Analysts think African swine fever could decimate China’s hog herd, forcing it to significantly increase meat imports
African swine fever is about to unleash the most profound changes in meat and feedgrain markets that farmers will see in their lifetime, says a market analyst. Shawn Hackett, president of Hackett Financial Advisors, said a “pandemic of infection” in China is going to lead to surging demand and prices for North American meat products. […] Read moreAuthor Archives
Decline in U.S. soybean acres expected to continue for years
Like many analysts, those at the U.S. Department of Agriculture are predicting a steep drop in U.S. soybean acres next spring. Unlike many analysts, they are not forecasting a rebound in those acres in the years that follow. In its base line projections used for budgeting purposes, the USDA is forecasting 82.5 million acres of […] Read more
Storing grain considered a risky plan
A broker advises farmers to buy call options as a way to protect themselves in a downward trending market
Now is a good time to consider buying call options, says a commodity broker. “Right now I’m pushing the option side because to me they’re a bargain,” said Errol Anderson, broker and author of the ProMarket Wire newsletter. Call options that typically cost about $15 to $18 per tonne are going for about $10 per […] Read more
Pricey canola squeezes crush margins, lowers production
Slow crushing pace could jeopardize Agriculture Canada’s crush forecast of 9.49 million tonnes this year
Canola crush margins have been in the doldrums, but they are starting to improve, says a futures trader. Ken Ball, futures adviser with PI Financial Corp., has his own version of a crush margin index, which compares the value of canola seed to that of oil and meal. The index was in the $100 to […] Read more
Green lentil potential seen a long way off
India’s import tax hasn’t helped price outlook, but a 28 percent increase in North American supplies is the real problem
No matter how hard Chuck Penner shakes his Magic 8 Ball, the answer is the same — outlook not so good. His question? What is the prognosis for green lentils? “I’d love to be optimistic but I can’t find any grounds for it,” said the LeftField Commodity Research analyst. Large green lentils are selling for […] Read more
Winter to start wet, end dry
Farmers can expect an atypical El Nino winter, says a weather forecaster. Meteorological agencies in the United States and Australia believe an El Nino will soon be forming, which usually means a warm and dry winter for the Canadian Prairies. However, World Weather Inc. thinks the opposite will happen at the start of winter. Company […] Read more
Aussie wheat wreck to boost prices
Drought is expected to reduce the country’s winter crop to 28.22 million tonnes, 31 percent below the 10-year average
One of Canada’s main rivals in the grain export business is having a wretched year and that will likely lead to increased demand and higher prices for Canadian crops, says an analyst. The Australian Department of Agriculture and Water Resources (ABARES) forecasts a total winter crop of 28.22 million tonnes. That would be the smallest […] Read more
Canadian pulses attacked in India’s press
A number of influential newspapers in India are telling their readers that imported Canadian lentils are poisonous. The stories stem from an Oct. 12 order issued by the Food Safety and Standards Authority of India (FSSAI). The order instructs FSSAI officers to test imported pulses for the presence of glyphosate. “There is a possibility of […] Read more
India’s pricing threatens imports
There is a crisis brewing in rural India, and that doesn’t bode well for a resumption of pulse trade to that country, says an Indian broker. Vivek Agrawal, director of JLV Agro, an Indian commodity brokerage firm, said pulse markets have been stagnant and there is a danger of them heading down. “The fear is […] Read more
Momentum builds to change grain act
Momentum is building to modernize the Canada Grain Act and the Canadian Grain Commission, says an industry executive. There have been several legislative attempts to update the act, which hasn’t had a thorough overhaul since the early 1970s, but all attempts failed to pass through Parliament. “It never seems to make it high enough on […] Read more
