PEI GEC Update
Dear Customers and suppliers.
Since the beginning of the COVID- 19 outbreak, we have been carefully monitoring the progression of the virus and closely following the advice of PEI’s public health authorities. As the virus continues to spread in communities across Canada, we have made the important decision to continue to provide our services to our clients through a digital office space (email or phone) for the time being at the Head office at 62 Victoria Street, Kensington. Please no in-person visits for the next two weeks.
Meanwhile at our Elevators we are operating with smaller staff and maintaining Social Distancing and sanitation practices to keep our employees and customers safe.
We thank you for understanding! Please don’t hesitate to contact us by phone or email.
Covid 19 Response Dear Customers and suppliers. Since the beginning of the COVID- 19 outbreak, we have been carefully monitoring the progression of the virus and closely following the advice of PEI’s public health authorities. As the virus continues to spread in communities across Canada, we have made the important decision to continue to provide our services to our clients through a digital office space (email or phone) for the time being at the Head office in Kensington. Some staff including myself will be working from home as much is possible. Please no in-person visits for the next two weeks. Meanwhile at our Elevators we are also operating with smaller staff numbers and maintaining Social Distancing and sanitation practices to keep our employees, truckers and customers safe. Hopefully this will enable us to continue to offer our high standard of service. We thank you for understanding! Please don’t hesitate to contact us by phone or email. Thanks Neil
PEI GEC Update
Traders still watching for news from the China/US trade talks, with the US pressing China to trim ag tariffs and start making some further purchases of US ag products, without waiting for an overall trade agreement. Of course China will want to use that as a bargaining chip to get some concessions from the US in the process.
While news of China purchases would likely trigger a rally, it will not really alter the overall outlooks. US supplies are huge heading into new crop seeding, and SA supplies are already moving onto world markets. The bean market likely needs to work to try to trim US bean acres even further than what is forecast now. Growers may need to move some cash beans into seeding.
Feds invest in Canadian crops. On Tuesday the federal gov’t announced an investment of up to $39.3 million to four science clusters including barley, wheat, diverse field crops and soybean under the Canadian Agricultural Partnership. These investments include an additional $28.4 million in contributions from industry, for a total investment of $67.7 million.
The US Soybean harvest progress (32 percent complete) is behind the five-year average harvest pace. it’s still too wet to harvest anything in most of the Midwest & Southern Ontario and soybean pods are splitting open and sprouting in some fields. More maybe more rain coming with Hurricane Micheal.We all need to have some better weather. There are lots of contracts to fill as of yet. A monthly set of USDA supply and demand estimates will be released Thursday, so pre-report positioning may still be taking place today. Mostly bearish interest have been shown in the soybean market, which is leading to losses today. Currently November futures are down $0.12 cents / bu.
The Can $ is also slightly lower today
Wheat update on GMO and Japan
On July 10, Japanese authorities confirmed that they have updated their analysis methods to include a test for the presence of the MON 71200 GM wheat event, based on the test developed by the CFIA but with some modifications to calibrate it to the equipment available in Japan. Currently Japan’s Ministry of Agriculture Forestry and Fisheries is using this test on Canadian wheat that is being held in storage.
Japan has not yet determined when they will start selling/distributing the Canadian wheat within Japan, but will provide a notification when they are ready. The Government of Canada continues to work closely with Japan and will provide further updates as they are available.
PEI GEC update
Stats Canada stated last week that Corn & Wheat cares are going to be up and Soybean acres will be down across the country.
Corn futures were unchanged early Thursday, but still near its highest prices in eight months .
Still a lot of uncertainty about the size of the Argentina bean crop, with estimates mostly now in the 40-44 mmt range. Down about 10mmt. Harvest will be early in many areas after a warm and dry summer. Harvest activity will be picking up over the next few weeks, and yields are expected to be very variable. Brazil’s harvest is now past the 65% range. The Argentina losses will be offset by a big Brazil crop, higher US supplies.
The Can $ is lower again today by half a cent. Sitting at $ 77.050 at this time. Since Feb 1st we have gained and benefited from a 4 cent drop in the Can $ . So much for the experts suggesting we were heading for par by summer, a very unforeseen turn of events for the dollar. This has been a excellent opportunity for producers to book. Fundamentally the supply & demand situation shows the market shouldn’t be reacting this way. ( But hey ! the market is always right. )