Category: Markets

Dropping profits — This week in the grain markets

Grain markets this week ended mostly in the red after a stronger performance at the beginning of the week. Traders took profits on the heels of some double-digit moves on the futures boards for most grain and oilseeds on Tuesday. Some geopolitical risk helped fuel the rally, but a “risk on” attitude hit the market… Read more »

Oilseed processors dropping weekly crush report

It’s going to be harder to find current information on Canadian canola and soybean processor demand going forward. In the “COPA weekly report of member crushings” published on Friday, the Canadian Oilseed Processors Association says it is immediately discontinuing the report. The weekly update shared information on the total tonnes of canola and soybeans crushed by COPA… Read more »

Canadian GDP shows better growth; interest rates may edge higher

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 »

Market Recap: Record canola acres, pulse crop frustration, and wheat optimism

Are you holding out for $10 yellow peas, when you know you’re profitable at $8 per bushel? That’s just one of the gems we’ve mined from this quick market recap from none other than FarmLead founder, Brennan Turner. Earlier this week, Turner once agains joined Shaun Haney at the RealAgriculture booth at FarmTech to wade… Read more »

Currency Wars — where is the U.S. dollar really headed?

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 »

Gains amidst uncertainty — This week in the grain markets

Grain markets this week were mainly trading relative to the headlines, taking cues from the U.S. dollar, free trade agreements, and dryness in both South and North America. The U.S. dollar dropped to its lowest level in three years this week after the U.S. Treasury Secretary said he didn’t care which direction it went. The… Read more »

The dilemma with acreage decisions for 2018

With adequate supplies of most crops, the grain and oilseed market is not giving Western Canadian farmers a strong signal to plant more of any major crop in 2018. At the same time, India’s tariffs on pulse crops have producers looking for alternatives to peas and lentils for some acres. From a strictly marketing standpoint,… Read more »

Will wheat acres be switched to oats?

Oat futures have climbed more than 30 cents a bushel since the start of the new year, raising the question: will more acres switch from wheat to oats? As of Wednesday, nearby and new crop oat futures in Chicago were in the 42 to 45 percent range relative to Minneapolis wheat. The flatter, quieter spot… Read more »

Mustard acres expected to climb by 40 percent

In a winter where most crop markets don’t appear to be trying to buy more acres, mustard prices have been an exception. “For farmers looking for profitable opportunities, mustard is sticking out like a sore thumb right now,” says Chuck Penner of LeftField Commodity Research in the video below, filmed at CropSphere in Saskatoon earlier… Read more »

Wheat School: Railways, Russia, and wheat markets in 2018

When trying to explain why wheat prices are where they are, there are some concerns with dryness and protein levels affecting regional bids, but there is one dominant factor that’s underlying the entire market: Russia and its bumper crops. World wheat carryout has grown by over 20 percent in the last three years, with Russia… Read more »

Rear-view rate hikes concerning with economic fogginess ahead

As the Bank of Canada raised its target interest rate a 1/4 point this week, there is disagreement in how the Canadian economy will fare in 2018. While one or two more rate hikes are expected in 2018, there are also concerns on the horizon for the Canadian economy. As we hear from Farm Credit… Read more »

Checking egos at the door — This week in the grain markets

Grain markets this week were almost all higher! (Man, it feels good to say that.) With some production concerns in South America and short-covering in the futures market, we see markets head higher. For the week on the front-month contracts, soymeal was the big winner on the futures board, gaining 4.35%. This was mainly due… Read more »

Beef Market Update: Holding on to a strong basis

The Bank of Canada raised the overnight rate target to 1.25 percent this week, with a cautionary note that touched on the uncertainty around the North America Free Trade Agreement (NAFTA). The announcement caused brief volatility in the Canadian dollar, but will this change, or the one or two other hikes expected by economists affect cattle… Read more »

Bank of Canada announcement causes brief volatility in the Canadian dollar

The Bank of Canada raised target rates this morning by 0.25 percent. The Canadian dollar (CAD) initially responded by falling over a half cent, but closed the day slightly higher. While rate hike announcements tend to inspire a bullish dollar, what is often overlooked is what the market was expecting prior to the announcement. In… Read more »

A whirlwind tour of grain and oilseed markets with Brian Voth

As growers look ahead to seeding, it seems every single cropping option has pricing issues, but there also opportunities to look for. Supply has been a challenge for wheat and corn while soybeans and canola have benefited from strong demand that has assisted in creeping acres higher. READ: 7 Deadly Sins of Grain Marketing Shaun… Read more »