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: 713

▶ 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

Ontario Fruit & Vegetable Convention Names Douglas Darling as President

Douglas Darling, a Niagara-based fruit grower with Sunnydale Farms, has been appointed President of the Ontario Fruit & Vegetable Convention, strengthening leadership ahead of the 2027 event.

Straight Hail Insurance 2026

For crop producers, there are few things as devastating as a hailstorm. Agriculture Financial Services Corporation (AFSC) provides Straight Hail Insurance so you can secure peace of mind in knowing your assets are protected from one of Mother Nature’s most damaging elements. This program: provides protection for spot-loss damage to crops caused by hail, accidental fire and fire caused by lightning Insurance comes into effect at noon on the day following the date of application. What’s new in 2026 For cocktail crops insurable under Straight Hail Insurance, mixed grain is now eligible as a primary crop. This means that cocktail crops with two cereal crops making up the majority of the plant stand, minimum 35 per cent or greater, will now be eligible for insurance.

CAAIN Receives up to $6.25M from AAFC

The Canadian Agri-Food Automation and Intelligence Network (CAAIN) is pleased to announce it has been selected by Agriculture and Agri-Food Canada (AAFC) to receive up to $6.25 million in funding. This investment, delivered through the Agricultural Clean Technology (ACT) – Research and Innovation Stream, establishes CAAIN as a key accelerator in driving the development of sustainable agricultural solutions. “CAAIN backs technologies that solve real, urgent challenges for Canada’s agri-food sector” said CAAIN CEO, Darrell Petras, P.Ag. “With AAFC’s support, we are launching a dedicated program designed to bridge the gap between innovation and adoption. By providing data-driven validation, we ensure that new tools not only increase productivity and profitability but also provide a measurable path toward a lower-carbon future for Canadian producers.” CAAIN’s upcoming Clean Agtech Validation and Integration Program will help Canadian SMEs and producers move clean agricultural technologie

RDAR Strengthens On-Farm Climate Action Fund Delivery in Alberta to Maximize Producer Participation

Results Driven Agriculture Research (RDAR), one of Alberta’s delivery agents for the On-Farm Climate Action Fund (OFCAF), is introducing four operational improvements to the OFCAF programme for 2026–2027. The changes are intended to ensure that OFCAF funding reaches producers who are ready to complete the adoption of beneficial management practices (BMPs) on their farms and ranches, and to provide a clear, predictable, and fair process for applicants. For producers: To ensure funding is used efficiently and reaches active projects, the following requirements apply. To be eligible for 2026–2027, projects must be at least $10,000; you must indicate acceptance online within 14 days of project approval, provide a project start date, and submit your reimbursement claim within 60 days of the project completion or your final vendor invoice date. The 2026–2027 OFCAF intake, which opened on April 9, 2026, has attracted exceptional interest from producers. As at the date of this release, RDAR

Water well monitoring made simple

“A Water Well Monitoring Parameters Technical Guideline was developed recently by the Technical Advisory Group (TAG), a collaboration among the Government of Alberta, the Natural Resources Conservation Board (NRCB) and the agricultural industry. It provides guidance on monitoring water wells used for domestic or livestock purposes located near confined feeding operations or manure facilities that require monitoring. The guideline outlines water well monitoring parameters, sampling methods, frequency and how to interpret the results,” says Vince Murray, AOPA engineer with the Alberta government and co-chair of TAG. In Alberta, annual water well sampling is recommended for anyone with a household or farm water well. The NRCB, as the regulator, can make monitoring of these types of wells a requirement at confined feeding operations or manure storage facilities. The frequency of testing will be determined by the NRCB depending on the situation and interpretation of the results. Monitorin

© 2026   Created by Darren Marsland.   Powered by

Badges  |  Report an Issue  |  Terms of Service