Consumers Want What Agriculture Can Provide

Jun 29, 2012

Food Trends Discussed at Annual C and M Seeds Wheat Industry Day

Customer’s changing lifestyles are creating new demands for agriculture to meet. The 21st Annual C and M Seeds Wheat Industry Day shed light on some of the new consumer food trends that are being noticed on the consumer demand side of agriculture and food. One of the featured speakers at the event Gary Fread enlightened the audience about three key trends:

· Asian vegetables

· Consumers seeking healthier food

· Food produced in a more “environmentally” fashion

Asian vegetables are on a demand to meet a growing marking for immigrants who prefer food from their homeland. Consumers are also seeking out healthier lifestyles to help lose weight and prevent diseases so fresh fruit and vegetables are on the rise, while other consumers are interested in purchasing local food that appears to be grown in an “environmentally” way.

There is tremendous opportunity for Canadian farmers to fill this void and become significant player on the export market. Agriculture will always be evolving to adapt and meet the local consumer and global demands. With the projected population increases from seven billion to eight billion in the next two decades food will continue to be in high demand with much of that necessity coming from developing countries.

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.