Canadian Government Invests in Agriculture

Oct 10, 2014

National Traceability Database Could Give Canadian Livestock Boost in World Markets

Farms.com

The Federal government has released information regarding a database that could potentially transform business for Canadian livestock producers. The announcement comes as a relief to consumers who are increasingly questioning where their food comes from, as well as its safety for consumption.

Gerry Ritz, Minister of Agriculture, announced the database as a way to address the concerns of consumers. He points out that this is an opportunity for databases of various Canadian industries to be brought together under a single portal. Ritz claims this database will be easier to maintain and would provide more accurate information for producers and distributors, as well as consumers.

This is seen as a benefit for Canadian livestock products that are sold overseas. This is the first database of its kind in the world which has put Canada in the lead for ensuring its products are safe and transparent. It also provides greater trust with trading partners like Japan and the European Union in Canadian livestock.

The livestock industry is one that is dependent on quality and trust. When a country is unable to swiftly determine the quality of the product they are trading, it puts the entire industry at risk. With this national database Canada can ensure the markets that disease outbreaks are contained, as well as limiting the need for product recalls. The database also has implications for the safety and well-being of herds in Canada. The service could provide real time data that could protect entire herds from severe weather conditions. The service which will see an investment of $7.5 million dollars from the federal government should be functional within two years according to the minister.

Video: Will the 2025 USDA December Crop Report Be a Market Mover/Surprise?

Historically, the USDA December crop report is a non-event or another dud report as the USDA reserves any final supply changes to the final report in January of the following year in this case 2026. But after the longest U.S. government shutdown in history at 43 days and no October crop report will they provide more data/surprise and make an exception?
Our China U.S. soybean purchase tracker is now at 26.6% or a total of 3.2 mmt but for traders it’s taking too long to unfold.
The final Stats Canada production report was bearish canola and wheat projection a record crop in both (it adds to the global glut of supplies) and bullish local corn and soybean prices in Ontario/Quebec thanks to a drought. It will not help the fund flow short-term, the USDA may need to offset it?
A U.S. Fed interest rate cut of another 25-basis point next Wednesday (probability 87.1%) could help fund flow and sentiment in stock and ag commodities into year end.
More inflows into Bitcoin this past week saw prices rebound back above 90,000 with support at 82,000 and resistance at 96,000.
A V-shaped bottom in cattle suggest the lows are in after Mexico reported another new world screwworm case. Lower weights, seasonal demand and higher U.S. beef select/choice values with a continued closure of the Mexican border to cattle will result in a resumption of higher cattle futures into yearend.
Australia is expected to produce its 3rd largest wheat crop ever at 36 mmt adding to the global glut of supplies.
Reports of ASF in hogs in Spain the largest pork exporter in Europe could see the U.S. win more pork export business long-term.
If the rains verify into next week of 3-5 inches for Brazil it would go a long way to fixing the dry regions from the last 2-months, but the European weather model has been wrong for the past 2-months!
Natural gas futures are surging to the 3rd price count as frigid hold temps set in.
CDN $ is also surging to end the week on a very resilient economy and better employment numbers suggesting no interest rate cuts next week.
Finally, the CFTC report showed funds were net buyers of soybeans but sellers of corn, canola and wheat. In real time the funds have gone back to selling as they take some profits.