Ontario Agriculture

The network for agriculture in Ontario, Canada

Agostino: Bullish USDA Report Drives The Market Higher. Did you ever think we would see $7 corn?

Views: 650

▶ Reply to This

Replies to This Discussion

Permalink Reply by Joe Dales on February 11, 2011 at 5:25pm

These are very exciting times for grain producers.

Joe

Permalink Reply by Roadrunner on February 14, 2011 at 6:21am

Is anyone selling old crop and what about 2011 and 2012 grain?

If you look at the charts, this does not happen very often.

Permalink Reply by Joann on February 18, 2011 at 3:20am

Question for Mr. Agostino:

 

Do you see outside political influences affecting commodity prices especially in light of all the civil unrest in the Middle East?   There is some (media) chatter that the G20 is tossing around the concept of controlling commodity prices.

 

As commodity prices rise, more people are pushed into poverty and spend a greater portion of their income on food which translates (sic) into smaller purchasing power for other consumer goods which in turn affects the economic recovery plans.

 

"French President Nicolas Sarkozy, who is currently the head of the G20, has argued that commodity speculators should be reined in in order to reduce food price spikes and volatility."

 

What would be the affect if international politic hands steps in and controls agricultural commodity pricing?

http://www.bbc.co.uk/news/business-12499214
Permalink Reply by Roadrunner on February 24, 2011 at 4:10am

Hi Joann,

Looks like the funds jumped out on Tuesday and hammered down the grain markets limit...

Interesting politics and food....do you think they will meddle?

Permalink Reply by Joann on February 24, 2011 at 10:49am
I believe the meddling started when the CBOT merged with the Mercantile Exchange a few years back.

That effectively put all commodities on the same page where derivatives markets are concerned hence causing the food index price to fluctuate wildly.

Further meddling? What would happen if oil is not traded in American dollars anymore? I think that would have a greater impact on the price the Ontario farmer will receive and send a real chill into our economy.
Permalink Reply by John Schwartzentruber on April 12, 2011 at 9:02am
Moe, can you speculate what circumstances (supply/demand adjustments) it would take to drive corn back down to $5/bu?
Permalink Reply by Moe Agostino on April 13, 2011 at 9:05am

Yes politics can have a big influence but the CME has tried and warned since 2008 to rein in on crude oil speculators that they would impose strict position limits and since October of 2010 they continue to have hearings but nothing is done.  This would lower liquidity and transparency.  Governments need to stay out of markets.  Third world countries can not afford wheat whether its $3.00 or $9.00/bushel. This has more to do with local government policies and issues that need to be changed. At the end of the day these are all outside market influences that I call noise and they can create more volatility but since June of 2010 corn prices continue to rally in  the face of geo-political risks and headwinds. Lower supply ultimately drives prices higher. Of course higher demand in 2011 is also causing record prices and the only way we can fix this short-term is with a very large crop with big yields in the coming 2-6 months as demand is a lot stronger that many economists will give credit for.  I hope this answers your question. Please visit us at http://risk.management.farms.com

 

 

Permalink Reply by Joann on May 6, 2011 at 4:49am

Moe:  could you please assess the following story?  How much truth is there behind the allegations of Goldman Sachs commodity price setting with their Goldman Sachs Commodity Index (GSCI)?

 

It would appear Goldman Sachs was in a ready position when the Commodities Futures Trading Commission deregulated the futures markets in 1999.  As a result, hedgers, that traditionally were directly involved with agricultural production were outnumbered 4-1 by investment speculators.   Trading of paper wheat outweighed the trading of the real commodity causing wild price fluctuations as a "new category of participants" entered the hedge markets.

 

You state that "Governments need to stay out of markets" yet there are calls to intervene in food trading by investment banks to hedge the price of food for the sake of the countries dealing with starvation. 

 

Should governments regulate who can and cannot trade a basic life necessity?  If so, how would you separate the pricing of grains used for food as opposed to grains used for energy?

http://www.foreignpolicy.com/articles/2011/04/27/how_goldman_sachs_...

▶ Reply to Discussion

RSS

Agriculture Headlines from Farms.com Canada East News - click on title for full story

Cannabis stocks surge after reports of Trump planning to ease federal restrictions

Shares in Canada’s cannabis companies surged after reports U.S. President Donald Trump is planning to ease federal restrictions on the drug. The Washington Post first reported that the president is expected to direct agencies to reclassify marijuana as a Schedule III drug. The move would make it similar to some common prescription painkillers, the newspaper says. A reclassification of the drug in the U.S. could offer an opportunity for Canadian cannabis companies to expand their businesses stateside. Shares of Tilray Brands Inc. jumped 29 per cent or $3.35 to $14.94 in mid-morning trading Friday on the Toronto Stock Exchange, while Canopy Growth Corp. shares were up 32 per cent or 49 cents at $2.07. Aurora Cannabis Inc. shares were up 13 per cent and Organigram Global Inc. was up nearly 10 per cent.  While many states have passed laws legalizing cannabis for adult use in the U.S., federally it remains a Schedule I drug, the same category as heroin and LSD. This report by The Cana

USDA Raises World Rapeseed Production to New High

Thanks mainly to a record large Canadian crop, 2025-26 global rapeseed output is estimated by the USDA at a new peak as well. The USDA this week pegged world rapeseed production for the current marketing year at 95.27 million tonnes. That’s up 3 million tonnes or 3.25% from last month’s projection and now sits almost 9.3 million or 10.8% above the 2024-25 global crop of 86 million. The rebound comes after the 2024-25 crop was hit by poor weather in major producing countries. The USDA has raised its 2025-26 Canadian rapeseed (canola) production estimate to 22 million tonnes, up 2 million from its November forecast, following updated Statistics Canada data released last week. The survey-based StatsCan report pegged national canola output at 21.803 million tonnes, up about 1.7 million from the federal agency’s model-based September projection and now 13.3% above the 2024 crop of 19.239 million. If accurate, it would be the largest crop on record, surpassing the 2017 crop of 21.458 m

New CDC Oat and Barley Varieties Gain Momentum With Prairie Growers

For more than two decades, Aaron Beattie has been a driving force behind some of Western Canada’s most prominent oat and barley varieties. Based at the University of Saskatchewan’s Crop Development Centre (CDC), Beattie continues to shape the future of Prairie cereals — work that increasingly impacts growers in Alberta. Beattie’s latest oat material, showcased earlier this year at the meetings of the Prairie Grain Development Committee in Winnipeg, continues to deliver standout performance. “OT3125 did perform really well again this summer. So it is still up there — over 10% higher than Camden,” he says. While the variety does not yet have a commercial name, Beattie expects significant discussion around it next year as it moves further into promotion and industry awareness. Momentum in the Market Beyond pipeline material, several CDC varieties are gaining traction with Prairie growers. “CDC Anson really took a big jump this year, from no acres to about 10% of the oat acres all in

Why Midge Tolerant Wheat is Sold as a Blend — and Why it Matters for Spring 2026

Unexpected wheat midge outbreaks across Western Canada highlight why the varietal blend remains essential. As farmers look ahead to spring, it’s a good time to revisit the cornerstone of protecting the Sm1 (midge tolerant) wheat gene: understanding why Midge Tolerant Wheat is sold as a varietal blend. In these blends, a variety of Midge Tolerant Wheat is mixed in with a small amount (10%) of wheat that isn’t tolerant to the wheat midge. That is, it doesn’t contain the gene Sm1, the source of genetic resistance. These non-tolerant wheat plants serve as a “refuge” to ensure the wheat midge doesn’t develop resistance to the Sm1 gene. “You never know when the wheat midge is going to strike or where it’s going to strike,” says Tyler Wist, an entomologist with Agriculture and Agri-Food Canada (AAFC). “Sometimes it’s predicted to be a low-risk year, and then the rains come at just the right time and — boom — population explosion.” Wheat Midge Can Appear When Least Expected Forecasting too

This is Agriculture: Training Coordinator

There are an abundance of different careers in agriculture, and Angela Pearen has tried several of them. Now the coordinator of the agriculture extension programs at Russ Edwards School of Agriculture and Environment, Assiniboine College, Angela has also worked helping producers diversify their farm income, and held positions in rural leadership, stakeholder engagement and strategic planning with Manitoba Agriculture. She says her role at Assiniboine College brings her back to the work she loves the most. Describe your job or product in one sentence. I coordinate training programs for people working in the ag industry and those that support the ag industry. Where did you grow up? Was it an agriculture or urban environment? I grew up in the Roseland district, southwest of Brandon on an acreage. We crop shared with our land neighbours and my parents still crop share with the next generations of that family – it’s been over 50 years. What was your dream job when you were a kid? The

© 2025   Created by Darren Marsland.   Powered by

Badges  |  Report an Issue  |  Terms of Service