the final vacant plot in Shenzhen’s Central Business District. The self-sustaining proposal permits residents to domesticate and eat contemporary greens and fruits from inside the tower, producing an estimated 270,000 kilograms of meals per yr. The panorama terraces additionally embrace all kinds of flora together with water lily, fern, and lychee, additional selling biodiversity.
Very futuristic and thrilling stuff. I feel we can be seeing extra structure incorporating environmentally pleasant expertise in the future even in North America. Here are some extra particulars on the constructing from Bloomberg:
The greenery would sit in what’s referred to as a double-skin facade, with home windows on either side to permit pure daylight to succeed in each the vegetation and the constructing inside. Ratti says this design — and the copious quantities of daylight in Shenzhen — will allow the farm to be much less reliant on synthetic mild and heating, which include excessive vitality use. But the farm can also be supposed to have advantages for the constructed atmosphere: The warmth that displays off tall buildings could make a metropolis hotter. Encasing a skyscraper with a farm is an efficient approach to not simply mitigate this impact and hold the constructing cooler with out air con, Ratti says, but additionally to supply meals to feed the folks in that constructing.
“Our point was, why don’t we try to harvest this energy from the sun on the facade of the skyscraper and turn it into a giant farm,” he stated. “This would not have been possible a few years ago, but it’s possible today, thanks to advances in hydroponics and also robotics.”
One criticism of indoor farming has been heating and synthetic LED lights that require a big quantity of electrical energy. The constructing Ratti has designed overcomes this by utilizing pure daylight. However, as everyone knows, in lots of elements of the world, daylight will not be constantly out there all through the yr. In this sense, it might pose an issue in Winter months, not like these artificially lit indoor farms.
I’m wanting ahead to seeing these farmscrapers being constructed like the relaxation of the world.
Onto the charts and information.
Soybeans was a chart I highlighted in final week’s Agriculture sector roundup. We had been ready for that breakout and we acquired it. A pleasant transfer up for readers in the event that they occurred to play the ag commodity. A brand new uptrend is in play so long as we keep above the $1280 right here on my CFD chart of Soybeans. This is the CFD I commerce, however the futures chart of Soybeans will look comparable in construction. Just a special worth.
Corn is lastly breaking out and taking off once more. We have been bullish ever since the breakout above $540 on the CFD. After breaking out above $580, we started to stall for a lot of weeks. This week we lastly noticed the break. Bullish. It seems to be like Corn can be heading as much as $640.
I highlighted Wheat retesting a significant assist zone. Well that assist has held. Take a have a look at the wick on the retest too. Now we’re on the lookout for wheat to take out highs at $860.
These are nice for our trades, however sadly, it does imply that larger meals costs can be greeting us at the grocery shops in 2022.
Orange Juice (sure people, we are able to commerce Orange Juice futures!) was one of the largest movers final week. We had been looking ahead to a breakout above the $1.31 resistance zone. Well, we acquired it alright. Not simply the break, but additionally a retest which was held by patrons evident by the giant wick candle. Would not be shocked to see Orange Juice break above latest highs at $1.45. A significant breakout which might see us strategy highs from 2018.
Let’s begin off by the three firms Yahoo Finance (from Zacks) talked about as the three greatest for 2022. Let’s begin off with Nutrien, an organization featured loads of occasions in my agriculture spherical ups.
Nutrien is a number one supplier of crop inputs and providers. The firm is benefiting from stable demand and better costs for crop vitamins. It can also be gaining from acquisitions, value effectivity and elevated adoption of its digital platform. The firm continues to develop its footprint in Brazil by acquisitions, together with Tec Agro. These components have contributed to its share worth appreciation of 51% to this point this yr.
The firm has appeared in lots of spherical ups as a result of the inventory retains transferring larger and better. Another new all-time file excessive was printed yesterday. Support is available in at $90, and the subsequent resistance could be $100. I’m positive establishments are selecting up shares of this firm. A stable enterprise they usually pay a dividend.
The Andersons (ANDE)
Andersons is a regional grain merchandiser with numerous companies in agriculture, plant nutrient formulation and distribution, turf product manufacturing, railcar advertising and marketing and basic merchandise retailing. The firm is gaining from rising fertilizer costs on restricted provide and the next stage of stock.
It is well-positioned to seize worth and development throughout its numerous portfolio in commodity markets on robust farm fundamentals. The firm’s technological development additionally allows customer-centric innovation. In addition, constructive pricing and cost-control initiatives will possible drive margins. ANDE’s shares have appreciated 57.7% yr thus far.
The inventory nonetheless has loads of room earlier than making new file highs (which is available in at $69). The inventory had a pleasant pop on earnings, largely to do with the fertilizer demand. In a earlier spherical up we mentioned the information that 2022 might see a fertilizer scarcity. The Andersons is a inventory to entrance run that provide and demand imbalance.
CF Industries (CF)
CF Industries is a number one international producer of nitrogen and hydrogen merchandise for fertilizer, clear vitality, emissions discount and different industrial functions.
The firm is gaining from larger nitrogen fertilizer demand stemming from wholesome corn acres in the United States. Strong international demand and decrease international provide availability will drive nitrogen costs larger. It can also be dedicated to boosting shareholders’ worth by leveraging robust money flows. These components have resulted in a share worth rally of 81.3% year-to-date.
The inventory simply printed new all time file highs this week. Another inventory which is able to entice institutional traders with their dividend. Since we’re in new file territory, I might watch to see how the inventory reacts round $75. Support is available in at $67.25.
AG Growth (AFN.TO)
Here is one for you technical merchants.
I’ve mentioned the lovely chart that’s AG Growth. We acquired the breakout above $30 just a few months in the past. Since then, we hit resistance at round $36, earlier than pulling again. As many of you technical merchants know, each time a inventory breaks out, it can pull again to retest the breakout zone. It might occur just a few days after the breakout, or just a few weeks after the breakout. The secret is how worth reacts when it comes again to retest it. AG Growth has retested the $30 zone. What was as soon as resistance has turn into new assist. A pleasant inexperienced candle with a big wick signifies the retest was profitable. As lengthy as we stay above $30, the inventory is establishing properly for a break above $36 in 2022.
Bee Vectoring (BEE.CN)
Bee Vectoring (BVT) has introduced that their 2022 US gross sales are on observe with 2021 trial outcomes driving development in new markets. BVT continues to be in discussions with clients representing a number of hundred potential new acres. High buyer retention has additionally been confirmed in the Southeast, with 80% of growers from final yr already confirmed to make use of BVT’s pure precision agriculture system for the upcoming blueberry bloom interval in February.
“The cost of inputs for growers has skyrocketed, and having customers reorder when they are cutting back in other areas shows how important BVT is to their operation. Many traditional chemical products have risen by as much as 40 percent over the last year,” says Ian Collinson, Sales Manager at BVT.
“Our expansion in the US market is progressing on schedule in terms of sales growth and retention,” added Mr. Collinson. “We’ve secured sales in the Southeast as a solid foundation, since their growing season starts first. The bulk of BVT’s new sales growth will occur over the next three to four months, aligned with later growing seasons in the Northeast, Midwest, Pacific Northwest and California.”
Overall, it’s establishing for an thrilling 2022 for Bee Vectoring.
For these contemplating selecting up shares, you might have an excellent zone to take action. The inventory is again at testing main assist. A zone that has not seen a candle shut under it. Buyers have stepped in indicated by all the giant wicks. This assist has been held 4 occasions this yr. Let’s hope it holds a fifth to finish off 2021.
Water Ways Technologies (WWT.V)
An unbelievable yr for Water Ways Technologies. This is an organization I can be protecting a detailed eye on in 2022. Can they construct off an ideal 2021? I consider they’ll and can.
We learn about all the orders Water Ways has been reporting. A latest press launch now says that the 2022 order backlog of its Canadian subsidiary, Heartnut Grove WWT Inc, has exceeded $4.1 Million as of December 22 2021. These orders available are to be delivered and income can be acknowledged in Q1 and Q2 of 2022.
As we shut the yr, Water Ways is seeing some promoting close to all time file highs. Profits are being taken which is okay. Perhaps to shut off the yr for taxes. We have discovered some patrons round the $0.255 zone. I nonetheless think about $0.22 being the main assist zone to carry. A great alternative for including to your place as the firm retains rolling on and shareholder’s search for a robust 2022.
Karnalyte Resources (KRN.TO)
The remaining firm for this week is Karnalyte Resources, a complicated Potash firm that owns 100% pursuits in Subsurface Mineral Leases KLSA 010, KL 247A, and KL 246 totaling 367 km2 of mineral rights. It additionally holds pursuits in the Wynyard potash mission positioned in Wynyard, Saskatchewan; and Proteos nitrogen mission positioned in Central Saskatchewan.
There hasn’t been any substantial press releases for a while, but the inventory was up almost 40% for the week.
I wish to zoom out to indicate you guys the main breakout. We have damaged and closed above the $0.30 zone. As I stated, a breakout on no information, however maybe worth motion is indicating some excellent news is coming down the pipeline.