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
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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
Soft wheat futures score rare lead over spring wheat
Wheat market bullishness, particularly tight U.S. supplies of soft wheat, has driven the Chicago wheat futures price into a rare lead over Minneapolis spring wheat. There are fundamental supply-demand factors supporting wheat prices and some think there is a possibility that spring wheat will eventually ride the coattails of Chicago higher. But there is also […] Read more
Russia raises eyebrows with talk of limiting grain exports
As Western Canada endured record-breaking cold last week, much of Russia and Europe enjoyed milder than normal weather. And as we parse the words of our federal leaders for their potential foreign policy and trade reactions in foreign capitals, it is interesting to note that that there are sensitivities everywhere. Last week India, the world’s […] Read more
