Category: Markets

Returning to the average — This week in the grain markets

On Thursday the United States Department of Agriculture (USDA) came out with their monthly world agricultural supply and demand estimates (WASDE). Usually, November is a bit of a sleeper month, but given the delayed corn harvest in the U.S., there were some ideas that the USDA might provide the market something in line with the… Read more »

Competing bulls and bears — This week in the grain markets

Grain prices were generally trending higher this week before seeing a sell-off on Friday to erase a fair amount of gains. Simply put, bears became more competitive than bulls. Wheat and corn prices seem eternally rangebound as in the past few weeks they haven’t moved more than a quarter. Corn and soybeans were virtually unchanged… Read more »

Grains squeaking out gains — This week in the grain markets

Grain markets had a mostly down week as a stronger U.S. dollar (up 1.2% for the week) weighed on futures markets. However, with the Canadian dollar dropping 1.45% to below 78 cents USD, this meant cash grain prices in Canada improved a bit, especially in canola, flax, and wheat. While canola futures prices on the… Read more »

Milling wheat, durum and barley futures de-listed

Plans for a vibrant Western Canadian futures market for milling wheat, durum and barley similar to canola officially came to an end on Wednesday, as the board of directors for ICE Futures Canada approved the de-listing of the exchange’s three cereal crop contracts. In a notice to market participants, the Winnipeg-based exchange said its futures… Read more »

China’s economy still showing strong growth

Every week, there are mountains of global economic data to shuffle through. The past week’s info has Farm Credit Canada’s vice president and chief agricultural economist, JP Gervais, thinking about the direction of China’s economy. “If we just focus on China, economic growth of 6.7 percent — that’s actually pretty strong,” says Gervais, referring to… Read more »

Batter up — This week in the grain markets

Grain markets this week generally trended lower as rains in the Southern Hemisphere and harvest progress in North America hung over prices. Bulls continue to take a bat at headlines but rallies continue to face resistance from the size of global grain supplies. Oats and canola were the only winners for the week, with the… Read more »

Big plans for Ontario hazelnuts

Both the federal and Ontario governments are betting on the future of the province’s fledgling hazelnut industry. Last week, both levels of government announced support for the industry, which plans to have 25,000 acres of hazelnut trees in the province by 2027. Ontario Hazelnut Association project coordinator Andrew Nixon notes that the Ontario industry traces… Read more »

Beef Market Update: A flavour for strong beef demand

There’s a flavour for strong beef demand in the country, says Anne Wasko, market analyst with Gateway Livestock, which has producers feeling good about market positioning. Last week’s slaughter report showed a 6.3 percent increase in animals killed in federally inspected plants in Canada, when compared to last year at this time. It’s good news… Read more »

Good luck for grains — This week in the grain market

Usually Friday the 13th is an unlucky day. For grain prices though, Friday, October the 13th was a good omen. On Friday alone, Chicago soft red winter wheat gained 2.15%, oats gained 1.9%, and corn was up 1.05%. Oats was the big winner of the week, though, up 6.25%. This was followed by soybeans which… Read more »

Soybeans rally as USDA cuts production by all of 422 bushels

The USDA released its monthly World Agricultural Supply & Demand Estimates (WASDE) report today. Here’s a summary from Matthew Pot, author of Grain Perspectives: Corn: Corn futures increased by 3 cents today after the USDA threw a curve-ball by increasing corn yields well above the market expectations. The average trade estimates were between 169.7 and 169.9… Read more »

Energy East pipeline cancellation an opportunity lost for rural Canada

Last week TransCanada Corp announced its withdrawal from the 1.1 million barrel per day Energy East pipeline project in Canada. The cancellation of this $15.7 billion project has created much unrest or satisfaction depending where you live in Canada. The pipeline’s concept was to take oil east for domestic use and exports abroad. The pipeline… Read more »

West Coast port capacity is surging, but can it be put to use?

From Prince Rupert down to Vancouver’s Fraser River ports, grain companies are investing hundreds of millions of dollars in infrastructure for loading grain onto ships destined for overseas markets. Just a few weeks ago, Raymont Logistics opened the only unit train stuffing facility on Canada’s west coast at Prince Rupert. In Vancouver, on the north shore of Burrard… Read more »

What change? — This Week in the Grain Markets

Grain markets this week traded sideways again, with weather and some decent trade data outweighing harvest pressures. Corn prices lost 1.55% since last Friday whereas soybeans gained 0.5%. Winter wheat markets were lower as Chicago soft red winter wheat lost 1.05% and Kansas City hard red winter wheat lost 1.3%. The Canadian Dollar lost 0.5%… Read more »

Beef Market Update: Market proving itself after bearish Cattle on Feed report

Last week’s Cattle on Feed report, published by the United States Department of Agriculture, listed a 4 percent increase in cattle and calves on feed for the slaughter market, when compared to September 1, 2016. In August, placements totalled 1.93 million head, up 3 percent from 2016. “There was a bearish surprise to the placement,”… Read more »

What happened to grain markets this quarter?

This week’s grain markets were largely influenced by that was happening in currency markets and government reports. The Canadian Dollar lost about 1.1% this week but has basically ended where it began September, up just 0.15%. On Wednesday, the Loonie saw it’s largest single day loss in eight months after the Bank of Canada’s governor… Read more »