While U.S. farmers are adjusting to significantly lower grain prices, declining currency values have buffered growers in Canada and many other parts of the world. U.S. futures have dropped off, but cash values in Canada have maintained their value, and in some cases, have risen, thanks to the weakness with the Canadian dollar. “The devaluing of the… Read More
2015 hasn’t necessarily been a great year for grains complex, let alone anyone who works in the commodity sector. The most watched fall from grace came in the form of oil prices continuing to be pushed lower by sustained production highs by the likes of O.P.E.C. and the U.S.A., who also just recently announced they’re… Read More
With the U.S. Federal Reserve raising interest rates for the first time in almost a decade and the Bank of Canada suggesting it’s considering negative interest rates, how much lower can the Canadian loonie drop relative to the U.S. dollar? It’s an important question when determining whether to lock in basis levels, as movement in the currency… Read More
After three record crops around the world, grain prices are under heavy pressure from ample supplies. The impact is probably felt nowhere more than in the U.S., as the strength of the U.S. dollar is also restricting exports. Some analysts are saying it will take a major weather issue — maybe a flip from El Nino to… Read More
This past week saw a lot of reports from various places, but the report that most outside markets are waiting for will come from the U.S. Federal Reserve on Wednesday, December 16th, as the Fed will decide whether it’s raising U.S. interest rates or not. The Canadian Loonie continues to struggle against the U.S. dollar,… Read More
While grains ended the month of November with little fanfare, the first trading week of December proved to have some push to the upside despite a number of reports that didn’t really change any fundamentals. Soyoil led the complex with a 10.5% gain for the week, which helped support canola prices (+2.25% for the week)… Read More
Haven’t we seen this before? Traders and analysts were expecting Statistics Canada to peg the 2015 canola crop at around 15.6 million tonnes in the agency’s latest production report released Friday morning. Pre-report guesses ranged between 14.5 and 16.4 million. Most farmers reported better than expected canola yields at harvest, so everybody was expecting the… Read More
The grains market continued to trade through the U.S. Thanksgiving week a bit quieter (par for the course) against a stronger U.S. dollar, but ended the week a bit higher thanks to some decent U.S. export sales for corn and soybeans. All things being equal, global trade continues to be encouraged by low ocean freight… Read More
While the lower value of the Canadian dollar is supporting prices, canola values are still caught in a global oilseed market weighed down by heavy supplies. “It’s a bit of a mixed bag for canola, within the context of a lot of negative things,” explains Shaun Wildman, Regina-based senior trader with Seaboard Corp, in this… Read More
Grain markets can be complex, but there are times when simple economics are all that’s needed to describe a situation. If supply grows faster than demand, then prices drop. “World demand for grains — corn, soybeans and wheat — is up less than 1 percent, while global production is up a little over 2 percent, so… Read More
Wheat futures have been unable to build any upward momentum since the middle of summer, as the market sits on a record-sized world crop waiting for fresh trend-setting news. U.S. currency strength is limiting export demand and the ability of Minneapolis-based futures to move higher, notes Mike Davey of FarmLink Marketing Solutions in the interview below. However,… Read More
Grains finished the last full week of trading in September in the green thanks to some unfavourable weather conditions in Europe and Asia, and better-expected-export numbers for U.S. sales. While crop progress reports in North America continue to show that things are ahead of schedule & crop quality is relatively decent, some good buying strength… Read More
Grains this week were relatively mixed as a combination of various weather forecasts and new production reports had the trade flip-flopping all over the place. Corn and soybeans were lower with good growing conditions and South American planting starting up. The strength of the U.S. dollar has been waning a bit as expectations were confirmed… Read More
Is there an ideal exchange rate for Canada’s agriculture industry? That depends, of course, on what you’re selling or what you’re buying, and it’s rare to win on both sides of that equation. What’s more, farmers have no control over currency changes, so how can farmers best prepare for managing currency risk? That’s the topic… Read More
Where were we just one year ago? The Canadian dollar sat at 92 cents U.S. and cattle prices were at all-time highs. Those price levels have since been passed, to everyone’s surprise, but the dollar has taken an absolute beating in just a year’s time. Anne Wasko, of Gateway Livestock, joins RealAgriculture’s Lyndsey Smith for… Read More
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