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: 676

▶ 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

The Most Wanted Wheat Seed Across the Prairies — AAC WALSH

PART ONE The sign was up before anyone knew who put it there. No name. No description. Just a dark silhouette nailed to the side of the grain elevator, paper already curling at the edges where the prairie wind worried it loose. MOST WANTED. That was all it said. In a town like this, that was enough. People here understood value. They understood timing. They noticed things that arrived quietly and stayed put. By midmorning, more than a few sets of eyes had found their way to the elevator wall, lingered longer than necessary, then moved on without comment. At the café, steam rose off coffee cups and hung in the air like unfinished sentences. “Yield and protein like that,” someone said eventually, not looking up, “oughta be outlawed.” It was meant as a joke. It didn’t land like one. No one asked who that was. Nobody needed to. The phrase carried weight all on its own, passing from table to table, slipping into conversations that paused just long enough to acknowledge it. By the

Canada-China Trade Agreement Boosts Outlook for Canola and Prairie Seed Sheds

Renewed exports may narrow the basis and reduce surplus stocks, but rebuilding grower confidence will take time. Tariffs and economic trends are often discussed in the abstract, but their consequences couldn’t be more concrete for Prairie seed sheds. In recent months, real-world examples have already reared their heads — such as canola multiplications in California facing counter-tariffs — forcing Canada’s seed sector to adapt to a trade environment that can change quickly, even when agreements are reached. The recent trade deal between Canada and China has brought some much-needed relief to the sector, particularly around market access and export movement. But for many farmers and seed companies, the agreement also underscores a hard truth: the impacts of trade disruptions don’t disappear overnight. It is little surprise that global trade ripples affect local decisions: fewer seed options, changing input costs, and constrained access to genetics. “Tariffs create uncertainty in an

Canada Gains Expanded Meat Access in Indonesia

Canada has secured a major expansion of market access for beef and pork exports to Indonesia, marking a significant milestone following the signing of the Canada–Indonesia Comprehensive Economic Partnership Agreement (CEPA) last September. 

'Phone in one hand, beer in the other': High-tech automation is giving farmers more time

Anyone visiting Don Badour’s cow-calf operation in the last 18 months will have noticed his cattle sporting some spiffy orange bling around their necks. The bovine baubles aren’t just for looks, however. They’re part of a sophisticated virtual fencing system that helps the Lanark County farmer monitor and track his herd’s movement and wellbeing. Badour is quite pleased with the investment — and so are the cows. “I thought that the cows might be not too happy with them on, but we put them on, they gave their heads one or two shakes, and that's it,” Badour said during a panel discussion at the 2026 Northern Ontario Ag Conference, hosted by the Northern Ontario Farm Innovation Alliance in Sudbury Feb. 6-7. “They've come to realize they're there. So we haven't had any trouble with the cows rejecting them.”? ?Made by the New Zealand company Gallagher, the eShepherd neck bands weigh about eight pounds each and are powered by solar-charged batteries. They run on GPS and the system is ope

Trump EPA sued over reapproval of dicamba herbicide as farm and environmental groups warn of renewed crop damage

Farmers and environmental organizations have launched a new legal challenge against the Environmental Protection Agency, arguing its latest approval of the controversial herbicide dicamba ignores court rulings, scientific evidence and the interests of growers harmed by chemical drift. The lawsuit, filed Friday in federal court by a coalition that includes the National Family Farm Coalition, the Center for Biological Diversity, the Center for Food Safety and Pesticide Action & Agroecology Network, challenges the EPA’s decision to re-register dicamba for use on genetically engineered soybeans and cotton. The decision marks the latest chapter in a years-long dispute over dicamba, a weedkiller widely used in U.S. agriculture but criticized for its tendency to volatilize and drift, damaging nearby crops, orchards and natural vegetation. “EPA’s re-registration of dicamba flies in the face of a decade of damning evidence, real world farming know-how and sound science, and, oh-by-the-way, t

© 2026   Created by Darren Marsland.   Powered by

Badges  |  Report an Issue  |  Terms of Service