Grain markets ended the Easter-shortened trading week with some heavy data and policy dumps, notably from the USDA and OPEC. On Thursday, April 9th, we got the USDA’s monthly WASDE report, although these estimates were largely discounted even going into the report given the ongoing COVID-19 related demand fluctuations. For the most part though, grain… Read More
The dairy world has been turned upside down seemingly overnight. Whether it’s north or south of the Canada/U.S border, dairy farmers have to dump milk as the entire value chain adjusts to the disappearance of restaurant and foodservice dairy demand and a spike in retail demand. Michael Dykes, CEO of the International Dairy and Food… Read More
The fourteen day closure of an Olymel hog plant in Quebec has Ontario pork producers scrambling to find a slaughter destination for their finished hogs. Ontario producers normally ship around 20,000 pigs to Quebec for processing each week. The plant at Yamachiche, Que. and its 1000 employees have not been operating since March 29 after… Read More
Grain markets closed mostly lower to start April off, as the highs seen last week gave way to some profit-taking and farmer selling. We saw said selling firsthand on the Combyne cash grain marketplace as buyers were able to take advantage of the weaker Canadian Loonie and shore up some coverage before fertilizer deliveries make… Read More
Olymel has notified pork producers in Ontario who ship to its processing plants in Quebec that it intends to exercise the force majeure clause due to the COVID-19 pandemic, according to industry sources. By invoking the clause, the company would no longer be required to purchase market hogs under the terms of the contracts it… Read More
The reduction in gasoline usage across North America has put a death grip on ethanol producers. Plants have been scaling back production to try and stay solvent as storage capacity fills. Aside from the impact less ethanol production has on corn and utility wheat demand, livestock producers that use distillers’ dried grains (DDGs) in feed… Read More
No one can predict how long the COVID-19 pandemic will last, but a huge focus on social and physical distancing has been effective, at least in part, to “flattening the curve” of infection and critical illness. Tracking on an inverse curve is the local and global economy. Right now uncertainty, social distancing, and shuttered businesses… Read More
Many industries are struggling to cope with COVID-19, but in agriculture farmers still have to plant. Today (March 31, 2020) the United States Department of Agriculture (USDA) released its 2020 planting intentions report. Canadian farmers are watching this report very closely as the U.S. corn and soybean acreage — and possible carryout — impacts Canadian… Read More
Grain markets found green again to end the last full trading week of March as capital inflows into the space and demand for essential foodstuffs remains strong. That said, only wheat had a positive day on Friday as the rest of the complex and broader equity markets saw a sell-off. The Canadian Loonie finished the… Read More
Just two short weeks ago, no one was really sure what was ahead for the COVID-19 virus lockdown and social distancing — but now cities are ghost towns, and grocery store shelves and coolers are suspiciously absent of some key items; beef, pork, and chicken among them. A flurry of retail buying may have emptied… Read More
We are just ending Q1 of 2020 and it is already a year to remember for generations. As we attempt to deal with COVID-19, governments are also trying to be aware of the economic future. Like you, this COVID-19 outbreak has impacted my family and business. Graduation has been cancelled, baseball season is in jeopardy,… Read More
On Friday (March 27), the Bank of Canada initiated an emergency key rate cut of 50 bps to 0.25% in an attempt to defend the economy against the impacts of COVID-19. Additionally, the Bank of Canada will expand its balance sheet through purchases of Government of Canada securities to the tune of $5 billion per… Read More
Whether it is the drop in oil prices due to a major spat between Russia and Saudi Arabia or the COVID-19 outbreak, the ethanol industry is dealing with massive challenges in the short term. Ethanol plants in Canada and the U.S. are reportedly scaling back production as a result, which is creating concern for corn… Read More
If you don’t have diesel pre-purchased yet, when do you pull the trigger? In light of the current demand situation — hey there, global pandemic — one analyst says it may be prudent to hold off for a bit. Let’s start with demand. Without a doubt, the global response to COVID-19 is having a huge… Read More
Grain markets were mixed to end the third week of March with oilseeds and wheat finding strong gains near its end while corn and oats couldn’t recover deep losses earlier in the week. In the broader markets, U.S. stocks had their worst week since 2008, with the Dow losing 17.3 per cent, the S&P 500… Read More