The interesting news on the cut-out front is that the Canadian AAA cut-out has finally caught up to the equivalent US Choice cut-out (in Canadian dollar terms). At the end of July the AAA cut-out was reported at $194. Meanwhile the Choice of $188 converted to $193 Canadian equivalent or $1 lower than the Canadian cut-out that week. From February through early June the cut-out spread between the 2 countries was extremely wide, ie US over Canada by $10-25/cwt. It’s not unusual for the cut-outs to trade fairly evenly at this time of year but it was most certainly a welcome sight after the wide spreads that had persisted earlier this year and were a factor in the wide basis levels we saw in the fed cattle market.
New methodology sees Canada report lower fertilizer emissions (while still not accounting for on-farm mitigation practices)
Greenhouse gas emissions from nitrogen fertilizer were reduced by approximately 20 per cent in the Canadian government's official 2022 greenhouse gas inventory report thanks to an update to how nitrous oxide (N2O) emissions from fertilizer are estimated. The reduction, however, will not count toward the federal government's mandate to reduce emissions from fertilizer by 30…Read more »