By all accounts, the financial situation to the south of us appear to have the hallmarks of another recession as you suggest Michael. As our federal minister of finance, Mr. Flaherty has announced the recession of 08 ended, I can well imagine the looming American financial difficulties will inspire new verbiage for the approaching recession..... but the price of commodities???
There has been some interesting discussions concerning the price of commodities... and as we all know... the price in Chicago does not always translate in the same way to the farmer.
The UN Special Rapporteur on food, Mr. Olivier De Schutter, released a report recently called the Food Commodities Speculation and Food Price Crises.
Mr. De Schutter writes: '[Beginning in ]2001, food commodities derivatives markets, and commodities indexes began to see an influx of non-traditional investors,; De Schutter writes. 'The reason for this was because other markets dried up one by one: the dotcoms vanished at the end of 2001, the stock market soon after, and the US housing market in August 2007. As each bubble burst, these large institutional investors moved into other markets, each traditionally considered more stable than the last. Strong similarities can be seen between the price behaviour of food commodities and other refuge values, such as gold.'
Solution: take Sovereignty away from individual nations for the ultimate solution of global food regulation.
Jacques Diouf, Director-General, UN Food and Agriculture Organization, called for "bolstered global governance system for world food security". He said, “We have to build a more coherent and effective system of governance for world food security; we have to correct the policies and international trade system that have resulted in more hunger and poverty." when responding to the 2008 food crisis (which many blamed on bio-fuels at the time)
Will the higher prices translate into more money for the farmers? I doubt it. There appears to be a movement afoot to control agricultural commodity prices under the guise of "food security" with enhanced trade.
If anything, food commodity prices will be globally harmonized... which will not bode well for Ontario farmers.
The number of Canadian farm operators continues to fall, but women are a growing percentage of working farmers and now account for just more than 30 per cent of all farmers, according to the 2021 Canadian Census of Agriculture.
The price of groceries continued to climb in July, even as the broader Canadian inflation rate moderated. A Statistics Canada’s consumer price index on Tuesday pegged the July inflation rate at 7.6%, down from the near four-decade high of 8.1% notched in June. It was the first month-over-month decline in the inflation rate in a year. However, prices for food purchased from stores were up 9.9% in July, compared to the 9.4% advanced posted in June.
The harvest of winter wheat and fall rye crops is underway in Manitoba, with some barley and dry pea crops also now coming off, according to the latest weekly provincial crop report. Early yield results are described as average, with crop conditions generally looking good to very good in most parts of the province. In total, less than 1% of the Manitoba crop is in the bin.
Binding arbitration has resulted in a new two-year contract agreement between CP Rail and its workers. CP announced the deal with Teamsters Canada Rail Conference (TCRC) earlier this week, one that includes a 3.5% wage increase in 2022 and 2023 and increased benefits. Under the arbitration decision, the TCRC – which represents approximately 3,000 locomotive engineers, conductors, train and yard workers across Canada - will also join a CP Pension Improvement Account.