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: 699

▶ 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

Replenish Nutrients Announces Steven Glover as Special Advisor to the Board and Director Nominee

Replenish Nutrients Holding Corp. (CSE: ERTH) (OTC: VVIVF) ("Replenish" or the "Company"), a leader in regenerative agriculture solutions, is pleased to announce that Steven Glover, FCPA, FCA, will join the Company as a Special Advisor to the Board of Directors, effective April 7, 2026. Mr. Glover will be nominated for election to the Company's Board of Directors at its upcoming Annual General Meeting on June 19, 2026. Mr. Glover is an independent director nominee. Upon election, it is anticipated that he will serve as the Company's audit committee chair. Mr. Glover brings nearly five decades of experience in accounting, financial oversight, and public-company governance, with a career spanning senior executive roles, regulatory and professional leadership, and extensive board and audit committee service. Mr. Glover currently serves as Lead Director and Audit Committee Chair of Genesis Land Development Corp. (TSX: GDC), where he provides oversight of financial reporting, enterprise r

Government of Canada invests in low-carbon agrichemicals to advance sustainability in agriculture

Canada's agricultural sector is at the forefront of building a greener future and ensuring Canadians have access to sustainable, homegrown solutions. Supporting leading-edge technology is critical to reducing greenhouse gas (GHG) emissions and fortifying Canada's food systems for generations to come. Today, Wade Chang, Member of Parliament for Burnaby Central, on behalf of the Honourable Heath MacDonald, Minister of Agriculture and Agri-Food, announced an investment of up to $1,236,310 for Anodyne Chemistries Inc. through the AgriScience Program - Projects Component, under the Sustainable Canadian Agricultural Partnership. This investment will support Anodyne Chemistries in developing and demonstrating an innovative bio-electric process that converts carbon dioxide and water into high-quality, low-carbon formic acid and hydrogen peroxide, resulting in significant GHG reductions and reduced reliance on petrochemical feedstocks for Canada's agricultural sector. Formic acid and hydrogen

Canada's two major railways see slight improvement in grain deliveries in week 34: Ag Transport Coalition

The Ag Transport Coalition reports week 34 saw system performance improve notably, with CN and CPKC Rail combined, supplying 80% of hopper cars ordered. That's an improvement from the 65% performance seen in week 33, and the best performance seen since week 25 in mid-January. System performance remains below the 90% performance threshold for a tenth consecutive week, but returns to the 80% threshold for the first time in nine weeks. In supplying 85% of cars ordered by shippers in week 34, CN saw performance improve from the 79% order fulfillment performance seen in week 33. This marks the best performance seen from CN in the last five weeks, but CN performance remains below the 90% threshold for a tenth straight week. Meanwhile, in supplying 75% of shipper orders, CPKC saw performance improve dramatically from the 52% order fulfillment performance seen in week 33, with the railway posting their best performance in eight weeks. CPKC performance remains below the 90% performance th

Crop input retailer happy United Farmers of Alberta bought AgraCity

A competitor is pleased with United Farmers of Alberta’s purchase of the AgraCity Group of companies. Farmers Business Network thinks the deal is good news for farmers. “The work that AgraCity did to build their portfolio of products and labels will still be available to farmers going forward,” said Breen Neeser, FBN’s general manager for Canada.“They have some really good products.” He is happy that the AgraCity assets are staying in the hands of an established western Canadian company that has been in the agriculture business for a long time. “They know farming,” he said. “They’re partners with farmers.” Neeser believes UFA was keen on expanding their footprint in Saskatchewan. “I think that was part of the play,” he said. He is pleased that the assets did not end up in the hands of a foreign entity. “UFA is part of the fabric of western Canadian farming, especially Alberta and in some ways Saskatchewan now,” he said. “I’m glad it’s in the hands of somebody who sees the bus

Greenbelt Seen as Key to Ontario Food Security and Agri-Food Growth

Ontario’s Greenbelt should be treated as a strategic pillar of food security and economic growth, according to a new report released by the Greenbelt Foundation.  

© 2026   Created by Darren Marsland.   Powered by

Badges  |  Report an Issue  |  Terms of Service