Record production and big supplies continue to weigh on grain markets, and yet, corn and soybean futures have remained relatively strong, and even trended higher, since fall.
“There’s definitely been a shift in the narrative, from an outside fund, speculative money perspective,” explains Jon Driedger of FarmLink Marketing Solutions in this market conversation.
Driedger joined Shaun Haney on RealAg Radio at Ag Expo in Lethbridge to discuss the big soybean stocks coming in, strong canola demand, and the major uncertainty facing pea and lentil growers heading into spring: the potential that changes to India’s import rules at the end of March will shut the door to Canadian pulse exports.
As he notes, pulse bids have gone quiet in the last few weeks, as buyers wait for the phytosanitary issue to be sorted out.
“Is it going to be catastrophic? I think that’s maybe too pessimistic, but from a buyer’s perspective, why would you stick your neck out and take on risk rather than wait for the smoke to clear?”
From there, they discuss the downside potential for the Canadian dollar, and in true analyst form, Driedger goes with his brain instead of his heart, sharing his outlook for the NHL playoffs (sans the Winnipeg Jets):
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- Soybean Prices Maintaining Remarkable Strength in Face of Record Crops — John Duvenaud