— By Nathan Slaughter |
To say Russia and the United States have had a strained history would be an understatement. But a recent move by Russia could benefit U.S. farmers… and the entire agriculture industry.
Russian Prime Minister Vladimir Putin dropped a bombshell in early August. Unrelenting drought, scorching heat and uncontrolled fires have ravaged farmland and destroyed Russian crops this year. It has been estimated that roughly a third of Russia’s wheat harvest has been lost. So Putin took the only course available — he announced a ban on wheat exports for the rest of this year. If you follow the news, you probably heard about the ban. But I’d bet you didn’t hear that in September, the ban was extended… until late 2011. It was scarcely covered. Russia is the world’s third-largest wheat producer, accounting for 13% of global supply. As you’d expect, wheat prices spiked on the news — peaking near $8 a bushel, up from about $4.25 in June. Russia’s loss could be somebody else’s gain. In fact, wheat sales account for $10.6 billion in annual revenues in the United States alone — and many are rushing to pick up the slack. Elevated wheat prices could put more cash in farmers’ pockets, and it’s a safe bet that much of it will be spent on seeds, fertilizer and other crop inputs. But Russia isn’t the only country struggling to fill its quota. Australia is also experiencing drought conditions; Canadian crops were drowned by torrential rains, and African farmers are seeing entire fields blighted by disease. Last month, the U.S. Department of Agriculture warned that corn production in the United States was slipping and supplies (relative to consumption) could hit a 15-year low in 2011. Severe water shortages in many areas represent another challenge to growers. The amount of water thundering down the mighty Colorado River is less than half what it once was. In China’s Hebei region, aquifer levels are dropping 10 feet per year, and 969 lakes have completely vanished. Whether or not you believe climate change has a hand in all this, it’s clear that the world is struggling to produce enough food to satisfy a growing population. By the end of the decade, it’s estimated there will be 1.1 billion more mouths to feed. Keep in mind that rising incomes have also led to a profound change in dietary habits, as people move from starches to protein (meat). And all those chickens and cows must also be fed — the rule of thumb is that it takes seven pounds of grain to produce one pound of meat. Don’t forget demand for biofuels is putting further strain on supplies. It’s estimated that 19 billion gallons of ethanol will be produced worldwide this year, which will eat up millions of acres of corn. Food, animal feed and fuel — three different groups all hungry for the same crops. That means farmers around the world will be challenged to grow more from each acre of soil. They will need plenty of help. So the future looks bright for companies that sell pesticides, crop nutrients, drought-resistant seeds, tractors, irrigation equipment and other specialized equipment. But most agriculture stocks were hit hard by last year’s downturn and haven’t gotten back on their feet just yet. Monsanto (NYSE: MON), for example, trades at just one-third of its former peak near $150 a share. So what’s the best way to profit? I may be biased (I’m the Chief Strategist behind The ETF Authority newsletter), but this space is perfect for an ETF. When a single company is behind a blockbuster trend or product (for example, the iPhone), that’s when I want an individual stock. But when there’s an entire industry benefiting, it’s best to go with a fund. This way, you’re sure to capture the bulk of the gains, without the risk of buying into one specific company. And I think the bulk of the gains are still to come… Good Investing!
Nathan Slaughter P.S. — My ETF Authority readers know about my favorite agriculture fund — I profiled it in my October issue. Since I highlighted the idea two weeks ago, it has already gained +7%. But as I mentioned above, I think this sector is just getting started. To learn more about The ETF Authority and how to get the name of this fund, I invite you to read this memo. |
Category: Business
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The Russians Lit a Fire Under This Sector
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Citi: the Istanbul Commercial
Citbank Istanbul Commercial from Vidivodo
Vidivodo.com : citi bank reklamı – istanbul Etiket: istanbul insanCitbank Istanbul Commercial from Youtube
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All Roads Lead to Istanbul
TERMS OF ENGAGEMENT
Turkey is more popular now than it has been since the Ottoman Empire.
But can it please all of its new friends at the same time?BY JAMES TRAUB | OCTOBER 15, 2010 | Foreign Policy James Traub is a contributing writer for the New York Times Magazine and author of, most recently, The Freedom Agenda. “Terms of Engagement,” his column for ForeignPolicy.com, runs weekly. He has also written for The New York Review of Books, The Atlantic Monthly, National Review and Foreign Affairs. He is a member of the Council on Foreign Relations.
ANKARA, Turkey – It’s great to be Turkey just now. The economy, barely scathed by the global recession, grew 11.7 percent in the first quarter of this year, and 10.3 percent in the second. Like the Ottoman Empire reborn, Turkey has sponsored a visa-free zone with Syria, Jordan, and Lebanon, and is moving toward creating a free trade zone as well. And Turkey is a force not just in its neighborhood but, increasingly, in the world. It’s the next president of the Council of Europe, an observer of the Gulf Cooperation Council, and a new friend of ASEAN and Mercosur. And the world is beating a path to its
doorstep: When I was in Ankara this week, the Sudanese foreign minister was in town; the French, the Austrians, and the Poles had just visited. Senior Iraqi politicians were making regular pilgrimages. Turkey has become a net exporter of diplomatic services.
“For the first time,” says Selim Yenel, the highly Americanized deputy undersecretary of foreign affairs responsible for relations with Washington, “they’re asking us for advice.”Like its fellow emerging powers Brazil and South Africa, Turkey was once a right-wing state that the West could safely pocket during the Cold War. And like these countries, the Turks now have the self-confidence to feel that they no longer need belong to anyone.
Such states are now a force unto themselves, as Turkey and Brazil demonstrated — to Washington’s chagrin — when they reached a deal with Iran this past May to ensure that Tehran would not produce weapons-grade nuclear fuel. Intriguingly, Turkey, Brazil, and Nigeria currently serve on the U.N. Security Council, and South Africa and India will next year — a murderers’ row of emerging powers, and a glimpse of a post-hegemonic, polycentric world.But diplomatically, Turkey matters more than the others do. Among them, only Turkey is overwhelmingly Muslim and located in the Middle East, within hailing distance of practically every crisis zone on the planet. And thus the question of what kind of force Turkey will be matters more as well. Turkish diplomats, well aware that the eyes of the world are on them, are quick to give assurances that they are a liberal, secular, and, above all, responsible influence in their neighborhood and beyond.
The question arises, of course, because of the events of this past spring, when, in dismayingly rapid succession, Turkey delivered the unwanted gift of the Iranian deal and voted against a U.S.-sponsored U.N. resolution to impose sanctions on Iran — and then erupted in outrage when Israeli commandos, determined to stop a flotilla sailing from Turkey to Gaza, killed eight Turkish citizens in the course of a terribly botched operation. The accident of timing left the toxic impression that Turkey viewed Iran as a friend and Israel as an enemy.
Turkey’s policy of “zero problems with neighbors” seemed to mean that it was prepared to alienate its old friends in the West in order to mollify countries in its own backyard, including the worst among them.
The New York Times’ Thomas Friedman wrote that Turkey seems intent on “joining the Hamas-Hezbollah-Iran resistance front against Israel.”I think that’s a bum rap. On Israel, virtually everyone I’ve spoken to here, including harsh critics of the ruling AKP, has said that popular opinion was so outraged by the event — the first time since the Ottomans, as one is constantly told, that Turkish civilians had ever been killed by a foreign army — that no government could have preserved its popular legitimacy without demanding an apology (though whether leading figures had to describe the incident as state terrorism is another matter). Turkey is still waiting for that apology. As for Iran, it’s clear that Foreign Minister Ahmet Davutoglu and his team really did believe that the West would welcome the deal they struck, by which Iran would agree to transfer 1,200 kilograms of uranium out of the country to be enriched for civilian purposes. The fact that they were wrong probably says as much about U.S. President Barack Obama’s ambivalence about engaging Iran as it does about Turkish tone-deafness or disingenuousness.
Still, Turkish officials recognize that they’ve jeopardized their emerging brand identity and have some serious repair work to do.
“We’ve got to find something flashy,” Yenel told me. Maybe Turkey could persuade Hamas to release Gilad Shalit, the kidnapped Israeli soldier? (Good luck with that.) Prime Minister Recep Tayyip Erdogan has backed off on his apparent obsession with Gaza and Israel’s perfidy, and a U.N. investigative panel may deliver a definitive judgment on the flotilla incident in early 2011 (compelling an Israeli apology, Turkey hopes).It’s a caricature to say that Turkey has chosen the Middle East, or Islam, over the West. Turkey’s aspiration for full membership in the club of the West, including the European Union, is still a driving force. But Turkey aspires to many things, and some may contradict each other. The country wants to be a regional power in a region deeply suspicious of the West, of Israel, and of the United States; a Sunni power acting as a broker for Sunnis in Lebanon, Iraq, and elsewhere; a charter member of the new nexus of emerging powers around the world; and a dependable ally of the West. When Turkey is forced to choose among these roles, the neighborhood tends to win out, and that’s when you get votes against sanctions on Iran. At this week’s NATO summit in Brussels, for instance, Davutoglu has expressed skepticism about missile defense, because any such system would be aimed at countries like Iran and Syria, which Turkey declines to characterize as threats.
Turkish officials insist that they embrace the “universal values” that drive public discourse, if not necessarily policy, in the West. But they seem to give their Muslim brothers a pass on human rights.
Erdogan notoriously exonerated Sudanese President Omar Hassan al-Bashir by saying “A Muslim can never commit genocide.” Erdogan also publicly congratulated Iranian President Mahmoud Ahmadinejad on his victory in the 2009 election, widely condemned elsewhere as grossly rigged. Turkish diplomats say that they use tough language in private
— but autocratic regimes shrug off private recriminations.Unlike China or even India, Turkey does not resort to the language of “sovereignty” when defending abusive regimes — it takes the “Western”
view of international law. Rather, its dilemma has to do with its
neighborhood: You can’t be a regional leader in the Middle East if you take human rights too seriously. But the problem might also have to do with the unresolved state of Turkey’s own democracy. Eight years after Erdogan gained power, secular Turks continue to doubt his commitment, and that of the ruling AKP, to human rights, tolerance, and the rule of law. Although many of the people I spoke to saw the country’s recent constitutional referendum — which among other things reduced the power of the army over the judiciary — as a further consolidation of Turkish democracy, plenty of others viewed it as a dangerous ploy by the AKP to increase its control over the state. Secular Turks fear that the country is becoming steadily more conservative — certainly in the Anatolian heartland, if not yet in the big cities.From the time of Kemal Ataturk, Turkey has been committed to its “European vocation.” But Ataturk was a modernizer, not a liberal; one of his slogans was “For the people, despite the people.” And if Kemalist secularism was not a formula for European-style liberal individualism, it’s scarcely clear that the AKP’s market-oriented moderate Islamic restoration is, either. Turkey’s democracy is not yet “consolidated,” as political scientists put it.
Turkey is a success story that the West has every reason to welcome.
The image of moderation and tolerant cosmopolitanism that it offers to Middle Eastern audiences contributes not only to Turkish soft power but to global peace and security, at least in the long run. That’s already a pretty solid record. But Turkey is not content with being the brightest star in its benighted neighborhood; it wants to play on the world stage. And that ambition may force Turkey to find a new balance among its competing identities. -
China and Turkey eye trade boost
Turkey and China intend to triple bilateral trade to $50bn within five years, the countries’ leaders have said after meetings aimed at strengthening political and business ties.
At a joint news conference held in the Turkish capital Ankara, Tayyib Erdogan, the prime minister, said: “We set ourselves a timetable. We agreed to increase our trade volume to $50bn in 2015 and to $100bn in 2020.”
Erdogan’s Chinese counterpart, Wen Jiabao, hailed what he described as a new “strategic partnership”, saying he recognised Turkey’s “power and influence in the international community and its region”.
Both countries – the fastest growing economies in the world – sealed agreements to co-operate in energy, transport and infrastructure.
Erdogan said the two countries have also agreed to carry out their trade in their national currencies.
‘Important milestone’
Wen, the first Chinese premier to visit Turkey in eight years, said he wanted to “turn over a new leaf” in ties with Turkey. He also held talks with Abdullah Gul, the Turkish president, and business leaders before returning home on Saturday.
Turkey was the last stop on Wen’s European tour, which took him to Greece, Belgium and Brussels.
He described his two-day visit as an “important milestone in relations”.
Turkey’s ties with China have been strained at times, notably over Beijing’s approach to unrest in Xinjiang, home to China’s Muslim Turkish minority Uighurs.
The two leaders did not, however, address one of the few areas of tension in bilateral ties.
Hundreds of Uighur Turks held demonstrations during Wen’s visit, denouncing Beijing’s handling of the unrest which killed 184 people in Xinjiang in 2009.
Turkey accepts China’s sovereignty over Xinjiang, but last year heavily criticised the deadly violence in the region, which it described as “atrocities”.
Wen’s tour of Europe was also overshadowed by a dispute with the European Union and the US over the level of the yuan.
In the Greek capital Athens, he pledged investment and support to debt-stricken Greece and announced the creation of a $5bn fund to help finance the purchase of Chinese ships by Greek shipping companies.
In Brussels, Wen fended off European pressure to raise the value of the yuan before sealing business deals worth $3.15bn in Rome.
Trade ‘imbalance’
The trade volume between Turkey and China stood at $14.2bn in 2009 – $12.6bn of which consisted of Chinese exports.
Wen said his country was not opposed to looking into ways to redress the imbalance. “The Chinese side will carry out a study in order to sustain our trade without giving a huge deficit,” he said.
One of the agreements would open the way for the joint construction of 4,500km of railway in Turkey, Erdogan said, adding that efforts would now focus on finding the necessary finance for the project.
Chinese companies are already involved in the construction of railroads for two high-speed train links, he added.
Turkey and China are also involved in projects to build oil pipelines from Iran.
Joint military exercise
Turkish newspapers reported last week that Chinese warplanes took part in a military training exercise at an airbase in central Turkey, in what appeared to be the first such drill involving Beijing and a Nato member country.
The Turkish army has not confirmed the exercise.
Turkish press reports also said the Chinese-Turkish manoeuvres took place on September 20 through October 4 at the Konya air base in Turkey’s central Anatolia region – before Wen’s visit.
“To the best of our knowledge, US-made F-16s were not involved in the exercise,” Lieutenant Colonel Tamara Parker, a defence department spokeswoman, said on Friday.
Another Pentagon official, who asked not to be identified, said indications were that the Turkish air force flew F-4 Phantom fighters, used extensively by the US during the Vietnam war, while China flew Russian-built SU-27s.
China, according to reports, has also developed a surface-to-surface rocket-launching system together with Turkey.