Category: Markets

U.S. and Canadian beef groups still clamouring for TPP

Even though NAFTA negotiations are underway, TPP is still vitally important if Canada and the US want to expand exports.  President Trump removed the United States from TPP shortly after his inaugaration, which has caused some of the remaining eleven TPP countries to do some soul searching. Canada has been searching for its own identity… Read more »

Release of Ag Canada Supply and Demand Report creates questions for canola

Ag Canada has updated its supply and demand tables for major field crops and there were adjustments that are gaining attention. One of the major adjustments was the canola feed, waste and dockage for canola reported to be (-727,000mt). So what does this negative number actually mean for the canola market? According to John Deputter,… Read more »

Volatility leads the way heading into the thick of the fall run – Brian Perillat, Canfax

As Canadian ranchers and feeders head into the the thick of the fall run there are many variables that come into play.  Fluctuations in export demand, the Canadian dollar, futures prices, weather, trade, and feed costs are all hanging over how great of a fall it will be for producers. At the Canadian Beef Industry… Read more »

Interest rate increases coming to Canada and the impact of trade talks on the Canadian economy

The Canadian economy has been healthy as of late, which has many farmers with higher debt levels somewhat concerned about interest rate increases in the near future. Farmers have enjoyed a low interest rate environment for quite some time, but the reality is – the Bank of Canada has some some decisions to make. Additionally… Read more »

Limiting harm — This Week in the Grain Market

Grain prices all headed lower this week as beneficial rains and slower bullish headlines pushed more profit-taking action in the markets. Canola traded sideways for the week but did drop down to $492 CAD / MT before closing at nearly $507 on the November contract. Soybeans acted similarly, only losing 0.1% whereas its acreage competitor,… Read more »

Echoes in the Distance — This week in the grain market

Grain markets sold off this past week as the USDA came out with a surprisingly bearish report of world agricultural supply and demand estimates. Instead of the roughly 166 bushel per acre US corn yield that market was expecting, the USDA came out with 169.5. That’s just a 1.2 bushel drop from the previous estimate… Read more »

August USDA report makes analysts shake their heads

The condition of the United States corn and soybean crop drives much of the sentiment on agricultural commodities. The weather stress of 2017 has created much discussion among farmers and analysts that the U.S. crop will be lower than trend line yield. Apparently the USDA does not agree with farmers or market analysts. The USDA… Read more »

Dynamic soybean demand keeps this incoherent market afloat

When crops reach record high acreages on both sides of the border the market should respond negatively to higher supply levels. Increased supply has to be supported with increased demand and that has been definitely the story in soybeans.  Even though the November soybean futures contract (can be seen below) is off earlier highs farmers… Read more »

Knowing your numbers — This Week in the Grain Markets

Grain markets this week saw a significant sell-off as better growing conditions are helping improve crop prospects. Soybeans had a terrible week, down 5.35%. Chicago wheat wasn’t that far behind, down 5.3%. Oats fell 2.5%. Corn and canola were both down 1.9%. This despite the Canadian Dollar also falling 1.8% from its high last week…. Read more »

How did you celebrate wheat and barley marketing freedom day?

Farmers across Western Canada celebrated on Tuesday as it was the fifth anniversary of farmers gaining marketing freedom for wheat and barley, formerly known as ‘board grains’. On August 1, 2012 farmers were given control of marketing their own farm production. Wheat and barley no longer had to be sold through the Canadian Wheat Board’s… Read more »

Japan to increase tariff on frozen beef imports from Canada and the United States to 50%

Starting August 1, 2017, Japan has triggered a safeguard to increase the tariff on its frozen beef imports from countries that it does not have a free trade agreement with.  Increasing the tariff on frozen beef imports from 38.5% to 50% will impact Canada and the United States and not Australia, Chile and Mexico who… Read more »

Wrapping up July — This Week in the Grain Market

Grain prices this week pulled back on some benign weather and profit-taking by funds. ere able to gain a bit on not enough rains falling on key areas in North America. Chicago wheat was the biggest loser, down more than 3.5% for the week. Oats fell 2.3% while corn dropped 1.2% since last Friday. Soybeans… Read more »

RealAg Markets: Second day of red all over the screen

The markets continued their strong bearish tone as grains and oilseeds pushed lower across the board for the second day in a row on Tuesday. On Monday, one excuse was that Friday’s bearish cattle on feed report sparked a push to sell. Expected rains in the U.S. midwest later this week have certainly driven some… Read more »

No positive surprises in July U.S. Cattle on Feed report

If you were looking for the the July 1 USDA cattle on feed report to shock the market to the higher side, it did not deliver. Overall, cattle on feed in the United States were up 4 percent compared to a year ago, with heifers and heifer calves on feed up 11 percent compared to… Read more »

Weathering the weather — This Week in the Grain Market

We’re heading into the apex of summer weather (and the volatility that can come with it). It’s corn pollination and soybean pod-setting season, while combines are starting to run on the earliest seeded pulses and cereals in the U.S. and even parts of Canada. More than anything, the market is mostly trading rain clouds and… Read more »