No one can predict how long the COVID-19 pandemic will last, but a huge focus on social and physical distancing has been effective, at least in part, to “flattening the curve” of infection and critical illness. Tracking on an inverse curve is the local and global economy. Right now uncertainty, social distancing, and shuttered businesses… Read More
We are just ending Q1 of 2020 and it is already a year to remember for generations. As we attempt to deal with COVID-19, governments are also trying to be aware of the economic future. Like you, this COVID-19 outbreak has impacted my family and business. Graduation has been cancelled, baseball season is in jeopardy,… Read More
On Friday (March 27), the Bank of Canada initiated an emergency key rate cut of 50 bps to 0.25% in an attempt to defend the economy against the impacts of COVID-19. Additionally, the Bank of Canada will expand its balance sheet through purchases of Government of Canada securities to the tune of $5 billion per… Read More
While the COVID-19 pandemic is unlike anything in modern-day history, commodity markets are — perhaps surprisingly — adjusting and adapting to the global market sell-off. In this interview (recorded Thursday, so keep that in mind on quoted numbers), RealAg Radio host Shaun Haney and Brian Voth with IntelliFarm break down what’s going on in the… Read More
The Bank of Canada took a step to attempt to soften the blow of COVID-19 on the economy by dropping its key rate by another 50 bps to 0.75 per cent — the second cut in as many weeks. The Bank of Canada also took additional measures with banker acceptances to keep the short term… Read More
Fresh off a fifty basis-point cut by the Federal Reserve in the U.S. on March 4, 2020, the Bank of Canada lowered its key rate by the same amount from 1.75 per cent to 1.25 per cent. In a written statement the Bank of Canada said, “As the situation evolves, the Governing Council stands ready… Read More
Over the course of the summer, the U.S. Federal Reserve has cut interest rates twice, with the latest drop in its benchmark overnight lending rate taking it to a target range of 1.75% to 2%. Over the same timeframe, the Bank of Canada hasn’t touched interest rates, and the probability of seeing a cut this… Read More
As many producers are aware, there are a plethora of things going on in the global economic sphere… and growing concerns are rising. But how do we understand what everything means? How do we unpack it all? Farm Credit Canada’s chief economist J.P. Gervais joined RealAg Radio host Shaun Haney to give a little more… Read More
Export Development Canada (EDC) released its global outlook for next year, with strong growth projected in all provinces and on the national front. The value of total exported goods are expected to rise by four per cent. The rise follows a strong year for 2018, with exports forecast to be up six per cent. Manitoba… Read More
So often grain markets take the stairs up, but the elevator down. If you’re getting dizzy watching global trade and global markets racing up and down like a rollercoaster, you’re likely wondering what the impact is of all this volatility. Craig Klemmer, principal agriculture economist for Farm Credit Canada, joins Shaun Haney for a frank… Read More
On Friday, the Canadian dollar rose nearly a cent relative to the U.S. dollar. The sudden ‘strength’ came from a couple of sources. First, more confidence that the Bank of Canada will continue the path gradual rate hikes; second, a weaker U.S. Dollar. Recent Canadian economic data warrants the Bank’s outlook for gradual rate increases…. Read More
The Bank of Canada increased the target interest rate today by 0.25%, to 1.5%. This is now the fourth rate hike, amounting to 1%, since the Bank hiked rates for the first time since 2007 a year ago. Over the last year, the Bank of Canada has matched the aggressiveness of the U.S. Federal Reserve,… Read More
Grain markets had a very rough week heading into the middle of June, surrounded by trade uncertainty and positive crop conditions. In fact, forget about crop conditions. Or rainfall. Or heat units. Whether or not the borders are open for business has become the only fundamental factor that really seems to matter to the direction… Read More
Wednesday was a big day for economic news in both Canada and also for our friends south of the border, in the United States. Here at home, the market is digesting the most recent GDP data for November, while the U.S. Federal Open Market Committee made the decision to hold interest rates in the country…. Read More
Last week there were reasons for confusion on what direction the American dollar might take based on White House policy. Most of the confusion last week was driven by comments made by different members of the White House team. “It’s interesting, it’s almost like currency wars at the moment,” says Matthew Pot of Grain Perspectives… Read More