Market Recap for November 25, 2022
Chicago corn futures were flat, soybeans crept higher, while wheat futures posted moderate losses from last week.
The corn futures fell earlier in the week on concerns over a possible rail strike in the U.S. The prices, however, rebounded on Friday as traders focused on dry weather in Argentina. Reuters News reported that analysts are also worried about challenges for Ukraine’s harvest next year.
Soybean prices drew support from positive U.S. export volumes during the week. However, news that Argentina would devalue its currency to boost soybean export sales weighed on the market.
Wheat prices slumped on Friday as a large Russian crop continued to pressure the prices.
In southwestern Ontario, the basis for the 2022 corn crop on Friday was mostly steady to 3 cents higher, ranging from $1.38 to $1.48, plus the December future. Most soybean basis values were $4.50 to $4.56 over November, up 15 cents at the bottom end of the range, and 4 cents lower at the top. For the 2022 Soft Red Winter Wheat crop, most basis levels were around $1.45 to $1.49 over the December future, down 3 cents from the top.
For corn, the December future closed at $6.68, unchanged from the previous week. The new crop (2023 harvest) December 2023 future was also unchanged at $6.11.
The high Chatham-Kent (CK) 2022 crop price was up 3 cents at $8.16; the new crop (2023) was down 5 cents at $7.41.
At the same time last year, the high CK old crop price was $7.06; the new crop was $6.53.
The January 2023 soybean future was up 8 cents at $14.36. The new crop, Nov. 2023 future was up 5 cents at $13.79.
On Friday, the CK high harvest 2022 price was $18.92, up 4 cents. The harvest 2023 price was up 15 cents at $17.79.
Last year, the CK high old crop price was $15.67; the new crop was $15.20.
For wheat, the December future closed at $7.76, down 27 cents from last week. The July 2023 future was down 23 cents at $8.12.
The high CK Soft Red Winter Wheat price (harvest 2022) was down 30 cents at $9.25. The new crop (harvest 2023) price was down 26 cents at $9.52.
Last year, the old crop price was $9.61; the new crop was $10.13.
Ontario Agricultural Conference: Embracing Change
From a news release
With our first-ever hybrid conference, there is no doubt that the Ontario Agricultural Conference is Embracing Change. With an amazing lineup of incredible topics and world-class speakers, this conference is too good to miss. But attendees will have to Embrace Change as well.
What stays the same? All 50 (yes, fifty!) sessions will be recorded and posted for participants to watch online until March 31. Full virtual attendance remains available, as it has for the last two years. There are two “Live Days” on Jan. 4 (all locations) and Jan. 5 (Ridgetown only). Feature presentations will be live and streamed to all locations and virtual attendees. The Production Pundits (session 7) will wrap up the conference on Jan. 5, answering questions arising from the amazing content at the conference. And, of course, TEC Talk Tuesdays are back every Tuesday night from 7 p.m. to 9 p.m., Jan.10 to Feb. 21.
What is different? Gone are the days of eight concurrent sessions and dashing from building to building at Ridgetown. Gone is a totally separate conference in Midwestern and Eastern Ontario on different dates. All the life events happen on Jan 4., with a second live day only at Ridgetown on Jan. 5. At Kemptville and Waterloo on Jan 4th, feature sessions will be streamed from Ridgetown, with LIVE speakers delivering great content between the feature sessions. At Ridgetown, feature speakers present live to the in-person audience while streaming simultaneously to all other participants. Between the feature presentations at Ridgetown, attendees can choose from two concurrent sessions, one line and one on-demand session.
Different options: With this format, there is something for everyone. For those who prefer the in-person interaction opportunity in the hallways and the trade show, there is a local option for you. For those that just can’t make in-person work, the full virtual experience remains. For virtual attendees, the “Sip n’ Social” on Jan. 4. lets you participate virtually in the in-person event. In Embracing Change, #OAgC23 goes the extra mile to offer options and opportunities to make the conference fit your learning style.
So embrace Change and get registered. Visit the Conference website, personalize your registration, and get ready for Jan. 4 and Jan. 5.
Reboot in 2023 Focus of Ridgetown’s 59th South Western Ontario Pork Conference
From a news release
Registration will open Dec. 1, 2022, for the 59th annual South Western Ontario Pork Conference (SWOPC) and producers and industry representatives will return to Ridgetown Campus for an in-person event on Wednesday, Feb. 22, 2023.
“This is an exceptional opportunity to share the latest industry and research news with Ontario producers while providing time for networking with industry representatives,” says Darren Sloan, Chairperson SWOPC Planning Committee.
Beginning at 12:30 p.m., guests will have the opportunity for an informative walking tour of the Ridgetown Campus Swine Education Centre. Curtis Mikel, College Research Professor, will host the on-site tour and is excited to show producers this exceptional teaching facility.
From 2 to 4 p.m.,. registrants will have the opportunity to enjoy the Conference Trade Show and meet with a diverse group of industry representatives.
Beginning at 4 p.m., the guest speaker line-up includes:
- Ryan Martin, Producer, Chatsworth, Ont. will share some key learning experiences.
- Chantel Farmer, Research Scientist, Agriculture and Agri-Food Canada, Quebec, will share her latest findings in swine lactation biology.
- Dr. Ryan Tenbergen, Veterinarian, Demeter Veterinary Services, Woodstock, will address local herd health issues.
Following the speaker presentations, registrants will have time to network and socialize as they enjoy dinner. The Conference’s feature speaker, Dr. John Patience, Professor Emeritus, Iowa State University, Iowa, a global leader in swine nutrition education, will wrap up the program. Pre-registration is $30.00 until Feb. 10, 2023. Students 18 years and under are $20.00. Register early and save $15.00.
Online pre-registration and the full program schedule are available on the Conference website.
The Conference welcomes further industry sponsorship inquiries, and questions from producers should be directed to Loree Elgie, Conference Co-ordinator, Business Development Centre, Ridgetown Campus, at firstname.lastname@example.org or call 1- 866-222-9682, or 519-674-1500 ext. 63273.
Ontario Unveils Plan to Strengthen Food Supply Chain from Farm to Fork
From a news release
The Ontario government is building a strong, secure food supply chain and securing the province's position as a food leader in Canada with the release of the Grow Ontario Strategy. The strategy outlines the province's plan to strengthen the agri-food sector, ensure an efficient, reliable, and responsive food supply and address ongoing vulnerabilities through new innovations. The sector's vulnerabilities include labour shortages, outdated supply chain infrastructure and declining processing capacity.
"The Grow Ontario Strategy is our government's plan to make sure the province's food supply chain remains safe, strong and stable from farm to fork," said Lisa Thompson, Minister of Agriculture, Food and Rural Affairs. "This plan is a bold vision of pride and trust in the quality and quantity of food produced in Ontario, grown on the foundation of a competitive agri-food industry that serves the needs of Ontarians, Canadians and the world."
The plan focuses on three key priorities:
- Strengthen Agri-food Supply Chain Stability: Increase both the consumption and production of food grown and prepared in Ontario by 30 per cent, increase Ontario's food and beverage manufacturing GDP by 10 per cent and boost Ontario's agri-food exports by eight per cent annually by 2032. This includes opening applications for the $10 million Food Security and Supply Chain Fund, which will provide funding for projects such as updated inventory software, expanded warehousing to allow increased inventory levels or automation equipment to address labour gaps. The province is also strengthening its food processing capacity and food security to position the sector for growth through the $25 million Strategic Agri-Food Processing Fund.
- Increase Agri-food Technology and Adoption: Boost research infrastructure, advance the uptake of new technologies, grow the market for Ontario's innovative technologies domestically and globally, and grow the use of data to support efficiencies in the agri-food sector and value chain. The province will also begin consultations on modernizing the Agricultural Research Institute of Ontario Act to fuel innovation and support efforts to provide modern, relevant research information to farmers and agri-food businesses.
- Attract and Grow Ontario's Agri-food Talent: The province aims to increase total agri-food sector employment by 10 per cent by 2032, as well as increase awareness of modern, high-tech agri-food careers, opportunities for mentorship and hands-on job training and support efforts to increase veterinary capacity in underserviced areas of the province. This includes launching public consultations to explore opportunities to modernize the Veterinarians Act as part of Ontario's plan to increase access to veterinary care.
For more, see the complete news release from the Ontario Ministry of Agriculture, Food and Rural Affairs.
Price Transmission in Canadian Agri-food Sectors Part Two
As outlined last week, tracing price transmission through the agri-food supply chain isn't straightforward. While there's some line of sight from the increased prices for farm-level inputs (e.g., feed grains) to increased prices for processed food products, that clarity varies by agricultural sector.
For example, supply-managed sectors operate in environments where shifts in the cost of production estimates lead to adjustments in the farm output price according to pre-determined formulas. But even here, "full" price transmission isn't guaranteed. In the case of dairy, both production costs and the overall consumer price index impact the farmgate milk price. Each driver rises (and falls) at different rates.
The processors' output price is a function of multiple factors, each of which has been subject to considerable and wide-spread volatility between 2019 and 2022: the shifts in the farm product price, inflationary pressures on other inputs (such as energy and labour); and negotiations with buyers (e.g., retailers) on the degree to which they can pass on their higher costs.
Non-supply managed sectors are also usually (if not always) characterized by imperfect price transmission. They're typically more exposed to global markets than are supply-managed sectors and have little control or influence over prices. Canada's livestock producers and meat processors are "price takers": The hog prices received by Canadian producers come from within a North American market, wherein U.S. prices play the largest determining factor.
Read the complete article on the FCC Knowledge website.
Farm Groups call on Federal Government to Return Tariff Payments
From a news release
Farm groups from Ontario, Quebec and Atlantic Canada are calling on the federal government to refund farmers who have borne the extra fees and costs resulting from tariffs on fertilizer in 2022.
Representatives from the Atlantic Grains Council, Québec Grain Farmers, Grain Farmers of Ontario, the Ontario Bean Growers Association, Ontario Canola Growers, and the Christian Farmers Federation of Ontario – representing more than 50,000 farmers – have come together to ask the government to ensure the refund of tariff fees goes directly to farmers.According to Statistics Canada, the federal government collected $34 million in tariff income on fertilizer imported into Canada in 2022. Since last spring, farmers have been paying tariff surcharges on fertilizer purchased to grow their crops. Much of these surcharges were placed on fertilizer purchased in advance of the tariffs being introduced.
For more, view the complete news release on the Grain Farmers of Ontario website.
More than 50,000 Ontarians sign on to Home Grown to Show Support for Farmland Preservation
From a news release
With a growing concern for the fate of Ontario’s fertile farmland, more than 50,000 people have signed on to show support for the Ontario Federation of Agriculture’s (OFA) Home Grown campaign.
The campaign, a public awareness initiative showcasing the threat to rural lands from urban sprawl and development, reached the milestone number over this past weekend. It shows strong support for smart urban planning policies that encourage development within existing urban areas while preserving the farmland that provides Ontario — and the world — with food, fuel, fibre and flowers.
“We are losing productive farmland at an alarming rate in Ontario,” says OFA President Peggy Brekveld. “The path we are currently on is not sustainable. We cannot continue to sacrifice the lands where we grow and raise our food in the name of growth. It may take some effort and creative thinking, but we can continue to develop Ontario without paving over our most precious natural resource – fertile farmland.”
According to the 2021 Census of Agriculture released earlier this year, Ontario is losing an average of 319 acres of productive farmland every day. Since 1996, Ontario has lost 1.5 million acres of productive farmland — an area roughly the size of Toronto, Peel Region, Halton Region, Waterloo Region, Hamilton and Niagara Region combined.
For more, see the OFA news release.