Press Release Summary: French-based Portway Capital ramp up buys in Corn and Soybean as inventories continue to fall and US weather woes continue.
Press Release Body: According to analysts at Portway Capital, a significant percentage of US corn and soybean yields could be at risk of severe frost damage, after the Midwest flooding earlier this year delayed the planting of crops in affected regions.
The impact this could have on crop supplies is unclear, but conservative estimates from numerous parties suggest potential losses of 500-800 bushels; a solitary piece of data, which, according to a source within Portway Capital, has portfolio chiefs ready to commit.
The argument looks to hold water. Further supply issues are presented by an unusually dry season following the flooding across Midwest USA, meaning that crops have failed to mature, increasing the likelihood of a later harvest and increased frost damage. Added to the perennial problem of fuel prices its hard to see what could possibly drive the downside.
For some weeks now, Portway Capital have been rumored to be quietly acquiring a sizeable position in some of the more stagnant agriculture commodities, but recent reports of possible workforce strikes in Argentina and news that barges are unable to reach critical US ports such as New Orleans because of low water levels (those that are getting through are still leaving with less load) has suddenly seen them in the spotlight as the availability of the commodities looks to tighten and drives prices. In fact many traders this week were openly questioning whether Portway Capital were behind the heavy future buying seen in both mentioned commodities over the past few days.
A spokesman for Portway Capital declined to comment, but numerous sources close to the firm have made tongue-in-cheek references of late that their representatives seemed "very well-informed on US weather cycles and the like", highly suggestive of increased activity in the space.
Web Site: http://www.portwaycapital.com
Contact Details: Michael Brown news@pr-newsnow.info
2012
