Quality and consistency. That’s what international buyers expect with Canadian wheat. It’s been said a thousand times already, but if you ask Saskatchewan farmer Gerrid Gust what his take-home message was after visiting customers in North Africa and the Middle East, he can’t help but emphasize the importance of maintaining Canada’s reputation for quality and… Read More
Category: Grain Markets
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
Pea prices in Western Canada are at record levels and showing no signs of weakness, largely due to the pulse crop shortage in India. Old crop yellow peas are fetching spot bids over $11/bu while contracts for 2016 are in the $9.50 to $10/bu range (most with Act of God clauses). “At this stage of… Read More
Grain prices have swayed back and forth this week thanks to some aggressive reactions to the U.S. Federal Reserve’s interest rate increase on Wednesday, as well as a little short-covering, and (barely) bullish weather concerns out of Brazil. Most of the complex ended the week lower though than it started, with oats being the biggest… Read More
These are exciting times for lentil growers, with record Canadian lentil acres projected for 2016. Red lentil bids in Western Canada have spiked into the C$0.50/lb range due to a combination of poor growing conditions in India and the lower value of the Canadian dollar relative to U.S. currency. “There’s no question we’re going to have acres… Read More
Australia’s largest grain company has announced plans to expand its footprint in Western Canada. GrainCorp, through a joint venture with large Japanese agricultural cooperative Zen-Noh Group, says it will spend at least C$90 million over the next two years in setting up grain delivery sites in Alberta and Saskatchewan. “A key part of GrainCorp’s value proposition… 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
The P&H Milling Group, with support from the Ontario government, is building the first flour mill in Ontario in 75 years. Ontario Minister of Agriculture Jeff Leal made the announcement on Monday at Parrish & Heimbecker’s Hamilton Harbour location, where the new bulk mill is expected to commence operation in 2016. The expansion will allow… 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
With a growing share of global wheat trade, Russia, Ukraine and Kazakhstan — former Soviet Union countries — have become price setters in the world wheat market over the last few years. As Bill Tierney, chief economist with AgResource Company, points out in this Wheat School episode filmed at Cereals North America ’15, much of… Read More
With no real weather headlines this week except for snow finally hitting the ground in many places across Western Canada and the U.S. Midwest, the market has been relatively mute. Add in a stronger U.S. dollar this week and the market heading into U.S. Thanksgiving week, the grains complex has been quiet, with no real… Read More