The COVID-19 battle reveals shortcomings in our global supply chains, creating questions that will spark hot debate now and in the months to come. How much are we willing to pay to ensure that essential goods and services are available in our country during a crisis? What goods and services are essential? Should taxpayers fund […] Read more
Author Archives
Trade relationship with Indonesia needs cultivating
The hottest place I have ever been in my life was inside Bogasari Flour Mill’s mammoth plant in Jakarta, Indonesia. It was 1997 and I was covering a Canadian agricultural trade mission to Indonesia and Japan, led by then federal Agriculture Minister Ralph Goodale. Situated harbourside with direct access to ocean-going ships, the Bogasari plant […] Read more
Weaker meat demand expected when panic buying ends
This COVID-19 pandemic is revealing weakness in our society and markets and the weirdness of human reaction to stress. One example is the strange situation of huge demand for meat as panicked consumers clear beef, pork and chicken out of grocery cases while at the same time livestock futures prices plummet. Two psychologies are at […] Read more
Oil war between Russians, Saudis adds to chaos
The leaders of Saudi Arabia and Russia are taking advantage of a crisis to do what couldn’t be done before. From my reading, the two opponents in this latest oil price war might have different motivations but the overall result is to knock out higher priced oil plays around the world and to add further […] Read more
Canola values resilient in face of drop in oil and markets
The COVID-19 virus worldwide and the rail blockades at home have depressed grain futures prices but canola prices have fared better than most other parts of the vegetable oil complex and crude oil values. Its relative strength might be explained by the fact that since most canola shipments have been barred from China anyway, the […] Read more
COVID-19 outbreak fears spark sharp market selloff
Whether you call it a crash or correction, world stock markets fell heavily last week as uncertainty about how the COVID-19 coronavirus will slow economic growth shook investors. Commodity markets also fell as analysts tried to figure out how actions taken to reduce the spread of the virus, such as quarantines and travel restrictions, will […] Read more
Second wave of biofuel production could wash fuel clean
Biofuel expansion is on the agenda of many countries. Canada, the United States, Indonesia and Malaysia are all engaged in or talking about increased biofuel use. I think new biofuel targets will benefit society by using surplus agricultural production to lower the carbon intensity of transportation fuel. But sensitivity is needed. Care must be taken […] Read more
Crop market’s Magic 8-ball says: reply hazy, try again
I need to take my crystal ball into the shop for a tune-up. Its view has become very hazy. It failed me back in early January when I was writing about how the shortage of palm oil was a solid supply and demand situation not influenced by political whims and sure to provide strong, continuing […] Read more
Meat tax idea misguided effort to address concerns
Canadian farmers frustrated over an ever widening gap of understanding between themselves and urban consumers should learn what is happening in Europe. What many Canadian farmers fear could happen here regarding government environmental and animal welfare policy is already law in parts of Europe. And Europeans are debating new policies that could have even greater […] Read more
Wuhan coronavirus outbreak needs perspective, not panic
When there is an unknown threat such as the Wuhan coronavirus it is hard to forecast what will have the biggest global economic impact, the disease or the effort to contain it. This is an agricultural markets column so let’s focus on how the futures markets are reacting. The first cases in China were detected […] Read more
