Category: Hedging

This Week in the Grain Markets — Languishing Ideas

Grain markets got an American Thanksgiving boost as an unexpected update from the U.S. Environmental Protection Agency (EPA) surprised the oilseed complex, with soyoil leading, up 7.4% for the week. Soybeans weren’t far behind as they continue their run, up 5.1%, while canola held on a bit to climb 2.6%. Corn was supported by the EPA… Read more »

MYFB — Ep. 7: How Do you Manage Currency Risk?

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 »

An Up Week in the Markets Driven By Weather Woes; WASDE Holds Some Wheat Surprises

Grain prices were all higher this week and ended with a WASDE report on Friday that the market read as bullish, even though the numbers didn’t fully imply that. Does the market just not believe the numbers, or perhaps it feels more cuts are on the way? Either way, weather is creating fairly volatile trading… Read more »

Wheat School: Are We Reaching a Tipping Point in the Wheat Market?

The wheat market is due for some additional volatility in the weeks leading up to seeding season in North America, says the general manager of FarmLink Marketing Solutions. Sharing the wheat market outlook at Grainworld ’15 in Winnipeg last week, Lawrence Yakielashek (formerly with Toepfer Canada) said he believes the bearish sentiment in the wheat… Read more »

Dodging Shadows and Jumping Futures — A Grain Market Recap

Grain prices started the month of February looking to come out of the gate running – mainly from their January shadow (much like the groundhog did, but you probably don’t need a rodent to tell you if winter’s over or not if you live in Canada). Most of North American’s major growing regions are starting… Read more »

Pricing Corn in a Volatile Market — What Are Your Options?

By Larry Martin As this is written, December corn futures have traded in a range between US $3.81 and $3.58 for six weeks, since mid-July. This range came after a precipitous drop from the $5.00 area in April and May. Everyone is trying to guess where the market’s going from here. Of course no one… Read more »

The Markets this Week — Have We (Finally) Found a Bottom?

The grain market continues to stagnate as traders, managed money, commercials, and producers alike are trying to determine if a bottom has finally been found. Grains have traded lower this week but wheat has rallied to close much higher than earlier in the week. Ultimately, July was an ugly month for the grains complex: canola… Read more »

Corn & Wheat Prices Dip as Soybeans Make a Run at Highs — This Week in Markets

Good planting conditions and favourable weather in the U.S. has led to corn prices dipping slightly over the last week. Corn joins wheat prices on the downtrend all thanks to a bearish global picture. Old crop soybean prices have popped recently, hitting 11-month highs as crush margins and meat prices in China are improving while… Read more »

Flax Movement, An Icy Lake Superior and Slowed Planting: The Markets This Week

Grain markets this week were up and down with the close of one month, the transition to a new front-month contract, and trade limits changing on the exchanges. Also affecting things were the U.S. Wheat Quality Council’s winter wheat crop tour in Kansas and some violent weather in the Delta. All in all, if there’s… Read more »

This Week in the Markets: Canadian Rail, Demand Shifts & A Record Low U.S. Oat Inventory

If you cannot see the embedded player, click here. The second week of April brought the USDA’s monthly instalment of the world agricultural supply and demand estimates and the numbers were: relatively bearish wheat, bullish soybeans, and bullish corn. Oats year-end inventories were dropped by 10 million bushels to a new record low of 20… Read more »

This Week in the Markets: Friendly News for Corn & Managing Pulse Price Risk

If you cannot see the embedded player, please click here to hear this audio. As we ended the month of March and shovelled our way through “spring” weather in to April, the grain markets were hit with a fairly uneventful Stocks and Acreage report from the USDA. The biggest shock came in the form of… Read more »

RealAg Markets: A Look at Early 2014 US Planting Intentions & the Market Impact

Let’s call the March 31st USDA report the kickoff to the new growing season’s marketing year. Yes, markets are continuous and fluid, but this first glimpse of planting intentions for the U.S. is, for some, the first report in a while that really gets interesting. This week, RealAgriculture editor, Lyndsey Smith, is joined by Jon… Read more »

Beef Market Update – Perfect Market Storm Creates Increased Financing Needs for Feeders

There are good times and there are bad financial times for cattle producers. So far 2014 has been a period of very positive margins. As feeder and live cattle prices have soared higher, the Canadian Dollar and feed costs have lowered quite rapidly. This has put pressure on feedyards to find additional financing requirements in… Read more »

RealAg Markets: Off-Set is the Key Word in the November WASDE Report

After skipping the October update due to the U.S. government shutdown, this morning’s USDA World Agricultural Supply and Demand Estimates (WASDE) report was much anticipated by traders and farmers alike. While bearish news abounded ahead of the report,  especially on the corn side, many were hoping that added yield would be balanced by decreased acres… Read more »

RealAg Markets: Giant Western Canadian Crop Adds to Bearish Market Outlook

Bin-busting crops are never something to wish away, but the simple laws of supply and demand eventually come in to play when everyone has a lot of crop to sell. While that’s oversimplifying grain markets, the overall message is clear — decent quality wheat, corn and other grains are going to be easy to find… Read more »