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

Fertilizer Canada responds to U.S. tariff threat

The U.S. can’t increase its fertilizer production overnight, Fertilizer Canada says

Saskatchewan Pulse Growers Welcomes Three Directors to Board

Saskatchewan Pulse Growers (SPG) is pleased to announce the results of its Board of Directors election, following the close of voting on November 28. The election brings one new Director to the board while retaining two Directors for another term. Joining the SPG Board is Dan Flynn of Lucky Lake. SPG welcomes back Robyn Henry of Hodgeville and Stuart Lawrence of Rosetown, who were both re-elected. The newly elected Directors will officially join SPG’s Board in January 2026, following the organization’s Annual General Meeting (AGM). “On behalf of the Board, I would like to congratulate Dan, Robyn, and Stuart,” says SPG Chair Winston van Staveren. “Each elected member brings valuable experience, expertise, and diverse perspectives that represent a wide range of growing regions across the province. I also want to thank all the candidates who put their names forward. The increased level of engagement and strong slate of candidates this year was positive to see.” Van Staveren also ack

Pulse Market Insight #287

Big Crops But No Surprises From StatsCan The long-awaited 2025 yield and production estimates from StatsCan were released this week but were a bit anticlimactic; anyone looking for a surprise in the numbers would have been disappointed. Yes, crops were certainly larger this year but that was already expected. During harvest, reports of very large yields kept coming in, well above StatsCan’s August and September numbers. As a result, this month’s higher yield estimates from StatsCan were anticipated. In fact, it would have been a shock if the yield numbers hadn’t changed. These latest estimates from StatsCan were based on a large farmer survey conducted in November and confirmed the positive harvest results. In fact, they may have understated the actual yields, as they sometimes do. The StatsCan numbers show the total 2025 pulse crop at 8.22 mln tonnes, a jump of more than 2 million tonnes from last year and the largest production since 2016/17. There were differences for each of the

Alberta Grains and Western Crop Innovations Launch Three-Year Agreement to Strengthen Barley Breeding in Alberta

Alberta Grains (AG) and Western Crop Innovations (WCI) have signed a new three-year Breeding and Technician Chair agreement to advance feed barley breeding in Alberta. Announced at the Alberta Grains Regional Meeting in Lacombe, the partnership represents a $600,000 investment from Alberta Grains, delivered at $200,000 per year, to fund a breeder and senior technician dedicated to high-impact barley research and variety development. Strengthening the Future of Public Plant Breeding in Canada Cereal breeding in Canada has long relied on public funding, but the landscape is rapidly shifting. With the Canadian Food Inspection Agency (CFIA) moving forward on Seed Regulatory Modernization and farmers urging Prime Minister Carney’s government to recognize agriculture’s economic importance, the need for sustainable public plant breeding has become a national discussion. At the same time, Agriculture and Agri-Food Canada (AAFC) faces budget reductions and plans to exit variety development i

Maizex Seeds Invests in the Future of Seed Corn Production in Canada

Maizex Seeds, the seed division of Sollio Agriculture, announces the groundbreaking of a major $8.8 million investment in a new seed corn processing and packaging plant at their Blenheim, Ontario, facility. Maizex Seeds is a national company producing and selling corn and soybean seeds to farmers from coast to coast in Canada under the Maizex brand. The company also sells forage seeds and cereal varieties to farmers in eastern Canada and recently introduced several canola hybrids.

© 2025   Created by Darren Marsland.   Powered by

Badges  |  Report an Issue  |  Terms of Service