Category: Markets

Uncertainty in Canadian pulse industry, as latest fumigation exemption nears end

The latest three-month exemption to India’s rules requiring fumigation of pulse crops is nearing its expiration date, and Canadians are no nearer to an understanding of what, exactly, that might mean. “As of today, we don’t know what India’s policy is going to be for bills of lading that are dated October 1 or later,… Read more »

Beef Market Update: Rising loonie pressuring cattle prices

A changing supply environment has the second half of 2017 shaping up much differently for cattle markets than the first. “Already things are changing. If you’re in Canada, you’re well aware — and we’ve talked about this all year long — we’ve been in this strong basis environment where Canadian prices, because we’re tight on… Read more »

Checking in on balance sheets — This week in the grain market

Grain markets continue to shift lower as harvest pressures – namely better-than-expected yields. A stronger Canadian Loonie put pressure on cash prices on the northern side whereas the weaker U.S. dollar has helped offset harvest pressures a bit. For the week, corn lost 0.55% while soybeans gained 0.7%. Canola was just 0.2% lower while oats… Read more »

USDA delivers some more bearish surprises

The USDA published another bearish report on Tuesday, boosting corn and soybean yields when the market was expecting numbers to be lower than in August. For corn, the department projected an average yield of 169.9 bushels per acre, up from 169.5 in August and almost two bushels above the average analyst’ estimate of 168. For… Read more »

Who is eating all the durum?

Editor’s note: This is a guest market column by Dwight Nichol, DLN AgVentures. StatsCan released their July 31st Ending Stocks report for the 2016-17 crop year on Wednesday. This was the third week with new Canadian revisions, and other than minor changes, should finalize crop year 2016-17 Supply and Demand balance. This stocks release is… Read more »

Who owns all the grain? — This week in the grain market

Grain markets this week were influenced mainly by factors of weather, currency, and harvest pressure. Canola lost 1.4% since last Friday, mainly because of the Canadian Loonie appreciating 1.9% over the same time frame. Oats lost 1.8% while corn and soybeans gained 0.35% and 1.25% respectively. Finally, Minneapolis hard red spring wheat edged up 2.35%,… Read more »

Is this a seasonal slump or something bigger?

Grain markets almost always take a dive as harvest approaches and new supplies hit the market, but the big question for marketing is — will prices rebound or stay at lower levels? “I’ve been doing this for quite a few years and every year I kind of get sucked in a little by it, and… Read more »

Bank of Canada announces earlier-than-expected interest rate hike

The Bank of Canada announced its second interest rate hike in two months, surprising analysts, and raising the target interest rate by one-quarter point to 1 percent. The last interest rate hike was announced in mid-July, and was the first increase the country had seen in over seven years. Many analysts had expected Bank of Canada… Read more »

Finally a bullish report, or was it?

Statistics Canada came out with their first production estimates of the 2017 Canadian crop on Thursday, August 31st. For once, they weren’t bearish! 13,300 Canadian farmers were surveyed between July 19th and August 1st on their acres, yield and total production. However, while the numbers below are considered bullish, there has certainly been some healthy… Read more »

Cargill, McDonald’s & Swiss Chalet to pay producers for beef program participation

McDonald’s, Swiss Chalet and Cargill have committed to funding a pilot project that is designed to pay cattle producers a financial incentive for producing beef that meets verifiable sustainability standards. The “Canadian Beef Sustainability Acceleration Project” was soft-launched at the recent Canadian Beef Industry Conference in Calgary. It will begin in October, with the first… Read more »

Global cattle herd to see metered growth into 2019

The expansion cycle in the cattle markets can tend to be a bit of a rollercoaster, and it’s not always easy to tell where we are at on that ride. Don Close, animal protein analyst with Rabobank, says in his opinion, the current US cattle market is still on the upward rise. “We think we… Read more »

StatsCan production report: canola and wheat production down but soybeans production up big

StatsCan released its production estimates for principal field crops and not surprisingly the estimated production is down in comparison to 2016. You can find the entire StatsCan report here Here is how some market analysts reacted to the report. There is some doubt as you would expect on some of the numbers released. Brian Voth… Read more »

USDA Cattle on feed report for Aug 1 shows lower placements

On Friday the USDA released its Cattle on Feed report which provided some clarity on the placement number heading into the fall run. Anne Wasko had the following commentary – “Aug 1 U.S. Cattle on Feed Report was called neutral from guesstimates we talked about in Friday’s Beef Market Update.  I was actually expecting the… Read more »

Beef Market Update: Cash drops again this week as futures hope to find bottom

Unfortunately cash dropped again this week which is making things frustrating for cattle feeders.  In the last three months the December live cattle future is down 7.22% and is 10.52% off of the highs. Cash dropped another three dollars this week after losing five dollars the week before. On Friday, the the December contract closed… Read more »

Pro Farmer predicts 2017 corn and soybean yields slightly below USDA estimates

This week was a very intense week for crop scouts and the Pro Farmer crew led by Chip Flory and Brain Grete.  After the USDA caused quite an uproar a couple weeks ago with their August crop estimate report which came in above analysts expectations there was much anticipation for the Farm Journal crop tour…. Read more »