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: 717

▶ 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

North American Farm Groups Unite to Strengthen USMCA/CUSMA Ahead of 2026 Review

Farm organizations across North America are urging governments to reinforce CUSMA/USMCA, warning that stability in cross-border trade is essential to producers in all three countries.

US Cuts Tariffs on Agricultural Machinery to 15% - What It Means for Farmers

The U.S. is reducing tariffs on farm equipment imports, a move expected to ease cost pressures for farmers and support equipment investment.

Farmer wellness initiative offers support across Ontario

The mental health of Ontario farmers is receiving greater attention through the Farmer Wellness Initiative, a program designed to support the well-being of farmers, farm workers, and their families across the province. Operated through Agriculture Wellness Ontario, the initiative offers free and unlimited counselling services tailored specifically to the agricultural community. Farming is often described as more than just a career; it is a lifestyle that comes with long hours, financial uncertainty, unpredictable weather, and emotional stress. Recognizing these challenges, the Farmer Wellness Initiative provides access to trained mental health professionals who understand the realities of agricultural life. Support is available 24 hours a day, seven days a week, through a confidential helpline. The program is open to Ontario farmers, farm employees, international agricultural workers, and family members over the age of 16. Youth between 12 and 15 years old may also access services wi

Ontario's pitch to expand northern farming sparks questions from farmers, food security experts

Ontario is pitching its plan to expand agriculture in the north and restrict foreign ownership of farmland as a way to strengthen food security and protect farmers. But some farmers, researchers and environmental advocates say the proposed legislation leaves unanswered questions about land ownership, affordability and whether more production would improve food access in the north. The province introduced the Protecting Ontario’s Food Independence Act, 2026 on April 22. The bill would limit foreign ownership of farmland and “unlock” agricultural potential in the Clay Belt — a region of fertile soil in northeastern Ontario and northwestern Quebec covering 180,000 square kilometres. In a statement to CBC News, the Ministry of Northern Economic Development and Growth said expanding agricultural access in the Clay Belt would help farmers grow their businesses, create jobs, increase local production and strengthen domestic supply chains. Province says Clay Belt offers growth opportunity

Rapid seeding progress made in some areas of the province

Farmers are dealt with all kinds of weather conditions this spring. The mixed precipitation in late-April, subsequent rainfall, and the recent heat wave resulted in producers beginning seeding operations one week or more later than normal. Jeremy Welter farms in the Kerrobert area in west-central Saskatchewan and is also a Vice-President with the Agricultural Producers Association of Saskatchewan (APAS). He said while the warm weather allowed them to catch up, it did provide a challenge to equipment. "The high temperature did certainly help to dry land out so the guys could get on it. That being said, those really hot days, they add a lot of stress to your machinery," he said. "You really notice it when you get out of the tractor. Even on a cool day, the tractor's blowing a lot of warm air off of it, but on those plus 35 days that temperature is as hard on equipment as it is on people, so it definitely creates additional challenges." In the Kerrobert area, they're about a week to

© 2026   Created by Darren Marsland.   Powered by

Badges  |  Report an Issue  |  Terms of Service