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: 670

▶ 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

AAFC cutting 665 positions

The cuts are part of the prime minister’s promise to reduce the public service

Canada And Ontario Investing $20 Million To Protect Local Farmers And Agribusinesses

The governments of Canada and Ontario announced they are investing up to $20 million through the new Market Diversification and Trade Resiliency Initiative to help farmers, food processors and agribusinesses sell more Ontario grown products around the world. Officials say the Initiative will fund a variety of projects to increase competitiveness for farmers and agribusinesses and support their expansion into new and international markets as part of the provincial government’s plan to protect Ontario’s agribusiness sector. As part of the Sustainable Canadian Agricultural Partnership, this investment supports the province’s Grow Ontario Strategy to give farmers and businesses the tools they need to build long-term resiliency, create good-paying jobs and stay competitive in the face of tariffs and economic uncertainty. “Expanding markets for Ontario food products ensures farmers and food processors have more reliable export opportunities,” said the Honourable Heath MacDonald, Minister

Northern BC canola farmers remain cautious as Chinese tariffs set to ease

Canola farmers and business leaders in northeast B.C. are welcoming the expected relief from easing Chinese tariffs, but say the industry still faces uncertainty going into this year’s growing season. “A deal doesn’t mean a sale,” said Les Willms, who grows between 1,300 and 1,500 acres of canola each year at his family farm in Rose Prairie, north of Fort St. John, B.C. Like many farmers in the Peace region, Willms is watching closely to see whether a new deal announced last week between Canada and China leads to renewed demand and a rally in prices in the coming weeks. Under the deal, China is expected to lower tariffs on some Canadian canola products by March 1. In exchange, Canada will allow up to 49,000 Chinese-made electric vehicles in the country at reduced tariffs. It follows months of uncertainty after China imposed retaliatory tariffs last year in response to Canada’s decision to slap 100 per cent duties on Chinese EVs. “Hopefully we'll get some cargos going into Asia,” W

Carney's Canada-China deals are the product of months of diplomatic hustle

The agreements Prime Minister Mark Carney brokered over the two days of his Beijing visit are the result of months of diplomatic work and cultural knowledge, international relations experts say. Carleton University international affairs professor Fen Osler Hampson said Carney "would have not gotten on the plane" without knowing first he had "something big, some big bacon to bring back home." "The team supporting the ambassador would have definitely been working overtime on this one." On Friday, Carney announced China had agreed to lower agricultural tariffs in exchange for some access for Chinese electric vehicles to the Canadian market, and that Beijing had agreed to eventually loosen its visa requirements for Canadian visitors. A day prior, he oversaw the signing of agreements touching on finance, pet food, lumber, oil and green technology. Asia Pacific Foundation vice-president Vina Nadjibulla said the agreements are the product of "an iterative process" of discussions between

Province celebrates evolution of agriculture at 49th annual Ag Days

The Manitoba government is welcoming thousands of producers, manufacturers, processors and retailers from across Canada, the United States and internationally to celebrate the evolution of agriculture at the 49th Annual Manitoba Ag Days, taking place this week at the Keystone Centre in Brandon. “Manitoba farmers and agri-businesses are innovators who continue to adapt to challenges such as climate variability and market fluctuations,” said Agriculture Minister Ron Kostyshyn. “Ag Days provides an important platform to share knowledge, showcase cutting-edge technologies and strengthen Manitoba’s position as a leader in agricultural excellence. Our government is committed to supporting this vital sector through strategic investments in research, innovation and sustainable practices.” The three-day event will showcase the latest in agricultural technology, equipment and research, with speakers from across the world presenting throughout the exposition. A new vendor’s market will highligh

© 2026   Created by Darren Marsland.   Powered by

Badges  |  Report an Issue  |  Terms of Service