Commodity HQ: 5 Best-Performing Commodities Of 2012

Through the end of September, 2012 has by and large been another solid year for commodities. Measuring commodity performance can be a little tricky though, as many commodity ETFs and ETNs hold various contracts throughout the year and roll those contracts according to their investment mandate. What that means is that ETF/ETN performance can vary from the underlying commodities [for more commodity ETF news and analysis subscribe to our free newsletter].


While many regular investors do find that commodity futures offer certain advantages as investment options, a large number look to get their exposure through ETFs and ETNs, and it is the performance of these vehicles that we will use as proxies for this article.

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http://commodityhq.com/2012/5-best-performing-commodities-of-2012/

Investopedia: Will Hot Dry Weather Shrivel These Sectors?

Much has been made of the near-record corn planting this year in the U.S., and this activity has certainly been a boon to Monsanto (NYSE:MON) and presumably DuPont's (NYSE:DD) Pioneer business as well. With this high level of planting activity, analysts had assumed a bumper crop and easing input cost pressures on the food sector. Unfortunately, planting is about the only part of the process that farmers can control and hot, dry weather is starting to sap the corn crop. Not only is this becoming a worrying scenario for farmers, but also for a host of companies and industries that need a healthy corn crop for their own prosperity.

Read more here:
http://stocks.investopedia.com/stock-analysis/2012/Will-Hot-Dry-Weather-Shrivel-These-Sectors-CORN-MON-POT-TSN0705.aspx

Investopedia: FMC A Three-For-One Chemical Company

In the past couple of years, investors have paid a great deal of attention to the agricultural, industrial and battery markets. FMC Corp (NYSE:FMC) is a relatively rare chemicals company in that addresses all three markets. While FMC has enjoyed a great run already, investors may yet be able to wring even more leverage out of a company that seems to be executing as well as any in its markets. 

Solid Second Quarter Performance
FMC met guidance with a little less than 5% revenue growth in the second quarter. Sales growth was led by the agricultural business (which grew 12%), while the specialty business grew 6%. Reported growth in the industrial category was down 5%, but adjusting for asset/business dispositions underlying growth was more on the order of 7% to the positive.

FMC has seen more than a year of ongoing margin expansion and this quarter was no different. Gross margin grew more than two and a half full points from the year-ago level, and operating income jumped more than 18% for the quarter.


To read more, follow the link:
http://stocks.investopedia.com/stock-analysis/2011/FMC-A-Three-For-One-Chemical-Company-FMC-BAL-CORN-POT-DD0808.aspx

Investopedia: Don't Get Piggish With Smithfield Foods

Protein stocks can be some of the most irritating stocks for an individual to consider. So much of what determines success at companies like Smithfield (NYSE:SFD), Tyson (NYSE:TSN), and Pilgrim's Pride (NYSE:PPC) is out of their control and all but impossible to predict. What's more, successful trading often demands selling when things look great and buying when things are terrible - old advice to be sure, but nevertheless still hard for many investors to follow. 

With Smithfield Foods posting its first full-year profit in a few years, and the stock up nicely relative to the S&P 500 over the last two years, investors might be wise to question whether this is a stock they want to hold for the full cycle or whether it may be time to move on to greener pastures. While protein consumption seems to be on an inexorable climb around the world, agriculture is still unpredictable and protein stocks are still tough candidates for long-term sleep-well-at-night investing.

A Good End To The Year

Smithfield Foods certainly brought home some good results for the end of its fiscal year. Revenue rose more than 7%, as Packaged Meat pushed Pork Processing to a double-digit increase and offset weaker performance in Hog Production. One potential concern comes from the volume figures - across the board volume was weak, as fresh pork volume dropped 9%, packaged meat volume fell 2%, and hog production volume fell 9%.


The full piece can be read for free at Investopedia:
http://stocks.investopedia.com/stock-analysis/2011/Dont-Get-Piggish-With-Smithfield-Foods-SFD-TSN-CORN-HOGS-OINK-SEB-HRL0620.aspx