🍁 McClutch

👋 Howdy! In classic hockey fashion, Connor McDavid reminded everyone why he’s the best on the planet, by burying the OT winner to lift Canada over the U.S. in the 4 Nations Tournament. If you’re American, let’s call it “character-building.” If you’re Canadian, go ahead and sip that morning coffee a little smugger today. 🍁🥅🚨

• 🎥 Connor McDavid OT winner.

—TDY team

AG-TECH & INNOVATION

🐣 Not-so-egg-cellent dilemma: Annually, about 350 million male chicks in America meet an untimely end because they can't lay eggs and aren't suitable for meat production. This practice, while standard, has ruffled many feathers due to ethical concerns. Enter the Cheggy machine, a technological marvel from Agri Advanced Technologies. This SUV-sized device uses bright light and sensitive cameras to determine the sex of a chicken embryo by detecting feather shading, males are white, females are dark. Hatcheries can now repurpose male embryos for other uses, eliminating the need for mass culling garnering praise from animal welfare groups. The system, processing up to 25,000 eggs per hour, is already operational in Iowa and Texas hatcheries.

💥 The boom, the bust, and what’s next: The AgTech investment scene has been riding a mechanical bull, some are hanging on, but plenty have been thrown off. In 2024, startups in the space managed to rake in $5.7 billion across 736 deals, but here’s the catch: actual deal activity dropped by 25%, and a handful of companies bit the dust. Venture capitalists have been tightening their belts, meaning only the strongest startups (the ones solving real problems, not just pitching buzzwords like “AI-powered compost”) are getting the cash flow. Despite the downturn, experts predict a rebound as precision ag, automation, and regenerative tech prove they’re here to stay. So, if you’re an investor, now might be the time to look for bargains, and if you’re a farmer, keep an eye on which of these startups actually make it past their first harvest.

INDUSTRY & POLICY

📉 Cenovus energy’s profits take hit: Cenovus Energy, one of Canada’s top oil producers, just reported a major profit slide for Q4 2024. Despite cranking up daily production to 816,000 barrels of oil equivalent per day, net earnings tanked from C$743 million last year to just C$146 million this quarter. What’s the culprit? Lower oil prices, lower margins, lower earnings. I guess even in the oil game, you can't always drill your way to success! Investors are keeping a close eye on Cenovus’ strategy for 2025. Will they cut costs, scale back production, or bet on oil prices bouncing back?

🛢️ More barrels, less profit for Glencore: The global commodities giant, saw its oil trading volumes jump in 2024, hitting 3.7 million barrels per day, up from 3.3 million the year before. But again, even with all that extra movement, earnings from energy trading crashed by 47% to $908 million. The market just isn’t what it used to be, volatility is down, and after the wild swings of the past few years, traders aren’t cashing in as much on price swings.

🇺🇸 USDA layoffs disrupt agricultural research: The U.S. Department of Agriculture has implemented mass layoffs, targeting employees in their probationary periods. These cuts are disrupting vital agricultural research projects focused on crop improvement, pest and disease defense, and understanding farming's climate impact. The layoffs may also hinder the effective implementation of the Inflation Reduction Act, which allocated substantial funds for climate policies and farmer subsidies. Critics argue that this approach creates inefficiencies and wastes resources, ultimately harming American farmers.

COMMODITY REPORT

📊 Navigating shifts and opportunities: The global commodities market remains dynamic. The futures market is currently navigating a complex landscape influenced by geopolitical developments, supply dynamics, and investor feels.

• Grain market: As of mid-February 2025, grain futures have experienced modest gains. March 2025 corn futures are trading at $4.96 per bushel, soybeans at $10.36 per bushel, and wheat at $6.00 per bushel. These increases are influenced by various factors, including weather conditions, export demand, and global supply chain dynamics.

• Crude Oil: U.S. crude inventories rose by 4.6 million barrels to 432.5 million due to seasonal refinery maintenance. Despite this, global oil prices remain resilient amid geopolitical tensions. Peace talks between Russia and the U.S. over Ukraine could impact energy markets, with a resolution possibly lifting sanctions on Russian exports, affecting supply and prices.

• Natural Gas: Natural gas ETFs have outperformed the market in early 2025, with the United States Natural Gas Fund (UNG) up nearly 30% due to increased demand from cold weather and supply concerns from geopolitical tensions. However, investors should be cautious as natural gas markets are volatile, and factors like contango can affect ETF performance.

• Industrial Metals: Major mining companies BHP Group and Rio Tinto reported weaker earnings due to declining iron ore prices from China's slower economic growth. However, they remain optimistic about the energy transition, focusing on copper and lithium investments, which are crucial for renewable energy and electric vehicles, indicating potential growth in the commodities market.

• World indices: The S&P 500 has risen nearly 4% in 2025, nearing record highs. Analysts warn this rapid increase could lead to a "deeper pullback" due to negative seasonal factors and potential overvaluation. Jonathan Krinsky of BTIG suggests that despite new highs, the weak upcoming seasonal period with low momentum might trigger a market correction in March.

🔎 The current calm in the stock market may be deceptive, with potential volatility arising from upcoming economic and political events. U.S. small-cap stocks might see growth, especially as market leadership broadens during cyclically sensitive periods.

Disclaimer: Commodity and market information contained herein is believed to be accurate but is not guaranteed. The Daily Yield and information sources assume no responsibility or liability for any action taken as a result of any information or advice contained in these reports, and any action taken is solely at the liability and responsibility of the user.

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The more we grow, the better we get, just like a well-fertilized crop! 📈

BRAIN AG-TIVATOR

🚀 Trivia challenge

Think you know your ag facts… What was the first crop grown in space?
A) Potatoes
B) Wheat
C) Lettuce
D) Soybeans

Answer: Lettuce was the first crop grown in space on the ISS in 2015. NASA astronauts even made space tacos with it! 🚀🥬